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The Scottish Water (Rate of Return) (Scotland) Order 2002

S.S.I. 2002/165 · Made 27 March 2002

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

WATER SUPPLY

Made 27th March 2002

Laid before the Scottish Parliament 28th March 2002

Coming into force 1st April 2002

The Scottish Ministers, in the exercise of the powers conferred by section 41(2) of the Water Industry (Scotland) Act 2002f1 and of all other powers enabling them in that behalf, hereby make the following Order:

Annotations to the whole text

Footnotes

f1

2002 asp 3.

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Value of net assets
  4. 4Return on value of net assets
  5. Signature
  6. Explanatory note

1Citation and commencement

This Order may be cited as the Scottish Water (Rate of Return) (Scotland) Order 2002, and shall come into force on 1st April 2002.

2Interpretation

In this Order–

  • “the Act” means the Water Industry (Scotland) Act 2002;

  • “accounts direction” means a direction given under section 45(2) of the Act.

3Value of net assets

The value of Scottish Water’s average net assets for the financial year beginning with 1st April 2002 shall, for the purposes of section 41 of the Act, be the aggregate of–

(a)

the deemed value of its capital at the beginning of that year (as shown in the statement of accounts prepared by Scottish Water under section 45 of the Act); and

(b)

the average level of investment by Scottish Water in net operating assets during that year.

4Return on value of net assets

(1)

The Scottish Ministers hereby direct Scottish Water to exercise its functions during the financial year beginning with 1st April 2002 with a view to securing that it achieves in respect of that year a rate of return on the value of its average net assets for that year which is not less that that specified in paragraph (2) below.

(2)

6% is hereby specified as the rate of return which the Scottish Ministers consider it reasonable for Scottish Water to achieve on the value of its average net assets for the financial year beginning with 1st April 2002.

Signature

ROSS FINNIE

A member of the Scottish Executive

St Andrew’s House,

Edinburgh

27th March 2002

Explanatory note

(This note is not part of the Order)

Responsibility for the provision of water and sewerage services in Scotland will on 1st April 2002 transfer from the new water and sewerage authorities to Scottish Water established under the Water Industry (Scotland) Act 2002. This Order makes provision as to the rate of return on the value of its average net assets which Scottish Water requires to achieve for the financial year beginning with 1st April 2002.