Annual 'advertising’ expenditure limit for Scottish Water: EIR release

Information requested

Please clarify the definition and explain the rationale for the annual  ‘Advertising’ Expenditure limit, beyond which Scottish Water must provide an itemised report.

This is stated, within the Scottish Water Governance Directives 2023, to be ‘£1,000,000 per project’.

1. In particular, please clarify why this is specified ‘per project’ rather than an overall limit: the current definition allowing Scottish Water to run multiple ‘advertising projects‘ worth £900,000 per annum, without any need to itemise these in the annual report.

2. Please also justify why such a budget is permitted, resulting in the unnecessary wastage of taxpayers money, ‘advertising’ Scottish Water on Edinburgh trams, to a general public who have no choice in the selection of their water supply provider

Response

Scottish Water’s annual cumulative advertising expenditure limit is £2m in the Governance Directions (Article 10.3). This limit of £1 million per project is set to ensure transparency and value for money. As you have mentioned, Scottish Water’s advertising campaigns are not typical in the sense that they are seeking new customers. Instead, its advertising campaigns aim to drive consumer behaviour that can assist them in maintaining a high level of service to all at the lowest possible cost. This is because how people use the services Scottish Water provides impacts the costs it incurs that are ultimately paid for by the people of Scotland.

For example, Scottish Water’s current ‘Piped By Us, Owned By You’ campaign aims to increase awareness that Scottish Water is publicly owned and encourage customers’ sense of responsibility towards it. As of January 2024 only 57% of the public was aware Scottish Water is publicly owned. Research shows that when people know they have a stake in Scottish Water they are more likely to adopt positive behaviours to support it. For example, when customers are aware Scottish Water is publicly owned, they place more value on the water they use, wasting less. This is important because climate change is having an impact on the availability of water in Scotland (amongst other things) and responding to this new challenge is costly.

Similarly, Scottish Water’s ‘Nature Calls’ campaign aims to achieve a reduction in sewer blockages caused by wipes and other unflushable items in the sewer network across Scotland. These blockages can cause flooding of homes and communities with sewage. This campaign, which has been running for longer than the ‘Piped by Us, Owned by You’ campaign, has had a demonstrably positive impact on public awareness about what can and cannot be flushed. The fewer blockages and floods that Scottish Water has to respond to, the lower the costs it incurs are.

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