Scottish Water has today announced the water and wastewater charges that will apply from 1 April 2026 to 31 March 2027, covering household customers and wholesale charges to Licensed Providers.
For 2026–27, charges will increase by 8.67% in nominal terms. For the average household, this means an increase of £42 a year, or around £3.50 a month from 1 April 2026. After inflation, this represents a 5.1% increase.
WICS published its Final Determination in December 2020 for the 2021–27 regulatory control period, allowing Scottish Water to increase charges by up to CPI + 12.6% over the six years. This cap ensures that customers pay no more than necessary to fund the investment needed to maintain and improve water and wastewater services.
Between 2021-22 to 2024-25, charges have risen below the rate of inflation to support customers during and after the pandemic. Ageing assets, more extreme weather and a shifting population continue to put pressure on Scottish Water’s ability to meet increasing customer and regulatory expectations. As a result, Scottish Water’s board have requested to increase charges to the cap enabling it to invest around £1.2 billion in this final year.
WICS has confirmed that Scottish Water’s proposed charges are within the 2021–27 price cap and will continue to monitor performance to ensure customers receive best value from their water services.
David Satti, Chief Executive of WICS, said:
“We have carefully reviewed Scottish Water’s charges for 2026–27 and are satisfied they remain within the overall price cap for the 2021–27 regulatory period.
“Our monitoring shows that customers continue to receive a high-quality service while paying one of the lowest water bills in the UK. This increase in charges, alongside around £170 million of borrowing, will enable Scottish Water to invest £1.2bn in maintaining and improving essential water and wastewater services. We will continue to monitor Scottish Water’s performance closely to ensure customers receive the outcomes they are paying for.”
WICS is looking ahead to set charges for the 2027-33 regulatory period. Our draft determination of charges will be published for consultation in June 2026. More information is available in our Methodology for the 2027-33 Strategic Review of Charges.
ENDS
Notes for editors
- 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
- The 2026-27 increase will take the average bill in Scotland to £532, which remains among the lowest of any water company in the UK.
- Around 1.4 million households (53% of customers) receive help through discounts, exemptions or reductions, largely delivered through the Council Tax–based charging system.
- 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.