Scottish Water (Objectives: 2027 to 2033) Directions 2026
Directions given to Scottish Water by the Scottish Ministers, outlining objectives for the water industry from 2027 to 2033.
Background and context
The Scottish Ministers commissioned a strategic review of charges for water and sewerage services for the period from 1 April 2027 to 31 March 2033. As part of that review, and in accordance with sections 56 and 56A of the Water Industry (Scotland) Act 2002, the Scottish Ministers are required to set objectives for Scottish Water relating to the exercise of its functions and the standards of service it is expected to deliver. These Directions establish those objectives and form a key statutory input to the regulatory framework for Scotland's publicly owned water industry.
Scotland's publicly owned water industry plays a vital role in protecting public health, supporting sustainable economic growth, enhancing the environment and delivering benefits for communities across the country. Since the creation of Scottish Water in 2002, significant improvements have been made in drinking water quality, wastewater treatment, environmental performance and service delivery, while maintaining household charges that remain comparatively low.
The period from 2027 to 2033 presents a new set of opportunities and challenges for Scotland's water sector. Climate change is already affecting Scotland's water environment and infrastructure, with increasing pressures arising from more frequent extreme weather events, population change, evolving customer expectations and the need to maintain and replace ageing assets. These factors require a long-term approach to investment and asset stewardship to ensure that water and wastewater services remain resilient, sustainable and affordable for future generations.
Ministers have therefore reviewed the objectives applying to the water industry during the 2021 to 2027 regulatory period and, informed by consultation, have determined a revised set of objectives for the period from 1 April 2027 to 31 March 2033. These objectives build on the progress achieved during previous regulatory periods while responding to the challenges and opportunities facing the sector over the coming decades.
The objectives support delivery of the long-term vision for Scotland's water sector and are intended to ensure that investment decisions continue to provide value for customers, communities and the environment. They reflect the need to maintain high standards of drinking water quality and environmental performance, improve resilience and adaptation to climate change, support sustainable economic and housing growth, maintain and renew essential infrastructure, and contribute to Scotland's wider ambitions for a net zero, nature-positive and circular economy.
Ministers have considered the potential impacts of these objectives through a range of impact assessments. The following assessments should be read alongside these objectives:
- business and regulatory impact assessment
- Fairer Scotland Duty impact assessment
- child rights and wellbeing impact assessment
- island communities impact assessment
- equality impact assessment
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Contact
Email: waterindustry@gov.scot