Legalize / United Kingdom / Scotland / Act of the Scottish Parliament

Water Industry (Scotland) Act 2002

Type Act of the Scottish Parliament

Publication 2002-03-01

Last updated 2026-03-18

State In force

Jurisdiction Scotland

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

[^key-a17b89559c212d17115acda655a521bd]: Words in s. 29D(5)(b) substituted (10.11.2022) by The Consumer Scotland (Transfer of Functions) Regulations 2022 (S.S.I. 2022/296), reg. 1(1), sch. para. 1(7) (with reg. 3)

[^key-49def22486a4ca4dd72fd5553a050880]: Words in s. 56A(4) substituted (10.11.2022) by The Consumer Scotland (Transfer of Functions) Regulations 2022 (S.S.I. 2022/296), reg. 1(1), sch. para. 1(8) (with reg. 3)

[^key-9266a956a78eb9b71797c56c843d7e49]: Words in s. 57(6)(a) substituted (10.11.2022) by The Consumer Scotland (Transfer of Functions) Regulations 2022 (S.S.I. 2022/296), reg. 1(1), sch. para. 1(9) (with reg. 3)

[^key-fd8b3eecf5ee3187273ee0c1d4804814]: Words in s. 37(3)(b)(i) substituted (1.4.2023) by The First-tier Tribunal for Scotland (Transfer of Functions of Valuation Appeals Committees) Regulations 2023 (S.S.I. 2023/45), reg. 1(2), sch. 2 para. 11(2) (with sch. 1 paras. 1-4, 13-20)

[^key-7e246e04402b03a5520bb40db8f2bd4a]: Words in s. 70 inserted (1.4.2023) by The First-tier Tribunal for Scotland (Transfer of Functions of Valuation Appeals Committees) Regulations 2023 (S.S.I. 2023/45), reg. 1(2), sch. 2 para. 11(3) (with sch. 1 paras. 1-4, 13-20)

[^key-21ac87c1c7025593e5be43cd021293f1]: Sch. 3 para. 2(2A) inserted (18.3.2026) by The Public Services Reform (Scottish Water) Order 2026 (S.S.I. 2026/146), arts. 1, 2(4)

[^key-68c5be7c15887f69a555fff4b799a107]: Word in sch. 3 para. 2(1)(b) substituted (18.3.2026) by The Public Services Reform (Scottish Water) Order 2026 (S.S.I. 2026/146), arts. 1, 2(2)

[^key-9d10755b057088b913ba34773a5778f0]: Sch. 3 para. 2(2) substituted (18.3.2026) by The Public Services Reform (Scottish Water) Order 2026 (S.S.I. 2026/146), arts. 1, 2(3)

Water Industry Commission for Scotland

Register of trade effluents: confidential information

Offences by bodies corporate and partnerships

SCHEDULE A1

Status

1

(1) The Commission is a body corporate.

(2) The Commission—

(a) is not a servant or agent of the Crown,

(b) has no status, immunity or privilege of the Crown,

and its property is not to be regarded as property of, or held on behalf of, the Crown.

Membership

2

The Commission is to consist of the following members—

(a) not fewer than 3, nor more than 5, ordinary members, and

(b) the person holding the post of chief executive.

Tenure and removal from office

3

(1) Each ordinary member—

(a) is to be appointed by the Scottish Ministers for such period as is specified in the appointment,

(b) may, by written notice to the Scottish Ministers, resign as a member,

(c) in other respects, holds and vacates office on such terms and conditions as the Scottish Ministers may determine, and

(d) after ceasing to hold office is eligible for reappointment as a member.

(2) The Scottish Ministers may remove an ordinary member from office and the Commission may, with the approval of the Scottish Ministers, remove the member who is the chief executive from office if satisfied that—

(a) the member's estate has been sequestrated or the member has been adjudged bankrupt, has made an arrangement with creditors or has granted a trust deed for creditors or a composition contract, or

(b) the member—

(i) is incapacitated by physical or mental illness,

(ii) has been absent from meetings of the Commission for a period longer than 3 consecutive months without the permission of the Commission, or

(iii) is otherwise unable or unfit to discharge the functions of a member or is unsuitable to continue as a member.

Disqualification

4

A person is disqualified from appointment, and from holding office, as a member of the Commission if that person is a member of—

(a) the House of Lords,

(b) the House of Commons,

(d) the European Parliament.

Chairing

5

(1) The Scottish Ministers—

(a) must appoint one of the ordinary members to chair meetings of the Commission, and

(b) may, after consulting that member, appoint another ordinary member to act as deputy to that member.

(2) The member appointed to chair the meetings and any member appointed to act as deputy to that member hold and vacate office as such in accordance with the terms of their appointments.

(3) A member so appointed may, by written notice to the Scottish Ministers, resign from office as such.

(4) A member so appointed vacates office on ceasing to be a member of the Commission.

(5) Where a member—

(a) is appointed to chair meetings or to act as deputy to the member so appointed, or

(b) ceases to hold office as such,

the Scottish Ministers may vary the terms of the member's appointment so as to alter the date on which office as a member is to be vacated.

Remuneration, allowances and pensions

6

(1) The Commission must pay to each ordinary member such remuneration as the Scottish Ministers may determine.

(2) The Commission must pay to each ordinary member and the chief executive such allowances as the Scottish Ministers may determine in respect of expenses properly incurred in the performance of their duties as a member.

(3) Where a person ceases to be an ordinary member otherwise than on the expiry of that person's term of appointment, the Scottish Ministers may, if they think there are special circumstances, direct the Commission to pay to the person such amount of compensation as they may determine.

(4) The Scottish Ministers may direct the Commission to pay—

(a) such pension, allowance or gratuity to, or in respect of, any person who is or has been an ordinary member,

(b) such contribution or other payment towards provision for such pension, allowance or gratuity,

as they consider appropriate.

Chief executive

7

(1) The Commission is to employ a chief executive.

(2) The Scottish Ministers are to appoint the first chief executive of the Commission on such terms and conditions as the Scottish Ministers may determine.

(3) Before making the appointment of the first chief executive, the Scottish Ministers must consult the member of the Commission appointed, or to be appointed, to chair the meetings of the Commission (if there is a person holding, or as the case may be designated to hold, that office).

(4) The Commission may, with the approval of the Scottish Ministers, make subsequent appointments to the post of chief executive on such terms and conditions as it may with the approval of the Scottish Ministers determine.

(5) The chief executive is to be appointed from amongst persons who appear—

(a) as regards the first appointment, to the Scottish Ministers, and

(b) thereafter, to the Commission,

to have knowledge, skills or experience relevant to the functions of the Commission.

(6) The Commission may, with the approval of the Scottish Ministers—

(a) vary any terms and conditions of a person's appointment to the post of chief executive, or

(b) terminate a person's appointment to the post of chief executive if the Commission is satisfied that the person is not adequately discharging the functions of that post.

Staff

8

(1) All staff employed, immediately before the coming into force of this sub-paragraph, by the Water Industry Commissioner for Scotland are transferred to the employment of the Commission.

(2) The contract of employment of a person transferred by virtue of sub-paragraph (1)—

(a) is not terminated by the transfer, and

(b) has effect from the date of transfer as if originally made between the person and the Commission.

(3) Without prejudice to sub-paragraph (2), where a person becomes a member of staff of the Commission under sub-paragraph (1)—

(a) all the rights, powers, duties and liabilities of the Water Industry Commissioner for Scotland under or in connection with that person's contract of employment are by virtue of this sub-paragraph transferred to the Commission on the date of transfer, and

(b) anything done before that date by or in relation to the Water Industry Commissioner for Scotland in respect of that contract of employment or that person is to be treated from that date as having been done by, or in relation to, the Commission.

(4) Sub-paragraphs (1) to (3) do not prejudice the right of any person to terminate that person's contract of employment if the terms and conditions of employment are changed substantially to the detriment of the person; but such a change is not to be taken to have occurred by reason only that the identity of that person's employer changes by virtue of those sub-paragraphs.

(5) The Commission may, with the consent of the Scottish Ministers as to numbers, terms and conditions, appoint such other employees as it considers appropriate.

(6) The Commission must, as regards such of its employees as it may with the approval of the Scottish Ministers determine, make such arrangements as it considers appropriate for providing, to or in respect of those employees, pensions, allowances or gratuities.

(7) Such arrangements—

(a) may include the establishment and administration, by the Commission or otherwise, of one or more pension schemes, and

(b) must, in any case, be approved by the Scottish Ministers.

(8) The reference in sub-paragraph (6) to the provision of pensions, allowances or gratuities includes a reference to their provision by way of compensation for loss of office or employment or loss or diminution of emoluments.

Transfer of property and liabilities

9

(1) All property (including rights) and liabilities, subsisting immediately before the coming into force of this paragraph, of the Water Industry Commissioner for Scotland are transferred to the Commission.

(2) Sub-paragraph (1) has effect in relation to any property and liabilities to which it applies despite any provision (of whatever nature) which would otherwise prevent, penalise or prohibit the transfer of the property or liabilities.

Committees

10

(1) The Commission may establish committees for or in connection with the exercise of such of its functions as it may determine.

(2) Any committee established under this paragraph must be chaired by a person who is an ordinary member of the Commission.

(3) Employees of the Commission who are not members of the Commission may be appointed to be members of any committee established by it.

Delegation of powers

11

(1) Anything authorised or required under any enactment to be done by the Commission may be done by any of its committees which, or by any of its members or employees who, are authorised (whether generally or specifically) by it for the purpose.

(2) Nothing in sub-paragraph (1) prevents the Commission from doing anything that a committee, member or employee has been authorised or required to do.

Proceedings

12

(1) The Commission may regulate its own procedure (including any quorum) and that of any of its committees.

(2) The validity of any proceedings or actings of the Commission is not affected by—

(a) any vacancy among its members, or

(b) any defect in the appointment of a member.

General powers

13

(1) The Commission may do anything which appears necessary or expedient for the purpose of, or in connection with, the exercise of its functions including, in particular—

(a) entering into contracts; and

(b) acquiring and disposing of property.

(2) But the Commission may not acquire or dispose of land without the consent of the Scottish Ministers.

Accounts

14

The Commission must—

(a) prepare for each financial year, in accordance with directions given by the Scottish Ministers, an account of the Commission's income and expenditure, and

(b) send the account, by such time as the Scottish Ministers may direct, to the Auditor General for Scotland for auditing.

Rivers (Prevention of Pollution) (Scotland) Act 1951 (c.66)

Local Government (Scotland) Act 1966 (c.51)

Countryside (Scotland) Act 1967 (c.86)

Reservoirs Act 1975 (c.23)

Race Relations Act 1976 (c.74)

Debtors (Scotland) Act 1987 (c.18)

Food Safety Act 1990 (c.16)

New Roads and Street Works Act 1991 (c.22)

Natural Heritage (Scotland) Act 1991 (c.28)

Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7)

Planning (Consequential Provisions) (Scotland) Act 1997 (c.11)

Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7)

29A

(1) Scottish Water must make a scheme (referred to in this Act as a “charges scheme”) which fixes the charges to be paid for services provided by Scottish Water in the exercise of its core functions.

(2) A charges scheme must be made by reference to a determination made under section 29B.

(3) In particular, the scheme must not fix in any case a charge exceeding any maximum charge applying to the case by virtue of the determination.

(4) A charges scheme may make provision with respect to the times and methods of payment of the charges fixed by the scheme.

(5) The Scottish Ministers and the Commission must provide Scottish Water with such information as it reasonably requires for the purposes of making a charges scheme.

(6) Scottish Water must send a charges scheme to the Commission for approval by such date as the Scottish Ministers may direct.

(7) The Commission may approve a charges scheme with or without modifications.

(8) If the Commission approves a charges scheme with modifications, it must give its reasons for doing so.

(9) When a charges scheme is approved by the Commission, Scottish Water must—

(a) make arrangements for allowing any person to—

(i) inspect the scheme at any reasonable time,

(ii) obtain a copy of the scheme or part of it on payment of such reasonable fee (if any) as Scottish Water may determine, and

(b) publicise those arrangements and publish a summary of the scheme.

(10) Following approval of a charges scheme by the Commission, the scheme comes into effect on such date as is specified in the scheme.

29B

(1) The Commission must—

(a) determine in writing maximum amounts of charges by reference to which a charges scheme is to be made, and

(b) send the determination to Scottish Water by such time as the Scottish Ministers may specify.

(2) Maximum amounts determined under subsection (1)(a) apply in relation to such period as the Scottish Ministers may specify.

(3) A determination made under subsection (1)(a) may make different provision for different cases or categories of case.

(4) Before making a determination under subsection (1)(a), the Commission—

(a) must send a draft determination to—

(i) the Scottish Ministers,

(ii) Scottish Water, ...

(iia) every water services provider and sewerage services provider, and

(iii) Consumer Scotland,

(b) must—

(i) publish the draft determination, and

(ii) invite (by way of advertisement or otherwise) representations as regards the draft determination by such time as the Commission may specify, and

(5) The Scottish Ministers and Scottish Water must provide the Commission with such information as it reasonably requires for the purposes of making a determination under subsection (1)(a).

29C

(1) Scottish Water must exercise its functions under sections 29A and 29F for the purposes of ensuring that subsections (4) and (5) are complied with.

(2) The Commission must—

(a) exercise its functions under sections 29A, 29B and 29F for the purposes of ensuring that subsections (4) and (5) are complied with,

(b) exercise its functions under section 29E for the purposes of ensuring that subsection (5) is complied with, and

(i) any guidance issued to Scottish Water by the Scottish Ministers, and

(ii) any directions given to Scottish Water under section 44 or 56,

so far as relevant in relation to charges schemes.

(3) The Scottish Ministers must—

(a) provide the Commission with such information as it may require for the purpose of subsection (2)(c); and

(b) in particular, send to the Commission copies of any guidance and directions referred to in that subsection when issued or given.

(4) This subsection is complied with if (so far as is consistent with compliance with subsection (5)) a charges scheme gives effect to any statement issued under section 29D.

(5) This subsection is complied with if (so far as is consistent with compliance with section 41(1)) Scottish Water's receipts from the aggregate of—

(a) its income from charges for services provided in the exercise of its core functions, and

(b) the amount of—

(i) any grants paid to it under subsection (1) of section 42,

(ii) money it may borrow under subsection (3) of that section, and

(iii) any other resources reasonably available to it,

for the purposes of the exercise of those functions,

is not less than sufficient to meet the expenditure required for the effective exercise of those functions.

29D

(1) The Scottish Ministers must—

(a) in respect of a period specified under section 29B(2), and

(b) by reference to such economic or other factors as they consider relevant,

issue to Scottish Water and the Commission a statement of policy regarding charges under a charges scheme.

(2) A statement under subsection (1) is to include provision with respect to harmonisation of charges (that is to say, provision with a view to ensuring that a charges scheme does not fix different charges for similar services provided to persons of a similar category).

(3) A statement under subsection (1) may (so far as is consistent with the provision described in subsection (2)) include provision with respect to—

(a) the funding of particular services by charges for services as a whole,

(b) the proportion of the amount of income requiring to be raised by charges fixed by a charges scheme to be contributed by each category of person to whom Scottish Water provides services,

(i) different categories of person to whom Scottish Water provides services, or

(ii) liability for council tax under Part II (Council tax: Scotland) of the Local Government Finance Act 1992 (c. 14), and

(d) such other matters as the Scottish Ministers think fit.

(4) In preparing a statement under subsection (1), the Scottish Ministers must have regard to Scottish Water's duty under section 51(1).

(5) Before issuing a statement under subsection (1), the Scottish Ministers must consult—

(a) the Commission,

(aa) every water services provider and sewerage services provider,

(b) Consumer Scotland,

29E

(1) Scottish Water may, in any particular case, apply to the Commission for its consent to depart from a charges scheme in respect of charges to be paid for services provided to a water services or sewerage services provider.

(2) The Commission may consent to a departure from a charges scheme only if satisfied that—

(a) a customer of the provider has done, or has agreed to, something which reduces or increases the costs incurred by Scottish Water in providing the services to the provider, and

(b) the departure is otherwise justified in the circumstances of the case.

(3) Where the Commission consents to a departure, it may do so subject to such reasonable conditions as it considers are appropriate in the case.

(4) Where the Commission withholds its consent to a departure, it must give its reasons for doing so.

(5) The Commission is to make provision in writing which specifies—

(a) the procedure to be followed for the purposes of determining applications made under subsection (1), and

(b) any matters to be taken into account and the criteria to be applied in—

(i) determining whether a departure from a charges scheme is justified, and

(ii) the fixing, by Scottish Water, of lower or (as the case may be) higher charges to be paid for the services in question where it is determined that a departure is justified.

(6) The Commission may from time to time revise the provision.

(7) In preparing or revising the provision, the Commission must consult—

(a) the Scottish Ministers and Scottish Water, and

(b) such other persons as it thinks fit,

as to the procedure to be followed in considering applications made under subsection (1).

(8) The Commission must send a copy of the provision to—

(a) the Scottish Ministers,

(b) Scottish Water, and

(9) Scottish Water must publish details of every departure from a charges scheme.

29F

(1) This subsection applies where, since the making of a determination under section 29B(1)(a), there has been or is likely to be material change to—

(a) Scottish Water's income from charges for services provided in the exercise of its core functions,

(b) the amount of—

(i) any grants paid to it under subsection (1) of section 42,

(ii) money it may borrow under subsection (3) of that section, or

(iii) any other resources reasonably available to it,

for the purposes of the exercise of those functions, or

(2) Where subsection (1) applies, Scottish Water—

(a) may of its own accord,

(b) must, if the Commission requests it to do so,

send to the Commission proposals for revising the maximum amounts of charges determined under section 29B(1)(a).

(3) The Commission—

(a) must, after receipt of the proposals, review those amounts, and

(b) may revise those amounts to such extent as it thinks fit.

(4) In reviewing those amounts, the Commission must take into account all matters affecting the resources available to Scottish Water for the purposes of the exercise of its core functions.

(5) Before revising those amounts, the Commission must—

(a) intimate to the Scottish Ministers that revision of those amounts is under consideration,

(b) invite (by way of advertisement or otherwise) representations as regards revision of those amounts by such time as the Commission may specify, and

(6) The Commission must give its reasons for deciding whether or not to revise those amounts.

(7) Where the Commission revises those amounts, it must send to Scottish Water written notice which specifies the revised amounts.

(8) Scottish Water—

(a) may, after receipt of the notice, revise any charges fixed by the charges scheme by reference to the revised amounts specified in the notice, and

(b) if it does so, must send written notice of the revised charges to the Commission for approval.

(9) The Commission may approve any revised charges with or without modifications.

(10) If the Commission approves any revised charges with modifications, it must give its reasons for doing so.

(11) When revised charges are approved by the Commission, Scottish Water must publish a summary of the revised charges and the date from which they have effect.

(12) The date from which the revised charges have effect is to be determined by the Commission.

29G

For the purposes of sections 29C(5) and 29F(1), Scottish Water is to be taken to be exercising its core functions effectively if (in discharging its statutory duties and contractual obligations relating to the exercise of those functions) it makes such use of its resources that, year on year, it—

(a) achieves the objectives contained in any directions given by reference to section 56A, and

(b) does so at the lowest reasonable overall cost.

56A

(1) In particular, directions under section 56 may in respect of a period specified under section 29B(2) set objectives as to—

(a) the standard of the services to be provided in the exercise of Scottish Water's core functions, and

(b) the time by which—

(i) a particular standard of any of those services is to be attained,

(ii) any particular work required for or in connection with the provision of those services is (in part or whole) to be commenced or completed.

(2) Different objectives may be set for different cases or categories of case.

(3) In formulating objectives of a type referred to in subsection (1) for inclusion in directions under section 56, the Scottish Ministers must have regard to Scottish Water's duty under section 51(1).

(4) Before giving directions under section 56 which set objectives of a type referred to in subsection (1), the Scottish Ministers must consult every water services provider and sewerage services provider and Consumer Scotland on the objectives.

56B

(1) The Scottish Ministers may by order confer on Scottish Water such additional or supplementary functions relating to the provision of water and sewerage services by Scottish Water as the Scottish Ministers consider appropriate so to confer.

(2) The Scottish Ministers are to consult Scottish Water and the Commission on any order they propose to make under subsection (1).

Flood Prevention (Scotland) Act 1961 (c.41)

Local Government (Scotland) Act 1973 (c.65)

Water (Fluoridation) Act 1985 (c.63)

Bankruptcy (Scotland) Act 1985 (c.66)

Environmental Protection Act 1990 (c.43)

New Roads and Street Works Act 1991 (c.22)

Natural Heritage (Scotland) Act 1991 (c.28)

Local Government etc. (Scotland) Act 1994 (c.39)

Environment Act 1995 (c.25)

6A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

35A

(1) Supplies of water provided to any premises by Scottish Water under subsection (2) of section 16 of the Water Services etc. (Scotland) Act 2005 (asp 3) are to be treated, for the purposes of sections 29 to 29F, as services provided solely to the water services provider who made the related request under subsection (1) of that section in respect of the premises.

(2) The provision of sewerage to, and disposal of sewage from, any premises by Scottish Water under subsection (5) of that section of that Act are to be treated, for the purposes of sections 29 to 29F, as services provided solely to the sewerage services provider who made the related request under subsection (4) of that section in respect of the premises.

(3) But—

(a) where the supplies of water provided to the premises are continued under subsection (1) of section 17 of that Act, subsection (1) does not apply,

(b) where the provision of sewerage to, or disposal of sewerage from, the premises is continued under subsection (1) or (3) of section 20 of that Act, subsection (2) does not apply.

Water (Fluoridation) Act 1985 (c.63)

Bankruptcy (Scotland) Act 1985 (c.66)

Housing (Scotland) Act 1987 (c.26)

New Roads and Street Works Act 1991 (c.22)

Natural Heritage (Scotland) Act 1991 (c.28)

Local Government etc. (Scotland) Act 1994 (c.39)

Environment Act 1995 (c.25)

Countryside (Scotland) Act 1967 (c.86)

Reservoirs Act 1975 (c.23)

Water (Fluoridation) Act 1985 (c.63)

Debtors (Scotland) Act 1987 (c.18)

Housing (Scotland) Act 1987 (c.26)

Natural Heritage (Scotland) Act 1991 (c.28)

Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7)

Local Government and Planning (Scotland) Act 1982 (c.43)

Civic Government (Scotland) Act 1982 (c.45)

Roads (Scotland) Act 1984 (c.54)

Food Safety Act 1990 (c.16)

Environmental Protection Act 1990 (c.43)

New Roads and Street Works Act 1991 (c.22)

Natural Heritage (Scotland) Act 1991 (c.28)

Local Government etc. (Scotland) Act 1994 (c.39)

Environment Act 1995 (c.25)

Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7)

Countryside (Scotland) Act 1967 (c.86)

Local Government (Scotland) Act 1973 (c.65)

House of Commons Disqualification Act 1975 (c.24)

Civic Government (Scotland) Act 1982 (c.45)

Roads (Scotland) Act 1984 (c.54)

Environmental Protection Act 1990 (c.43)

New Roads and Street Works Act 1991 (c.22)

Natural Heritage (Scotland) Act 1991 (c.28)

Environment Act 1995 (c.25)

Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7)

2A

(1) This section applies where Citizens Advice Scotland has exercised a function under section 8(1) of the Consumers, Estate Agents and Redress Act 2007 (c. 17) (representative functions) in relation to the activities of Scottish Water.

(2) The persons listed in subsection (4) must have regard to any advice, information, proposal or representation made to them by Citizens Advice Scotland under section 8(1) of that Act.

(3) Any persons listed in subsection (4) to whom a proposal is made under section 8(1)(b) of that Act must, within 6 months of receipt, publish a summary of their responses to the proposal.

(4) The persons are—

(a) the Scottish Ministers,

(b) Scottish Water,

(d) the Drinking Water Quality Regulator for Scotland,

(e) the Scottish Environment Protection Agency.

42A

(1) The Scottish Ministers may pay to a subsidiary of Scottish Water grants of such amounts as they may determine.

(2) A subsidiary of Scottish Water may borrow—

(a) from the Scottish Ministers (and they may lend to it) sums of such amounts as they may determine,

(b) money from any other person, whether—

(i) in sterling or otherwise,

(ii) the person is in the United Kingdom or elsewhere.

(3) A grant or loan in pursuance of subsection (1) or (as the case may be) (2)(a) may be made subject to such conditions as the Scottish Ministers think fit.

(4) A loan made in pursuance of subsection (2)(a) is to be repaid to the Scottish Ministers at such times and by such methods (and interest on the loan is to be paid to them at such times and at such rates) as they may from time to time direct.

(5) Borrowing may be made in pursuance of subsection (2) only with the consent of Scottish Water (except where it is the lender).

(6) This section does not apply where the subsidiary is an undertaking established under section 13(1) of the Water Services etc. (Scotland) Act 2005.

(7) In this section and section 42B(1), “subsidiary” is as defined in section 1159 of the Companies Act 2006.

42B

(1) In any financial year, the net amount of sums borrowed by Scottish Water and any subsidiary of Scottish Water in pursuance of sections 42 and 42A (taken together) must not exceed the amount specified for that year for the purposes of this section in a Budget Act.

(2) In subsection (1), “net amount” means amount of sums borrowed in the financial year less—

(a) any repayments made during that year (otherwise than by way of interest) in respect of sums borrowed in that or any other year, and

(b) any sums borrowed, with the consent of the Scottish Ministers, by way of overdraft or otherwise for the purpose of meeting a temporary excess of expenditure over sums otherwise available to meet that expenditure.

Compulsory acquisition of land

50A

(1) So far as it considers is not inconsistent with the economic, efficient and effective exercise of its functions, Scottish Water must take reasonable steps to develop the commercial value of its assets and expertise.

(2) In complying with subsection (1), Scottish Water must have regard to any guidance for the time being issued by the Scottish Ministers.

(3) In this section, “assets” means property, rights and other assets (whether tangible or intangible).

51A

(1) So far as it considers is not inconsistent with the economic, efficient and effective exercise of its functions, Scottish Water must take reasonable steps to promote the use of its assets for the generation of renewable energy.

(2) In complying with subsection (1), Scottish Water must have regard to any guidance for the time being issued by the Scottish Ministers.

(3) In this section, “assets” means property, rights and other assets (whether tangible or intangible).

Offences by bodies corporate and partnerships

Local Government (Scotland) Act 1973 (c.65)

House of Commons Disqualification Act 1975 (c.24)

Roads (Scotland) Act 1984 (c.54)

Environmental Protection Act 1990 (c.43)

New Roads and Street Works Act 1991 (c.22)

Natural Heritage (Scotland) Act 1991 (c.28)

Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7)

Local Government and Planning (Scotland) Act 1982 (c.43)

Civic Government (Scotland) Act 1982 (c.45)

Environment Act 1995 (c.25)

Ethical Standards in Public Life etc. (Scotland) Act 2000 (asp 7)

Natural Heritage (Scotland) Act 1991 (c.28)

Local Government etc. (Scotland) Act 1994 (c.39)

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