Scottish Water puts in its best service performance of the period

(by Karma Loveday)

In 2025-26, Scottish Water put in its strongest overall service performance of the 2021-27 regulatory period so far, according to the Water Industry Commission for Scotland's (WICS) annual assessment. Highlights included: 

• High levels of customer satisfaction across households, businesses and developers.

• 99.9% of drinking water samples were compliant.

• Serious pollution incidents fell to three.

• Capital expenditure was broadly in line with planned levels despite lower revenues than originally anticipated (from not pricing up to the cap during 2022-24 because of the cost of living crisis). Over the first five years of the regulatory period, Scottish Water invested £3.64bn – just £10m below the level assumed when charges were set. Lower interest costs supported capital investment to be maintained.

However, WICS raised some flags, including:

• Wastewater treatment works compliance declined. 

• The leakage target was marginally missed, despite more leaks being fixed.

• The number of investment output areas behind schedule increased from 22 to 32 during the year.

• Plans to hit net zero by 2040 remain off-track, with operational emissions down 55% against the 60% interim milestone – WICS noted that Scottish Water attributed the gap due to slower than expected UK grid decarbonisation.

• Eight of 108 schemes in the Improving Urban Waters Routemap may not be completed on time.

• Opex including PFI expenditure was £522m against allowances of £504m. WICS said Scottish Water would need to reduce opex in 2026-27 to meet its business plan forecast.