Water Industry Commission for Scotland - independent review: governance arrangements

1. Background

The Water Industry Commission for Scotland (WICS) is the economic regulator of Scottish Water and an Executive Non-Departmental Public Body (NDPB). Audit Scotland carried out a Section 22 Report (hereafter referred to as the ‘Section 22 Report’) of WICS as part of its 2022-23 Annual Audit which highlighted financial management and governance issues which: “fall far short of what is expected of a public body”. It also noted: “Auditors have found unacceptable use of public funds by senior officials at WICS”. In Parliamentary Committee scrutiny which followed, and through information gathering as part of a Freedom of Information request, further issues relating to governance, financial management and value for money were identified.

Director General (DG) Net Zero, as the Portfolio Accountable Officer for WICS confirmed at the Public Audit Committee (PAC) on 21 March 2024 that there would be an independent review of governance at WICS. The Cabinet Secretary, Net Zero and Energy subsequently confirmed that the review would also include WICS’ culture.