Scottish Water has outstripped targets for customer service but still falls short of some providers south of the border, a report revealed today.

The Water Industry Commission for Scotland assessed the utility company on how it restored supply, handled complaints and approached drinking quality improvements.

Based on a points system, Scottish Water scored 248 last year against a target of 213. The total is 16 points above next year's target and two below the target for 2010.

But the commission said Scottish Water was still behind average or high-performing companies in England and Wales.

The best performing companies outside Scotland hit 323 marks while the lowest scored 242, based on figures for 2006-07.

The report said: "Although Scottish Water's overall improvement this year means that it is just two points away from our target for 2010, it should not be complacent.

"There is significant scope for Scottish Water to improve its service to customers and begin to match the performance of the best companies south of the border."

Richard Ackroyd, chief executive of Scottish Water, said: "This report today is good news for our customers and we will continue to drive forward investment and improvements to deliver even better customer service."