Despite the various issues surrounding the UK’s water infrastructure, Yännick van den Nieuwendijk, Amiblu’s Managing Director for Nordics, UK & Ireland, is hopeful that positive, transformational change can be achieved over the coming years.
In the first of a series of articles to appear in Water Magazine this year, he lays out some of the key steps that he believes Ofwat should consider making, and by doing so, restore some public trust.
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, I would also argue that the UK’s water infrastructure market is not functioning quite as well as it could be.
I have sometimes experienced a lack of openness towards innovation and new technology, which are perhaps symptoms of a deeper, structural issue: not quite enough competition at a local level.
Part of the issue could be that some firms in the industry have not been exposed to enough pressure to ensure their supply chains are efficient and consumer bills are kept low.
Moreover, when it comes to procurement, I’ve noticed that some larger 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. It’s happened in other sectors, like energy and telecoms, and I believe it is the right time for Ofwat to be empowered to do the same.
The commitment from water companies to invest £104 billion in infrastructure between 2025 and 2030, a near doubling on current levels, is welcome. And whilst 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.
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 have to be more accountable and transparent.
So how can the industry turn itself around and what role should Ofwat play?
One key 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 will have to be more open towards embracing innovation and new technologies, and in widening the pool of suppliers that they choose from.
Ofwat, meanwhile, should focus on creating a landscape that encourages innovation and start to challenge the “stick with the way things have always been done” mentality.
The regulator could consider reviewing and standardising the technical standards that different water companies use, as they can vary greatly from company to company.
If mindsets can shift, I am optimistic about the future of the UK’s water sector. The industry has 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.
