Scottish Water criticised over ‘eye-watering’ bonuses

Highlands and Islands MSP Rhoda Grant. 

An MSP has slammed Scottish Water for issuing “eye-watering” bonuses to its top ranking executives.

Labour’s Rhoda Grant has spoken after it emerged the cost of executive bonuses in 2021 more than doubled on the previous year.

The total bill soared to £227,000 for just three people.

Chief executive Douglas Millican was handed a £92,000 bonus for a single year’s work, on top of his £267,000 salary.

Two other executive members – Peter Farrar and Alan Scott – were given bonuses of £68,000 and £67,000 respectively.

It comes amid criticism over Scottish Water’s plans to hit households by at least a 12 per cent rise in future bills, despite the cost of living crisis.

The water authority is also sitting on almost £500 million worth of reserves.

Mrs Grant said: “These bonuses are despicable.

“Families the length and breadth of the country are struggling with the cost of living crisis.

“Scottish ministers should not have approved these bonuses while households are facing rises in their water bills of at least 12 per cent in coming months.

“Scottish Water and the Scottish government could have instead offset this money against taxpayers’ bills.

“It’s another kick to hardworking householders throughout the country.”

A statement from Scottish Water read: “Scottish Water remains committed to maintaining and investing in our critical services while supporting customers facing higher household outgoings.

“We will continue to work with the Water Industry Commission for Scotland, the Scottish government and other sector stakeholders to ensure our services remain affordable to customers.

“Executive pay and performance incentives are in line with arrangements approved by the Scottish Water board and the Scottish government.

“The package for the Scottish Water chief executive is significantly lower than that of other water company chief executives elsewhere in the UK water industry sector.”