Press Releases 2009

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27 October 2009

Costs stay within assumed levels despite additional activity to reduce leakage

Scottish Water has continued to keep operating costs within the levels assumed by the regulator,
according to the latest annual costs and performance report, released today by the Water Industry Commission for Scotland (WICS).

While a definitive analysis of outperformance cannot be determined until the end of the 2006-10 regulatory control period, the report notes that operating costs continue to remain within the levels assumed when prices were set. This is in spite of additional work undertaken by Scottish Water to detect and repair leaks.

Customers are seeing the benefits of Scottish Water’s performance in maintaining a tight control on operating costs:

• In 2008-09, the average household bill in Scotland was £312. This is £20 lower than the average for the water and sewerage companies in England and Wales.

• During 2010-15, Scottish Water is expected to make further savings and customers can look forward to broadly stable bills as a result.

Alan Sutherland, WICS’ chief executive said; “Despite the substantial but necessary effort by Scottish Water to tackle leakage , it is pleasing to see that it has still been able to keep operating costs within assumed levels.” 

To download a copy of the report, please visit

For more press information please contact:
- Claire Methven or Emma Ap-Thomas, 3 Monkeys Communications, 020 7009 3100
[email protected]
- Katherine Russell, WICS’ Director of Corporate Affairs, 01786 430 200

Notes to editors:
1. The Water Industry Commission for Scotland is the economic regulator of the Scottish water industry. It has a statutory duty to determine price limits for Scottish Water based on the lowest overall reasonable cost of achieving ministerial objectives for the water industry. In June 2009, the Commission published draft price limits for water and sewerage services for the regulatory control period 2010-14/15.  To find out more visit the ‘Future prices’ section of our website

2. Since 1 April 2008, all business customers and public bodies, such as local authorities, hospitals and schools are eligible to switch water supplier. The framework for competition is set out in the Water Services etc. (Scotland) Act 2005. The Act required WICS to establish a regime to license new entrants into the market, and facilitate the orderly opening of the market. It also required Scottish Water to establish a separate retail entity (now Business Stream) to serve non-household customers in Scotland.



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