The Water Industry Commission for Scotland (WICS) has today published its annual report on Scottish Water’s performance which is assessed against the utility’s own Delivery Plan projections.
The report says that Scottish Water made a good start in 2010-11, with all areas achieving a rating of ‘on track’ or better. This is in spite of difficult external conditions that include unusually severe winter weather, higher than expected inflation and a substantial increase in local authority rates.
The report provides an overall rating for each of the eight main areas that affect outcomes for water and sewerage customers and the environment, including levels of service to customers and delivery of the investment programme.
In 2010-11 the company outperformed its projections in the areas of delivering the 2010-15 investment programme, levels of service to customers, leakage reduction, investment costs, borrowing and financial strength.
Investment costs were contained, even though Scottish Water’s output delivery was ahead of planned levels overall. Actual spend was £443 million compared to a projected spend of £483 million.
However, operating costs of £467 million were above the planned costs of £447 million in level due to an unexpected increase of over £21 million in rates levied by local authorities. Scottish Water outperformed in its other day-to-day costs, offsetting the costs of severe winter weather of nearly £7 million, and the impact of higher than expected inflation in the economy.
Alan Sutherland, Chief Executive of WICS said:
"We are pleased to report that Scottish Water has achieved a rating of ‘on track’ or better in all eight areas. This is in spite of difficult external conditions that include unusually severe winter weather, higher than expected inflation and a substantial increase in local authority rates.”
Mr Sutherland added:
“Scottish Water has made a good start this year. This bodes well for the next four years, when the company expects to improve its efficiency further, continue to increase its service levels, and deliver all of the drinking water and environmental improvements required by the Scottish Ministers. Standards are already high, so the challenge is considerable.”
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