Scottish Water has today announced its 2025-26 Scheme of Charges which cover the period 1 April 2025 to 31 March 2026. The scheme contains the retail charges from Scottish Water to household customers and wholesale charges from Scottish Water to Licensed Providers. It sets out a 9.9% nominal increase for household and wholesale primary charges.
WICS’ final determination, which set the lowest overall reasonable cost of delivering Ministerial Objectives for the 2021-27 regulatory control period, allows Scottish Water to raise charges by a maximum of CPI+12.6% over the six years. Scottish Water has the flexibility to propose the phasing of charging increases each year, provided charges are consistent with this overall cap.
WICS has reviewed Scottish Water’s 2025-26 charges scheme and approved it as being consistent with the overall price cap set out in the 2021-27 Final Determination of charges.
Interim Chief Executive, David Satti said:
“We have carefully reviewed and approved Scottish Water’s 2025-26 Charges Scheme as being consistent with the overall price cap set out in the 2021-27 Final Determination of charges. The approved increase enables Scottish Water to continue to deliver high standards of service, safeguarding vital infrastructure for both current and future customers. It represents the lowest annual rise in water charges across the UK, also ensuring Scottish Water’s average household bill will be the lowest in the UK.”
Notes
- WICS is the economic regulator of Scottish Water promoting the interests of both current and future customers. WICS is tasked with determining the ‘lowest reasonable overall cost’ that Scottish Water will have to incur to meet Scottish Ministers’ environmental, quality and service objectives for the industry. For more information visit: www.wics.scot
- Under Section 29A of the Water Industry (Scotland) Act 2002, Scottish Water must submit a Scheme of Charges specifying charges for all core services. WICS is required to approve this Scheme annually.
- The 2021-27 Final Determination set an overall cap of CPI+12.6% for the six-year regulatory control period.
- In reviewing the Scheme of Charges, WICS ensures proposals align with the price cap and comply with Scottish Ministers’ Principles of Charging.
- Scottish Ministers set the Principles of Charging for each regulatory period which outlines the policy decisions about how water charges are collected and which discounts apply. As a result, more than half of customers receive a discount on their bill.