Scottish Water has submitted its final Business Plan for 2027-33 to the Water Industry Commission for Scotland (WICS), outlining a £13.4 billion investment strategy to sustain and enhance Scotland’s water and wastewater services over the next six years. This submission initiates WICS’ formal assessment of charges for the period, a critical process that will determine the financial framework for Scottish Water’s ambitious plans.
The proposed investment includes £8 billion allocated for maintaining and improving essential infrastructure such as pipes and treatment works. The remaining £5.4 billion will cover operating costs and ensure the continuity of vital services. Scottish Water has proposed an annual charge increase of 3.3% above inflation for customers, a reduction from the initially suggested 4% following feedback from WICS.
WICS has acknowledged Scottish Water’s responsiveness to its earlier feedback, noting improvements in areas such as drinking water quality and environmental outcomes. David Satti, Chief Executive of WICS, emphasized the importance of rigorous testing of the plan. “This Business Plan reflects a significant amount of work by Scottish Water to set out how services can be sustained and improved over the next six years,” he said. “Our role is to test the plan rigorously for ambition, deliverability, and value for money. As Scotland’s independent economic regulator, we will ensure customers pay no more than is necessary to secure safe, resilient, and improving services.”
Alex Plant, Chief Executive of Scottish Water, highlighted the collaborative effort behind the plan, involving over 25,000 people. “This plan sets out how we can continue to provide high-quality, reliable water and wastewater services for Scotland, while keeping customer bills as low as possible,” Plant stated. He underscored the importance of fair and affordable investments, noting that Scottish Water’s charges are among the lowest in the UK. “As a publicly owned business, every penny we receive is re-invested in services for our customers,” he added.
The plan now faces detailed scrutiny by WICS, which will conduct a thorough analysis to ensure that the proposed expenditures are justified and represent the best value for customers. WICS will continue to challenge Scottish Water’s proposals and assumptions throughout the determination process, culminating in a final decision on charges for the 2027-33 period. The draft determination of charges is expected to be published on 30 June 2026, inviting further consultation and feedback.
This substantial investment plan reflects the growing pressures on Scotland’s water infrastructure, driven by ageing systems, climate change, and evolving customer needs. The outcome of WICS’ review will be pivotal in shaping the future of Scotland’s water and wastewater services, balancing the need for significant investment with the imperative of affordability for customers.