Strategic Review of Charges 21-27
We are coming to the closing stages of SRC21, the process where we set limits on prices for water and sewerage services for the period 2021-27.
We have conducted a transparent and collaborative price review, taking account of all the evidence available to us in coming to the views set out in our published Decision Papers. Our final Decision Paper, published in February 2020, explained our views on an appropriate range of prices that should apply for water and sewerage services in 2021-27 and beyond.
Our approach to economic regulation is firmly rooted in doing what is right for both current and future customers. Our decisions have been taken in the context of the need to transition to a net zero industry by 2040 and to ensure the sustainable long-term future of the water industry in Scotland. Scottish Water and the Customer Forum – the independent body that speaks on behalf of customers and communities – will now seek to discuss and agree a profile of prices (within the range that we set).
Ethical Business Regulation
As part of the SRC21 process we have worked closely with water industry stakeholders to put in place the key elements of a new regulatory approach, which focuses on establishing the best outcomes for customers, communities and the environment.
In particular, stakeholders are committed to adopting the principles of Ethical Based Regulation (EBR)
. EBR requires open and honest conversations about the future challenges for the Scottish water industry, and how best to tackle them. This will require candour and transparency in all interactions between us as regulator, Scottish Water and other stakeholders. This is the essence of Ethical Business Regulation.
EBR will be supported by the adoption and implementation by Scottish Water [and other market participants?] of Ethical Business Practice (EBP). We believe that the combination of EBP and EBR will enable the water industry to meet the challenges that lie ahead as effectively as possible and to do so long into the future.