According to the Water Industry Commission for Scotland(WICS), as water companies in England and Wales inform Ofwat of planned rises in bills either at or above the rate of inflation, Scotland is bucking the trend.
Household bills are already an average of £15 lower than in England and Wales and it is predicted that household bills will be £20 lower for next year. Prices are likely to be lower beyond 2010. In a statement WICS said that Scottish Water’s service to its customers has improved significantly over the year and customers can expect to continue benefitting from improved levels of service as well as better prices at a time when other utility prices across the UK are rising.
The Chairman of WICS, Sir Ian Byatt attributes the stable prices for household customers to significant improvements from Scottish Water: “Scottish Water has reduced its operating costs for five years in a row. At the same time it has improved its services to customers. These lower costs are bringing substantial savings for customers.”
The Commission’s statutory duty is to determine price limits for Scottish Water based on the lowest reasonable cost of achieving ministerial objectives for the water industry. In November 2005, the Commission determined price limits for water and sewerage services for the regulatory control period 2006-10. During the 2006-10 regulatory control period, Scottish Water is tasked with delivering a £2.15bn investment programme.
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