On this page:

News Release

This item was published during the term of a previous administration that ended in April 2007

water image

Listen

Appointments to new Water Industry Commission

24/06/2005

Appointments to the body that has been established to provide independent economic regulation of the water industry were announced today.

A team of senior and highly experienced regulators, engineers, economists and water industry executives form the membership of the Water Industry Commission for Scotland.

Their first task will be to conclude the strategic review of charges for 2006 to 2010, ensuring that Scottish Water delivers improved services at the lowest reasonable cost to customers.

Sir Ian Byatt, former Director General of the Office of Water Services for England and Wales, will chair the Commission. Professor John Banyard, Dr Michael Brooker, Charles Coulthard and Professor David Simpson will serve as members.

Deputy Environment Minister, Lewis Macdonald said:

"Sir Ian Byatt will lead a strong team whose members between them possess the range of skills and expertise required to ensure that Scottish Water is subject to rigorous independent regulation.

"We are fortunate in being able to bring together a team with such diverse experience of regulatory activity, economics and the water industry.

"I am confident this team will work effectively on behalf of customers to build on the regulatory framework that the Water Industry Commissioner and his staff have put in place since 1999."

The appointments were made under the Office of the Commissioner for Public Appointments in Scotland's Code of Practice following open competition.

Between appointment and December 31, Sir Ian Byatt will commit three days per week to his post and the Commission members one and a half days per week. This will ensure the delivery of the strategic review of charges on time. From January 2006, they will commit two days and one day respectively.

Sir Ian will receive £49,820 for the year between July 1, 2005 and June 30, 2006. Thereafter he will receive £40,070 per annum. Commission members will receive £18,025 from July 1, 2005, to June 30, 2006. Thereafter, they will then receive £14,580 per annum.

Sir Ian Byatt was Director General of the Office of Water Services between 1989 and 2000 in which capacity he was responsible for the independent economic regulation of the water companies in England and Wales. From 1978 to 1989 he served in HM Treasury as Deputy Chief Economic Adviser. Since 2000 he has advised the World Bank and governments around the world on matters relating to the water industry. Sir Ian, who has been an adviser to the Water Industry Commissioner since 2002, was knighted in 2000.

Professor John Banyard is a Chartered Engineer who recently retired as an Executive Director of Severn Trent PLC following a career in the water industry dealing particularly with the design and management of capital programmes and the day to day operation of the company's infrastructure. Professor Banyard was awarded an OBE for services to the water industry this year. He became an adviser to the Water Industry Commissioner this year.

Dr Michael Brooker is a scientist who recently retired as Chief Executive of Welsh Water following a career in the water industry in Wales. During his career he was Chief Scientist and subsequently Divisional Operations Director of Welsh Water before becoming the firm's Managing Director in 1996.

Charles Coulthard retired recently as Managing Director of Gas and Electricity Regulation in Scotland. He served as Deputy Director of the Office for the Regulation of Electricity and Gas in Northern Ireland between 1992 and 1999. He is Chair of the Gas and Electricity Consumers Council in Scotland.

Professor David Simpson was Economic Adviser to Standard Life from 1988 to 2001. He was the founding Director of the Fraser of Allander Institute at the University of Strathclyde and is a Trustee of The David Hume Institute. Professor Simpson has been an advisor to the Water Industry Commissioner since 2002.

All appointments were made on merit. None of the appointees declared any political activity during the past five years.

The Water Industry Commission for Scotland was created by the Water Services etc, (Scotland) Act 2005. It replaces the office of the Water Industry Commissioner for Scotland, which advised Ministers on Scottish Water's charges. Under the Act, the Commission will operate independently of Ministers to identify the lowest reasonable overall cost at which Scottish Water can deliver Ministers' objectives for the business; and determine Scottish Water's charges on that basis. Scottish Water will be able to challenge the Commission's charges determination at the Competition Commission.

Page updated: Friday, June 24, 2005