Water Industry Commission for Scotland releases annual assessment of Scottish Water's investment programme
21 October 2008
The Water Industry Commission for Scotland (WICS) today released its annual report on Scottish Water’s performance in delivering its investment programme.
It found that, although Scottish Water increased its spending and delivery towards the end of 2007-08, it has fallen behind in delivering some outputs.
Annual targets for the reduction of water leakage in 2007-8 were also missed. WICS is monitoring the situation carefully.
Scottish Water is due to provide WICS with a better assessment of its economic level of leakage in December.
Sir Ian Byatt, Chairman of WICS said:
“We have expressed to Scottish Water our concern about the rate at which projects are being submitted for sign-off, as this will result in customers having to wait longer for the benefits promised to them.
“Leakage levels also continue to be higher than the pragmatic targets we set in 2006. While Scottish Water is working with us to improve the way it measures leakage, it must take the practical action necessary to tackle leakage and progress quickly to the economic level.
“Customers can however be reassured that they will not have to pay any more as a result of shortfalls in Scottish Water’s performance, as they cannot exceed the customer charges caps set by WICS in 2005. We continue to monitor carefully the delivery of Scottish Water’s investment programme and leakage performance.”
To download a full copy of the report please click here
To find out more about the new competitive landscape for businesses and public sector bodies visit www.scotlandontap.gov.uk
For more press information:
- Jacinta da Rocha Goulter or Julie Fourcade, 3 Monkeys Communications, 020 7440 2415 / 07906 488 614 ([email protected] / [email protected])
- Katherine Russell, WICS’ Director of Corporate Affairs, 01786 430 200
Notes to editors:
1. 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 2006-10. A document setting out WICS’ full determination is available here.
2. During the 2006-10 regulatory control period, Scottish Water is tasked with delivering a £2.15bn investment programme. This investment is designed to deliver environmental, drinking water quality and customer service improvements specified by Scottish Ministers. For many of the investment projects in the programme, once completed, they should be signed off by the appropriate quality regulator (either the Drinking Water Quality Regulator (DWQR) or Scottish Environment Protection Agency (SEPA)) as fit for purpose.
3. Since 1 April 2008, all business customers and public bodies, such as, local authorities, hospitals, schools etc are eligible to switch water supplier. The framework for competition is set out in the Water Services etc. (Scotland) Act 2005. The 2005 Act requires WICS to establish a regime to license new entrants into the market, and facilitate the orderly opening of the market. It also required Scottish Water to establish a separate retail entity (now Business Stream) to serve non-household customers in Scotland.