Scottish Water makes efficiency savings

Scotland's water industry has achieved a ten per cent improvement in efficiency.

Nov 14th, 2003

Nov. 12, 2003 -- Scotland's water industry has achieved a ten per cent improvement in efficiency.

A report published by the Water Industry Commissioner has confirmed that Scottish Water made efficiency savings of £37m in real terms in operating costs, and five per cent in capital procurement costs between 2001-02 and 2002-03.

It examines the progress made by Scottish Water in 2002-03 towards the efficiency targets set by the Commissioner for 2005-06.

Ross Finnie, Minister for Environment and Rural Development welcomed the report. He said:

"Scottish Water has made a good start in improving the efficiency of Scotland's water industry. Delivery of such significant efficiencies - ten per cent in operating costs and five per cent in capital procurement costs in one year - vindicates our decision to merge the three former Water Authorities and proves that the system of regulation that Ministers set up is working.

"Scottish Water still has further progress to make if it is to meet the targets that the Water Industry Commissioner has set for 2005-06 and I believe it deserves the support of customers, both household and business, in achieving this.

"These efficiencies will ensure that charges can be kept to the minimum whilst ensuring that services meet the standards we expect."

The Water Industry Commissioner intends to publish a Cost and Performance Report on Scottish Water annually. This is the second in the series and concentrates on progress made in the financial year 2002-03.

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