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This item was published during the term of a previous administration that ended in April 2007

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Water cost and performance report

14/11/2006

Households in Scotland have each saved over £200 since the creation of Scottish Water four years ago, according to new figures published today.

The Water Industry Commission's Cost and Performance report shows that, at the same time as delivering improvements in services, Scottish Water has delivered nearly £1 billion of cost savings for the Scottish public.

Deputy Environment Minister Rhona Brankin said:

"Scotland's model of a publicly owned and effectively regulated water company is delivering for Scottish customers.

"This report provides independent verification that Scottish Water has not just improved the services it provides, but has also saved the people of Scotland nearly a £1 billion by running the industry more efficiently.

"These unprecedented levels of efficiency for the public sector mean that the creation of Scottish Water has saved each customer nearly the equivalent of one year's charge for a Band A household.

"I congratulate the staff of Scottish Water and its Board on these achievements and look forward to Scottish Water building on this to secure even further efficiencies for the benefit of its customers."

The Water Industry Commission for Scotland (WICS) publishes three reports on aspects of Scottish Water's performance.

The first, on Customer Service, was published on September 15 and the second, on Investment and Asset Management, was published on October 18.

The report published today on Costs and Performance is the last in the series. It shows that, in between 2002-2006 - £946 million of cost savings in operational and capital delivery were made.

Taking account of a £200m business transformation budget called 'Spend to Save', the Commission estimates that customers have effectively paid £211 less in their water and sewerage charges - the equivalent of nearly one year's average household water and sewerage charge for a Band A household in Scotland (#236.40).

With ongoing improvements in efficiencies, by 2010 it is anticipated that household bills are likely to be the third lowest in the UK. Non-household bills will reduce in real terms by over 6 per cent by 2009-10.

Page updated: Tuesday, November 14, 2006