Scottish Water agreed to keep prices in line with inflation due to a request from the Scottish Government, but said this may impact its ability to meet agreed targets, including those on the long standing problem of overflowing sewers polluting West Dunbartonshire’s rivers, lochs and seas.
Letters released under freedom of information law, show energy minister Michael Matheson wrote to Scottish Water’s chair, Susan Rice, on 1 February to request that it reconsider a planned rise in charges due to the “rapidly emerging cost of living context”.
Acknowledging Scottish Water had to address a “challenging set of objectives” which required “adequate financing”, he insisted the public body must reconsider a proposed price hike, to meet its commitment to fair and affordable changes.
A reply from board member Iain Lanaghan confirms the board has agreed to “revise” charges in line with inflation but said the decision had been “made with deep concern”.
“We recognise the financial pressures on households and businesses are likely to continue for some time and doubt whether it would be credible to suppress the charge increase for 2022/23 only to increase charges as a result by an even higher amount than previously envisaged”, he wrote.
It is troubling to see that Scottish Water have agreed to the Scottish Government’s request to reduce price rises only on the premise that their obligations in relation to sewage overflows and net zero be relaxed.
He offered to work with Matheson and others “to explore the options” including “adjusting the obligations placed upon us”, expectations on their performance, or to approve future price rises.
Opposition politicians said it was “beyond belief” that Scottish Water had been so adamant about raising prices for customers in the midst of a cost-of-living crisis, especially given the high levels of pay for senior staff.
Chief executive Duncan Millican, PICTURED RIGHT, received a total of £378k in 2020/21, with the public company’s three top executives netting a total of just under £ one million.
Mr Millican is pictured right and above with the former SNP Environment Minister Roseanna Cunningham.
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