In the first of a series of Expert Focus articles for WaterBriefing, Yännick van den Nieuwendijk, Managing Director Nordics, UK & Ireland, Amiblu explores some of the key steps and ways of working Ofwat should consider for the upcoming AMP8 investment programme.

Yännick van den Nieuwendijk: Despite the various issues surrounding the UK’s water infrastructure I am hopeful that positive, transformational change can be achieved over the coming years, starting this year and building momentum as we move forward.

In a series of upcoming articles throughout 2025, I will constructively lay out some of the key steps and ways of working that I believe Ofwat should consider following, to make this change happen.

And by doing so, public trust can be restored, and the huge investments being made by consumers and water companies can be maximised.

So, let’s start by looking at some of the issues surrounding the sector.

For ordinary consumers the last few years have seen many unwelcome stories in the media about sewage spillages, pipe leakages, poor environmental performance, CEO bonuses and the nagging feeling that they are simply not getting value for money.

And while this is true, beyond this, I would also argue that the UK’s water infrastructure market is not functioning quite as well as it could be.

I have sensed a slight lack of openness towards innovation and too little investment in new technology, which are perhaps symptoms of a deeper, structural issue: not quite enough competition at a local level.

Put simply, part of the issue could well be that some firms in the industry have not been as exposed to the pressures they need to be to ensure their supply chains are efficient and consumer bills are kept low.

Moreover, when it comes to procurement, I’ve noticed that some of the bigger suppliers have been able to dominate while more innovative suppliers, like Amiblu, have sometimes been closed off. Even when alternative suppliers meet and exceed standards, sometimes they are omitted from pre-approved lists.

This has inadvertently created an element of restricted practice in the sector and held back transformative technologies from coming to market that would have helped deliver better services.

The government should consider reviewing this situation with the aim of levelling the playing field. We’ve seen it happen before in other sectors, like energy and telecoms, and it feels like now is the right time for Ofwat to be empowered to do the same.

On a more positive note, the commitment from water companies to invest £104 billion in infrastructure between 2025 and 2030, a near doubling on current levels, is obviously welcome.

And, while delivering transformation on this scale will be a huge challenge, made more difficult by the UK’s increasingly unpredictable weather patterns, it could provide a great opportunity for Government, regulators, water companies and suppliers to come together and deliver the dynamism and innovation that will enable the value chain to flourish and the investment to really pay off.

What’s more, with the industry now under more scrutiny than ever before, from both Government and the public, and storm overflow spills now being 100% monitored across the UK’s network, water companies will simply have to be more accountable and transparent.

So how can the industry turn itself around and what role should Ofwat play?

One key focus area will be embracing technology. We have already seen, in countless other markets, how technological advancements can deliver improved water treatment, more robust infrastructure and support the transition to net zero.

To make it happen, Ofwat, water companies and the supply chain are all going to have to play their part.

Suppliers will need to demonstrate exactly how and why their products and services are of a higher quality, will deliver better environmental outcomes, are competitive on price, and can deliver value throughout their entire lifecycle.

Water companies, for their part, will have to be more open towards embracing innovation and new technologies, and in widening the pool of suppliers that they choose from.

For example, I’ve noticed that sometimes the procurement practices and approaches taken by some of the UK’s water companies can be a little too conservative, especially when introduced to new and innovative solutions. It would be great to see this mindset shift, and I am confident that a little more ambition and open-mindedness would make really help drive the transformation.

Ofwat, meanwhile, should focus on creating a landscape that encourages innovation and starts to challenge the “stick with the way things have always been done” mentality.

Likewise, it should consider reviewing and standardising, to some extent, the technical standards that different water companies use. Sometimes these can vary greatly from company to company and in some cases have not been updated for decades.

It is not ideal that firms in the supply chain can sometimes invest tens of millions to adhere to standards, only to find discrepancies. Consistent technical standards will help to create a more level playing field and allow for new technologies to be decided upon due to their merits.

To conclude, if mindsets can shift, I am optimistic about the future of the UK’s water sector. Ofwat and the rest of the industry have a golden opportunity to push open the door to new suppliers, encourage the uptake of technological innovations and make technical standards more consistent.

If they make the most of this opportunity, the sector will repair itself, be futureproofed for decades to come, and be rewarded with the public’s trust.