Water Industry Investment Group minutes: September 2025
Minutes from the meeting held on 17 September 2025.
Part of
Attendees and apologies
- Darren Knox, Scottish Government (SG), Chair
- Rosemary Greenhill, SG
- Hollie Armstrong, SG
- Alex Plant, Scottish Water (SW)
- Rob Mustard, SW
- Wendy Kimpton, SW
- Tracey Gee, SW
- Aileen MacKenzie, SW
- Andy Mortali, SW
- David Satti, Water Industry Commission for Scotland (WICS)
- Colin McNaughton, WICS
- Gail Walker, Consumer Scotland
- David Harley, Scottish Environment Protection Agency (SEPA)
Apologies
- Jo Blewett, Scottish Government
- James Simpson, Scottish Government
- Simon Parsons, Scottish Water
- Dave Reynolds, Drinking Water Quality Regulator (DWQR)
- Matt Bower, DWQR
Items and actions
Welcome and introductions
Darren Knox opened the meeting.
Review of open actions from previous WIIG meeting
Darren Knox outlined outstanding actions within the Action Log, and attendees reviewed outstanding actions collectively.
Summary of review:
- 24.04 – Closed
- 24.06 – Closed (take to Investment Planning and Prioritisation Framework (IPPF) Task and Finish (T&F) group)
- 24.07 - Ongoing
Working group report and updates from Joint Development Groups (JDGs)
Scottish Water provided an update from the JDGs:
DWQR JDG took place on 7 August. The discussions focussed on Regulation 33, risks in relation to Halo Acetic Acids (HAAs), cryptosporidium, and phosphate dosing.
WICS JDG took place on 15 September. Nothing to raise from this session but regular meetings booked in across next year so do expect more information coming from these.
Consumer Scotland JDG.
- publishing report on consumer complaints to SW – due end of September
- vulnerability strategy – work being done on this
- number of helpful conversations happening at this forum
SEPA JDG – nothing to feedback to this group
Hot issues
Water resources
- seen an increase in reservoir storage in the last week however East of Scotland has below average storage levels
- media efforts ongoing here with less impact seen compared with Spring comms
- operational activity – most effort focussed in the East
- discussion on resilience and interconnectivity between some systems in the East. SW would like to look at this more recognising this year’s condition are likely to happen again sooner
- SEPA update – unprecedented year with most catchments in east with restrictions. This has never happened. Lots of work gone into comms and proactive work with operators which has helped. Some impacts to crops but if had been one month earlier impact would have been significantly greater. SEPA have found compliance has been good so it feels like message is getting out there:
- would like to see more catchment specific comms from SW in the affected catchments that SEPA are dealing with. A more joined up approach required on water resources beyond just SW and SEPA
- offer from SW to share expertise in water resource planning to support how changes can be implemented/stakeholders brought together
Procurement
SW provided an update on the procurement of Delivery Vehicle 4 (DV4) and its current delivery vehicles.
Action 25.01 Look into the possibility of providing trend analysis for Operational Expenditure (Opex) costs in relation to drought response to help inform future potential investment in relation to water resource management – pumping costs, treatment costs etc...
Progress report of performance against the Committed List
Summary
End of quarter performance - generally starting well this year from a delivery point of view:
- progress against delivery – within range although breakdown in paper outlines which projects are ahead/behind
- continued focus on completion programme - continuously making progress
- performance has declined behind forecast (Water: Strategic Review 2015-21 (SR15) Completion: Gate 100 (G100)) - driven by Picketlaw and Londornach
- Rockcliffe – A combination of traditional wastewater solutions with introduction of wetland and reedbed system are being considered. Reduced costs than current proposal and viewed as most viable option
Actions
- 25.02 Provide answer to why the temporary solution at Rockcliffe cannot be in place indefinitely and the risks of this
- 25.03 Update on SR15 Completion programme to be provided to the working group
Progress report on interventions to meet the Needs on the Development List
The progress report was taken as read, with Scottish Water providing the group with key headlines.
Scottish Water provided an explanation for the £18.8M they propose to spend on Daldowie in Strategic Review 2021-27 (SR21) and stated they are listening to steer received from SG regarding this project. Consequences and risks will need to be considered if a change of direction is made at this point in the regulatory period.
SG requested for more information on options 0A and 0B in relation to Daldowie – what is the difference? SW stated that various options are being looked at but one that is not an option is to extend the current PFI arrangements.
The group agreed to the Committed List and Development List reports being published, subject to a comment from WICS that the published papers should note the group’s comments in relation to Daldowie.
Action 25.04 Provide details of options 0A and 0B for Daldowie and a detailed breakdown of the £18.8M proposed to be spent in SR21.
Transfers to the Committed List
SW took attendees through headlines of the transfers to the Committed List, with the paper taken as read.
Consumer Scotland questioned the breakdown in Figure 2. Is the proportion normal for discretionary spend? What is in there and when does it get squeezed?
WICS had questions on IT investment, recognising in the last year £100 million has been spent. Is this cyclical? Is it one off spend?
- devices and IT - Driven by policy that systems are not left unsupported. This is being done in conjunction with Microsoft requirements to update.
- other systems including asset management systems are not cyclical. Most systems have now been transferred to a cloud based system which means this is less likely to happen again on the same scale. There will be some cyclical elements of upgrading. Upgrades have helped to de-risk
Action 25.05 Provide Consumer Scotland with trend on Customer Experience and Flourishing Scotland (CE&FS) spend. To be taken to JDG.
Update on SR21 Unsatisfactory Intermittent Discharge (UID) programme
Scottish Water presented the latest delivery forecasts for the SR21 UID programme.
SEPA noted their concerns around the 8 water quality UIDs that will not be delivered by 2027 and acknowledged that the 95 UIDs forecast to be removed by 2027 is nearing their expectation of 108.
It was noted that these commitments arose from SW’s Improving Urban Wastewater Routemap which states that this group has a role in agreeing the delivery programme. Visibility of this programme should be prominent within this group – there is public interest and results are expected.
There were further discussions around the role of Blue-Green Infrastructure (BGI) and behaviour change have to play in removing UIDs. It was noted that a wet wipe ban would be helpful but must be taken forward by UK Government.
There was also discussion around the costs of removing UIDs and how a balance is struck between tackling an issue that matters to the public and has environmental benefits while keeping costs affordable.
Actions
- 25.06 SR21 UID programme to become a standing item on the agenda
- 25.07 Consider how behaviour change around disposal to sewer/management of rainwater factors into any conversation on water
Investment planning scenario
Scottish Water provided summary of paper.
Wider point from WICS that it would have been useful if this paper had gone to the working group first as it’s a topic that needs more time to discuss the detail.
WICS raised a point that they don’t necessarily get the detail they would like from the appendices in the papers. For example, they would like to understand the movement of investment and the reasons why. What is baseline?
Longstanding question from WICS raised on overheads and putting money back into this pot after taking money out.
WICS have a number of other questions and have agreed to take them offline to their JDG in the interest of time.
Action 25.08 SG/SW to discuss priorities around the First-time Provision (FTP) Connections Project.
Update on Management Approaches (MAs)
Scottish Water took attendees through key points of the paper.
Scottish Government proposed that this paper would be better presented at the working group meeting. General agreement with the point raised with the option for anything that needs to be raised to be brought to this group. This groups focus should perhaps be around the red MAs.
Action 25.09 Remove the update on Management Approaches from the agenda for this meeting, unless there are issues that need to be raised.
SG policy position on West Central Bioresource
Scottish Government provided an overview of the paper
- given the scale and importance of this project, SG is looking for assurance that wider Just Transition ambitions are being considered
- would also like alternative finance options to be considered
- not prescribing the outcome but would like these options to be appraised
SW stressed they are seeking a steer from SG in relation to the future of bioresources.
WICS noted they are content with SG’s draft position.
SEPA noted concerns around the potential for an over reliance on agricultural land.
Action 25.10 SG to provide SW with an estimate date for a final position and SW to provide SG with any further feedback.
Update from IPPF Task and Finish group
WICS presented an update on the IPPF task and finish groups.
Two groups in total.
One looking at how the investment programme is defined on a rolling basis:
- WICS chair this as it relates to regulatory framework
- met twice – August and September 2025
- priority areas and whiteboard session identified 4 themes
- now preparing forward programme
The second group is looking at the metrics for monitoring progress and reporting:
- this needs to follow the first group and when there is a good handle of what the scope of delivery plan looks like then the work of this group can be taken forward
Any other business
Scottish Water reminded the group that the International Water Association (IWA) Congress Meeting is taking place in Glasgow 2026.
- call for papers is now out. This will be sent to the group for people to put forward papers for consideration linking to certain themes
- key Date is 30 November 2025
- an opportunity to showcase the good things going on in UK and Scotland
SEPA and SW noted recent structural changes.
