Price setting 2021-27

We have a statutory duty to promote the interests of customers. One of the main ways in which we promote do this is by setting limits on the charges customers pay for water and sewerage services. This process is called a Strategic Review of Charges.
We have been preparing for the next review, the Strategic Review of Charges 2021-27 (SRC21), for more than two years. Our preparations have included publishing a suite of papers on the key topics informing the outcome of the review.
We have recently published our draft determination (8 October 2020), which we are currently consulting on. The draft determination sets Scottish Water on the path to meet the challenges of maintaining high-quality services, while tackling the impacts of climate change and transitioning to net zero emissions.

In particular, the investment will enable Scottish Water to:  
  • continue to deliver a flourishing environment and excellent quality drinking water;  
  • ensure that its assets, such as its pipes and sewers, are better able to withstand unexpected future events;
  • deliver the first phase of its ambitious net zero emissions target for 2040.  
  • provide wider benefits for customers and communities, and to provide additional benefits such as access to land for leisure.

Although this additional investment will mean an increase in customer charges, it will ensure that current and future generations continue to enjoy the same quality of service and environmental protection that we have today.
A decision to delay investment would put water quality, reliability and the 2040 net zero target at significant risk, with the likelihood of even higher bills to fix those problems in future. That would be poor value for both current and future customers.

The Strategic Review process has involved extensive discussion, research and analysis, including detailed engagement with customer representatives and other stakeholders. The process also continues to be peer reviewed by the OECD.

The consultation on the draft determination is open until 19 November 2020. Following consultation we will consider responses and publish our final determination on 10 December 2020.