Scottish Water's regulated revenue reached £1,738 million in the year to March 31, 2026, up from £1,579 million a year earlier. Group revenue, which includes the Business Stream retail arm, rose to £2,360 million from £2,087 million.
Surplus nearly triples
The regulated surplus before tax was £172 million in FY 2025/26, against a restated £59 million in FY 2024/25. At group level the surplus before tax was £199 million, against a restated £82 million. The annual report puts regulated capital additions at £812 million, up from £778 million.
Three April increases
The step up followed large April increases of 8.8% in 2024 and 9.9% in 2025; a further 8.67% followed in April 2026. The 2026 rise added £42 a year to the average household bill, taking it to £532. Those increases came after Scottish Water held charges 0.4% below CPI inflation, cumulatively, over the first four years of the 2021–27 period (2022 to 2025). Households carry most of the load: in FY 2024/25 they paid £1,154 million of £1,579 million in regulated revenue, or 73%.
Debt keeps climbing
Group debt stood at £4,874 million at March 31, 2025, up from £4,704 million, at a weighted average interest cost of 3.2% on long-term debt. Regulated cash fell from £280 million to £136 million over the same year. Group net debt has risen from £2,994.7 million in March 2017 to £4,604 million in March 2025.
The next test
The regulator's Final Determination for 2027–33 is due on November 12, 2026. Its June draft caps charges at CPI + 2% a year, against the CPI + 3.3% Scottish Water requested.
How investment has tracked charges since FY 2016/17, how far leakage and mains renewal lag, and what the climate adaptation bill looks like are among the questions the full profile answers in one place. The full report, Utility Intelligence Profile: Scottish Water, is available for USD 99. For a free overview, read the Scottish Water Utility Snapshot.