How the strategic review of charges 2002-06 casts a long shadow over future water charges in Scotland

Cuthbert, Jim and Cuthbert, Margaret (2006) How the strategic review of charges 2002-06 casts a long shadow over future water charges in Scotland. Quarterly Economic Commentary, 30 (4). pp. 36-46. ISSN 0306-7866

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Abstract

The findings of the research described in this paper are that there were significant errors made in the setting of water charges in 2002-06 in Scotland, such that there was substantial overcharging of customers. This will continue at a lesser extent over the period 2006-10. The amounts involved are large: total overcharging in cash terms is likely to be at least £650 million cumulatively over the eight year period from 2002 to 2010, and could well be close to £1 billion. This affects both households and businesses in Scotland.