To extract the most value out of their assets, Ofwat wants to encourage water companies to improve their approaches to strategic planning, decision making and operations.
The economic regulator for the water industry considers that advancing asset management within the water sector will promote optimised decision making, driving sustainable performance and outcomes.
Ofwat is proposing to establish a new regulatory basis to drive companies to better understand and improve their asset management maturity in the form of a dedicated condition in the licence for each water company in England and Wales.
In addition to this new condition, the regulator is also consulting on the removal of the existing Condition L, which currently allows Ofwat to check that each appointed water company is maintaining and developing its underground assets.
The consultation can be accessed here:
