This item was published during the term of a previous administration that ended in April 2007
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Scottish Water's new plan for delivery gets go-ahead
16/06/2006
Ministers today approved Scottish Water's delivery plan for the next four years.
Deputy Minister for Water Rhona Brankin said:
"I am delighted that Scottish Water's new delivery plan sets out clearly how they will achieve all of the Executive's targets for the business over the next four years within the financial limits that the Water Industry Commission has set for it.
"Achieving these objectives requires Scottish Water to deliver one of the UK water industry's biggest ever capital investment programmes. This means that customers can look forward to higher standards of service for below inflation increases in charges. The plan also provides for increased strategic capacity where it is needed to support new housing and economic development. "
"I am grateful to Scottish Water's interim Chair, Ronnie Mercer, and to everyone at Scottish Water who has worked with him, for producing a delivery plan that commands the confidence of the Executive and Scottish Water's regulators.
"Scottish Water must now focus its energies on implementing the plan in full over the next four years."
As required by The Scottish Water (Objectives for 1st April 2006 to 31st March 2010) Directions 2005, Scottish Water is required to continue the work to transform the water industry in Scotland. It will continue to invest substantial amounts of money - to improve drinking water quality for customers, contribute to a cleaner water environment, address development constraints, improve customer service and minimise odour problems at wastewater treatment works. At 2.15 billion pounds, Quality and Standards 3 represents one of the largest ever investment programmes in the UK water industry.
In February, Scottish Water sent the Executive its first delivery plan for 2006-10. The Executive rejected that plan on the grounds that it did not set out satisfactorily how Scottish Water would deliver in full all of the Executive's objectives for the business with the financial limits that the Water Industry Commission had set in the determination of charges for 2006-10. In addition, Scottish Water's regulators each expressed reservations about the plan. As a result, the Executive required Scottish Water to produce a new plan that commanded its confidence and that of the regulators.
In consequence of these events, Professor Alan Alexander resigned as Chair of the Scottish Water Board on 20 February. Ronnie Mercer, a former senior executive at Scottish Power, was appointed as interim Chair on 18 April with the task of overseeing the production and implementation of a satisfactory delivery plan. Mr Mercer sent Scottish Water's new plan to the Executive on 26 May.
The Executive's approval of the new plan followed confirmation from Scottish Water's regulators - SEPA, the Water Industry Commission for Scotland and the Drinking Water Quality Regulator for Scotland - that the plan met their respective requirements.