Water bills set to stay frozen for another year

Published on Wednesday 30 June 2010 16:07

WATER rates could remain frozen for another year, the industry regulator said today.

The price freeze for householders which started in April is "likely to continue into 2011", according to an annual report by the Water Industry Commission for Scotland (WICS).

It also expects charges to remain below inflation for the next five years. The report said "efficiencies" made by Scottish Water have cut household bills by about 105 a year, with people in Scotland paying an average 20 less than those in England and Wales.

WICS regulates the industry and acts in the interests of consumers. Its report said more than 5.5 billion was invested in the industry over ten years, resulting in improvements to water quality and cutting the amount of water leakage by a third.

Sir Ian Byatt, who chairs the commission, said the price review it carried out six months ago "brought good news for customers".

WICS chief executive Alan Sutherland said: "In Scotland there has been a remarkable transformation of the water industry over the past ten years.

"We now have a company, operating successfully in the public sector, of which Scotland can be proud. Although regulation is delivering significant benefits to customers and the environment we are fully aware of the challenges facing the industry in the years ahead.

"Encouraging innovation and participation by customers will be key both to continuing to deliver good outcomes for customers and the environment, and to ensuring that charges remain affordable."

WICS spent 1.5m on staff salaries in the last year, according to an unaudited financial statement in its report.

Scottish Water chief executive Richard Ackroyd said the company's performance in the last year has never been better and it has exceeded the customer service targets set by the regulator by more than 20 per cent.

He said: "Effective regulation has resulted in an efficient well-run company but we recognise we still have some way to go."