We have a statutory duty to promote the interests of customers. One of the principal ways we do this is by setting limits on the prices that Scottish Water can charge its customers over each regulatory control period. We also set targets for Scottish Water’s performance during these periods, including the levels of service that customers should receive. The process is called a Strategic Review of Charges (or SRC).
At the end of each SRC process we publish all of our decisions in a document called the Final Determination.
The current regulatory control period runs from 2015-21. Our Final Determination was published in November 2014.
We are now coming to the closing stages of the next SRC, which covers the period 2021-27. We committed to ensuring that this would be a transparent and collaborative review, and we have worked closely with a number of water industry stakeholders to ensure this was the case.
As part of this commitment we published a series of Decision Papers, setting out our approach. The final paper, Prospects for Prices (February 2020), outlined our view of the level of prices required in 2021-27. This was in the context of the industry’s long-term challenges and the extent of the transformation necessary to meet these challenges. One of the main challenges is the requirement on Scottish Water to achieve net zero emissions by 2040.
Prospects for Prices now provides the basis for the Customer Forum and Scottish Water to discuss the price levels for the next regulatory control period, including how the interests of future customers will be fully respected. The next stage will be for us to publish our draft determination.