Scottish Water has announced an 8.8 per cent price increase which is due to come into effect at the start of April.
The 8.8 per cent increase, which equates to around 70p per week or £35.95 per year on average, comes at a difficult time for households which are already feeling the effects of the cost of living crisis.
Around half of Scotland’s households receive financial support with their charges as they automatically have either a discount, exemption or reduction applied to their water and waste water charges.
Water executives say the increase will protect vital water and waste water services, however, further investment will be needed to deal with climate change impacts, population shift and ageing infrastructure.
Alex Plant, chief executive of Scottish Water, said: “Our core services play a vital role in the daily lives of millions of people in Scotland. As a publicly owned body, we have a clear responsibility to ensure what people pay is affordable and set at a fair level for current and future generations.
“The board’s decision on charges for 2024/25 recognises the need for significant investment to protect services now and for the future as climate change means more volatile weather conditions are becoming the norm rather than the exception.
“Whilst increases in bills are never welcome, and we acknowledge that cost of living pressures remain, this 70p a week on average increase will set us on a pathway to recover ground lost over the past two years when charges were set at a level lower than allowed for under the regulatory settlement.
“These charges will help us continue to meet our customers’ expectations, enable investment for resilience and strike a fair balance between what customers today are paying and what future generations will need to contribute. The Water Charges Reduction Scheme, and other discounts, exemptions and reliefs, which apply to around 50 per cent of all households in Scotland, are in place to help customers who may struggle to pay.”
South Scotland MSP Colin Smyth criticised the increase, saying the government should have intervened to protect families.
He added: “It is shocking that SNP and Green ministers are not intervening to stop Scottish Water hiking up charges at a time so many households are struggling to pay their existing bills and are facing a real cost of living crisis.
“While Scottish Water sit on hundreds of millions of pounds of reserves and its boss takes home a salary of nearly £300,000, families look set to see their bills go up by nearly a third over three years. The company should be using some of their reserves to cushion the impact of these hikes.
“It makes a mockery of the Scottish Government’s so-called council tax freeze given that the increase in water bills will arrive with council tax bills. It will pile pressure on those who can least afford it, while Scottish Water hand out huge pay packets to their bosses”.
Scottish Water serves more than 2.6 million households supplying more than 1.5 billion litres of water and removing and treating more than a billion litres of used and surface water daily.
Household customer charges generate around £1.5 billion annually, supporting a round-the-clock service that brings water to customers’ taps and cleans waste water, returning it safely to the environment.
Water and waste water charges to licensed providers which supply businesses and other non-domestic customers will also increase by the same amount.
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