Scottish Water’s household charges will rise this April, 2014, by 1.6 per cent: 1 per cent below the level of inflation (RPI) and only the second rise in prices since 2009.
Water charges in Scotland are expected to remain well below the average household charges of private water companies in England and Wales.
Scottish Water said it signalled a determination to build on customer service improvements in recent years, maintain investment in upgrades to water works and pipes and ensure services are ready for the future.
Douglas Millican, Chief Executive of Scottish Water, said:
“This commitment of low level increases in charges for future years gives our customers reassurance that their water bills continue to deliver real value for money while we provide customer service improvements to water and waste water services in Scotland.”
Annual council tax bills being delivered through letter boxes will include combined water supply and waste water collection charges that come into effect from 1 April 2014. The average Scottish Water charge for households across Scotland in 2014/15 will be around £339: less than a £1 a day.
Household charges had remained unchanged from April 2009 until April 2013, when they increased by less than inflation. It means that since 2009 charges have reduced by 10.2 per cent relative to the rate of inflation.
Scottish Water said the below inflation rise for 2014/15 signalled continued stability in water and waste water bills for Scotland, at the same time as delivering one of the largest investment programmes per household in the UK.
Deputy First Minister Nicola Sturgeon said that by keeping Scottish Water in the public sector household charges in Scotland would continue to be amongst the lowest in the Britain, with the utility providing “one of the best value water and sewerage packages in the UK by the end of 2014-15. She added:
“Scottish Water froze water and sewerage charges for four years throughout the recession and by keeping increases for 2014-15 below the rate of inflation they have recognised the continued pressure on household finances.”
The Water Industry Commission for Scotland welcomed the announcement that household charges will be held below the rate of inflation for 2014-15. Alan Sutherland, Chief Executive said:
"This is good news for customers, made possible through Scottish Water’s outperformance over the past four years.”
Next April the Commission will consult on a new price settlement for the six-year regulatory control period 2015-21. Mr Sutherland added:
“The company’s performance shows what is likely to be achievable for the next six-year regulatory control period.”
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