Regulatory policy


Scotland’s Approach to Regulating Water Charges

Innovation and Collaboration

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.

Published on October 19, 2022

In series:The Governance of Regulatorsview more titles


Abbreviations and acronyms
Executive summary
Key insights and recommendations
Context and background
Overcoming key regulatory challenges
Regulator decision papers
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Main findings

Innovate and collaborate

The process, outputs and immediate outcomes mark a transformative change in the Scottish context, resulting in a shared commitment towards sustainable asset management and climate change objectives and a more open and transparent process.

Ensure stability and predictability for delivery

Creativity and a willingness to disrupt established practice in the Scottish water sector have paid off, but effective delivery will now require stability and predictability. Defining milestones, demonstrating progress, and keeping sight of the strategic vision and goals will help achieve this stability.

Lessons for the future

Early planning for the next strategic review of charges will allow parties to apply lessons from this review to strengthen and streamline the process, establishing firmer expectations, and consider how to harness stakeholder, customer, and community input and action to achieve the highest impact.