Scottish Water has a right of appeal against this price setting process through a reference to the UK Competition Commission.
In the year 2014–2015 they reported outcomes that were comparable with recent performance by leading water companies in England and Wales, as well undertaking a major investment programme.
It emerged that the regulator, SEPA, estimated that there were 645 'unsatisfactory' outflows, and that Scottish Government officials viewed Scotland as being 'way behind' England in dealing with the problem.
Part of its long term capital expenditure is funded by long-term loans from the Scottish Government.
[15] Quality and Standards 3, covered the period from 2006 to 2015, during which Scottish Water were asked to deliver one of the largest capital investment programmes in the UK, including more than 2,000 individual projects.
[17] Scottish Water's approach to capital maintenance has previously received independent, high level scrutiny.