Consumer Scotland has said that low income households need protection from future rises in water bills.
The body is recommending an increase in the existing Water Charges Reduction Scheme (WCRS) to help prevent water poverty.
Recent analysis shows that around one in ten households in Scotland is currently in water poverty, while about one in twenty is in severe water poverty.
This means they pay more than 5% of their disposable income on water and sewerage charges.
The Strategic Review of Charges will assess water bills for the period from 2027/28 to 2032/33.
This review involves the Scottish Government, the Water Industry Commission for Scotland, and Scottish Water.
It will focus on how to raise enough income from customer charges to fund services and invest in future infrastructure while ensuring that charges do not unfairly impact consumers.
However, it is expected that Scottish consumers will face rises in bills that exceed inflation due to climate change and ageing infrastructure.
Without action, the number of households in water poverty could increase, according to the independent body.
Consumer Scotland has found that increasing the WCRS is the most cost-effective way to support low-income consumers in the short term.
Currently, eligible customers can receive a reduction of up to 35% on their water bills, depending on their council tax status.
The body recommends increasing this limit to 50% during the 2027/33 charge period.
This change could reduce water poverty for around 13,000 households at a cost of approximately £22 million.
Copyright © 2024 Energy Live News LtdELN