Our regulatory framework delivers best value
In setting charges, we make sure that our decisions are fully consistent with the Ministers' Principles of Charging, and that we strike the right balance between charges for current and future customers.
The Scottish Ministers' objectives encompass aspects such as levels of service, environmental standards, drinking water quality, and growth. Scottish Water has also been tasked with transitioning to net zero emissions by 2040.
What is more, as Scottish Water is publicly owned, every pound it raises through customers’ charges benefits the customers and communities it serves.
WICS’s regulatory framework makes sure that Scottish Water improves its performance and delivers these benefits.
Water charges in Scotland remain among the lowest in the UK, while Scottish Water has invested over 30% more per person since 2002 than the average company in England and Wales.
The Strategic Review of Charges 2027-33
Our draft determination of charges for 2027-33 allows Scottish Water to invest £7.9 billion over the next six years to deliver safe, reliable and improving services for customers across Scotland.
Our proposal limits the annual change in bills to no more than 2% above inflation in the normal course of events, or 2.3% if certain costs materialise. This means average bills would rise by around £12 per year before inflation.
The £7.9 billion programme will deliver excellent water quality, maintaining and renewing infrastructure as well as more ambitious performance targets in areas customers said matter most.
Our draft decision is now open for consultation, and we want to hear from people, communities and businesses before we publish our final decision in October 2026.
2027-33 Determination
Our draft decision would allow £7.9 billion of investment over six years, Scottish Water’s largest programme to date.
Greater choice for business customers
Since 2008 all 130,000 business and public sector customers have been able to choose their water and sewerage retailer. This is because the retail market was opened up to competition, in much the same way as happened in the gas and electricity industries.
These customers have benefitted through lower charges, more tailored retail services and greater choice. There have been environmental benefits too – water consumption has decreased by 20% since market opening, reducing the operational carbon footprint of the industry.
Our role is to manage the licensing framework for the retail market and to make sure that the market operates in an orderly fashion. We have put in place a number of measures to protect customers and to make sure that no customer is adversely affected.