Office of Public Sector Information
(1) There is established a body corporate to be known as Scottish Water, with the functions conferred on it by or under this Act and any other enactment.
(2) Schedule 3 makes further provision about the status, constitution, proceedings etc. of Scottish Water.
The functions of each of the new water and sewerage authorities are transferred to Scottish Water.
(1) The property and liabilities to which the new water and sewerage authorities are entitled or subject are transferred to Scottish Water.
(2) Subsection (1) has effect in relation to property and liabilities to which it applies despite any provision (of whatever nature) which would otherwise prevent, penalise or restrict the transfer of the property or liabilities.
The Transfer of Undertakings (Protection of Employment) Regulations 1981 (S.I.1981/1794) apply to the transfer of functions by section 21, whether or not they would so apply apart from this section.
(1) The new water and sewerage authorities are dissolved on such date as the Scottish Ministers may by order specify.
(2) Different dates may be specified in relation to different such authorities.
(3) Without prejudice to section 69, the Scottish Ministers may by order make such incidental, supplemental, consequential, transitional, transitory or saving provision as they think necessary or expedient in consequence of or in connection with—
(a) the establishment of Scottish Water,
(b) the transfer of functions, property, liabilities and staff of the new water and sewerage authorities,
(c) the dissolution of those authorities.
(1) Scottish Water may engage in any activity (whether in Scotland or elsewhere) which it considers is not inconsistent with the economic, efficient and effective exercise of its core functions (within the meaning of section 70(2)).
(2) Scottish Water may do anything (whether in Scotland or elsewhere) which it considers is necessary or expedient for the purpose of or in connection with its functions (including any activity in which it engages by virtue of subsection (1)).
(3) The power in subsection (2) includes, in particular, power to—
(a) form or promote (whether alone or with others) companies (within the meaning of the Companies Act 1985 (c. 6)),
(b) subscribe for share or loan capital of any person,
(c) guarantee the discharge of any obligation (whether financial or not) of any person,
(d) form partnerships, enter into arrangements or agreements and co-operate in any way with any person,
(e) enter into a contract with any person for the provision or making available of assets or services, or both (whether or not together with goods) whether by Scottish Water or by that person.
(4) Where—
(a) under subsection (2), Scottish Water enters into a contract such as is referred to in subsection (3)(e) (a “provision contract”), and
(b) in connection with the provision contract, a person (the “financier”) makes a loan to, or provides any other form of finance for, a party to the provision contract other than Scottish Water,
the power in subsection (2) also includes power to enter into a contract with the financier, or any insurer of or trustee for the financier, in connection with the provision contract.
(5) In subsection (3)(e), “assets” means assets of any description (whether tangible or intangible), including (in particular) land, buildings, roads, works, plant, machinery, vehicles, vessels, apparatus, equipment and computer software.
(6) This section is without prejudice to any power otherwise exercisable by Scottish Water but does not enable Scottish Water—
(a) to do anything in contravention of any express prohibition, restriction or limitation on its powers which is contained in any other enactment,
(b) to raise money (whether by borrowing or otherwise) in a manner which is not authorised apart from this section.
(1) In relation to services provided in the exercise of its core functions, Scottish Water must prepare and submit to the Commissioner a code of practice (a “customer standards code”) making provision—
(a) as to its standards of performance in providing services to its customers,
(b) for procedures for dealing with complaints by its customers or its potential or former customers,
(c) as respects the circumstances in which it will pay compensation if or in so far as those standards are not attained,
(d) as respects such matters as are incidental to the provision made under paragraphs (a) to (c), and such supplemental matters (if any) as it thinks fit.
(2) The customer standards code must be submitted to the Commissioner no later than the date on which Scottish Water first sends a charges scheme to the Commissioner under section 32(1).
(3) Subject to subsection (1), Scottish Water may from time to time—
(a) vary, or
(b) revoke and replace,
its customer standards code, and must submit the varied or new code to the Commissioner.
(4) A customer standards code submitted to the Commissioner under subsection (1) or (3) comes into force only when it is approved in accordance with section 27.
(5) Scottish Water must endeavour to comply with its approved customer standards code; but contravention of that code does not of itself give rise to any criminal or civil liability.
(6) Scottish Water must publish the approved customer standards code and provide a copy of the code to any person who requests it.
(7) The Commissioner—
(a) must monitor the compliance by Scottish Water with its approved customer standards code,
(b) may advise the Scottish Ministers on such compliance, and
(c) may require Scottish Water to review its customer standards code, or any provision of it, in such respects as the Commissioner may specify.
(1) The Commissioner may, after consulting each Water Customer Consultation Panel, approve a customer standards code submitted under section 26(1) or (3)—
(a) without modifications, or
(b) with such modifications as are agreed by the Commissioner and Scottish Water.
(2) Where—
(a) the Commissioner is not prepared to give approval under subsection (1)(a), and
(b) Scottish Water does not agree to some or all of the modifications proposed by the Commissioner under subsection (1)(b),
the Commissioner must send the code (with any modifications to it agreed by the Commissioner and Scottish Water) to the Scottish Ministers.
(3) Where 3 months have elapsed since the Commissioner has received a customer standards code by virtue of section 26(1) or (3) and the Commissioner has neither—
(a) given approval under subsection (1) of this section, nor
(b) sent the scheme to the Scottish Ministers under subsection (2) of this section,
Scottish Water may require the Commissioner to send it to the Scottish Ministers.
(4) The Scottish Ministers may, after consulting each Water Customer Consultation Panel, approve a code sent to them under subsection (2) or (3)—
(a) without modifications or further modifications, or
(b) with such modifications as, after consulting Scottish Water and the Commissioner, they think fit.
(5) Where the Commissioner approves a customer standards code under subsection (1), the Commissioner must send a copy of the code as so approved to the Scottish Ministers.
(6) Where the Scottish Ministers approve a customer standards code under subsection (4), they must send a copy of the code as so approved to the Commissioner.
(1) Scottish Water must prepare and submit to the Scottish Ministers a code of practice (a “consultation code”) making provision as to the consultation which it will carry out in relation to—
(a) proposals for, and
(b) the undertaking of,
any significant activity in the exercise of its core functions.
(2) The consultation code must, in particular, make provision—
(a) as to consultation with persons who live, work or carry on business in any area significantly affected by such an activity, or who represent the interests of such persons,
(b) as to the manner of such consultation, the information to be provided to consultees and the time to be allowed for consultees to express views,
(c) for Scottish Water to have regard to the views of the persons consulted in pursuance of the code,
and may make different provision in relation to different cases or descriptions of case.
(3) Before submitting the consultation code to the Scottish Ministers, Scottish Water—
(a) must consult each Water Customer Consultation Panel on the code and have regard to any comments on it made by any Panel, and
(b) may adjust the code in light of those comments.
(4) The Scottish Ministers may approve the consultation code—
(a) without modifications, or
(b) with such modifications as, after consulting Scottish Water, they think fit.
(5) A consultation code submitted to the Scottish Ministers under subsection (1) comes into force only when it is approved in accordance with subsection (4).
(6) Scottish Water must publish the approved consultation code and provide a copy of the code to any person who requests it.
(7) Scottish Water must endeavour to comply with the approved consultation code; but contravention of the code does not of itself give rise to any criminal or civil liability.
(8) Subject to subsection (1), Scottish Water may from time to time—
(a) vary, or
(b) revoke or replace,
the consultation code; and this section applies to the varied or new code as it does to the original code.
(1) Scottish Water may fix, demand and recover charges for any goods supplied or services provided by it.
(2) Subsection (1)—
(a) is subject to sections 9A and 47 of the 1980 Act (no charge for water in certain circumstances), and
(b) does not apply in a case where Scottish Water has power otherwise than under that subsection to fix charges for goods or services.
(3) The power conferred by subsection (1) is exercisable—
(a) in relation to charges for services provided in the exercise of Scottish Water’s core functions, by or in accordance with a charges scheme under section 31, and
(b) in that or any other case, by or in accordance with an agreement with the person to be charged.
(4) Subject to sections 31 to 36, Scottish Water may fix charges under this section by reference to such matters, and may adopt such methods and principles for the calculation and imposition of the charges, as appear to it to be appropriate.
(1) The Scottish Ministers may by order fix maximum charges which a person other than Scottish Water may recover from another such person in respect of the supply of water to, the provision of sewerage to, or the disposal of sewage for that other person with the help of services provided by Scottish Water.
(2) For the purposes of this section, water is supplied to, sewerage provided to, or sewage disposed of for a person with the help of services provided by Scottish Water if—
(a) a facility for that person to have access to a supply of water provided by Scottish Water in pipes, or to make use of sewerage which is, or facilities for the disposal of sewage which are, provided by Scottish Water is made available to that person otherwise than by Scottish Water,
(b) that person is provided with a supply of water in pipes by a person to whom the water is supplied, directly or indirectly, by Scottish Water, or
(c) that person is provided with sewerage, or with facilities for the disposal of sewage, by a person who, for the purposes of providing the sewerage or facilities, makes use of sewerage or of such facilities provided, directly or indirectly, by Scottish Water.
(3) An order under this section may make different provision in relation to different persons, circumstances or localities and may fix a maximum charge either by specifying the maximum amount of the charge or by specifying a method of calculating that amount.
(4) Where a person pays a charge in respect of anything to which an order under this section relates and the amount paid exceeds the maximum charge fixed by the order, the amount of the excess is recoverable by that person from the person to whom the charge was paid.
(1) Scottish Water must, in accordance with this section, make a scheme (referred to in this Act as a “charges scheme”) which fixes the charges to be paid for services provided by it in the exercise of its core functions and which may also make provision with respect to the times and methods of payment of the charges fixed by the scheme.
(2) Subsection (1) does not apply in relation to services as respects which conditions as to payment may be imposed under section 29(3)(j) of the 1968 Act (conditions relating to the reception, treatment and disposal of trade effluent).
(3) A charges scheme may—
(a) make different provision for different cases, or classes of case, including different provision in relation to different circumstances or localities,
(b) contain supplemental, consequential and transitional provisions for the purposes of the scheme,
(c) revoke or amend a previous scheme.
(4) A charges scheme comes into force only when it is approved in accordance with section 32 and has effect as so approved.
(5) Scottish Water in making a charges scheme, and the Commissioner and the Scottish Ministers in considering whether to approve such a scheme, must have regard to any advice published under section 33 in force at the time of the making of the scheme.
(6) Nothing in any charges scheme affects any power of Scottish Water to enter into an agreement with any person in any particular case determining the charges to be made for services provided by Scottish Water.
(1) Scottish Water must send a charges scheme made by it under section 31 to the Commissioner.
(2) The Commissioner may approve the scheme—
(a) without modifications, or
(b) with such modifications as are agreed by the Commissioner and Scottish Water.
(3) Where—
(a) the Commissioner is not prepared to give approval under subsection (2)(a), and
(b) Scottish Water does not agree to some or all of the modifications proposed by the Commissioner under subsection (2)(b),
the Commissioner must send the scheme (with any modifications to it agreed by the Commissioner and Scottish Water) to the Scottish Ministers.
(4) Where 3 months have elapsed since the Commissioner has received a charges scheme by virtue of subsection (1) and the Commissioner has neither—
(a) given approval under subsection (2), nor
(b) sent the scheme to the Scottish Ministers under subsection (3),
Scottish Water may require the Commissioner to send it to the Scottish Ministers.
(5) The Scottish Ministers may approve a scheme sent to them under subsection (3) or (4)—
(a) without modifications or further modifications, or
(b) with such modifications as, after consulting Scottish Water and the Commissioner, they think fit.
(6) Where the Commissioner approves a charges scheme under subsection (2), the Commissioner must send a copy of the scheme as so approved to the Scottish Ministers.
(7) Where the Scottish Ministers approve a charges scheme under subsection (5), they must send a copy of the scheme as so approved to the Commissioner.
(1) The Commissioner must, when required by the Scottish Ministers, advise them on the matters to be taken into, or left out of, account by Scottish Water in fixing charges in charges schemes.
(2) The advice is to apply in relation to charges schemes made during such period as the Scottish Ministers may specify (in this section referred to as “the period of the advice”).
(3) In preparing advice, the Commissioner is to have regard to—
(a) the economy, efficiency and effectiveness with which Scottish Water is using its resources in exercising its core functions,
(b) the likely cost to Scottish Water, for the period of the advice, of exercising the functions specified in subsection (4),
(c) the likely resources, other than income from charges for goods and services, available to Scottish Water for the period of the advice,
(d) any guidance issued to Scottish Water by the Scottish Ministers, and
(e) any directions given under section 44 or 56.
(4) The functions referred to in subsection (3)(b) are the core functions of Scottish Water so far as consisting of—
(a) complying with any duty to which it is subject by virtue of any enactment,
(b) complying with any such duty to which it will, or is likely to, become subject during the period of the advice,
(c) providing services to its customers at the same standard, and protection of the environment at the same level, as those at the time when the advice is given, or at such other standard or level as the Scottish Ministers may specify, and
(d) extending, in accordance with requirements made by the Scottish Ministers, the provision of public sewers and supplies of water to premises or areas not in receipt of such provision.
(5) The Scottish Ministers must, within 3 months of receiving from the Commissioner advice under subsection (1)—
(a) accept the advice, with or without modifications, or
(b) reject the advice and substitute their own advice for it.
(6) Where the Scottish Ministers accept the Commissioner’s advice with modifications or reject it, they must give reasons for doing so.
(7) The Commissioner must publish advice as accepted, modified or substituted under subsection (5), together with any reasons given under subsection (6).
When a charges scheme is approved in accordance with section 32, Scottish Water must—
(a) make arrangements for allowing any person to—
(i) inspect the scheme at any reasonable time,
(ii) obtain a copy of it, or any part of it, on payment of such reasonable fee (if any) as Scottish Water may determine, and
(b) publicise those arrangements and publish a summary of the scheme.
(1) Supplies of water provided by Scottish Water to any premises and the provision and maintenance by Scottish Water of communication pipes and supply pipes for the purposes of such supplies are to be treated for the purposes of this Act as services provided to the occupier for the time being of those premises.
(2) The provision of sewerage, and the disposal of sewage, provided by Scottish Water are to be treated for the purposes of this Act as provision to, or as disposal for, the occupier for the time being of any premises which—
(a) are drained by a sewer or drain connecting, either directly or through an intermediate sewer or drain, with a public sewer provided for foul water or surface water or both, or
(b) are premises the occupier of which has, in respect of the premises, the benefit of facilities which drain to a sewer or drain so connecting.
(3) Subject to subsection (5), in relation to any period during which premises referred to in subsection (1) or (2) are unoccupied, references to the occupier in the subsection in question are to be construed as references to the owner of the premises.
(4) Subsections (1) to (3) do not apply so far as provision to the contrary is made by any agreement to which Scottish Water is a party.
(5) Charges which, under section 29, are fixed in relation to any premises by reference to volume may be imposed so that a person remains liable, in relation to those premises, to pay charges for—
(a) a supply of water, and
(b) provision of sewerage or disposal of sewage,
provided by Scottish Water after the person has ceased to be occupier of the premises.
(6) A person is liable by virtue of subsection (5) for any charges fixed in relation to any premises by Scottish Water only where that person fails to inform Scottish Water of the ending of that person’s occupation of the premises at least 48 hours before that person ceases to occupy them.
(7) The charges for which a person may be liable by virtue of subsection (5) are charges in respect of a period ending no later than whichever of the following first occurs after the person ceases to occupy the premises—
(a) where the person informs Scottish Water of the ending of that person’s occupation, the 28th day after informing Scottish Water,
(b) any day on which any meter would normally have been read in order for the amount of the charges to be determined,
(c) any day on which any other person informs the authority that that other person has become the new occupier of the premises.
(8) In calculating the period of 48 hours referred to in subsection (6) any time falling on—
(a) a Saturday or Sunday,
(b) Christmas Day or Good Friday, or
(c) a day which is a bank holiday in Scotland under the Banking and Financial Dealings Act 1971 (c. 80),
is to be disregarded.
(9) In subsection (1), “communication pipes” and “supply pipes” have the same meanings as in the 1980 Act.
(1) In the application of section 35 to services which are the subject of a determination under section 37(1)(a), references in section 35(1) and (2) to the occupier of premises are references to the person—
(a) who is liable under or by virtue of sections 75 to 77 of the Local Government Finance Act 1992 (c. 14) to pay council tax (within the meaning of section 70(1) of that Act) in respect of the premises, or
(b) who would be so liable but for the premises being an exempt dwelling (within the meaning of Part II of that Act).
(2) Without prejudice to subsections (3) and (4) of section 35, the Scottish Ministers may, after consulting such persons as they think fit, by order make provision, in relation to such premises or description of premises as the order may specify, as to the persons who are, for the purposes of subsections (1) and (2) of that section, to be treated as being, or as not being, occupiers of the premises.
(3) Section 35(3) and subsection (2) of this section do not apply in a case to which subsection (1) of this section applies.
(1) The Scottish Ministers may by order determine—
(a) that as respects specified services provided, within a financial year specified in the order, by Scottish Water to dwellings, or to such description of dwellings as the order may specify—
(i) within the area of a local authority, or
(ii) within such part of that area as the order may specify,
the authority and not Scottish Water is to demand and recover charges payable for those services under a charges scheme, and
(b) that the authority is, at such intervals as may be so specified, to make such payments to Scottish Water (to which no other amount is to be payable under the charges scheme for the services provided) as may be so specified or as may be determined in accordance with the provisions of the order.
(2) In subsection (1), “specified services” means services specified, or of a description specified, in the order.
(3) An order under subsection (1) may include provision as to—
(a) forms and procedures which the local authority is to adopt in demanding payment,
(b) circumstances in which a customer of Scottish Water who is aggrieved by a decision or calculation of the local authority may appeal—
(i) except in a case specified by virtue of sub-paragraph (ii), to a valuation appeal committee (constituted under section 29 of the 1994 Act), or
(ii) in such cases as the order may specify, to a body constituted under the order (or under a previous such order) to consider appeals as respects any such case,
(c) procedures to be followed in any appeal by virtue of paragraph (b),
(d) the provision, for the purposes of this section, of information by Scottish Water to the local authority,
(e) the keeping by the local authority of accounts and records as respects their functions by virtue of this section and the exhibition of, or of copies of, such accounts and records to Scottish Water.
(4) Schedule 4 makes provision about recovery by a local authority of unpaid charges.
(5) In this section and section 38, “dwelling” has the same meaning as in Part II of the Local Government Finance Act 1992 (c. 14).
(1) This section applies in relation to any dwellings to which Scottish Water provides services which are the subject of a determination under section 37(1)(a).
(2) Where, in relation to any such dwellings, Scottish Water serves a notice under this subsection on the relevant local authority, the services which are the subject of the determination, so far as provided to dwellings to which the notice relates, are to be treated for so long as the notice remains in force as if they were not subject to the determination.
(3) A notice under subsection (2) may be withdrawn in whole or in part by Scottish Water by serving a further notice on the relevant local authority.
(4) The Scottish Ministers may by regulations make provision as to—
(a) the form and content of a notice under subsection (2) or (3),
(b) when such a notice comes into force,
(c) (either or both) the maximum and minimum numbers of dwellings to which such a notice may relate,
(d) such other matters in relation to such a notice as the Scottish Ministers think necessary or expedient.
(5) Regulations under subsection (4) may also make provision for the payment by Scottish Water to the relevant local authority of a sum, specified in or calculated in accordance with the regulations, in respect of any reasonable administrative expenses incurred by the authority in consequence of the service of a notice under subsection (2) or (3).
(6) In this section, “the relevant local authority” means the local authority which—
(a) is, by virtue of the determination under section 37(1)(a), responsible for demanding and recovering charges payable for services provided by Scottish Water to the dwellings to which the notice under subsection (2) or (3) relates and which are the subject of the determination, or
(b) was, until the notice came into force, so responsible.
Sections 29(1) and 37 are without prejudice to—
(a) the duties of Scottish Water under section 6 of the 1980 Act (which include the duty to maintain a supply of wholesome water provided to meet a requirement for domestic purposes),
(b) the entitlements of any person under section 12 of the 1968 Act (which include the entitlement of an occupier of premises to drain into public sewers to which the drains or private sewers of the owner of the premises are connected).
(1) The Scottish Ministers may by regulations provide that a person who—
(a) is, under a charges scheme, liable to pay an amount to Scottish Water or, by virtue of section 37, to a local authority, and
(b) fulfils such conditions as are specified in the regulations,
is instead exempt from such liability or liable to pay the reduced amount referred to in subsection (2).
(2) The reduced amount is an amount—
(a) less than the amount it would be but for the regulations, and
(b) determined in accordance with rules specified in the regulations.
(3) The conditions and rules to be specified in regulations under subsections (1)(b) and (2)(b) respectively may be determined by reference to such factors as the Scottish Ministers think fit.
Water Industry (Scotland) Act 2002