The Scottish Government’s acting Cabinet Secretary for Net Zero and Energy Gillian Martin has announced the resignation of Donald MacRae as chair of the Water Industry Commission for Scotland (WICS), effective from October 21.

WICS is the economic regulator of Scottish Water.

In December 2023, the Scottish Government said WICS chief executive Alan Sutherland had left his job after Audit Scotland said it found “unacceptable use of public funds” by senior officials at WICS.

“We thank Donald for more than eight years of service on the WICS board, initially as an ordinary member and then as chair,” said WICS.

“We appreciate his dedication and contribution in helping us confront past challenges and preparing the organisation for the next phase of change.

“As we look forward to the appointment of a new chair, we remain fully committed to building on the progress made to date and ensuring that we meet the high standards expected of us as a public body.”

The Scottish Government said a new WICS chair will be appointed in the coming weeks.

Martin said: “I welcome the opportunity this provides to continue to reset oversight of the Water Industry Commission Scotland in light of the unacceptable financial and governance issues that have arisen in the organisation.

“We are now taking immediate steps to ensure that a new chair is appointed as quickly as possible.

“Once a new chair is confirmed, we will be clear with them and the board that they need to continue to work hard to deliver the changes required to reset the organisation so it delivers to the high standards I expect of a public body.”