Water Industry Investment Group minutes: July 2025
Minutes from the meeting held on 2 July 2025.
Part of
Attendees and apologies
- Jo Blewett, Scottish Government (SG), Chair
- John Doherty, SG
- Rob Mustard, Scottish Water (SW)
- Alex Plant, SW
- Aileen MacKenzie, SW
- Wendy Kimpton, SW
- David Satti, Water Industry Commission for Scotland (WICS)
- Duncan Kremer, WICS
- Gail Walker, Consumer Scotland
- David Cooper, Scottish Environment Protection Agency (SEPA)
- David Reynolds, Drinking Water Quality Regulator (DWQR)
Apologies
- Rachel Harding-Hill, SEPA
- Darren Knox, Scottish Government
- James Simpson, Scottish Government
- Rosemary Greenhill, Scottish Government
- Matt Bower, DWQR
- Simon Parsons, Scottish Water
- Shane Taylor, Consumer Scotland
- David Harley, SEPA
- Colin McNaughton, WICS
Items and actions
Welcome and introductions
Jo Blewett opened the meeting in Darren Knox’s absence. Congratulations were given to David Satti on his formal appointment as Chief Executive of WICS.
Review of actions from previous WIIG meeting
Jo Blewett outlined outstanding actions within the Action Log, and attendees reviewed outstanding actions collectively.
Summary of review:
- 22.03 – Closed
- 22.06 – Closed. To be taken forward by task and finish group
- 23.02 – In progress. On agenda for August
- 23.03 – Closed. Joint Development Group (JDG) has been set up with first meeting having taken place last week. Currently finalising Terms of Reference
- 23.04 – Closed. JDG has been set up, first meeting will take place in a few weeks
- 23.07 – Closed. Task and finish group to pick up
Working Group Report
Scottish Water provided a summary of the report provided by Working Group, updating on the work of the group.
- The Unsatisfactory Intermittent Discharge (UID) programme was highlighted as a specific area of concern. Discussions between SEPA and Scottish Water are ongoing.
- Concerns held by WICS over the level of scrutiny applied to projects before they are committed for delivery, in particular the project at Glenfarg Water Treatment Works, were highlighted. WICS once again took the opportunity to raise their concerns in today’s meeting of the main group.
Hot Issues
Jo Blewett opened the floor to discussion of attendees’ “hot issues”.
Key points:
- SW flagged that they had their best ever performance in the 2024/25 financial year. The point was made that the Annual Performance Incentive Plan was linked to these metrics
- SW highlighted that they are below their long-term average in terms of reservoir storage, however the situation appears to be beginning to improve
- SW highlighted that the construction and delivery of the project at Winchburgh Wastewater Treatment Works won the Royal Academy of Engineering’s Major Project Award for Sustainability, ahead of many other high profile projects
- it was flagged that a very positive public response was seen in relation to recent messaging around constraints in the public water supply
- SEPA raised a desire to have discussions around drought early in the year. It was raised that this year however, graphs were fairly normal up until March when storage dropped rapidly
- the problem of the difficult process for issuing Water Shortage Orders was raised
Action 24.01: Scottish Water to send SG note with detail on new pay offer once agreed.
Progress report of performance against the Committed List
The progress report of performance against the Committed List paper was taken as read, with Scottish Water providing the group with key headlines.
The floor was opened to discussion, with WICS flagging that as they resource up, there will be a shift in the level of detail and scrutiny that SW will be subjected to outwith this group.
Attendees agreed to publish the report, subject to previously agreed changes being made.
Action 24.02: Scottish Water to make changes agreed with WICS in the progress report of performance against the Committed List paper before publication.
Progress report on interventions to meet the Needs on the Development List
The progress report paper was taken as read, with Scottish Water providing the group with key headlines.
The floor was opened to discussion.
- a question was asked around the East of Stirling Villages, and whether the use of Compulsory Purchase Orders (CPO) would be considered as Option Four is limited by land availability. Scottish Water responded that the use of CPOs is indeed an option open to them, but that this incurs cost and time delays. It was also highlighted that land ownership may not just be the constraint there, with type of land being a potential issue also. It was raised that the CPO regime and potential changes are currently being discussed by government
- WICS raised the need to find a balance between bringing benefits to local communities where Scottish Water carry out works whilst ensuring that unacceptable broader impacts to the wider customer base in terms of cost are not incurred
- attendees reflected on the importance of early engagement with communities
Attendees were content to publish providing Figure 2 receives an explanatory line as a caveat.
Actions
- 24.03: East of Stirling Villages Growth Project to be taken to WICS/SW Joint Development Group
- 24.04: Scottish Water to add caveat around Figure 2 in the progress report on interventions to meet the Needs on the Development List paper with regard to profiling into Strategic Review 2027-33 (SR27)
- 24.05: Consumer Scotland to make links with their Renewable Heat team and Scottish Water through the CS/SW JDG
Transfers to the Committed List
SW took attendees through headlines of the transfers to the Committed List, with the paper taken as read.
WICS raised questions around the scope of the Finnieston Tunnel Sewer project – it is labelled as a sewer collapse. Scottish Water explained that initially the project involves significant removal of debris in relation to a sewer collapse, as well as CCTV work which may or may not uncover further integrity issues. Currently categorised as a Tier 2 planned piece of work.
How do the Joint Development Groups feedback to this group?
Jo Blewett introduced the agenda item, and broadened to include interfaces with Working Group.
Attendees raised a need for us to ensure that we’re only addressing live issues.
Points were made about the need to ensure consistency around the governance of the JDGs, and consistency around how information flows out of these JDGs to working group and main group.
There was a desire among attendees to ensure we’re conscious of the paper burden incurred by the suite of meetings in place, and look to streamline that where possible.
Joint Development Groups for now would update to Working Group, and Working Group would update to this main group, but with consideration to be given to the role of Working Group in all of this – can Working Group be stood up only on an as-needed basis?
A point was raised around this meeting’s “hot topics” section and whether there is a duplication there – if topics are sufficiently hot, they should be getting picked up by JDGs anyway and so could form part of the JDG updates to this group.
A consensus appeared to be beginning to emerge around maintaining the JDGs, Task and Finish Group, and Investment Group. JDGs could feed into main group via Aileen MacKenzie, replacing existing “hot topics” agenda item. Working Group could be stood up only on an as needed basis, or a Task and Finish group could take up part of that role.
Actions
- 24.06: Task and Finish group to discuss flow of information into these meetings and how best to streamline that flow based on discussions today. SG will ensure this is reflected in the scope for the task and finish group
- 24.07: JDGs to feed any hot issues through SW Regulatory Assurance team who will collate these for the main group
SR27 Investment Planning and Prioritisation Framework (IPPF) review and WIIG reporting
Paper taken as read. Attendees were asked to reflect on the timings of these groups, the content of these groups, and the level of involvement they envisage having in these groups.
Consumer Scotland stated that they are happy to take part in both groups.
SEPA stated that they are happy with the outlined scope, and happy that they can feed into these groups, however do not feel they need to sit in directly.
DWQR stated that they are happy to contribute as much as they are needed to, but highlighted that the central meeting for them is very much the Joint Development Group.
WICS stated that they’ve had lots of conversations collectively around this, and see themselves as playing a key role in this. Happy to be involved, and happy with the content.
Attendees stated that they were happy to run both task and finish groups concurrently. Likely makes sense to have IPPF first, then WIIG reporting follow on. Proposals were made to carry out dry runs of reporting next year, and dry run some of the SR27 approaches – not least because the project at Black Esk will come largely from SR27.
Update on Management Approaches
Scottish Water took attendees through key points of the paper.
Discussion:
WICS stated that they’ll be carrying out a scrutiny exercise on two pieces of work, and that they want flexibility within SW to respond to emerging demands – i.e. the best use of the existing asset base even if it means diverting from planned enhancement.
SEPA raised Reservoir Safety and the fact that penalties have been issued, with the possibility of further penalties if measures aren’t taken.
A potential need for JDGs to look specifically at management approaches was flagged.
Actions
- 24.08: SW, SEPA and DWQR to have early conversations about how regulatory targets fit into SW’s business plan – to be taken to Future Investment Group (FIG)
- 24.09: FIG to have wider look at water resources planning
Any other business
Jo Blewett raised that the location of today’s meeting will not be available for the December meeting. A new location will be provided in due course, with Scottish Water potentially hosting.
Jo Blewett gave attendees details on planned dates for 2026 meetings – 11th March, 1st July, 16th September, 9th December. Any issues with these dates should expressed to Darren Knox.
Attendees once again gave their congratulations to David Satti on his appointment as Chief Executive of WICS.
