The Scottish Government decides how water and wastewater charges are collected and which discounts apply. These decisions are set out in its Principles of Charging.

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 final decision, this will increase to £510 for a Band A customer and £1531 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 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 £175 per year.