Scottish Water has recorded its second-strongest operational performance on record in 2025/26, despite a year defined by the driest start since 1964 followed by intense rainfall and flooding.

Its latest Annual Report and Accounts: Performance and Prospects highlights record customer satisfaction, the fewest serious pollution incidents to date and sustained high drinking water quality, while charting progress on the biggest investment programme in the utility's history as climate change, ageing assets and rising demand put essential services under strain.

2025/26 in brief:

- Second-best operational performance since Scottish Water was established in 2002, following last year's record

- Highest-ever customer satisfaction and the top trust score among UK water and wastewater companies

- Record £1.13 billion invested across water and wastewater projects, maintenance and upgrades

- 98% of investment milestones met, with major projects delivered around two months ahead of schedule on average

- Serious environmental pollution incidents reduced to two (aim is zero), the lowest on record

- Drinking water quality compliance at 99.92%, maintaining world-class standards

- Completion of 100 miles of pipeline linking the Greater Glasgow and Ayrshire supply zones, the largest capital project in the organisation's history

- More than 1,100 smart water monitors installed in a pilot to cut leakage, raise awareness and boost resilience

- 50 energy projects delivered 4.51 GWh of efficiency improvements, saving 10,300 tonnes CO2e; around 49,000 tonnes annual carbon benefit achieved since 2021

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The report notes areas for further improvement, including reducing leakage and enhancing environmental performance and aspects of drinking water quality. It sets out how data, digital tools and smart monitoring are being deployed to spot issues sooner, respond faster and stretch investment further.

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."

Looking ahead, the report details progress on the Business Plan for 2027–2033, shaped by input from more than 25,000 customers and stakeholders. The proposed £13.4 billion programme would renew ageing infrastructure, improve water quality, cut sewer flooding and protect and enhance Scotland's rivers and coastlines, while balancing investment with keeping charges affordable.

Scottish Water is independently regulated and commercially run, providing water and wastewater services to around 2.6 million households and more than 150,000 business premises. It supports more than 60,000 miles of water and sewer pipes, employs about 4,700 people and works with an extensive supply chain, supporting jobs, skills, communities and wider social value through its investment and day-to-day operations.