Scottish Water chairman Ronnie Mercer told the
Infrastructure and Capital Investment Committee
the company was hitting 85% of their performance targets and was also on track to meet the objectives set by Scottish government Ministers.
Mr Mercer was giving evidence on
Scottish Water's Annual Report and Accounts 2011-12
on 14 November 2012.
The committee were keen to know why Scottish Water was in a position of surplus reduction in cash terms.
Scottish Water interim chief executive Douglas Millican explained that as customer bills have continued to be frozen, their pot of revenue was slowly going down.
Mr Millican said that water bills could not be "frozen indefinitely" but they had tried to ease the financial burden on households.
Scottish Water will now raise water bills in line with inflation over the next two years.
Mr Millican stressed to MSPs that Scotland still had the lowest water charges in the UK, the average bill was £52 pounds lower than south of the border.
Conservative Alex Johnstone wanted to know if their customers were happy overall considering the general public discontent currently with utility companies.
Mr Mercer said that as a publicly owned company with Scottish ministers as their ultimate boss, it allowed the money and any surplus to go back to customers.
And the he said that complaints about their service had reduced by 40% in the last four years.
MSPs then quizzed Water Industry Commission for Scotland chief executive Alan Sutherland and director of analysis John Simpson.
Labour's Malcolm Chisholm was interested to get the Water Commission's view of whether Scottish Water was meeting the 2010 - 2015 government targets.
Mr Sutherland said they were:"Yes they are on track, they appear to have stepped up quite well despite some additional challenges."