In his latest Expert Focus article for Waterbriefing, Yännick van den Nieuwendijk. Managing Director Nordics, UK & Ireland at Amiblu, takes a constructive look at how the rollout of new UK water infrastructure can be accelerated - including the use of more innovative technologies and materials, alongside broadening the pool of suppliers.
Yännick van den Nieuwendijk: Shortly before the announcement that Ofwat was to be abolished, the National Audit Office made clear the urgency with which the UK water sector needs to accelerate the roll out of new infrastructure. Their findings, into the current state of the UK water sector, were highly critical, showing a sector that is behind the curve and unprepared for change.
It found that neither the Government’s environment department, nor regulators (Ofwat, & the Drinking Water Inspectorate) had a joined-up plan, or system, for integrated decision making in delivering the £290bn of investment that is required to transform UK water infrastructure and meet government targets over the next 25 years.
Nor, it seems, did they know the true state of assets, and were lacking a “good understanding” of the state of the sewage and water networks. And, they had failed to manage the rising risk associated with the sector and had no single regulator in place to take responsibility for sewage pollution.
Perhaps worst of all, water firm performance on mains bursts, supply interruptions and pollution hadn’t improved for almost a decade, while the speed of replacement has been so slow, it would take 700 years for the whole network to be replaced.
As someone who has been working in the UK water industry for several years, I have also observed how some water companies are now starting to postpone certain projects, some to next year, as they negotiate how to deal with fines they have received. Given the urgency of the situation, this is particularly concerning.
That’s because delaying projects will inevitably mean that the final period of the AMP is backloaded with work, significantly increasing demand for materials and supplies. This will influence prices and could well push them up. It could also lead to shortages in the supply chain, causing delays.
On a more positive note, there are ways in which the approval of new projects and the roll-out of new infrastructure can be sped up, and it is up to the new unified water regulator to oversee this.
Here’s how.
Firstly, water companies need to review and change their internal perspectives and processes in relation to the huge change that is coming. For example, many are continuing to use outdated materials and solutions which are often inefficient and offer poor value for money over the long term. In many cases, these are the root cause of today’s problems.
The transformation will only be successful if newer and more innovative products and materials are used, from a wider pool of suppliers, and I think that the new regulator needs to play a much more active role in advising water/utilities/wastewater companies about which technologies, materials and suppliers can improve value-for-money and sustainability.
For example, by introducing more smart water pipes and fittings, which are considerably more versatile, sustainable, longer lasting, recyclable and better performing than standard pipes and fittings.
Likewise, widening the pool of suppliers will also mean that the increased demand for materials and products can be spread among more suppliers. This will ease the pressure on the supply chain, keeping the cost of materials down and reducing the chances of delays.
The new regulator can also encourage the use of more innovative materials by developing methodologies and documents that help to guide the decision-making processes of water companies, when they assess which materials to use.
Similarly, it should also work at reviewing and standardising the technical standards that different water companies follow, helping to guide decision-making processes.
I have seen how technical standards can vary significantly from company to company, and in some instances have not been updated for decades. This makes it very difficult for new, innovative suppliers to compete effectively, and it’s holding the industry back.
By introducing consistent technical standards, the whole industry will function better and be more competitive as it will be easier for newer technologies and materials to be evaluated and decided upon due to their merits.
To conclude, the UK’s existing water infrastructure is clearly at the limits of its capacity and not performing particularly well. Transformational change is very urgent.
But, I am confident that with the right approach, driven and guided by Government and the new regulator, coupled with a more open mindset among water firms, a successful transformation can and will happen.