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Jon Rathjen Scottish Government Water Industry Team Scotland The Hydro Nation.

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Presentation on theme: "Jon Rathjen Scottish Government Water Industry Team Scotland The Hydro Nation."— Presentation transcript:

1 Jon Rathjen Scottish Government Water Industry Team Scotland The Hydro Nation

2 Scottish Water 5.3m people - 2.4m households 150 000 business customers 95% population connected to mains sewerage 98% to mains water 1.3 billion litres water delivered per day

3 Three regional water authorities Huge challenge to meet EU Directives Heavy reliance on PFI for wastewater investment English privatisation challenge Scottish Water : History 1996-2002

4 Overall 2002-2010 Service costs have been reduced by 40% over last decade Savings around £2.5 billion Average annual household bills around £105 lower than they would have been.

5 2012-13 Drinking Water Quality – 99.88% samples passed – public supply Environmental incidents reduced by 34% Leakage reduced by nearly 50% since 2006.

6 Water Industry in Scotland Delivery Organisation Customer Representation Quality regulation Economic regulation


8 Scottish Ministers must: ‘take such reasonable steps as they consider appropriate for the purpose of ensuring the development of the value of Scotland’s water resources’ Concept of Scotland the Hydro Nation – ‘a nation which manages its water environment to the best advantage, employing its knowledge and expertise effectively at home and internationally.’ Scotland The Hydro Nation

9 All Activity –SME’s

10 Objectives, Principles and The Final Determination Ministers have set the key principles and objective for the industry through to 2021 The economic regulator has responded The industry has accepted the framework and will deliver the outputs with predictable charging revenues and investment levels as the cornerstones of performance improvement.

11 Summary We have worked as a Government and an Industry to reduce cost burden on the customer through steadily reducing charge levels. [CPI-x previously RPI-x] Bringing the Customer into the price negotiation process has been beneficial. Stable investment and stable (falling) charges can still deliver performance improvement if the water company is incentivised and regulated to be more efficient.

12 Jon.Rathjen@Scotland.GSI.GOV.UK Team Leader Water Industry Team Scottish Government


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