Scottish Water expects ‘moderate’ rise in bills to fund climate change resilience

Scottish Water expects its customers to see a “moderate” rise in their bills as it seeks to eliminate its contribution to climate change and make water supplies more resilient to its effects.

From 2021, Scottish Water will follow a new regulatory approach that involves longer investment periods. The system is intended to allow the company to plan and prioritise investment through a “rigorous, dynamic and rolling process”.

As part of its 25-year strategic plan, Scottish Water said it will invest in assets and building resilience into water supplies, as well as achieving net carbon neutrality by 2040.

The company said the improvements will mean “moderate above inflation increases in charges” to customers. However, it added it will employ greater efficiency and borrow from the government to limit bill increases.

The plan called Our Future Together focuses on three overarching goals: service excellence, going beyond net-zero emissions, and providing value for customers while maintaining financial sustainability.

Scottish Water will design an agenda of “radical action, transformative change and additional investment” during 2020 to meet the challenges ahead. It said over the next year it will design a delivery plan for 2021-27 period as the first part of the strategic plan including major goals and milestones – these will be updated annually.

Beneath these banners the plan is divided into 10 categories to meet the goals for customers and environment.

In an article in The Scotsman, chief executive Douglas Millican said the weather patterns over the past two summers demonstrate the need for investment to provide resilience against flooding and drought – which the country has seen over past two years.

Many assets are more than 50 years old. Sewer and main systems have often been around for more than a century. However, the majority still have “substantial remaining life” and the company said it will find performance improvements to ensure their reliable operation.

The plan acknowledges the “serious, uncertain and costly challenges” the water cycle faces because of the extremes of flooding and drought brought on by global warming.

Millican said: “We must take steps now – but also plan out to the mid-century and beyond – to replace and upgrade our infrastructure across Scotland. By doing this, we will safeguard and enhance our services at the same time as responding to climate change – whether hotter, drier summers or more frequent intense storms.

“We’re doing more than just planning for services here in Scotland. We’re committing to playing our part in ensuring we have a planet fit for future generations to inhabit, by reducing our emissions to net zero, and going beyond that thereafter.”