The Water Services Charges (Billing and Collection) (Scotland) Order 2012

EXPLANATORY NOTE

(This note is not part of the Order)

Responsibility for water and sewerage services in Scotland rests with Scottish Water, established under the Water Industry (Scotland) Act 2002. Section 37 of that Act provides that the Scottish Ministers may determine that local authorities in Scotland, and not Scottish Water, are to demand and recover charges for such services and make payment to Scottish Water. This Order makes provision in that regard.

Article 2 provides, as regards the financial years 2012-13 and 2013-14, for each local authority in Scotland to be responsible for demanding and recovering charges payable in respect of water supply and sewerage services provided by Scottish Water to dwellings in the area of the local authority (other than charges for a supply of water taken by meter).

Provision is made for the calculation of the sum payable by local authorities to Scottish Water each financial year in accordance with the formula set out in article 3.

Articles 4 and 5 provide for local authorities to pay that sum in monthly instalments. Monthly instalments must be paid in two tranches, the first of which represents 50 per cent of the estimated monthly instalment, followed by the balance of the instalment within 14 days from the end of the month. The payment of sums collected in relation to the billing year 2012-13 are phased over three years to 31 March 2015. The payments of sums collected in relation to the billing year 2013-14 are phased over two years to 31 March 2015. The timing and amount of payments of sums collected after 31 March 2015 are subject to agreement between the local authority concerned and Scottish Water under article 6.

Article 7 provides for the possibility of local authorities and Scottish Water varying, by agreement, the payment arrangements imposed by articles 3, 4 and 5.

Provision is made for the forms and procedures to be used or followed by the local authorities in demanding payment (articles 8 to 10) and for charge payers to have a right of appeal to the relevant valuation appeal committee (articles 11 and 12). Article 13 requires each local authority to keep accounts and records of all transactions under the Order and gives Scottish Water the right to inspect such accounts and records.

This Order replaces the Water Services Charges (Billing and Collection) (Scotland) Order 2010 (S.S.I. 2010/10) which was in force in respect of the financial years 2010-11 and 2011-12. The value of “F” in the formula in article 3 of this Order, which represents the fee per dwelling that local authorities are entitled to charge Scottish Water for their billing and collection services, remains at the same level it was for the financial year 2011-12. The value of “(E x F)”, which represents the total fee that local authorities are entitled to charge Scottish Water for such services, is also capped in this Order, so that the total billing and collection services fee will not increase for the financial years 2012-13 and 2013-14.