We have now determined the prices that Scottish Water can charge its customers over the period 2010-15. Our decisions are set out in the document, Strategic Review of Charges 2010-15: The Final Determination.
We made sure that customers will receive value for money. Over the five-year period 2010-15 charges will rise by 5% below the rate of inflation.
• Households will enjoy a price freeze in the first year and, subject to inflation, the prospect of a further price freeze in 2011-12. Household charges will increase by less than inflation between 2012 and 2015.
• Charges for businesses and public sector organisations (except for some users of trade effluent services) will also be frozen in 2010-11 and will thereafter follow the same profile as for households.
• Many businesses and public sector organisations may be able to negotiate an even better deal under the retail competition framework or reduce their bills by helping Scottish Water to lower its costs.
We are also challenging Scottish Water to:
• improve customer service, so that it matches or betters the service currently provided by the top performing companies in England and Wales;
• become more efficient; and
• deliver all of the charging and investment objectives of the Scottish Government.
Scottish Water has formally accepted our determination. It has also agreed to the regulatory and monitoring contract that forms part of the determination.
The milestones that Scottish Water must achieve over the period 2010-15 will be included in a detailed Delivery Plan, prepared for the Scottish Government. We will monitor performance against delivery of these milestones going forward.