Article 3 Payments by local authorities to Scottish Water

Subject to article 5 below, for a relevant year a local authority shall pay to Scottish Water the sum ascertained in accordance with the following formula:–

Where–

• “A” is the total amount paid to the local authority in question as council tax or water services charges for a relevant year by persons liable to pay that tax or those charges;

• “B” is any amount falling within the definition of A above which has been paid by a person and which–

  1. (a)

     has subsequently been repaid to that person; or

  2. (b)

     has subsequently been credited against a liability of that person to pay an amount which does not fall within that definition;

• “C” is the total amount payable as water services charges for a relevant year in respect of dwellings in the area of the local authority in question;

• “D” is the total amount payable as council tax for a relevant year in respect of dwellings in the area of the local authority in question;

• “E” is the number of dwellings in the area of the local authority in question in respect of which water services charges are payable for a relevant year; and

• “F” is–

  1. (a)

     in respect of the financial year 2006–07, £4.86;

  2. (b)

     in respect of the financial year 2007–08, the sum of £4.86 increased by the percentage increase between the price index for December 2005 and the price index for December 2006;

  3. (c)

     in respect of the financial year 2008–09, the sum calculated under (b) above increased by the percentage increase between the price index for December 2006 and the price index for December 2007; and

  4. (d)

     in respect of the financial year 2009 10, the sum calculated under (c) above increased by the percentage increase between the price index for December 2007 and the price index for December 2008.

For the purpose of the definitions of C and D in paragraph (1) above, an amount is payable as water services charges or council tax if–