AMP7: Getting the balance right

Every 5 years, Ofwat has the difficult job of resetting the price framework for the water industry in England and Wales. It’s about getting the right balance whilst improving customer service for a lower cost.

AMP7 striking the balance

The Water industry is soon to embark upon the new AMP7 period. (This is quinquennial investment cycle in which all UK water Companies set out the business plan objectives and budgets in line with Government and regulatory objectives). Historically (pre AMP6), there was a trend to CAPEX and OPEX solutions – however during AMP6 and running into AMP7, the focus is for Water Companies to adopt a TOTEX approach – this looks at the whole life cost of an asset.

In November 2017, Ofwat (the water industry regulator) laid out a set of detailed objectives for all water companies to achieve during the AMP7 cycle within its 2019 price review final methodology report. David Gordon, Technical Director, reviews this report for the Institute of Water magazine.

This article was first published in issue 197 of the Institute of Water Magazine.

RPS worker performing an inspection

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