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Thursday, 05 May 2016 10:04

Totex challenge: report says water sector needs to up its game

A new report into Ofwat’s Totex challenge has found that more needs to be done by the water industry to improve overall efficiencies in the UK water supply.

The True Cost of Substandard Valves report by TALIS UK, which looks into the implications of choosing the right valves, found that if water companies begin to purchase items based on an assessment of their influence on future outcomes, rather than price, it could yield efficiency gains of over 15 per cent.

As well as highlighting the importance of selecting the right valves and maximising their lifecycle to reduce long-term costs and the impact of disruption, the report demonstrates the need for suppliers to work closely with water companies to improve investment in the water network.

For instance, the research found that by making the right decisions in relation to valves it could reduce leakages in the system by around 20%, which would in turn help to save approximately 227,249 mega litres of water every year.

In addition, it revealed that every time the lifespan of a main line valve is doubled it saves the total network £2.1 million.

Water cos need to move from price-based decision to engineer-led decision based on performance

Mark Hodgens, managing director at TALIS UK, said:

“The introduction of Totex will have a major impact on thinking when it comes to selecting valves. Water companies need to make the leap from this being a contractor-led decision based on price, to an engineer-led decision based on the overall performance of the system.”

“And to help create long term savings, suppliers now need to up their game. Product manufacturers need to offer their consultancy and know-how to help select the best valves to meet the current and future needs of each application.

“The companies that are able to best embrace this approach will therefore be at an enormous advantage. Not just delivering better value for their shareholders, but also building their reputation and gaining the ability to pass on savings to end-users, which will become increasingly important.

“Totex has the potential to massively improve the overall efficiencies in UK water supply.  However, everyone involved in the sector needs to embrace the spirit of the new regime and play an active part in its success.”

Waterbriefing’s own survey on Totex in AMP6, conducted in association with Hydro International with a particular focus on grit removal, clearly shows that suppliers see opportunities for improved performance. Respondents felt strongly that Totex is far from being embraced in the UK water sector  and that in particular, water company level of acceptance was very low amongst O&M personnel.

Click here to access The True Cost of Substandard Valves

Click here to access the Waterbriefing AMP6 Totex survey

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