The Water Industry Commission for Scotland (WICS) has today published its Final Determination on water and wastewater charges for 2027 to 2033, setting the framework for Scottish Water to deliver safe, reliable and resilient services in the years ahead.
The decision will save customers more than £80 in total before inflation by the end of the next regulatory period, with average bills rising by around £16 per year before inflation, approximately £4 less than Scottish Water had proposed. It also limits annual changes in charges to no more than 2.5% above inflation, with a further 0.3% increase available from 2029-30 only if uncertain costs arise.
The Final Determination also supports record levels of investment of around £7.9 billion in Scotland’s water and wastewater services – a 30% increase compared to the investment programme for the current regulatory period covering April 2021 to March 2027.
Scottish Water is publicly owned, commercially run and independently regulated. This distinctive model gives WICS the ability to challenge its decisions, make judgments on behalf of customers and hold the company to account.
The Strategic Review of Charges (SRC) is the process that sets water and wastewater charges in Scotland every six years. It sees WICS ask Scottish Water to produce a detailed business plan for the next regulatory period, setting out what it plans to deliver and how much it expects to spend.
As the independent economic regulator for water and wastewater services in Scotland, WICS’ role is to strike the right balance between supporting essential investment and keeping charges as low as possible.
Throughout the review, WICS challenged Scottish Water to demonstrate that its proposals are efficient, affordable and deliverable, and that every opportunity to manage costs had been fully explored. The regulator has set challenging but achievable service and efficiency expectations focused on securing the best possible value for customers while supporting progress towards the sector's long-term vision.
WICS has set ambitious performance targets focusing on what matters most to customers including in areas such as drinking water quality, reliable water supply, reducing leakage and internal sewer flooding.
These include a 43% reduction in serious pollution incidents, reducing sewer flooding in homes and saving 47 million litres of water lost through leaks each day by 2032-33 – equivalent to 18 Olympic-sized swimming pools.
Since 2002, economic regulation in Scotland has delivered average household bills that are around £120 lower that would otherwise be the case without the efficiencies WICS has required. Scottish customers pay some of the lowest bills in the UK and, because Scottish Water is publicly owned, every pound collected is reinvested in the system.
In the last review of charges six years ago, it was recognised that higher investment would be needed. This led to a long-term approach that allowed charges to rise gradually and avoided sharp increases in bills as seen in other sectors or countries. As a result, the next phase of investment has also been given a stronger starting point.
WICS Chief Executive David Satti said: "This is an important moment for Scotland's water industry and for the customers who rely on essential water and wastewater services every day.
"Our Final Determination is focused on ensuring customers receive the best possible value from every pound they pay while allowing the investment needed to meet the challenges of climate change, modernise ageing infrastructure and respond to changing demands.
"We have challenged Scottish Water to demonstrate that its proposals are efficient, affordable and deliverable, and that every opportunity to manage costs has been fully explored. We have also set stretching but achievable expectations for service improvement and efficiency, placing greater weight on the areas that customers have told us matter most."
For media enquiries, please contact press@wics.scot.
Notes for editors
- The Water Industry Commission for Scotland (WICS) is the economic regulator of the Scottish water industry. Its statutory role is to promote the interests of customers by challenging Scottish Water to improve performance and deliver value.
- Economic regulation in Scotland has delivered average household bills that are around £120 lower than would otherwise have been the case were it not for the efficiencies WICS has required of Scottish Water.
- After reviewing Scottish Water’s business plan, WICS sets a cap on the maximum charges Scottish Water can apply and defines performance targets and investment levels every six years through a regulatory process called ‘The Strategic Review of Charges’.
- The Final Determination for 2027-33 supports £7.9 billion of investment while capping charge increases at CPI + 2.5%.
- Some costs outside Scottish Water’s control (e.g. energy) may trigger a further 0.3% increase in the final four years, where justified by evidence.
- Over 99% of household customers pay their water and wastewater charges based on their council tax band, with annual charges ranging from £435 for a Band A customer and £1,305 for a Band H customer in 2026-27. Under WICS’ final decision, this will increase to £510 for a Band A customer and £1,531 for a Band H customer by 2032-33 before inflation (excluding discounts for those eligible).
- 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.
- Around half of Scottish Water’s household customers qualify for a discount or exemption, such as the single-person discount and the Water Charges Reduction Scheme (WCRS).
- These discounts are worth a combined total of over £200m, with the average discount for an eligible household reducing their bill by a third, or around £175 per year.
- The average household bills and savings are expressed in today’s prices and not adjusted for future inflation.
- The water sector vision is available here.