Managing Change in the Water Industry: A Consultation Paper

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B. POLICY OBJECTIVES

B1. The Scottish Executive is responsible for the legal framework governing the provision of water and sewerage services in Scotland. It is also accountable to the Scottish Parliament for the delivery of these services by the three publicly owned water authorities.

B2. Scotland benefits from public water and sewerage systems that serve almost all households in the country. Despite recent charge increases, the cost of the service provided by the water authorities compares favourably with costs elsewhere in the UK. This accessibility and affordability plays a crucial role in:

• promoting social inclusion
• maintaining public health
• protecting the environment
• underpinning economic development

The Executive’s objective is to safeguard these benefits by ensuring that competition drives improvements in the efficiency and quality of water and sewerage services in Scotland.

B3. As owner of the authorities on behalf of the public, the Executive wants them to compete fairly and successfully with new entrants to the market. It recognises that this will require flexibility within the framework which, as public corporations, they operate. The Executive remains firmly committed to the authorities remaining within the public sector. Any developments in the framework of controls within which the authorities operate will reflect the Executive's commitment to a successful, modern, public sector model competing fairly and successfully with the private sector.

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