Foreword
A Final Determination is ultimately a judgement by the Commission about value. It is about what customers should contribute towards the industry and what they should expect Scottish Water to deliver in return. The decisions set out here will shape Scotland’s water industry for the next six years, deliver the objectives set by Scottish Ministers and support progress towards its vision for 2045.
Scottish Water is publicly owned, commercially run and independently regulated. This distinctive model gives WICS the opportunity to understand the company in depth and set charges based on actual costs and the challenges ahead, while maintaining the independence to challenge, make judgements on behalf of customers and hold the company to account.
There is much to be proud of in this model. Its true strength is the collaborative ethos it has fostered, encouraging organisations to engage openly while respecting their different roles and responsibilities. Throughout this review, we have had constructive and sometimes difficult conversations with Scottish Water, customers, Consumer Scotland, SEPA, DWQR and wider stakeholders about priorities, investment, performance and value. That willingness to engage, challenge and listen is an important strength of Scotland’s approach.
We recognise that customers are being asked to contribute more for their water and wastewater services. We have therefore been clear that there must be strong and transparent evidence to support this. Customers paying no more than is necessary is the simple principle that guides us. We have challenged Scottish Water to demonstrate that its proposals are efficient, affordable and deliverable, and that every opportunity to manage costs has been fully explored.
We have set challenging but achievable service and efficiency expectations, focused on securing the best possible value for customers, while supporting progress towards the industry’s long-term vision. Greater weight has been placed on the areas that customers have made clear they value most.
This Final Determination provides a clear and achievable framework for the years ahead. But it is only the beginning. Its success will ultimately be judged by what customers experience. Scottish Water must now deliver the improvements, performance and value that customers are being asked to fund.
The Commission’s judgement and decisions are only possible because of the quality of the analysis and advice provided by colleagues across WICS. We thank them, and everyone who has contributed to this review, for their professionalism, challenge and commitment.
The Water Industry Commission
Aidan O’Carroll, Chair, David Satti, CEO, Heather Reid, Member, Jo Aston, Member, Morag Sheppard, Member & Deputy Chair, Robin McGill, Member