Former Scottish Water chief urges honesty with customers about cost of service

Writing in his final annual report, former Scottish Water chief executive, Douglas Millican, said despite investment levels increasing significantly in the last two years the utility was currently investing around only 40% of the necessary long-term replacement rate. He wrote: “We owe it to our customers to be honest with them about the cost of delivering the services they rely on and expect, and will continue to expect.

He went on: "There is not a stand-still option. Assets are ageing and need replacing. Our climate is changing and we must adapt."

Meanwhile the publicly owned Scottish Water Group reported a 33% year-on-year drop in surplus income before tax to £60.9m for the year to 31 March 2023. Revenue for the period was up 5.9% to £1,837m.

Group operating surplus was down 8.8% to £392m. Cost of sales showed an 11% hike to £1,445m from the previous year while administrative costs and finance costs ticked up to £181m and £155m respectively.

Segmental analysts of the group subsidiaries showed Scottish Water revenue up 6.2% to £1,365m with an operating surplus down 11% to £210m; and Business Stream sales up £28m to £657m with a £10m fall in operating surplus to £2.3m.