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CHARGING STRUCTURE
25. The previous section described the principles which the Commission applied when determining charge levels for 2006-10. This section describes the water services provided to household and non-household customers in respect of which charges are due.
26. Most household and non-household customers receive and pay for four water services:
- the supply of drinking water;
- the removal and treatment of sewage;
- the removal and treatment of drainage from private roofs and car parks including private roads (surface drainage), and;
- the removal and treatment of drainage from public roads (roads drainage).
Some non-household customers also dispose of trade effluent through the sewerage system and pay for this service separately.
Household Charges
27. Since 1996 domestic water and sewerage charges have been billed and collected by individual local authorities for Scottish Water together with Council Tax. Water and sewerage charges for domestic properties are linked to the Council Tax banding system. The vast majority of households in Scotland are billed for their water and sewerage services in this manner. A small minority of households choose to pay for their water services on a measured or metered basis.
28. An aspect of the joint system of billing and collection is that many existing Council Tax discounts also apply to water charges - with the exceptions of second home discounts and Council Tax Benefit. Additionally, on 1 April 2006, Ministers introduced a water services charges reduction of up to 25% for households with two or more adults in receipt of Council Tax Benefit and no other discounts. The purpose of the reduction is directly to assist vulnerable households which had previously not been eligible for any or only a very limited reduction in their water services charges.
29. While domestic wastewater charges cover costs related to surface drainage and roads drainage, charges for this element of water services are not shown separately on the Council Tax bill.
30. The table below shows domestic charges for 2007/08:
Council Tax Band | Water | Waste Water | Combined | Combined with
25% Discount |
|---|
Band A | £114 | £129 | £244 | £183 |
|---|
Band B | £134 | £151 | £285 | £213 |
|---|
Band C | £153 | £173 | £325 | £244 |
|---|
Band D | £172 | £194 | £366 | £274 |
|---|
Band E | £210 | £237 | £447 | £335 |
|---|
Band F | £248 | £280 | £528 | £396 |
|---|
Band G | £286 | £324 | £610 | £457 |
|---|
Band H | £343 | £388 | £732 | £549 |
|---|
31. Average household charges in Scotland are now lower than in England and Wales. While charges in England and Wales are due to rise by more than inflation, in Scotland they will rise by less. This means that by 2010, Scottish Water will have lower water and sewerage services charges than 8 out of the 10 privatised water and sewerage companies in England and Wales.
Non-household Charges
32. There are approximately 130,000 non-household customers in Scotland. Of these roughly 80,000 currently pay for their water services on a metered basis and 50,000 are un-metered.
33. In advance of the retail market opening, un-measured non-household customers currently pay Scottish Water's retail subsidiary, Scottish Water Business Stream, for services received by reference to the rateable value of their property. Measured non-household customers pay Scottish Water Business Stream for their water services on a metered basis.
34. There is a programme underway to meter all non-household customers to coincide with the introduction of retail competition in the non-household sector from 1 April 2008.
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