Amount and timing of payments to Scottish Water
5.—(1) Each sum payable under article 4(1) must be paid in instalments.
(2) Each instalment must be paid within the period of 14 days beginning with the first day of each month in the payment period (“the month”).
(3) The amount of each instalment must equal—
(a)the amount determined by the modified formula as applied at the end of the preceding month,
(b)plus half of—
(i)the amount that the local authority reasonably estimates would be the amount determined by the modified formula were it to be applied at the end of the month,
(ii)less the amount (if any) referred to in sub-paragraph (a),
less the amount to be deducted for costs and the amount of each previous instalment.
(4) Paragraph (3)(a) does not apply if the preceding month is before the payment period.
(5) Paragraph (3)(b) applies only in relation to the first 12 instalments.
(6) Estimates for the purposes of paragraph (3)(b) must be based on monthly collection data.
(7) In this article—
“amount to be deducted for costs” means—
in relation to the first instalment, an amount determined by the formula “E x 1/24”,
in relation to each of the next 11 instalments, an amount determined by the formula “E x ((N x 2) + 1)/24”, where “N” is the number of previous instalments, and
in relation to each subsequent instalment, the amount “E”,
“E” has the same meaning as it has in article 4(1),
“instalment” means instalment payable in respect of the sum,
“the modified formula” means the formula in article 4(1), as it applies in respect of the services provided within the service year in question, but with the following modifications—
“A” is the total amount paid so far to the local authority as council tax, water charges and sewerage charges for services within that service year by persons liable to pay that tax or those charges to that authority, and
“- E” is omitted,
“payment period” means the period beginning with the first day of the service year in respect of which the sum is payable and ending with the day on which the final instalment is paid, and
“the sum” means, in respect of the services provided within the service year in question, the sum payable in accordance with paragraph (1).