Modernising the Water Industry's Use of Rateable Value to Charge Non-Households for Water and Sewerage Services

This paper seeks to obtain views on charging for water and sewerage services with reference to rateable value.


Part 3 - What The Government Wants To Know

The Scottish Government has already confirmed that, from a date to be specified by Ministers, the Rateable Values most recently assigned by the Assessor must be used by the water industry. It therefore invites your views on the timing and arrangements for introducing this change. In particular:

  • Whether transitional arrangements should be put in place to ensure increases and decreases are phased; and
  • If April 2020 is an appropriate date, when charges should be calculated solely on the basis of the most recent Rateable Values.

Question 1 - do you agree that the water industry should use the most recent Rateable Values to calculate charges from April 2020?

Question 2 - if you have replied 'yes' to question 1, do you agree that there should be transitional arrangements?

Question 3 - If you have replied 'yes' to question 2, do you agree that transitional arrangements should be from 1 April 2018 to 1 April 2020?

Question 4 - if you have replied 'no' to question 3, what do you think is the appropriate period for transitional arrangements?

Question 5 - If you have replied 'no' to question 1, on what date should the most recent Rateable Values be used to calculate charges?

Financial implications

There are no financial implications for either Scottish Water or Licensed Providers, in general, as this measure is revenue neutral.

There will be marginal costs associated with the set-up of the new arrangements and the automation of the data transfer from the Assessors. These costs are bundled with other changes associated with the notification in changes of occupancy arising from the Water Resources (Scotland) Act 2013. These are expected to be offset from efficiencies generated from the greater automation of data transfers between the Assessors and water industry and improved data quality.

Legal Considerations

No primary or secondary legislation is required to enable the use of the most recent Rateable Value as assigned by the Assessor as the basis for calculating surface drainage and roads drainage charges.

Equality Impact Assessment

The objective of this policy - to modernise the water industry's use of Rateable Value to charge non-households for some of its water and sewerage services - is in support of the Government's stated commitment to cost reflective charging. The policy is not expected to have an Equality Impact.

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