Water services: investing in and paying from 2027 - Analysis of Consultation Responses

4. Conclusions

A range of individuals and organisations with varied experiences and expertise responded to the consultation, sharing their views on investing in and paying for water services for the next regulatory period of 2027 to 2033. This report provides a high-level summary of the consultation responses. For more details, readers are encouraged to review individual responses, where permission was granted for publication, on the Scottish Government’s consultation website.

Overall, there was broad agreement with the draft Ministerial Objectives, with 69% agreeing to some extent that the objectives identify the type of investment activity Scottish Water should undertake in 2027 to 2033. Support was expressed, and calls were made, for strengthening investment in asset improvements and climate change resilience, while also considering customer charge affordability. Concerns around the affordability of charges, particularly for low-income and vulnerable households that are currently facing financial pressures, were emphasised. This included requests for further consideration of fairness and value for money in charges. Calls for greater accountability, communication, transparency and monitoring of Scottish Water and its delivery of services were also made. Scottish Water’s provision of safe and reliable water and wastewater services was particularly valued, with respondents expressing support for continued investment to retain a high-quality water supply.

Two fifths (42%) of those answering agreed to some extent that the charging approach set out in the draft Principles of Charging remains appropriate for 2027 to 2033. Support for the proposed approach included that it felt appropriate, reasonable and straightforward. However, concerns about the continued use of Council Tax bands were raised by several respondents. Namely, that this removes customer control from the amount they are charged, lacks customer understanding of charges, and is not based on usage of water. There was support for affordability measures currently in place, with suggested improvements. There were mixed views on whether the current eligibility criteria for the charity exemption scheme remain appropriate. Those who supported the current scheme felt that it is fair and supportive of charities. However, other respondents called for changes to the eligibility criteria to provide more support for charities. There was broad agreement that there should be a fundamental review of the charging policy for the future to ensure it meets emerging policy needs, while also being fair and affordable for customers.

The consultation allowed respondents to express views in detail on the draft Ministerial Objectives for the next regulatory period, and how water services and investment are paid for through the Principles of Charging. Respondents provided both positive and negative views, alongside suggested improvements and areas for further consideration. These responses will provide valuable evidence for the Scottish Government and other stakeholders to consider when finalising plans for the next regulatory period.