Further to the publication of the draft determination for the strategic review of water charges for 2021-27 by the Water Industry Commissio…

There is no direct legal power or duty for the Water Industry Commission for Scotland to set a minimum income requirement for Scottish Water. Water Industry Commission for Scotland has a duty to promote the interests of current customers and have due regard to the interests of future customers. If Scottish Water were not to raise the full amount of charges allowed for under the draft determination, future customers would face higher charges, less resilient services and pay a disproportionate contribution to the costs of transitioning to net-zero emissions. Water Industry Commission for Scotland considers that setting an expectation for the required revenue by the end of the regulatory control period in this manner will guide Scottish Water and safeguard[s] the interests of future customers.
As Scottish Water’s economic regulator, Water Industry Commission for Scotland sets expectations and/or targets for Scottish Water as part of its determination of charges. This is a key element of the regulatory framework and the relationship between Scottish Water and its economic regulator.