This item was published during the term of a previous administration that ended in April 2007
Listen
Scottish Water outperforms targets
20/06/2006
Scottish Water has outperformed its efficiency target according to its annual accounts which were laid before Parliament today.
The latest figures show the publicly owned firm's operating costs are now 41 per cent less than those of the former water authorities, saving customers nearly three million pounds a week
Over the last four years, Scottish Water has delivered record levels of investment to provide improve drinking water quality, secure important environmental improvements and permit more than 80,000 new connections to the public network.
Deputy Minister for Environment and Rural Development Rhona Brankin said:
"These accounts prove that Scottish Water is delivering for all of its customers who are benefiting from improved customer services, record levels of investment and stable charges.
"They demonstrate that the Executive's policy to transform Scotland's water industry into a modern and effective public sector utility is working.
"However, I recognise there is more work to be done to continue to drive up quality standards, to alleviate development constraints, and to meet the standards of services that customers expect.
"My recent approval of Scottish Water's Delivery Plan 2006-2010 means that Scottish Water will continue to improve services by delivering the ambitious programme of work Ministers have set."
Background
Scottish Water is a public corporation created in April 2002 from the merger of the three former water authorities: North of Scotland, West of Scotland and East of Scotland Water Authorities. Scottish Water is the fourth largest water operator in the UK with a turnover of almost £1 billion. It has five million domestic customers and £128,000 business customers. It operates within a regulatory framework involving the Drinking Water Quality Regulator (DWQR), the Water Industry Commission for Scotland (WICS) and the Scottish Environment Protection Agency (SEPA).
Scottish Water was set an operating cost target of £265 million for 2005-06 - a 40 per cent reduction on those of the former Water Authorities. The accounts show that, by delivering services more efficiently, it has out-performed this target by 6 million pounds. This means that Scottish Water has reduced its operating costs by £142 million - saving customers nearly £3 million per week.
For 2002-06, Scottish Water has also been required to deliver one of the largest water investment programmes in the UK. This programme called Quality and Standards 2 is upgrading Scotland's water and wastewater networks, delivering better quality drinking water, a cleaner environment, and despite concerns about development constraints has provided over 80,000 new connections since 2002. Scottish Water has delivered £1.9 billion (current prices) of the Quality and Standards 2 investment programme. Some £280 million remains and will be completed in the early part of the next regulatory period.
Scottish Water Solutions Limited (SWS) has also prepared accounts for 2005-06 and these have been submitted to Companies House. Copies of these have been placed in the Scottish Parliament Information Centre. SWS is Joint Venture company, of which 51 per cent is owned by Scottish Water. It is responsible for delivering roughly half of the Quality and Standards 2 investment programme.
Copies of Scottish Water's Annual Report and Accounts were laid in Parliament today and lodged in the Scottish Parliament Information Centre. Further copies may also be obtained from Scottish Water or its website www.scottishwater.co.uk.
Scottish Water is hosting its Annual Consultative Meeting on 28 June 2006. At this meeting, to be Chaired by the Chair of Scottish Water, members of the public may ask questions about this report.