Yännick van den Nieuwendijk, Managing Director for the Nordics, UK & Ireland, Amiblu discusses why 2025 will be a critical year for the transformation of the UK’s water infrastructure.

Yännickvan den Nieuwendijk : AMP8 will start to be rolled out, which will include a doubling of capital works, consumer bills will start to rise and the significant funding which has been committed by UK water companies will start to be deployed.

As we approach the midpoint for the year, now feels like a good time to highlight some of the ways in which I believe Ofwat must drive the transformation forward, by specifically encouraging and making it easier for water firms to embrace more innovative materials and processes.

As someone who has seen the industry up close over the last few years, I am in no doubt that this is one of the key hurdles that needs to be overcome.

But what does this mean in practical terms?

Let’s start with the methodologies and documents that water companies use. In my view there is a serious need for Ofwat to work on developing these so that they help to guide the decision-making processes of water companies when they assess which materials to utilise.

Another area is helping the UK’s water infrastructure market to function more effectively. I have worked on many successful water infrastructure projects in other countries and have noticed a distinct lack of openness towards innovation in the UK, and too little investment in new technology.

For example, many firms are continuing to use old materials and solutions which are often inefficient, outdated, and the root cause of today’s problems.

Moreover, I would suggest that this is symptomatic of a wider, structural issue - not enough competition at a local level.

There are some firms in the industry who have simply not been as exposed to the competitive pressures they need to be to ensure that their supply chains are efficient and consumer bills are kept as low as possible.

For example, when it comes to procurement, I have noticed that occasionally the procurement methodologies used by some firms are way too conservative, especially when new or more innovative solutions are suggested.

Ofwat should consider how it can inject a little more ambition and open-mindedness to the procurement process that water firms follow. Changing this mindset would have a big impact on the scale and speed of the transformation and drive the industry forward.

Likewise, I have also noticed that bigger suppliers to the UK market have sometimes been able to dominate while more innovative suppliers, like Amiblu, have at times been closed off. The upshot being that even when alternative suppliers meet and exceed standards, they are sometimes excluded from pre-approved lists.

This has created an element of restricted practice in the sector, which is holding back transformative technologies from entering the market.

To be blunt, unless newer suppliers, with newer products and services enter the UK market, improved service levels and sustainability outcomes are not going to happen.

For example, the introduction of more smart water pipes and fittings, made from glass-fibre reinforced plastics, which are common in many other countries, would help. These products are considerably more versatile, sustainable, longer lasting, recyclable and better performing than standard pipes and fittings.

Similarly, widening the pool of suppliers will mean that the increased demand for materials, which is inevitable as more improvement projects come on stream, can be spread among more suppliers. This will ease the pressure on the supply chain, keeping the cost of materials down and reducing the likelihood of delays.

One practical way in which Ofwat could help achieve this is by reviewing and standardising, (where possible), the technical standards that different water companies use.

I have seen, first hand, how these can differ greatly between different water companies in the UK.

And, in many cases they have not been updated for decades.

Having standardised, consistent technical standards will level the playing field and allow for newer, innovative technologies to be judged only on their merits.

 Underpinning all of this is a sense of real urgency. Because much of the UK’s water infrastructure is already at the limits of its capacity, changes from Ofwat need to be implemented relatively quickly, so that once physical improvement projects do come on stream, they can be rolled out at speed.

Water companies need to change their internal perspectives and processes in relation to the huge change that is coming and Ofwat needs to make it easier for them to do so.