The Water Industry Commission for Scotland (WICS) has published its Draft Determination for water and wastewater charges covering the period 2027 to 2033, inviting residents, businesses, and organisations in Lanarkshire and across Scotland to provide feedback before the Final Determination is issued in October.
Key Proposals in the Draft Determination
WICS, the independent economic regulator for Scotland’s water sector, has set a cap on annual bill increases at no more than 2% above inflation under normal circumstances, or 2.3% if specific costs materialise. This means average household bills would rise by approximately £12 per year before inflation—about £7 less than what Scottish Water had originally proposed.
The Draft Determination supports a record investment programme of around £7.9 billion in Scotland’s water and wastewater infrastructure, representing a 30% increase over the current regulatory period. This funding aims to improve drinking water quality, supply reliability, reduce leakage, decrease sewer flooding incidents, enhance environmental protection, and bolster resilience to climate change.
Efficiency Savings and Performance Targets
WICS has identified opportunities to reduce Scottish Water’s proposed spending by £360 million while maintaining key customer outcomes. Specific targets include a reduction in leakage by 67 million litres per day—a 15% decrease—equivalent to saving enough water to fill over 26 Olympic-sized swimming pools daily. The proposals also aim for fewer pollution and flooding incidents and stronger protections for customers.
Scottish customers currently pay some of the lowest water bills in the UK, and because Scottish Water is publicly owned, all revenue is reinvested back into the system.
Consultation Details and Next Steps
WICS chief executive David Satti said: “Our Draft Determination is intended to protect customers from paying more than they need to, while ensuring Scottish Water can invest in the safe, reliable and resilient services Scotland will need in the years ahead. We have allowed for a significant increase in investment, but we have also challenged Scottish Water’s costs and made some funding conditional. This is how we ensure that customers only pay where investment is necessary, efficient, deliverable and produces clear benefits.”
The public consultation runs from June 30 to September 1, 2026. WICS will publish its Final Determination on October 29, with new charges taking effect from April 2027. More details are available at www.wics.scot/SRC27Consultation.
“The decisions made for the next regulatory period will shape the reliability, resilience and affordability of water and wastewater services for years to come,” Satti added. “We want to hear from customers, communities, businesses and other stakeholders before we reach our Final Determination.”
