This item was published during the term of a previous administration that ended in April 2007
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Changes to water charges proposed
17/11/2006
Businesses may in future pay water charges according to the amount of water they use, under proposals published today.
Deputy Environment Minister Rhona Brankin said the changes to water charging arrangements would be fairer for 130,000 businesses in Scotland which will be affected.
Businesses are currently charged based on the rateable value of premises.
Rhona Brankin said: "I want to see a water industry which provides the highest level of service, and it is right that businesses which place the least burden on the water system should pay the least.
"I recognise some business may have to pay more, but there will likely be substantial savings for other business customers. Introducing metering will mean businesses taking into account their water usage and, where necessary, taking steps to minimise it. That is fairer for all customers and will benefit Scotland's environment.
"In preparation for the new charging regime, we will phase in any changes to help businesses prepare."
The Scottish Executive's consultation on non-household water charges proposes:
- the introduction of general metering for all currently un-metered non-household premises
- a system that would place all non-household premises and their surrounding surface areas into one of a number of charge bands, to reflect the area of roof, car parking etc. that discharges to the public sewers.
The impact on future water bills will depend on a range of factors, such as:
- Consumption patterns
- Current rateable value
- Steps customers take to manage their water demand
The consultation, including examples of how the proposed changes could affect different businesses, can be viewed at www.scotland.gov.uk/consultations
The consultation takes account of competition in the provision of retail services (such as billing, reading meters, handling complaints etc.) to non-household customers being possible from 1 April 2008. The consultation seeks views on how Scottish Water should implement wholesale charges in respect of the changes in charging structure, for those that the Water Industry Commission will licence to compete in the retail market from 2008.
The level of wholesale charges that Scottish Water levies on retailers will not exceed that permitted by the Water Industry Commission in its Determination of Charges for 2006-2010.
The intention to replace the link between individual non-household premises and their rateable values does not extend to replacing the link between non-household premises and their rateable value in respect of roads drainage. All business customers that pay property and roads drainage charges do so based on the rateable value of their property. Additionally the customers in properties that are not metered pay water and wastewater charges in relation to the rateable value of the property. With the move to metering, water and wastewater charges for these customers will move to being based on the actual water used. From 2010, it is intended to move property drainage charges to a system based on the area of the property. The timetable for doing this has not yet been determined.
The proposals in the consultation have been developed by the Executive, in discussion with the Water Industry Commission and Scottish Water. The changes will be phased in.
During the Stage 3 debate on the Water Services Bill, on 9 February 2005, the Executive announced its policy on water charges for the period 2006-10. See: http://www.scotland.gov.uk/News/Releases/2005/02/09172234