Written Question · S2W-05936 · Session 2
Whether a decision has been made on the level of water charges for 2004-05.
The question
To ask the Scottish Executive whether a decision has been made on the level of water charges for 2004-05.
The answer
Yes. I would like toannounce three decisions that we have made on water charges.
Firstly, following thefailure of Scottish Water and the Water Industry Commissioner to come to anagreement on the scheme of charges for 2004-05, under the procedures laid downin the Water Industry (Scotland) Act 2002 it has fallen to ministers to decidethe levels of individual charges. We have decided that household charges willbe harmonised across Scotland, that non-domestic customers should have belowinflation increases and that a low user tariff should be introduced that willbenefit those non-domestic customers with a 20mm pipe that use less than 25m3of water in a year.
Secondly, we have decided tocontinue the reduction scheme for households which receive council tax benefit.Like the existing scheme, this will help vulnerable households adjust toincreases in charges over time, rather than being faced with sudden largeincreases.
The “threshold” for thefinancial year 2004-05 will be £240. This is the amount which households willhave to pay before becoming eligible for a reduction in water and seweragecharges in line with the amount of council tax benefit they receive.
Thirdly, we have decided tohold a consultation on the principles of charging, as recommended in the recentreport by the Water Customer Consultation Panels. We will publish aconsultation document and facilitate a widespread discussion over the summer.We anticipate this will cover the full range of concerns raised, including thetotal size of bills, the appropriate mix of fixed and volumetric charges forall types of customer, whether alternatives to the use of rateable values canbe used in the calculation of charges, the extent to which metering should beencouraged, what kinds of discount and cross-subsidy are appropriate, whatsustainable use of water should mean in practice and how all of these compare withEngland and Wales. If the evidence is there to support it, the consultationcould lead to more fundamental changes than the proposals which Scottish Waterand the Commissioner were discussing.
The outcome of thisconsultation process will be an important element of an overall strategic reviewof charging, which will set limits on how much money Scottish Water can raisein charge income over the period 2006-10 and establish how customers can becharged within these limits.
Firstly, following thefailure of Scottish Water and the Water Industry Commissioner to come to anagreement on the scheme of charges for 2004-05, under the procedures laid downin the Water Industry (Scotland) Act 2002 it has fallen to ministers to decidethe levels of individual charges. We have decided that household charges willbe harmonised across Scotland, that non-domestic customers should have belowinflation increases and that a low user tariff should be introduced that willbenefit those non-domestic customers with a 20mm pipe that use less than 25m3of water in a year.
Secondly, we have decided tocontinue the reduction scheme for households which receive council tax benefit.Like the existing scheme, this will help vulnerable households adjust toincreases in charges over time, rather than being faced with sudden largeincreases.
The “threshold” for thefinancial year 2004-05 will be £240. This is the amount which households willhave to pay before becoming eligible for a reduction in water and seweragecharges in line with the amount of council tax benefit they receive.
Thirdly, we have decided tohold a consultation on the principles of charging, as recommended in the recentreport by the Water Customer Consultation Panels. We will publish aconsultation document and facilitate a widespread discussion over the summer.We anticipate this will cover the full range of concerns raised, including thetotal size of bills, the appropriate mix of fixed and volumetric charges forall types of customer, whether alternatives to the use of rateable values canbe used in the calculation of charges, the extent to which metering should beencouraged, what kinds of discount and cross-subsidy are appropriate, whatsustainable use of water should mean in practice and how all of these compare withEngland and Wales. If the evidence is there to support it, the consultationcould lead to more fundamental changes than the proposals which Scottish Waterand the Commissioner were discussing.
The outcome of thisconsultation process will be an important element of an overall strategic reviewof charging, which will set limits on how much money Scottish Water can raisein charge income over the period 2006-10 and establish how customers can becharged within these limits.
In the Official Report
No contribution in the Official Report cites S2W-05936 by reference.