United Kingdom
Scotland’s Approach to Regulating Water Charges
Innovation and Collaboration
The price regulation conducted by economic regulators is a high-stakes process, with
significant and lasting impacts on current and future service quality and the overall
performance of the regulated sector. This report tracks the efforts of the economic
regulator of the Scottish water sector to make the results of its price-setting process
work better for the customers of today and tomorrow, addressing issues such as customer
engagement, sustainable asset management and climate change. Based on the results
of a multi-year peer review, it analyses the process and outputs of the price setting
process. It also sets out recommendations to help parties strengthen the resilience
and stability of the regulatory framework while not losing sight of strategic vision
and objectives.
Published on October 19, 2022
In series:The Governance of Regulatorsview more titles
TABLE OF CONTENTS
Main findings
Innovate and collaborate
The process, outputs and immediate outcomes mark a transformative change in the Scottish
context, resulting in a shared commitment towards sustainable asset management and
climate change objectives and a more open and transparent process.
Ensure stability and predictability for delivery
Creativity and a willingness to disrupt established practice in the Scottish water
sector have paid off, but effective delivery will now require stability and predictability.
Defining milestones, demonstrating progress, and keeping sight of the strategic vision
and goals will help achieve this stability.
Lessons for the future
Early planning for the next strategic review of charges will allow parties to apply
lessons from this review to strengthen and streamline the process, establishing firmer
expectations, and consider how to harness stakeholder, customer, and community input
and action to achieve the highest impact.