Water services - investing in and paying from 2027: consultation

1. Foreword

Water is our most precious resource, and Scotland’s publicly owned water industry is a national success story. Since its creation in 2002, Scottish Water has delivered cleaner drinking water, improved wastewater treatment and expanded renewable energy generation. It has done so while protecting our water environment – 86% of Scotland’s surface waters are rated “good” or better and 97% of bathing waters meet required standards – and keeping household charges among the lowest in the UK.

However, the challenges ahead are significant. Climate change is already impacting Scotland, with higher temperatures leading to drier summers and more intense winter rains. This threatens our water security and – together with population growth and movement, and ageing assets – places fresh demands on our water and wastewater systems. We need to make difficult decisions about how much we invest in tomorrow’s infrastructure while maintaining and refurbishing the assets we rely on today.

Since 2019, the sector in Scotland has worked under a shared Water Sector Vision to deliver a culture of excellence and a sustainable future. I welcome this long-term vision, which aligns with the Government's National Performance Framework, the UN Sustainable Development Goals and Scotland’s world-leading climate change targets set that same year. Scottish Water has worked with a supply-chain of innovators in Scotland to develop a unique model to deliver the water sector vision, which is reducing costs to consumers and the environment alike.

The Scottish Government is determined to build on the progress of the current regulatory period in 2027-33. Scottish Water must lead in meeting climate challenges and ensuring resilient services for a growing and mobile population. To sustain performance and meet future needs, we recognise that investment levels and customer charges might need to rise. The Principles of Charging and Ministerial Objectives we are consulting on set the right foundation for this while continuing to ensure efficiency and value for customers.

Scotland’s water industry is publicly owned and high performing. Together, we can secure its future. I look forward to receiving your views on the ambitious vision and real challenges set out in these draft documents.

Gillian Martin, MSP