Price setting

In our role as the economic regulator for the water industry in Scotland, we set limits on the prices that customers pay for their water and wastewater services. This process is called a Strategic Review of Charges. 

At each price review, we set price limits that deliver Ministerial Objectives for the water industry at the lowest reasonable overall cost. The objectives include improvements in water quality, environmental performance and customer service.

In November 2014, we published our final determination for the period 2015-21. This determination set out that household customers’ bills would increase below the rate of inflation over the six-year regulatory control period.

In between each Strategic Review, we monitor and report on Scottish Water’s performance in delivering the benefits that customers have funded through their bills.

In April 2017, we published ‘Innovation and Collaboration’ which set out our methodology for the next Strategic Review of Charges. It covers the six-year period 2021-27 (SRC21).
Our thinking has benefitted greatly from the input of stakeholders and good progress has been made with identifying approaches to tackling the challenges facing the industry while ensuring that customers continue to receive value for money.

The Commission has adopted the principles of Ethical Business Regulation for SRC21, which encourages candour and transparency in all interactions between regulators, the regulated company and other stakeholders. This collaborative approach will encourage Scottish Water proactively to demonstrate that it is performing well and in the best interests of customers, wider Scottish society and the environment.