Scottish Water has reported its second-best operational year, despite services being tested by Scotland’s driest start to a year in more than six decades, followed by intense rainfall and flooding.

The publicly-owned utility’s latest ‘Annual Report and Accounts: Performance and Prospects’ shows record customer satisfaction, the lowest ever number of serious pollution incidents and continued high drinking water quality.

It also sets out progress towards delivery of the biggest investment programme in Scottish Water’s history as climate change, ageing assets and rising demand increase pressure on essential water and wastewater services.

2025/26 at a glance

• Second-best performance operationally since Scottish Water was formed in 2002 – after a record year last year
• Highest ever customer satisfaction and the highest trust score of any UK water and wastewater company
• Record £1.13 billion invested in new works, repairs and upgrades across water and wastewater
• 98% of investment milestones achieved, with major projects delivered around two months early on average
• Lowest number of serious environmental pollution incidents: these reduced to just two (aim is zero)
• 99.92% drinking water quality compliance – continuing to meet drinking water standards that are among the highest in the world
• Completion of 100 miles of pipeline connecting the Greater Glasgow and Ayrshire water supply zones in a massive water resilience project, the largest capital project in Scottish Water's history
• More than 1,100 smart water monitors installed in a pilot project to help tackle leakage, increase awareness and improve resilience
• 50 energy projects completed, delivering 4.51GWh of energy efficiency improvements and helping save 10,300 tonnes of CO2e, taking the annual carbon benefit since 2021 to around 49,000 tonnes

The report also highlights the challenges ahead, including the need to reduce leakage further and continue to improve environmental performance and aspects of drinking water quality. It shows how Scottish Water is using data, digital tools and smart monitoring to detect problems earlier, respond faster and make investment go further.

"The extreme weather we have seen this year is increasingly the “new normal”

Alex Plant, Chief Executive of Scottish Water, said:

"This was a year that really tested us. We experienced Scotland's driest start to a year since 1964, followed by periods of intense rainfall and flooding. However, every single day our teams and delivery partners kept water flowing, treated wastewater, protected the environment and supported communities across the country.

"I'm incredibly proud that we delivered another very strong performance while achieving record customer satisfaction and reducing serious environmental pollution incidents to their lowest level ever.

"We're also determined to be open about where we need to improve. Leakage remains one of our biggest challenges and, while drinking water quality remains very high at 99.92% compliance, warmer, drier weather, ageing infrastructure and changing raw water quality are increasing the pressure on our services. That is why we must keep investing, innovating and improving."

"The extreme weather we have seen this year is increasingly the “new normal” and shows why we cannot stand still. The biggest investment programme in our history will renew ageing infrastructure, build resilience and help us continue delivering the high-quality water and wastewater services Scotland relies on every day. It must also be affordable for customers now and in the future, so we are focused on investing at the right pace, with the right priorities, and delivering value for money.

"None of this would be possible without the dedication of our people and delivery partners, who work around the clock in all weathers to keep services running. They are the reason we have been able to deliver such strong performance this year, for the benefit of our customers, communities and environment."

The report also sets out progress on Scottish Water’s Business Plan for 2027 to 2033, backed by input from more than 25,000 customers and stakeholders. The proposed £13.4 billion programme would renew ageing infrastructure, improve water quality, reduce sewer flooding and protect and further improve Scotland’s rivers and coastlines, while balancing the need to invest with keeping charges affordable.

Scottish Water, which is independently regulated and commercially run, provides water and wastewater services to around 2.6 million households and more than 150,000 business premises, supported by more than 60,000 miles of water and sewer pipes. It employs around 4,700 people and works with a wide supply chain, supporting jobs, skills, local communities and wider social value through its investment and day-to-day delivery.

Click here to download SCOTTISH WATER ANNUAL REPORT AND ACCOUNTS - PERFORMANCE AND PROSPECTS 2025/26