MAIN FEATURE
focus, streamline approvals, and procure as soon as possible to secure the best talent and solutions available – even for projects planned years ahead.
Lila Thomson, chief executive of British Water says, “Whatever the outcomes of the CMA referrals and the Independent Water Commission, the decisions are expected to impact the end of AMP8 and into AMP9. This uncertainty is challenging for the supply chain and what it needs is a period of stability, where there is focus on the huge challenges and we see investment driving better performance and improving long-term resilience.”
Even though there is plenty of room for water companies to improve procurement process, opportunities lie with supply chain companies too, to ensure they are fit to operate throughout AMP8.
Xylem UK, vice president Ian Thompson, says, “There are great opportunities for technology providers, providing we communicate our ideas to the sector effectively. Knowledge-sharing and communication should not be overlooked in the innovation process – a greater awareness of trial outcomes and new developments should accelerate the adoption of proven technologies, particularly those already delivering results outside the UK.
“When choosing new partners and suppliers, it is important to ensure they are committed to the sector and are flexible
and resilient. In a fast-moving, dynamic world, partners must demonstrate an ability to respond to unprecedented macro-events, as well as challenging localised incidents.”
He adds, “In a continually changing market, to help ensure their chosen suppliers can meet future demand, [water] companies should plan and forecast for materials as early as possible. Global manufacturers cannot build new teams and products in a day, it takes months of planning. Timely and accurate forecasts will support production and delivery schedules and can shorten lead times.”
With suppliers readying themselves for another five years of engagement with water companies, a word of caution came from Andrea Gysin who leads the water advisory team at environmental consultants WSP. Gysin told the WiseOnWater podcast, “If you stand back from the big challenges in the UK [as] we're heading into the biggest investment programme in history, I think we need to be careful not to kid ourselves that it is going to deal with the ills of the past.
“[The] change is to drive higher standards, so it's new investment. What [the sector] is not doing is investing in the assets that arguably [were] under-invested in, through keeping prices low. The challenge is to continue a trajectory where [water companies] are investing more, but a significant part of that has to be in asset
health, essentially to catch up on the asset deficit or asset debt [that has been] created.”
Historic transformation
Regulators are getting tougher, stronger, more agile, and more vocal, about the needs of the environment and customers and their expectations of water companies in AMP8. Water companies are, on one hand, meeting those head-on and championing collaboration to tackle shared challenges, while on the other, arguing that more cannot be done with less and that sector-wide regulation must change too.
Meanwhile, supply chain organisations are at the starting line, innovations in hand, and willing to jump as high as is needed, but not at any cost.
Nevertheless, everyone agrees on one of the most important aspects of AMP8, and that is the need to come together over the next five years for the ultimate benefit of the environment and water customers.
‘Business as usual’ should not be a phrase on anyone’s lips by the end of 2030, but only time will tell whether this 2025-2030 regulatory period is the historical turning point it has the potential to be. However, from what is being revealed by some of the leading voices in water, the next five years should operate at a pace and scale unlike any the UK water sector has seen in a century.
With record investment, tighter
regulation, and a push for innovation, collaboration is key.
10 | April 2025 |
draintraderltd.com
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