Scotland's Approach to Regulating Water Charges
The price regulation conducted by economic regulators is a high-stakes process, with significant and lasting impacts on current and future service quality and the overall performance of the regulated sector. This report tracks the efforts of the economic regulator of the Scottish water sector to mak...
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| Formato: | Libro electrónico |
| Idioma: | Inglés |
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Paris :
Organization for Economic Cooperation & Development
2022.
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| Edición: | 1st ed |
| Colección: | The Governance of Regulators
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| Ver en Biblioteca Universitat Ramon Llull: | https://discovery.url.edu/permalink/34CSUC_URL/1im36ta/alma991009704581506719 |
Tabla de Contenidos:
- Intro
- Foreword
- Acknowledgements
- Abbreviations and acronyms
- Executive summary
- Reflections on the SRC21 process
- The challenges of the present: The delivery period
- Key recommendations
- The outlook for the future: The next SRC
- Key recommendations
- Timeline
- 1 Key insights and recommendations
- Reflections on the SRC21 process
- The challenges of the present: The delivery period
- Recommendations
- The outlook for the future: The next SRC
- Recommendations
- Note
- References
- 2 Context and background
- Market structure
- Key institutions
- An evolving regulatory approach in the Scottish water sector
- The regulatory process between 2002 and 2015
- Outcomes and limitations
- The Strategic Review of Charges 2015-2021 (SRC15)
- The regulatory approach
- Consumer engagement
- Key outcomes of an evolving regulatory process
- Institutional innovation: The Customer Forum
- Customer views at the centre of the Final Determination of Charges
- New parameters
- New approaches to innovation
- New performance measures
- The key areas of focus going into SRC21
- Notes
- References
- 3 Overcoming key regulatory challenges
- Limitations of an adversarial approach
- The starting point: balancing efficiency against the need to address long-term challenges
- Moving ahead: SRC21 structures shift away from the adversarial approach
- The multi-lateral governance of SRC21 creates new opportunity for exchange
- Stakeholders experiment with co-creation for Scottish Water's Strategic Plan and a sector vision
- The EBR support group offers a periodic "temperature check" of the SRC21 process
- WICS re-imagines the use of its powers to further EBR
- Looking forward: the challenges of moving away from the adversarial approach
- Investing in relationships and knowledge-building.
- Establishing buy-in and expectations
- Clarifying roles and ownership
- Fostering a culture change within each organisation
- Translating principles into instruments
- Challenges associated with long-life assets and time-inconsistency of investment need
- The starting point: A need for investment decisions to meet long-term challenges
- Moving ahead: Squaring future needs with today's prices and investment
- The Capital Maintenance Advisory Group helps the company and SRC21 parties understand investment needs
- An asset management improvement plan and roadmap chart the path forward
- Consideration is given to long-term planning within a six-year regulatory period
- Scottish Water's Strategic Plan is designed to enable a strategic approach to long-term challenges
- A net zero roadmap sketches planned movement towards an ambitious goal
- Looking forward: taking a long-term view to regulating the water sector
- Connecting the dots between asset management and strategic ambitions
- Evidencing the needs for investment decisions
- Addressing trade-offs
- Taking a regulatory long-term view
- Flexibility of investment
- The starting point: A rigid framework discourages ownership and innovation
- Moving ahead: providing a more flexible and accountable investment framework
- A new governance framework allows for a flexible, rolling approach to investment decisions
- WICS's determination allows flexibility, incorporates natural and social capital
- The performance reporting framework promises to maintain trust and confidence
- Looking forward: ensuring that the greater flexibility translates into innovation
- Providing flexibility without compromising accountability
- Boosting capacity to make optimal strategic investment decisions
- Finding the balance between robust external scrutiny and Scottish Water ownership.
- Countering uncertainty for quality regulators
- Embedding the customer and community voice
- The starting point: A commitment to improve opportunities for customer and community input
- Moving ahead: New and improved mechanisms for engagement and research
- The Customer Forum amplifies the customer voice within SRC21, with an evolving mandate
- Scottish Water establishes a new conduit for customer views
- The shared research programme captures customer views and more
- Looking forward: The challenges of embedding the customer and community voice
- Expanding beyond normal consultation
- Maximising the utility of the ICG, while recognising its limitations
- Ensuring research has high-impact results
- Establishing shared understanding of what a community view of engagement means
- Note
- References
- Annex A. Regulator decision papers
- WICS's decision paper on asset replacement
- Final decision paper: "Prospects for Prices"
- References
- Blank Page.
