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www.britishwater.co.uk WATER COMPANIES CALL for ADULT DIALOGUE R
epresenting its members and wherever possible protecting their interests is seen as one of British Water’s main objectives and reporting what is heard and raising awareness of issues that affect members plays a key part in that. It may not always be easy, it may not be what everyone in the industry wants to hear and it may at times make for uncomfortable reading, but at a time when many water companies are calling
for an ‘adult’ dialogue with their suppliers, it may sometimes be necessary.
Since the privatisation of the water companies in England and Wales in 1989, a recurring and much publicised cycle has emerged, with a downturn in expenditure in the regulated industry seen every five years, in synchronisation with the process of regulation. British Water members have become accustomed to this over the years and as the industry enters the last year of the present regulatory period, AMP4, many are expecting and again preparing for the worst.
The Municipal Market Group is an integral part of British Water’s UK Forum and is that part of the organisation that looks at the regulated water industry in the UK i.e. the water companies in England and Wales, Scottish Water and Northern Ireland Water. The group meets twice a year, where it is now not uncommon to have over 50 attending and where members are regularly joined by representatives from Ofwat and the Environment Agency and at other times, as recently, by various organisations such as DEFRA, Energy and Utility Skills and Achilles Information. One important part of the proceedings is the gathering of members’ views; a round-the-room report from each member which is recorded under Chatham House Rules. This represents a unique opportunity to develop a snapshot of the industry and the issues affecting it; a barometer of the industry sector’s wellbeing.
Looked at over time, the comments recorded at meetings reflect a changing industry as members have responded to the rollercoaster profile of expenditure from the water companies and the
resulting fluctuations in workload and resource requirements. At the group’s Winter Meeting in January 2009, many reports confirmed a downturn in water company expenditure, perhaps a little earlier than seen in previous cycles. To a far greater extent than ever seen before, however, were reports of many projects not going ahead, with more that half those at the meeting taking part in the exercise reporting projects being cancelled or postponed. The exact reason or reasons for this are unclear, although several water companies were reported as citing a lack of funding.
But whatever the real reasons, the implications of projects being cancelled or postponed is that there will be less work than expected at a time when work levels are already depressed. The outlook for British Water members and others in the supply chain is consequently less positive. Perfect subject matter, perhaps, for some adult dialogue.
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