The Water Industry Commission for Scotland has announced another significant improvement in Scottish Water's customer service in its annual report for 2007-8.

Customers bills likely to rise by less than inflation in each of the next several years. The report outlines the WICS main activities during this significant year for the water industry in Scotland, which saw non-household customers get the right to choose their supplier of water and sewerage services. The report explains how customers can expect to continue benefiting from improved levels of service and better prices at a time when other utility prices across the UK are rising.

Business Stream, Scottish Water's new retail arm, has already achieved substantial savings. This has led to it offering lower prices to businesses than those set by WICS.


Scottish Water's annual costs are around £5m lower than WICS had expected when it set charges in 2005. If this progress is maintained, Scottish customers could see continued moderation in their bills, which are already an average of £15 lower than in England and Wales.

But WICS is especially pleased to recognise that while prices are rising by less than inflation, Scottish Water has improved its level of service to customers by 7%. It has already nearly matched the target that was set for it to achieve by 2010.

Sir Ian Byatt, Chairman of WICS said: "We're pleased customers have benefited in the last twelve months from better service. We welcome how determinedly Scottish Water has sought to meet the demanding challenges that we set it. Moreover, if Scottish Water sustains its current good performance in reducing costs, we expect that household water bills could continue to rise by less than inflation during 2010-14.

"We continue to monitor carefully the delivery of Scottish Water's investment programme. After a slow start last year, Scottish Water has significantly increased its investment expenditure. But we will continue to put critical emphasis on the sign-off of completed investment projects by the drinking water (DWQR) and environmental (SEPA) regulators to ensure customers receive the improvements they have paid for."

(GK/JM)