Scottish Water charges will continue to be among the lowest in Great Britain in the next six years.
Since 2009, its charges have reduced by 10 per cent, relative to the rate of inflation.
By the end of its new six-year regulatory period which starts in April, Scottish Water charges will have fallen even further in real terms – below the level of inflation.
An increase in household charges from April 1, for the year 2015/16, will be limited to 1.6 per cent – around £6 a year for the average household.
It means the average Scottish Water household charge in 2015/16 will be £346.
So the average in Scotland is expected to be £40 lower than the bill customers receive for the same service in England and Wales.
The new charges are within price limits set by the Water Industry Commission for Scotland.
Douglas Millican, chief executive, said: “Scottish Water continues to provide one of the UK’s best value water and waste water services.
“We have listened to the views of our customers in setting our plans for the next six years.
“Our customers expect us to build on the significant improvements we have made to water services for the benefit of everyone in Scotland as we embark on our new, six-year regulatory period.
“Our customers have told us that they value certainty in their charges over the medium term.
“This announcement signals stability in water charges for the coming years and provides certainty for customers.
“It follows a major customer consultation exercise.”