Water costs cheaper in Scotland

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Scottish householders pay less on average for their water than people south of the border, according to an industry regulator.

Bills in Scotland are on average £20 cheaper than in England and Wales, and utility firm running costs are 40% cheaper than seven years ago.

The figures have been published in a report by the Water Industry Commission for Scotland (WICS).

It examined Scottish Water's cost and performance in 2007/08.

In a table of 11 UK water providers Scottish Water was listed as fourth cheapest behind Thames, Severn Trent, Northumbrian and South West Water.

Alan Sutherland, chief executive of the regulator, said: "We are pleased to report that Scottish Water has met its targets for running costs, beating our expectations by 5%.

"These savings are being passed on to Scottish households and businesses."

He added: "We expect that by 2010 the average Scottish household bill will be £28 lower than the average in England and Wales."

The Commission said the average bill in Scotland was £299 and in England and Wales was £319.

Prices jump

The report was published one day after water regulator Ofwat defended household bill rises which will hit consumers in England and Wales in the coming months.

Householders there will see prices jump by 1.1% above inflation, an average of £13 for each bill, in April.

Earlier this month the WICS urged businesses to shop around for the best deal available on water charges.

It followed a change in legislation in April last year to allow companies, councils, schools and other public bodies to choose from four newly-licensed water suppliers.

Scottish Water was previously the sole supplier.

The Commission found two thirds of non-domestic customers had not reviewed their provider and said millions of pounds worth of savings were not being realised.