As water companies in England and Wales step into the 2025-2030 investment period, dubbed AMP8, the sector stands on the brink of significant transformation. Ian Thompson, vice president at Xylem UK, offers a retrospective glance at the highlights of AMP7 and outlines the next steps for the water industry. The coming five years promise a quadrupling of new investment and a strong emphasis on innovation, setting the stage for a seismic shift in how water is managed and delivered.
AMP7, despite its challenges and intense public scrutiny, saw water companies deliver high-quality services at a cost-effective price. However, this came at the cost of reduced investment. The £104bn investment agreed by Ofwat for AMP8 addresses this, signalling a new era of financial commitment to the sector. A standout achievement of AMP7 was the increased use of data to monitor networks and enhance performance, particularly in water quality. This data-driven approach not only improved operational efficiency but also informed communities about the quality of their local rivers and coastlines. As people found a new appreciation for open water and wild swimming, stakeholders committed to working more closely to improve the natural environment. The implementation of new predictive analytics tools enabled companies to make decisions based on real-time insights, marking a significant leap forward in environmental stewardship.
Looking ahead, the volumes of data from across all areas of operations will significantly increase. How companies manage and harness that data will be key to determining success in AMP8. Thompson emphasizes that capacity to innovate is another key accomplishment of AMP7. Initiatives such as the Water Innovation 2050 strategy, the Spring centre of excellence, and Ofwat’s innovation fund, which will double in AMP8 to £400 million, have laid the groundwork for a more innovative sector. This presents great opportunities for technology providers, provided they effectively communicate their ideas to the sector. 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.
On the utility side, Thompson hopes companies continue to embrace fresh approaches and receptivity to both success and the risk of failure. This will foster a robust culture of innovation fully embedded by 2030. Global events over the last five years have underscored the importance of supply chain resilience. When choosing new partners and suppliers, it is crucial 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. Companies should plan and forecast for materials as early as possible to help ensure their chosen suppliers can meet future demand. Timely and accurate forecasts will support production and delivery schedules and can shorten lead times.
To deliver what is the largest ever capital programme for water, while meeting 2030 net zero goals, the sector must attract skilled, knowledgeable, and committed people. Contributing to the future of UK water is highly rewarding, and there are real opportunities to make a difference. This needs to be communicated effectively in an increasingly competitive job market. The exciting developments that are modernising water, such as the roll-out of smart meters, remotely monitored pumps, real-time water-quality sensors, and low-energy pumps, are just a few examples of the innovations that are helping build a more sustainable, high-performing sector. Xylem’s technology centre in Cambridge has launched numerous technologies like these into the UK market over the last five years and will continue to invest in new products during AMP8.
Lastly, water is on the cusp of transformation, but there is work to do to rebuild customer perception. We all have a part to play when it comes to better communicating the challenges we are tackling and the steps we are taking to address them. This news shapes the development of the sector by highlighting the need for increased investment, innovation, and effective communication. It underscores the importance of data management, supply chain resilience, and attracting skilled personnel. The sector is poised for significant growth and transformation, and the steps taken during AMP8 will be crucial in shaping its future.
