The new Memorandum of Understanding (MoU) sets out a framework for the upcoming Strategic Review of Charges (SRC), which will determine water charges for the six-year period from 2027/28 to 2032/33.
The SRC aims to ensure that customers pay a fair price for essential water services while enabling Scottish Water to invest in vital infrastructure and address the challenges posed by climate change and ageing infrastructure.
Key elements of the MoU include:
• Public Engagement: Extensive public engagement throughout the price review process to ensure that customer views shape Scottish Water's business plan.
• Independent Challenge: The Independent Customer Group will challenge Scottish Water's decisions to ensure they are in the best interests of consumers.
• Confirmation of Support: A final stage to gauge public support for Scottish Water's Final Business Plan.
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This new approach signifies a commitment to transparency, accountability, and fairness in the water industry, ensuring that Scottish Water delivers value for money for its customers.
Alex Plant, Chief Executive of Scottish Water, said: "When developing our plans and investment for the future, we must balance legal requirements and Ministerial expectations with the views of our customers. As a publicly owned, commercially run and independently regulated service which underpins daily life for millions of people, customer voice is a key element factor in our decision-making.
"This agreement marks a significant step towards achieving a customer-centric approach in the SRC27 process, to ensure Scottish Water is independently challenged, and that our customer engagement is robust, transparent, and effective."
Sam Ghibaldan, Chief Executive of Consumer Scotland, said: "The decisions being taken in the SRC for consumers will have significant implications for consumers during the six-year period of the current SRC, but also far beyond.
"This is a groundbreaking agreement that asks consumers whether Scottish Water’s Final Business Plan commands their support, a significant innovation on previous SRC processes.
"It underlines the importance of Scottish Water taking full account of consumer research and will help enable WICS to reach a Final Determination of charges that meets the requirements set out in the Commissioning Letter from Scottish Ministers.
"This agreement will help ensure consumers are central to SRC27."
David Satti, Interim Chief Executive Officer for WICS, added: "We are pleased to formalise this collaborative commitment with Scottish Water and Consumer Scotland, placing customers firmly at the heart the Strategic Review of Charges 2027-2033.
"This partnership will help ensure that our Final Determination of charges commands consumers’ support, embedding open engagement, robust research and independent challenge."
