Price setting 2015-21

 

In May 2013, we published our methodology for the next price review entitled ‘Strategic Review of Charges 2015-21: Innovation and choice’. The methodology is based on work undertaken closely with water industry stakeholders and technical experts to examine the many and wide-ranging aspects of economic regulation, under a project called ‘Incentives, Innovation and Involvement’. 

Our aim is to make sure that the industry is equipped to face the challenges of the future and continues to provide high-quality water and sewerage services at the best value price.

A key aspect of this approach is to make sure that customers are genuinely engaged in decision making at the next review. The new Customer Forum, established in October 2011, plays a formal role in this. The Forum includes representatives of household customers, non-household customers and the retail suppliers. It engages with Scottish Water to identify an appropriate combination of prices and levels of service.

Following the Customer Forum and Scottish Water reaching an agreement in February 2014, we published our draft determination for 2015-21 in March 2014. The proposals contained in it would mean that the increase in household customers’ bills will be limited to 1.8% less than the consumer price index (CPI) over the six-year regulatory control period. The increase in wholesale charges will be similarly limited.