Scotland the Hydro Nation: annual report 2016

Records the development of our Hydro Nation policy agenda and reports on progress since the publication of the second annual report in 2015.

Annex A: Structures of Governance

Annex A: Structures of Governance - Domestic Market
Annex A: Structures of Governance - Domestic Market

Annex A: Structures of Governance - Retail (Business) Market
Annex A: Structures of Governance - Retail (Business) Market

Annex A: Structures of Governance - Who does what?

Central Market Agency ( CMA) - on 1 April 2008 competition was introduced into the water industry in Scotland for retail (business) customers. The CMA is the organisation that administers the retail market for water and wastewater services in Scotland. They are a company limited by guarantee and owned by its members.

The Consumer Futures Unit ( CFU) of Citizens Advice Scotland ( CAS) - represents water consumers, and are a key partner in many areas of policy development. They are responsible for:

  • Advocacy - to provide advice and information, make proposals and represent the views of consumers to Ministers, regulators, European Institutions and other relevant bodies.
  • Evidence - conducting research to obtain information about consumer matters and consumers' views on those matters.
  • Empowerment - facilitating the dissemination of advice and information to consumers

Convention of Scottish Local Authorities ( COSLA) - are the representative voice of Scottish local government. Local Authorities provide the collection and billing for water and sewerage services on behalf of Scottish Water for all domestic (and non-metered) customers.

Customer Forum - was established to participate in the price setting process for 2015-2021 in order to provide customers with a stronger voice and to secure the most appropriate outcome for customers.

Drinking Water Quality Regulator ( DWQR) - are responsible for monitoring and confirming that the drinking water supplied by Scottish Water through the public water mains system meets the requirements of the drinking water quality regulations and is safe to drink. DWQR also advises Ministers on the delivery of and the need for future investment in drinking water quality.

Licence Providers ( LPs) - Retail (Business) customers are able to choose who supplies their water and sewerage services. All water and sewerage service providers are licensed and are therefore known as Licensed Providers.

Scottish Environment Protection Agency ( SEPA) - are responsible for ensuring that Scottish Water meets strict environmental requirements. SEPA also advises Ministers on the delivery of and the need for future investment in environmental improvements.

Scottish Government - Scottish Ministers and their officials manage the relationship with Scottish Water and its regulators within the statutory framework established under the Water Industry (Scotland) Act 2002. Scottish Ministers set the objectives for the industry (as set out in the Ministerial Directions available at ) and the principles that should underpin charges (as set out in the Principles of Charging Statement available at ). More information about our role can be found on our website.

Scottish Parliament - scrutinise the work of the Scottish Government and their public bodies, and hold it to account. Both the Scottish Government and the Scottish Parliament are accountable to the people of Scotland.

Scottish Public Services Ombudsman ( SPSO) - is the final stage for complaints about Local Authorities, most water providers, the Scottish Government and its agencies and departments. If customers have complaints they should in the first instance try and resolve that with the organisation they have a complaint about. However, if they remain dissatisfied they may be able to raise their issue with the SPSO.

Scottish Water - are a public corporation accountable to Scottish Ministers and through them to the Scottish Parliament. Scottish Water provides clean safe drinking water to 2.49 million households and 152,000 business premises across Scotland. Every day it supplies 1.37 billion litres of treated drinking water and takes away nearly one billion litres of wastewater from customers' properties and treats it carefully before returning it safely to the environment.

With more than 60,000 miles of pipes and 2,000 treatment works, Scottish Water supports communities the length and breadth of Scotland every day. In providing these essential services to customers, we recognise these activities and operations can be visible in the communities we serve. That's why they work very hard to ensure they are responsive and sensitive to the needs of our customers in the community in every corner of Scotland and aim to put communities at the heart of the business.

Scottish Water Horizons - are a commercially sustainable, stand-alone business, who use innovative ideas, knowledge and assets to encourage growth and renewable technologies. From generating renewable energy from wind, waste and water to facilitating the installation of high-speed broadband within our sewer networks, Horizons is all about improving connections, communications and enabling sustainable development.

Scottish Water International - are a wholly-owned subsidiary of Scottish Water, delivering reputational-enhancing projects. Drawing on their experience of the remarkable transformation in the water industry in Scotland they offer services to utilities, governments and other clients from around the world, including the Middle East, Canada, Ireland and Australia. Their team of high calibre in-house consultants offer services to support utilities transform their efficiency and service, with specific focus on:

  • Operations and maintenance advice and support, including training and strategic advice;
  • Asset management and capital investment governance;
  • Regulatory and financial restructuring for public utilities; and
  • Customer satisfaction and customer engagement strategic advice

Water Industry Commission for Scotland ( WICS) - have the statutory task to determine price limits for Scottish Water based on the lowest overall reasonable cost of achieving Ministers' Objectives for the water industry. There is a competitive market for the provision of retail services (billing, collection, customer management etc) to business customers in Scotland. All retailers must be licensed by WICS and a list of licensed providers is available from their website. For further information on retail competition for non-domestic customers, please see the Scotland on Tap website (available at


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