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

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.