The PIRN Water Research Group today published a new report on the regulation of the Scottish Water Industry. It shows that the system of regulation makes Scottish Water inherently and increasingly subject to pressure for privatisation.  

The report examines the major policy options for the future of Scottish Water: Privatisation, mutualisation and democratisation.

On every major index, privatisation of water across the world has been a failure in terms of its value for money, the accountability of the service, sustainability and water quality and efficiency.  There is every reason to suppose that the same would be the case in Scotland.

Mutualisation is also examined and found - in the current financial context - to be privatisation by the back door. 

The remaining alternative is democratisation which would see the industry firmly re-embedded in the public sector.  We show that public sector models such as that in Sweden are not only more efficient than private sector models but are able to deliver water at around half the cost of water in the privatised English system.

The full report is available here

A summary report is available here