- Saves customers over £140 in total before inflation by the end of 2027-33
- Average bills would rise by around £12 per year before inflation, around £7 less than Scottish Water proposed
- Limits the annual change in charges to no more than 2% above inflation, with a further 0.3% available from 2030 only if uncertain and uncontrollable costs arise
- More ambitious performance targets resulting in:
- Saving 67 million litres of water currently lost through leaks each day by 2032 33, equivalent to 26 Olympic-sized swimming pools
- A 50% reduction in serious pollution incidents from Scottish Water’s forecast of 8 in 2026-27 to 4 in 2032-33
- Reducing sewer flooding in homes from Scottish Water’s forecast of 421 houses in 2026-27 to 342 in 2032-33, an 18.8% reduction
| What Scottish Water proposed | Our draft decision |
|---|---|
| Charges increasing by CPI+21.5% by 2033 | Set lower charge path of up to CPI+13.6% by 2033 |
| £8.1 billion of investment | Allowed £7.9 billion after challenge |
| Higher operating costs | A £216 million cost challenge over the period |
| Performance targets in key measures | Enhanced targets for 16 measures, particularly where customers told us it matters most |
| Major project costs still uncertain | Added conditions before customers pay |
| Reducing leakage by 9.9% | Tackling leakage with an increased reduction of 15.7% |
| 99.95% drinking water compliance by the end of SRC27 | Enhanced drinking water quality with 99.97% compliance |
| 24 fewer homes experiencing sewer flooding incidents compared to Scottish Water’s forecast position in 2026-27 (around 420 homes) | 80 fewer homes experiencing sewer flooding incidents compared to Scottish Water’s forecast position in 2026-27 |
| 143,600 tCO2e of emissions from capital investment and 198,100 tCO2e of total net emissions annually | More progress towards net zero emissions, if West Central Bioresources proceeds |
A decision that commands customers’ support
Our draft decision reflects extensive engagement with customers and stakeholders. These views have directly shaped both the level of investment we have allowed, and the protections built into this draft decision.
Scottish Water tested its business plan through a collaborative programme of customer research, overseen by WICS and industry stakeholders. We have carefully reviewed this evidence to make sure investment plans and performance targets reflect customer priorities.
The research found support for, and acceptance of, Scottish Water’s Final Business Plan, which was broadly considered to be balanced and sensible by participant household and non-household consumers.
Based on this research, Scottish Water has demonstrated its business plan has broad support from customers. This includes an annual change in charges of CPI+3.3% and an investment programme of £8,093 million.
As our draft decision delivers better outcomes for lower charges, we consider such a package consistent with the basis on which customers supported the business plan, and we are testing this through consultation.
The performance measures we have set focus on what matters most to customers, including strengthening targets for the four priority areas identified in customer research:
| 1 | Drinking water quality |
|---|---|
| 2 | Reliable water supply |
| 3 | Reducing leakage |
| 4 | Internal sewer flooding |
This customer research has also informed our views on introducing further customer protections:
- Conditional charge cap so that charges will only reflect costs that are certain and evidenced
- Stronger monitoring of Scottish Water’s performance and investment programme
We expect Scottish Water to continue learning from customer insights as it plans and prioritises investment over time and ensure the voice of customers and communities is embedded in its decision making.
What this draft decision delivers
Our draft decision enables Scottish Water to deliver services customers rely on every day, while making measurable improvements where they matter most.
Fair bills for customers
Charges are capped and based on what can be delivered efficiently. Customers pay no more than is necessary for high quality services. Today’s average bill of £537 covers the following costs:
- £225 Maintaining assets
- £216 Operational costs
- £47 Upgrading and growing the asset base
- £49 Interest on borrowing
Improvements for our environment
£1,284 million of investment to reduce pollution, improve wastewater treatment, and protect rivers, coasts and the wider natural environment.
Protects our water and wastewater system
£4,926 million investment would support the renewal of pipes, mains and treatment works, helping to reduce leaks, prevent sewer flooding in homes and keep services reliable.
Challenges Scottish Water to deliver better performance
We have set challenging, yet achievable, service level measures and efficiency targets for Scottish Water that will improve the organisation’s day to day performance where it matters most to customers.
Incentivises great customer service
Sets clear expectations for customer service and holds Scottish Water to account for delivering services customers can depend on every day including:
- Fewer interruptions to water supplies
- Fewer sewer flooding incidents than forecast in Scottish Water’s business plan
- Cleaner rivers and beaches
A greener, net zero Scotland
Increased investment to reduce emissions, improve energy efficiency and support the transition to net zero.
Supports Scotland’s economy
Reliable water services are not only essential for homes and businesses, but they also underpin economic growth across Scotland.
Our Draft Determination allows Scottish Water funding to deliver growth and resilient services for households and businesses, ensuring services can meet Scotland’s future needs.
How investment will be delivered
In SRC27 we continue the transition to an increased level of investment compared to previous periods. We have adopted a smooth transition, avoiding sudden material changes in charges.
| Area | (£) |
|---|---|
| Maintaining assets | 225 |
| Operational costs | 216 |
| Upgrading and growing the asset base | 47 |
| Interest on borrowing | 49 |
| Area | Allowance (£m) |
|---|---|
| Deliver excellent water quality and ensure resilient water supplies | 1118 |
| Protect our natural environment and manage flooding | 1284 |
| Adapt to a growing and moving population | 510 |
| Maintain and renew our sewers, water mains and treatment works (net of the labour cost adjustment) | 4911 |
| Support services, adapt and mitigate against climate change, and other areas | 123 |
How this compares to others
Average annual real price increase comparison: PR24 versus SRC27
| Company | Average price increase (%) |
|---|---|
| Southern Water | 10.5 |
| Severn Trent Water | 8.0 |
| Hafren Dyfrdwy | 7.3 |
| Dŵr Cymru | 7.2 |
| Yorkshire Water | 7.1 |
| England and Wales average | 6.7 |
| Thames Water | 6.5 |
| Anglian Water | 6.2 |
| United Utilities | 5.8 |
| Wessex Water | 5.7 |
| South West Water | 4.2 |
| Northumbrian Water | 3.8 |
| Scottish Water (WICS DD) | 2.1 |
Average annual real price increase comparison between 2027-28 to 2029-30
| Region | Price Increase (%) |
|---|---|
| Scottish Water (WICS DD) | 2.0 |
| England and Wales average | 3.5 |
What you will pay
The vast majority, over 99%, of household customers pay their water and wastewater charges based on their council tax band, with annual charges ranging from £435 for a Band A customer to £1,305 for a Band H customer in 2026-27. Under our draft decision, this will increase to £494 for a Band A customer and £1,482 for a Band H customer by 2032-33 before inflation (excluding discounts for those eligible).
We know households and businesses are under financial pressure. Keeping water charges fair and no higher than necessary is central to our role as Scotland’s independent economic regulator. We only allow increases where they are clearly justified and supported by strong evidence.
Holding Scottish Water to account for its performance
Our draft decision sets out clearly what Scottish Water must deliver in return for the charges customers pay. We will closely monitor Scottish Water’s performance on an ongoing basis to ensure it delivers on its commitments.
Our draft decision sets out clearly what Scottish Water must deliver in return for the charges customers pay. We will closely monitor Scottish Water’s performance on an ongoing basis to ensure it delivers on its commitments.
Throughout the 2027–33 period, we will:
- Track delivery against clear service, environmental and customer service targets
- Publish information on how Scottish Water is performing
- Use regulatory tools where commitments are not met
These checks and safeguards are designed to make sure that investment delivers real improvements and best value for customers, rather than simply higher spending.
Support for those who need it
We recognise that any increase in bills will be difficult for some households. In Scotland, there are protections in place to support customers who need help, including discounts and reductions set through the Scottish Government’s Principles of Charging.
Around half of Scottish Water’s household customers qualify for a discount or exemption, such as the single-person discount and the Water Charges Reduction Scheme (WCRS).
These discounts are worth a combined total of over £200 million, with the average discount for an eligible household reducing their bill by a third, or around £160 per year.
| Households | % |
|---|---|
| receiving no discount | 50.4 |
| receiving some form of discount | 49.6 |
Figures for investment and expenditure in this document are given in 2024-25 prices unless otherwise stated. Figures for bills and customer savings are given in 2026-27 prices unless otherwise stated.