Article 3 Obligation of local authorities to make payment to Scottish Water

Subject to any agreement entered into under article 7, and to paragraph (3), for each relevant year a local authority must pay to Scottish Water the sum ascertained in accordance with the following formula—

$$(A-B)x\genfrac{}{}{0.1ex}{}{C}{C+D}-(ExF)$$

Where—

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

• “B” is any amount falling within the definition of A 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 that year in respect of dwellings in the area of the local authority;

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

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

• “F” is the sum of £5.73.

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

In the formula referred to in paragraph (1), the value of (E x F) must not, in each relevant year, exceed the total value of—