We are pleased to announce the launch of our methodology for the Strategic Review of Charges 2027-33 (SRC27), which outlines our approach to determining Scottish Water’s charges for the next regulatory period.
We consulted on our draft methodology proposals in August 2024. We have carefully considered the feedback we received from stakeholders. Since publishing our draft methodology, we have also continued developing various aspects of our methodology with Scottish Water and other stakeholders.
This document sets out our finalised methodology for SRC27, reflecting the outcome of the consultation and our work with stakeholders following the publication of the draft methodology.
Our approach is guided by several key principles:
- Embedding ethical business practice and regulation (EBP&R): Our approach continues to be underpinned by the principles of Ethical Business Practice and Regulation (EBP&R) which will continue to support open and frank conversations about the challenges the industry faces and the best ways to address them.
- A focus on high-quality evidence and analysis: We will focus on the quality of evidence and analysis underpinning how Scottish Water plans to meet Scottish Ministers’ Objectives in the context of the longer-term water sector vision.
- SRC27 set in the context of the long-term: Our methodology takes a long-term view, ensuring that the 2027-33 period is a key step towards achieving the water sector vision.
- Ensuring clear accountability: Scottish Water will be held accountable for its performance. Clear financial forecasts and commitments will be defined for 2027-33, and then Scottish Water’s progress will be monitored over this period. Changes to investment priorities will be carefully explained and documented.
- Building appropriate flexibility: Scottish Water will have flexibility to respond effectively to the challenges it faces, particularly where changes in risk or additional evidence impact investment priorities.
The publication of our 2027-33 methodology marks the next step in ensuring the Scottish water industry is prepared to tackle future challenges.
David Satti, Interim CEO said:
“Our methodology sets the course for Scottish Water to deliver high standards of service for the people of Scotland during 2027-33, while also making further progress toward achieving the long-term water sector vision.
We look forward to engaging with stakeholders, customers and the wider public throughout the next stages of the Strategic Review of Charges process.”
For further information, please contact press@wics.scot.