The Scottish market
Here we provide the facts about the competitive nature of the Scottish water and sewerage market, to help you make an informed decision.
Competition in the Scottish water and sewerage market
Scotland was the first country in the world to offer business customers the freedom to choose their retailer.
Since April 2008, all 160,000 businesses, public sector, charitable and not-for-profit organisations in Scotland have been presented with a range of retailers from which to choose.
The introduction of competition in the water industry in Scotland has brought wider choice, more tailored services, and lower prices.
Significant environmental benefits have also been delivered as a result of the reduced level of water consumption since market opening.
How does competition in the Scottish water and sewerage market work?
The network of water and sewerage pipes in Scotland is wholly owned by Scottish Water. Scottish Water acts as the wholesaler in the market, selling water and sewerage services to the water companies, known as retailers. Having bought their wholesale services from Scottish Water, the retailers then bundle these services with other value-adding offerings and sell them to non-household customers.
We, the Water Industry Commission for Scotland (WICS) is the economic regulator for the water and sewerage industry in Scotland. To protect customers, WICS requires retailers to provide default services to all business customers (regardless of the location or size of their business) at a price no higher than a default tariff.
How does competition in the Scottish water and sewerage market affect me?
Competition affects all non-household customers namely small, medium and large businesses, charities and non-profit organisations. Non-household customers can choose the retailer that best meets their needs, which means that retailers are incentivised to make their offering more attractive.
This may result in:
- Lower water and sewage prices
- Improved services
- Greater water efficiency
- More innovation in the industry
Water industry competition also affects suppliers, and those wishing to become a supplier.
Households are not affected, with all households in Scotland continuing to receive water and sewerage services from Scottish Water and paying charges along with Council Tax.
Benefits of changing water supplier or setting up a new connection:
- Reduced Water Bills
- Better Service
- Helpful Advice
- Save Money
Changing retailer, or setting up a new water connection, is easier than you might think. It generally takes less than a month from start to finish.
You might wish to change water supplier for any one of a number of reasons – perhaps you’d like to reduce water bills, get better service or get advice on using less water to help save money.
Who are the stakeholders in the water and sewerage market?
About the Code of Practice
WICS introduced the Code of Practice on 30 April 2025. It was collaboratively developed by WICS, Scottish Water, Consumer Scotland, the Central Market Agency and retailers.
Retailers in Scotland who have signed up to the Code of Practice promise their customers an enhanced service. They go beyond the minimum default service by meeting or exceeding all of the standards set out in the Code of Practice. This means that the customers of those retailers can expect an enhanced service including a cooling down period, more comprehensive information before agreeing a contract, and a smoother transfer process.
Knowing whether retailers are honouring their commitments?
To give customers confidence in retailers’ service commitments, WICS has introduced a market-wide process, known as the Market Health Check. This process checks whether retailers are upholding their commitments under the Code of Practice. The first Market Health Check is scheduled to conclude in July 2026.
Find out more about the Code of Practice and Market Health Check