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Why 2025 shows the need to keep investing in Scotland’s world-class water

By Alex Plant, Chief Executive, Scottish Water

Scotland is getting increasingly used to more extreme weather. This year we’ve had some of the driest conditions in decades, especially in the east of the country.

Currently, reservoir levels in the east of the country are 61 % full. Normally in November we’d expect them to be at 86%. Just one example to highlight how we’re all having to rethink what ‘normal’ means when it comes to Scotland’s weather.

We are now a country that frequently gets periods of both too much rain (overwhelming our drains) and too little (seeing our reservoirs emptying and rivers running low).

At the same time Scotland continues to be one of the highest users of water per head of population.  The average person in Scotland uses around 40% more water than someone living in Yorkshire, for example. And we are the second highest users in Europe (just behind Italy).

Why the big difference? Perhaps it is something to do with the way we think of water in Scotland.

Firstly, there is how much it costs. The average household water bill in Scotland is around £1.20 per day compared to around £5 per day for energy. Secondly, perception. Water is considered an abundant resource. Now, in some parts of Scotland this is true, but not everywhere, as 2025 has shown so clearly.

Changing our relationship with water

It is therefore increasingly important we change our relationship with water in Scotland.

Water is rightly a source of great pride, but we should also treat it as the precious resource it is. This means always using it wisely. This can be done with simple steps like not using a hose in the garden - lawns are more resilient than you think.

But it also means continuing to invest sustainably in the infrastructure that collects, treats and distributes water from source to tap and from sink to sea.

Scottish Water is publicly owned, independently regulated and commercially run. This model has worked well for Scotland over the last 23 years – with service levels, efficiency and environmental performance all improving significantly over that time.  The Scottish model of a long-term approach to investment also garnered positive comments in the recent report by Sir Jon Cunliffe into the water sector in England and Wales.

Some of our recent projects show the value of this approach. The Glasgow-Ayrshire resilience scheme protects the drinking water supply for around one million people. A new super sewer in Perth will enable future growth. And our award-winning Winchburgh wastewater works will allow the West Lothian town to quadruple in size while also operating more sustainably. And work is underway on a new water treatment facility in Shetland as part of a multi-million-pound investment programme. 

And we know these pay big dividends for Scotland. Every pound we invest generates a further £3 for the Scottish economy – around £4.5 billion in total per year. And for every person we employ, a further four jobs are created in our supply chain, where 90% of spending is with companies with operations in Scotland.

But while we are clearly delivering good outcomes, the demand on our services continues to increase - and not just from extreme weather.

Demand is increasing 

Scotland’s population is growing in the east and shrinking in the west meaning new facilities are needed. And many of the pipes and other assets that keep water flowing are nearing the end of their operational lives meaning repairs and replacement costs are increasing.

There are also tighter environmental standards. These are welcome but also costly. For example, we are currently investing £500 million in improving urban waters.

This all means that we will need to replumb Scotland in the years ahead to ensure water and waste water services are resilient.

What does this all mean for our customers? The balance is always between affordability, investment, and ensuring fairness between current and future generations.

This year the average water bill in Scotland increased by £44 per year. In England and Wales, the increase was £123. This follows a long-term trend of lower average bills for those of us living north of the border. And in Scotland more than half of customers receive some form of financial assistance with their bills.

Charging ahead 

The setting of next year’s charges in Scotland will be decided by the Board of Scottish Water early in the new year, but I would expect charge increases to be broadly in line with last year’s average increase – around £3.75 a month.

Over the longer term we will need to keep investing sustainably if we are to maintain the high standards we have all come to expect. If we can ensure that we keep a steady approach to investment, we reduce the risk of needing to ask customers for big bill increases in the future. A smooth ride is surely better than a rollercoaster. 

We are currently working on our Business Plan for the years 2027-2033. It will be submitted to our independent economic regulator next year and will make the case for more sustainable investment to ensure our customers can continue to get the high-quality services they deserve,  whilst also enabling us to adapt to the challenges we face, and at a bill level that is affordable.

I really hope that 2025 is seen to be a reset year for our relationship with water in Scotland. It really is our most precious resource. By changing behaviours and investing wisely we can ensure it is there when we need it for this generation and many more to come.