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page 25

  issue 107 link
january 2005   

 

scotland: scottish water, a private company under public control

Scotland is not short of water. However, new EU regulations on drinking water quality have forced the Scottish Executive to reconsider how water is managed in Scotland. Their response has been partial privatization of the water industry, raising extra investment, which has, for example, helped to address the problem of raw sewage being dumped in the ocean.

Critically however, Scottish Water remains a publicly owned company. The majority of its shares belong to the state and it is answerable to the Scottish Parliament. Scottish Water is also strictly regulated - by the Water Industry Commissioner, the Drinking Water Quality Regulator, the Scottish Environment Protection Agency and the Health and Safety Executive.

However, the new company has massively reduced its workforce and prices have risen, though mostly for the commercial rather than the domestic sector. Apart from higher prices there has been little encouragement to reduce water use. There is no legally guaranteed right to water in Scotland, but in practice Scottish Water cannot disconnect people for non-payment.

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