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This item was published during the term of a previous administration that ended in April 2007

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Water Customer Consultation Panels

05/10/2004

A proposal to give greater powers to water customers by strengthening the role of the Water Customer Consultation Panels was unveiled to MSPs today.

Environment Minister Ross Finnie told the Parliament's Environment and Rural Development Committee that additions to the Water Services Bill would enhance the role of the Panels in the determination of charges, responsibility for handling customer complaints and improved reporting powers, as well as a responsibility to represent both domestic and non-domestic customers.

Mr Finnie said:

"We want to see a water industry that provides the highest level of service at the least cost to consumers.

"While the Water Services Bill strengthens the regulation of the industry by ensuring that this serves the customer interest in a way that is robust, transparent and accountable, it is right that the customers' voice is also strengthened.

"My proposals ensure the Panels have a specific input to Ministers' setting objectives for the industry, and that they represent both households and businesses as users of the public water and sewerage services.

"By handling complaints and having a stronger reporting function with a direct right of reply from regulators, the Panels will be able to speak directly to and for customers."

The Scottish Executive published the Water Services etc (Scotland) Bill on June 14, 2004.

It aims to introduce a stronger regulatory framework to deliver robust and transparent economic regulation and improved efficiency with minimum charge increases. It proposes alterations to strengthen the economic regulation of the industry by giving the regulator powers of determination over SW's charges, within a policy framework set by Ministers. It also proposes a Water Industry Commission to replace the current Water Industry Commissioner to increase transparency and accountability.

The Bill prohibits common carriage, and retail competition for domestic customers, and provides for a licensing regime to regulate any competition which may develop in retail services to non-domestic customers.

These steps are designed to ensure that competition will not disrupt the supply or distribution of water and to protect vulnerable customers from the potential impact of retail competition in this essential service.

Proposed changes to the role of the Water Customer Consultation include:-

  • Provision for the Panels to represent non-domestic as well as domestic customers, given SW's continuing responsibility for distribution and supply to all customers
  • Providing Panels with an opportunity to voice customer interest in the charge determination process
  • Transfer responsibility for handling customer complaints to the Panels. Complaints are currently dealt with by the Water Industry Commissioner.
  • Enhance the Panels' current powers to publish reports and require the regulator to which a report is addressed to respond, therefore increasing public accountability

The Environment Committee is due to publish its Stage 1 report on the Bill in the next few weeks.

Page updated: Tuesday, October 05, 2004