15 June 2007
Scottish Water has outperformed its operating targets, reducing costs by £160m a year or 40% in real terms, the Water Industry Commission for Scotland has disclosed.
In its annual report, the commission says the public sector utility has also made significant improvements in customer service, with a 24% increase in its score for measuring levels of service between 2002/03 and 2005/06.
Under the price limits set by the commission in November 2005, water bills of household customers have risen by a below-inflation figure of 3%.
However, commission chair Sir Ian Byatt warned against the risk of complacency. Leakage remained too high and the large capital programme for 2006 to 2010 had got off to a slow start.
He questioned whether ministers would continue to guarantee some £200m a year from the public purse for a long-term capital programme or whether they might want to see direct borrowing from the capital markets.
The commission was very conscious of the need to continue with a large capital programme to improve water and environmental quality and customer service, he said.
But it was equally conscious of the wishes of customers not to see inflation-busting increases in their utility bills.
PFjun2007