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What’s next in AMP8 for UK Water Companies?

PR24 is likely to be a watershed moment for the water industry in the UK. Early customer engagement has shown that between 2025 and 2030, the price of water for the UK population will go up by 20-40%. 

27 July 2023 | 2 min read
Dr Joe Sanders Rhona Kirkham
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This data comes on the back of a cost-of-living crisis that looks unlikely to end any time soon. This combined with a deteriorating asset base both on the potable and waste network, cracking under the seams with increased pressure on the networks. When considered against the background of increased expectations of customers and special interest groups as well as corporate pay and dividends, it is obvious that things have to change.

So, what has to change?

It is likely that the PR24 final determinations will mean that water companies will need to do more with less. This is nothing new, and has the hallmarks of the last 7 AMPs since privatisation. However, the pressures this time around will be acute beyond anything previously seen. The Water industry national environment programme (WINEP) has seen that significant investment will be required to reduce sewer discharges into UK rivers. The resources management plans have also shown a significant increase in investment to meet national targets around consumption and leakage. Can all of these things really be achieved?

At RPS and Tetra Tech, we think the question should be “How can this be achieved?” Siloed solutions are not the answer as they will cause inefficient investment, increased carbon and an increased likelihood of failure, as well as environmental and social impacts that will make underlying issues even harder to resolve. We believe that the use of live data and a holistic approach allows for better efficiency, whilst achieving the delivery of regulatory and stakeholder outputs. One Water is a mantra of system, data-led thinking, to identify root cause and using this to look at solutions that solve multiple problems efficiently, as well as a recognition of any action in one area of the water cycle can have an impact in another area. As such, One Water is our holistic approach under the Tetra Tech Global One Water initiative.

Over the coming months we will be sharing further insight into our One Water mindset, and how it can assist our clients as they look to finish the development of their business plans, as well as turning these strategic ambitions into tactical solutions and operational results.

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