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Scottish Water

Scottish Water
Statutory corporation
Industry Water industry
Founded 2002
Headquarters Dunfermline, Scotland, UK
Area served
Key people
  • Ronnie Mercer (Chairman);
  • Douglas Millican (CEO);[1]
Production output
  • 2.3 Gl/day (drinking)
  • 0.84 Gl/day (recycled)
  • £1.0 billion

Scottish Water is a statutory corporation that provides water and sewerage services across Scotland. It is accountable to the public through the Scottish Government.[2]


  • Operations 1
  • Regulated Services 2
  • Water quality 3
  • History 4
  • Investment programme 5
  • References 6
  • External links 7


Scottish Water provides drinking water to 2.45 million households and 154,000 business customers in Scotland.[3] Every day it supplies 1.3 billion litres of drinking water and takes away 840 million litres of waste water from customers' properties[4] and treats it before returning it to the environment.

Regulated Services

Scottish Water operates under a regulatory framework established by the Water Services etc. (Scotland) Act 2005 allowing an economic regulator, the Water Industry Commission for Scotland, to set the cost of the service independently.[5] The Water Industry Commission for Scotland establishes the "lowest overall reasonable cost" through a benchmarking exercise with private water companies operating in England and Wales. Scottish Water has a right of appeal against this price setting process through a reference to the UK Competition Commission. In 2013-2014 the charge for an average household bill was around £334.[6]

The Drinking Water Quality Regulator for Scotland and the Scottish Environment Protection Agency also regulate Scottish Water. The Scottish Public Services Ombudsman represents the interest of Scottish Water's customers and has powers to investigate complaints.[7]

Water quality

A waste water treatment works

Scottish Water is bench marked against the performance of private water companies in England and Wales (however in Wales it is run by a 'not for profit' company). In the year 2012–2013 they reported outcomes that were comparable with recent performance by leading water companies in England and Wales, as well undertaking a major investment programme.[8]


The authority was founded in 2002 by a merger of West of Scotland Water Authority, East of Scotland Water Authority and North of Scotland Water Authority under the Water Industry (Scotland) Act 2002, an Act of the Scottish Parliament.[9] Because 100% of it is owned by the Scottish Government it is considered a statutory corporation.[10]

It has a headquarters in

  • Scottish Water
  • The Water Industry Commission for Scotland (Scottish Water's economic regulator)
  • The Drinking Water Quality Regulator for Scotland (Scottish Water's water quality regulator)
  • The Scottish Environment Protection Agency (Scottish Water's environmental regulator)

External links

  1. ^ McConnell, Ian (22 November 2014). "For Millican management is all about forward planning".  
  2. ^ "Business, Industry and Energy: The water industry in Scotland".  
  3. ^ a b "Annual report and accounts: 2013/14" (PDF). Scottish Water. Retrieved 8 September 2014. 
  4. ^ "About us". Scottish Water. Retrieved 8 September 2014. 
  5. ^ "Water Services etc. (Scotland) Act 2005". National Archives. Retrieved 7 September 2014. 
  6. ^ "You and your home: 2013-14 charges". Scottish Water. Retrieved 8 September 2014. 
  7. ^ "How to complain: Water and sewerage service complaints". Scottish Public Services Ombudsman. 29 July 2014. Retrieved 7 September 2014. 
  8. ^ "Scottish Water’s Performance 2012-13" (PDF). Water Industry Commission for Scotland. November 2013. Retrieved 7 September 2014. 
  9. ^ "Water Industry (Scotland) Act 2002". National Archives. Retrieved 7 September 2014. 
  10. ^ The Committee Office, House of Commons (27 June 2007). "House of Commons - Public Accounts - Forty-Second Report". Retrieved 28 May 2013. 
  11. ^ "About us: key facts". Scottish Water. Retrieved 8 September 2014. 
  12. ^ "Building a Hydro Nation - a Consultation". Scottish Government. December 2010. Retrieved 7 September 2014. 
  13. ^ "Business, Industry and Energy: Water industry: Improving services". Scottish Government. 10 June 2014. Retrieved 29 September 2014. 
  14. ^ "Business, Industry and Energy: Water industry: Quality and Standards 3 (Q & S3)". Scottish Government. Retrieved 29 September 2014. 
  15. ^ "Scottish Water announces £3.5bn investment". BBC News (BBC). 29 September 2014. Retrieved 29 September 2014. 
  16. ^ "Scottish Water’s approach to capital maintenance: Report by the Independent Assuror" (PDF). Water Industry Commission for Scotland. 28 November 2013. Retrieved 29 September 2014. 


A £3.5bn investment programme for the period 2015 to 2021 was announced on 29 September 2014.[15] Scottish Water’s approach to capital maintenance has previously received independent, high level scrutiny.[16]

  • capital maintenance investment- to maintain existing levels of service to customers and to protect the environment, through replacing worn out plant and equipment
  • capital enhancement investment- improvements in performance such as drinking water quality, environmental performance and customer service.

"Quality and Standards" is the planning process that Scottish Government uses to set out areas for improvement.[13] Quality and Standards 3, covers the period from 2006 to 2015, during which Scottish Water were asked to deliver one of the largest capital investment programmes in the UK, including more than 2,000 individual projects.[14] There are two main elements:

Investment programme

National policy is determined by the Scottish Government, to whom the authority reports. The Scottish Government has consulted as to how Scottish Water can work together with Scottish Canals and Caledonian Maritime Assets to achieve additional public benefit from all Scotland's water-related infrastructure, both inland and maritime.[12]

Juniper House, Edinburgh

It has an annual turnover of around £1bn and is funded by charges paid by its customers. Part of its long term capital expenditure is funded by long term loans from the Scottish Government. [3]

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