Scottish water bill: public utility getting 'room to grow'

Published on Thursday 9 September 2010 01:28

The one unexpected package in the legislative programme, this will remove some statutory obstacles underpinning the water utility, allowing it to undertake commercial activity.

This could, for example, be to erect wind farms on its land. Or it could be to allow it to lay fibre optic cables in its pipe network, enabling super-fast broadband to be shuttled in.

The bill does not mean that Scottish Water moves away from full public ownership - Mr Salmond ruled that out.

Mr Salmond hoped the reforms will enable Scottish Water to blossom into a fully-fledged energy company, with its profits returning to the taxpayer.

He added: "If we give Scottish Water room to grow, we have the makings of a great Scottish company, in public ownership."

However, as it will still be owned by Scottish ministers, the utility will still be unable to borrow money from the money markets, putting a question mark on where extra investment will come from.

Both the utility and the Scottish Government said it would not lead to an increase in customers' bills.

Will it be passed? Yes. Labour has already given support, so the bill is certain to go through relatively easily, although opponents are sceptical about whether the changes will reap the rewards Mr Salmond predicts.