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Paying for Water Services 2010-14: A Consultation on the Principles of Charging for Water Services

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FOREWORD

Scottish Water is a vital part of Scotland's life. The services it provides are essential to every individual and community in Scotland. It is making major improvements to the quality of drinking water and the water environment. Its investment programme is one of the largest ever undertaken in the UK and is a major part of the work of the construction industry in Scotland. The connections Scottish Water makes to its networks make an important contribution to our continuing economic growth. Scottish Water therefore makes a significant contribution to the Government's strategic objectives.

The past few years have seen a period of significant improvement in Scottish Water's performance in terms of efficiency and customer service. Fundamental to the achievement of this picture of improvement is the framework through which charges are determined by the Water Industry Commission for Scotland.

Scottish Water's average household charges are at present lower than the average in England and Wales and in 2010 are expected to be among the lowest in the UK, while non-household charges are set to reduce by over 6% in real terms by 2010. Charges must ensure that the company has enough money to meet its operating costs and to fund the essential investment. But they must be set at a level that ensures that Scottish Water improves its efficiency and the service it delivers to customers. It is essential that Scottish Water's charges are set in a manner that is fair and transparent.

The Government wants to set out clearly the principles that it considers should govern future water charges and this consultation paper seeks your views on these issues. These principles will guide the work of the Water Industry Commission in determining charge levels for 2010-14.

The Government is committed to the continued success of Scottish Water as a publicly owned utility subject to firm independent regulation. The proposals in this document and your views on them are essential to ensuring that Scottish Water can continue to be successful and maintain its significant contribution to the Government's strategic objectives for Scotland.

STEWART STEVENSON

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Page updated: Thursday, November 22, 2007