ASSC Engages with WICS on Water and Sewerage Charges Following 2026 Rates Revaluation

The Association of Scotland’s Self-Caterers (ASSC) has been engaging with the Water Industry Commission for Scotland (WICS) regarding concerns about the impact of the 2026 Non-Domestic Rates (NDR) revaluation on water and sewerage charges for self-catering businesses.

In correspondence sent to WICS Chief Executive David Satti on 19 April 2026, ASSC outlined evidence emerging from across Scotland that increases in Rateable Values (RVs) are feeding directly into higher non-household water and sewerage charges.

The letter acknowledged the efforts made by Assessors and the Scottish Government to moderate draft Rateable Values through reductions and relief mechanisms. However, ASSC noted that many revised RVs remain materially higher than previous baselines and are now creating unintended consequences through the charging framework used for water and sewerage services.

ASSC highlighted several consistent themes being reported by operators, including:

• substantial increases in Rateable Values following the move to revised rental-led methodologies
• corresponding increases in water and sewerage charges
• the fact that water and sewerage charges sit outside existing Non-Domestic Rates relief mechanisms

While recognising that WICS does not determine Rateable Values or wider NDR policy, ASSC asked whether the current charging outcomes remained proportionate and evidence-based where one of the underlying inputs, namely Rateable Value, was undergoing significant change.

The letter invited consideration of several areas, including:

1. A focused review of affordability impacts arising from revised Rateable Values.
2. Exploration of possible transitional approaches to smooth significant increases.
3. Continued dialogue between WICS, Scottish Government and relevant bodies to ensure alignment between the rates framework and water charging outcomes.

WICS responded on 8 May 2026 acknowledging the concerns raised by ASSC regarding the interaction between the 2026 NDR revaluation and the basis on which non-household water and sewerage charges are calculated.

In its response, WICS clarified that it does not set or influence Rateable Values, direct the Assessor system, or determine Scottish Government policy on Non-Domestic Rates. It also noted that it cannot independently introduce reliefs or alter the statutory basis on which charges are calculated where legislative or policy change would be required.

However, WICS confirmed that it does have a role in scrutinising Scottish Water’s proposals and assessing whether the overall charging framework remains “fair, evidence-led, proportionate and understandable for customers.”

WICS further advised that the issue arises during an important stage in the regulatory cycle, with Scottish Water’s Business Plan for the 2027-2033 regulatory period (SRC27) currently under scrutiny. Areas under consideration include affordability, customer acceptability, the balance of risk between Scottish Water and customers, and proposed changes to charging structures, including a move from a price cap to a revenue cap.

The regulator also confirmed that ASSC and its members will have an opportunity to comment formally through the forthcoming Draft Determination consultation, expected to be published on 30 June 2026.

In a follow-up response dated 14 May 2026, ASSC welcomed the timing of the scrutiny process and reiterated its intention to engage constructively in the consultation and any wider discussions on the issue.

ASSC noted that there is increasing concern within the sector regarding the cumulative impact of regulatory intervention, compliance obligations and rising operational costs on the viability of self-catering businesses across Scotland.