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Water charges
30/05/2008
Small charities, churches and voluntary organisations will continue to be exempt from paying water charges, it was confirmed today.
Infrastructure Minister Stewart Stevenson was announcing the Government's principles of charging for 2010-2014, which will guide the Water Industry Commission for Scotland's future determination of water service charge levels.
Mr Stevenson said:
"Scottish Water is making significant improvements to water services while delivering efficiency savings to all its customers. Average household charges are lower than in England and Wales and on average, customers' bills have not risen in real terms since 2006.
"I believe that the current framework of stable and affordable charges is fundamental to a successful water industry. It is a priority for the industry to continue to deliver affordable prices while improving levels of service.
"A strong case for retaining the exemption scheme was made by voluntary sector organisations and church groups during our recent consultation and we have listened to those views. Consequently, those small charities, churches and voluntary organisations that meet the exemption scheme criteria will continue to be exempt from paying for their water services charges until 2014.
"The principles of charging set by Scottish Ministers for any given period are essential to ensuring that Scottish Water can continue to be successful and maintain its significant contribution to the Government's strategic objectives for Scotland. Ministers have issued draft principles today and will review and finalise these principles in September 2009 following the publication of the Water Industry Commission for Scotland's draft charges determination for the 2010-14 regulatory period."
The Principles of Charging for Water Services are one of the key Ministerial inputs to the wider water charging review (known as the Strategic Review Of Charges) for 2010-14. The Review is commissioned by Scottish Ministers and undertaken by the Water Industry Commission for Scotland.
Key principles for the 2010-2014 period will include:
- the maintenance of existing principles that are critical to fair and affordable water services - including full cost recovery and geographical harmonisation of charges;
- further movement towards more obviously cost-reflective charges - i.e. customers paying a fair charge for the demand that they place on the public system - in a manner that is least disruptive to customers.
This charging review (which is the third since the creation of Scottish Water in 2002) will conclude in November 2009 with the Water Industry Commission setting limits on the water and sewerage charge levels that Scottish Water can apply during 2010-14. The Commission will only do so following Ministers' decisions on the principles that they would wish to see the Commission apply during that period.
The recent introduction on April 1, 2008 of retail competition (that is, competition in the provision of customer facing services such as billing, reading meters, handling complaints, etc.) in the non-household sector means that the charging principles will only apply to the wholesale charges set by Scottish Water for non-household customers. Retailers will be responsible for final charges for these customers. The charging principles set by Ministers will continue to apply to charges (i.e. wholesale and retail) for household customers.
The Small Organisation Exemption Scheme applies to certain small organisations (largely charitable and voluntary) that formerly received reliefs under the former water authorities on a discretional basis. It was introduced in 2002 for a four year period to help these organisations to prepare to pay for their water services. The scheme was previously extended from 2006-10.