The price review for 2002-06 was carried out by Alan Sutherland, former Water Industry Commissioner for Scotland. At the time, the three regional water authorities were responsible for providing services in Scotland.
The Commissioner had different statutory powers from the Commission; he provided guidance to the Minister rather than independently determining prices. He published his advice in November 2001.
- The Commissioner advised Ministers that the industry should reduce its operating cost and capital expenditure by 34% in the period up to 2006.
- He also advised that prices would need to increase by over 15% for most households in Scotland.
The Commissioner explained why the merger of the three authorities to create Scottish Water was likely to benefit customers. He also set out a number of recommendations to improve governance of the industry.