The Scottish Government

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EXECUTIVE SUMMARY

This consultation paper seeks views on those binding principles of charging that the Scottish Government will require the Water Industry Commission for Scotland to apply to the determination of water and sewerage charges during the next regulatory period 2010-14. It reviews the basis of current water and sewerage charges and the principles that have underlain previous charge reviews.

Views are invited on the following proposals:

• The existing principles of charging that are critical to delivering water services efficiently at fair and affordable cost to customers should be maintained. These include full cost recovery, cost reflectivity, geographical harmonisation of charges, phasing of increases, paying for increased local capacity and stable charges.
• Scottish Water's capital programme for 2010-14 should be set at a level that is efficiently manageable by a company of its size.
• Charges should be set at a level which will maintain and improve the level of financial sustainability and resilience of Scottish Water.
• There should be further movement towards more obviously cost-reflective charges within the next 4 year regulatory period but this should be done in the manner least disruptive to customers.
• Whether there should be plans to further extend the water services charges exemption scheme on its expiry in 2010.
• Recovery of roads drainage charges with water services charges on the basis of the rateable value of individual premises should be maintained.

Views on these issues should be sent by 29 February 2008 to:

'or'

Email to: waterdivision@scotland.gsi.gov.uk

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