Why the water industry is engaged in its ‘biggest ever rebellion’ against Ofwat

England and Scotland often adopt drastically different approaches to similar issues, and this has been well-illustrated recently by strategic decisions taken by their two water regulators.

Back in December, England’s body Ofwat announced that water companies would be required to reduce bills by an average of 12% before inflation over a five-year period between 2020 and 2025. Sounds great for home-owners but what about the environment?

Up in Scotland, in contrast, the Water Industry Commission for Scotland (WICS) concluded in mid-February [19 February] that average annual charges will have to rise by up to 2% in the period 2021-27, with a similar increase required into the 2030s. WICS makes it clear that these increases are needed to prepare the industry for achieving net zero carbon emissions by 2040, as it has been required to do by the Scottish Government, as well as mitigating for the impacts of climate change.

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