Scottish Water: a public-sector success story

ABSTRACT

This article explores the governance and regulation of water services in Scotland, including the emergence of a single national provider, Scottish Water; the role of government and its novel Hydro Nation strategy; and the activities of the regulators – for prices, environment, drinking water quality and consumer protection – as Scottish Water moved from amongst the lowest, to amongst the best, of its benchmarked comparators. It examines the recent initiative of a Customer Forum; and draws conclusions on the potential for a public service provider to evidence private-sector efficiency whilst contributing fully to public policy goals.

KEYWORDS:

• water services
• economic regulation
• governance
• public sector
• Scottish Water
• Scotland

Notes

1. Treaty and Act of Union with England, 1707.

2. Scotland Act 1998 c.46.

3. Directive on a Framework for Water Policy 2000/60/EC.

4. Directive on Flood Risk Management 2007/60/EC.

5. Water Industry (Scotland) Act 2002 asp.3 (2002 Act).

6. Local Government (Scotland) Act 1994 c.39.

7. Under the Water Act 1989 c.15.

8. Water Industry Act 1999 c.9 Part II.

9. Directives on the Quality of Drinking Water for Human Consumption 1980/778/EEC, 1998/83/EC.

10. Directives on the Quality of Bathing Waters 1976/160/EEC, 2006/7/EC.

11. Directive on Urban Waste Water Treatment 1991/271/EEC.

12. Water Resources (Scotland) Act 2013 asp.5 (2013 Act). The Ministerial duty is in s.1.

13. 2013 Act s.24.

14. 2013 Act s.25.

15. 2013 Act s.23.

16. 2013 Act s.1.

17. 2002 Act s.29D.

18. 2002 Act s.56A.

19. Water Services (Scotland) Act 2005 asp.3 (2005 Act).

20. Water Environment (Controlled Activities) (Scotland) Regulations SSI 2011/209.

21. Water Environment (Scotland) Act 2003 asp.3.

22. 2005 Act s.21.

23. 2002 Act s.29B.

24. 2002 Act s.29C.

25. Water Services etc. (Scotland) Act 2005 (Consequential Provisions and Modifications) Order 2005/3172 (a Westminster order, as it is a reserved function).

26. 2002 Act s.29F.

27. 2002 Act s.29A.

28. 2002 Act s.29C.

29. 2002 Act s.29G.

30. See https://www.business-stream.co.uk/water-rates-charges/water-charge-exemption-scheme.

31. See http://www.scottishwater.co.uk/business/our-services/wholesale-services/wholesale-services-to-licensed-providers.

32. For example in Queensland, under the Local Government (Qld) Act 2009 No.17 and the Local Government Regulation 2012 SL No.236.

33. Scotland Bill 2015 HL Bill 73 2015–16.

34. Public Sector Reform (Scotland) Act 2010 asp.8.

35. See http://www.consumerfutures.org.uk/about-us.