The Water Industry Commission for Scotland (WICS) has approved a record £7.9 billion investment program for Scottish Water over 2027-33, while capping annual bill increases at no more than 2.5 per cent above inflation. The final determination supports safe, reliable and resilient water and wastewater services across Scotland.

The investment allowance is about 30 per cent higher than the program for the current regulatory period covering April 2021 to March 2027. It will support drinking-water quality, supply reliability, leakage reduction, sewer-flood prevention, environmental protection and climate resilience.

WICS reduced the investment programme from the £8.1 billion proposed by Scottish Water to £7.9 billion after challenging the company’s plans. The regulator said the decision represents the lowest reasonable overall cost of meeting the required performance outcomes and conditions.

Under the final determination, average household bills will rise by around £16 per year before inflation. That is about £4 less per year than Scottish Water had proposed in its business plan, and WICS estimates customers will save £80 in total over 2027-33 in 2026-27 prices.

Annual charges will be limited to inflation plus 2.5 per cent from 2027-28 to 2028-29. An additional 0.3 per cent increase may be available from 2029-30 to 2032-33, but only if uncertain costs arise.

WICS said the approach provides a smooth transition for customers, avoiding sudden or material changes in charges. The regulator will set charge caps, performance targets, investment requirements and baselines for the 2027-28 to 2032-33 period.