Press Releases 2007

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News Release 02/2007 - Water regulator seeks views on its approach at next price review

10 May 2007

The Water Industry Commission for Scotland has a statutory duty to promote the interests of customers. One of its most important roles is to set limits on the prices that Scottish Water can charge customers.

Today the Commission publishes the first in a series of four consultation documents, seeking the views of customers and other stakeholders on how it proposes to set prices at the next Strategic Review of Charges.

In this consultation, the Commission sets out proposals relating to financing and governance issues, such as the Scottish Executive’s responsibilities (as owners of Scottish Water), how to ensure customers are protected from the risks of higher prices, and incentives to encourage Scottish Water to continue to improve performance.

The Chairman of the Water Industry Commission, Sir Ian Byatt today said:

“Charges that customers will pay, on average, are already set up to 2010, with increases held below inflation. We are now looking forward to the charges limits that will apply from 2010 to 2014. Today’s paper is part of the process of consulting all stakeholders so that they can guide our work.”

NOTES TO EDITORS

  1. A copy of the methodology consultation, Volume 1: Financing and governance of Scottish Water is available at www.watercommission.co.uk. The Commission welcomes responses to the consultation up until 19 October 2007. We will publish a response to the consultation findings on Thursday 20 December 2007.

  2. The Commission is also undertaking a series of ‘stakeholder information workshops’, which provide an open forum for stakeholders to ask questions and express their views about particular aspects of the price review. More information about the stakeholder information days is available at www.watercommission.co.uk.

  3. The Water Industry Commission was appointed in July 2005, under the Water Services etc. (Scotland) Act. Its members are Sir Ian Byatt, formerly Deputy Chief Economic Adviser at the Treasury and Director General of Water Services in England and Wales; Professor David Simpson, formerly economic adviser to Standard Life; Professor John K Banyard OBE, former Director of Asset Management at Severn Trent Water; Dr Mike Brooker, formerly Managing Director of Dwr Cymru; Mr Charles Coulthard, Chair of the Gas and Electricity Consumers Council in Scotland and formerly Managing Director of Ofgem in Scotland; and Mr Alan Sutherland, Chief Executive, formerly Water Industry Commissioner for Scotland.

  4. The Commission’s statutory duty is to determine price limits for Scottish Water based on the lowest reasonable cost of achieving ministerial objectives for the water industry. In November 2005, the Commission determined price limits for water and sewerage services for the regulatory control period 2006-07 to 2009-10. A document setting out the Commission’s full determination is available at www.watercommission.co.uk.
For further information please call Katherine Russell, Director of Corporate Affairs, on 01786 430200.

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