Scotland’s Approach to Regulating Water Charges

Innovation and Collaboration

image of Scotland’s Approach to Regulating Water Charges

The price regulation conducted by economic regulators is a high-stakes process, with significant and lasting impacts on current and future service quality and the overall performance of the regulated sector. This report tracks the efforts of the economic regulator of the Scottish water sector to make the results of its price-setting process work better for the customers of today and tomorrow, addressing issues such as customer engagement, sustainable asset management and climate change. Based on the results of a multi-year peer review, it analyses the process and outputs of the price setting process. It also sets out recommendations to help parties strengthen the resilience and stability of the regulatory framework while not losing sight of strategic vision and objectives.


Executive summary

The Water Industry Commission for Scotland (WICS) is the economic regulator of the Scottish water sector. Economic regulation has brought significant benefits to the sector, including improved efficiency and customer focus by the publicly owned Scottish Water, the single operator in the household market, and effective retail competition in the non-household market.


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