Consumer Scotland statement on increase in water bills announced by Scottish Water

Consumer Scotland statement on increase in water bills announced by Scottish Water

Consumer Scotland Head of Water Gail Walker said:

“This is a steep increase in water bills for consumers at a time when many households and businesses are already coping with a range of pressures on budgets.

“We note the increase is within the parameters set by the water regulator and that Scottish Water has in previous years held back increases in bills during the cost-of-living crisis to protect consumers.

“The water industry in Scotland requires investment to repair ageing infrastructure and prepare for the impact of climate change to ensure high standards of water services for both current and future consumers.

“However, this significant increase highlights ongoing issues of affordability for some consumers.

“Consumer Scotland has recently recommended that low-income households should be protected from future rises in bills during the next regulatory charging period by increasing existing discounts and by improving targeting to reach consumers who currently miss out on financial support.

“A new Memorandum of Understanding has been signed by the Water Industry Commission for Scotland (WICS), Scottish Water and Consumer Scotland which will be central to the forthcoming Strategic Review of water charges for 2027-2033.

“Under the MoU the public will be engaged throughout the price review process to enable Scottish Water to create a business plan shaped by customers’ views and help WICS ensure its final determination of charges commands consumer support.”

Background

To support low-income households Consumer Scotland is recommending both an increase in the threshold of the existing Water Charges Reduction Scheme (WCRS) to limit rises in water poverty in future - as well as consideration of new proposals to target consumers who currently miss out on support.

Consumer Scotland analysis reveals around one in ten Scottish households are currently in water poverty, and around one in 20 are in severe water poverty – facing charges for water and sewerage that exceed 5% of their disposable income.

The future level of water bills for the six-year period from 2027-2028 to 2032-2033 will be considered by the Strategic Review of Charges which involves the Scottish Government, the Water Industry Commission for Scotland and Scottish Water.

The review will look at ensuring sufficient income is raised from customer charges to adequately fund existing services and invest in the infrastructure required for the future - as well as ensuring charges don’t unfairly burden consumers.