The Water Industry Commission for Scotland (WICS) has released its annual performance assessment for Scottish Water for the 2024-25 period, indicating that while the utility has achieved notable service levels and drinking water quality, it faces significant challenges moving forward.

Scottish Water has recorded its highest-ever Outcome Performance Measure (OPA) score, with improvements noted in eight out of nine performance metrics. Key areas of enhancement include reductions in supply interruptions, low-pressure incidents, and serious pollution events. Customer satisfaction remains high, with developer satisfaction also on the rise, aided in part by favorable weather conditions that contributed to improved service delivery.

Financially, Scottish Water’s average household bills are reported to be the second lowest in the UK, with increases occurring at a slower pace than the maximum allowed under the current regulatory framework for 2021-27. To date, the utility has invested approximately £2.825 billion in its infrastructure and services.

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However, the WICS report identifies critical challenges that could impact future performance. The projected capital investment for the current regulatory period is now estimated at £4.45 billion (in 2017-18 prices), which is around £400 million less than what was anticipated in the Final Determination. This discrepancy is attributed to lower-than-expected revenue from customer charges and rising operational costs. If Scottish Water can sustain its current financial and operational performance, this shortfall might be reduced to approximately £300 million.

WICS has expressed concern over delays in fulfilling some long-term commitments, particularly regarding the elimination of priority unsatisfactory intermittent wastewater discharges (UIDs) and the progress towards achieving Net Zero emissions targets. Additionally, leakage levels, household water consumption, and compliance with discharge permits are reportedly higher than the industry average across Great Britain.

As part of its strategy for the upcoming 2027-33 regulatory period, WICS plans to introduce a broader set of performance measures, expecting Scottish Water to enhance its performance in these critical areas. The commission will closely monitor the utility’s investment program, focusing on issues such as sewer overflows, climate change initiatives, and adherence to the Net Zero and Improving Urban Waters Routemaps.

David Satti, Chief Executive of Scottish Water, acknowledged the positive results for 2024-25 but emphasized the need for continued focus on areas requiring improvement. He stated, “Scottish Water delivered strong results in 2024-25. Customers continue to receive excellent drinking water quality, high levels of service, and among the lowest household bills in the UK. But our assessment also highlights where further focus is required. We will continue to monitor Scottish Water’s performance closely over the remainder of the regulatory period to ensure that customers receive the outcomes expected.”