Obligation of local authorities to make payment to Scottish Water3.

(1)

Subject to any agreement entered into under article 7, and to paragraph (3), for each relevant year a local authority must pay to Scottish Water the sum ascertained in accordance with the following formula—

(A−B) xCC + D − (E x F)math

Where—

“A” is the total amount paid to the local authority as council tax or water services charges for that year by persons liable to pay that tax or those charges;

“B” is any amount falling within the definition of A which has been paid by a person and which—

  1. (a)

    has subsequently been repaid to that person; or

  2. (b)

    has subsequently been credited against a liability of that person to pay an amount which does not fall within that definition;

“C” is the total amount payable as water services charges for that year in respect of dwellings in the area of the local authority;

“D” is the total amount payable as council tax for that year in respect of dwellings in the area of the local authority;

“E” is the number of dwellings in the area of the local authority in respect of which water services charges are payable for that year; and

“F” is the sum of £5.73.

(2)

For the purpose of the definitions of C and D in paragraph (1), an amount is payable as water services charges or council tax if—

(a)

it has been demanded by the local authority from a person appearing to that authority to be liable to pay it; and

(b)

it—

(i)

has been paid;

(ii)

remains payable; or

(iii)

has been written off by the local authority as irrecoverable.

(3)

In the formula referred to in paragraph (1), the value of (E x F) must not, in each relevant year, exceed the total value of—

(a)

(E x F) in article 3(1) of the 2010 Order for the local authority in respect of the financial year 2011-12; plus

(b)

the amount of any payment paid to the authority by Scottish Water in accordance with any agreement made under article 5 of the 2010 Order in respect of the financial year 2011-12.