Utility Week

also believes firms must place more importance on dealing with the skills gap to drive innova on. "U li es must address the skills gap with genuine interac on with suppliers and universi es," he says. "Young people will be a racted to a great technical industry, not a red u lity that merely manages assets and is self-congratulatory." But even if companies adequately address the skills gap, Smith believes a major barrier for innova on lies with the regulator. "I am not confident that the current regulatory models across water truly encourage sufficient innova on to tackle future infrastructure challenges," he says. "Price and compliance at minimum cost with old reliable suppliers is unfortunately s ll the name of the game." Having a community focus "For Wessex Water, this is an opportunity to make our services much more community focused and focusing on a greater use of markets in those communi es," says David Ellio , group director, strategy and new markets, Wessex Water. "For example, if farming can improve water quality cheaper than we can do it, then we should be contrac ng them to help improve water quality." Wessex Water's open system model is predicated on the concept of opening up regulated infrastructure. In a catchment "market", investors and efficient infrastructure providers can bid to deliver a wider set of catchment outcomes such as flood allevia on and management, waste recycling or recycled water systems. "Effec vely we are crea ng a market around the water system, rather than just thinking of our business as a water u lity," explains Ellio . "That will deliver be er outcomes at poten ally lower costs. Some of those outcomes deliver wider benefits than just improved water quality." The company's open system model is largely driven through the adop on of more digital solu ons and use of data, and driving efficiencies through be er use of data and smart technologies will also be key to reducing leakage. Leakage reduc on has become a thorny issue that is o en used as a barometer for the sector, but Ellio believes the current focus is misplaced. "We really need to take the discussion back to what we're fundamentally trying to achieve through leakage reduc on – it's about reducing the amount of water that we abstract from the environment. "We should be looking at measures around smart water resource, driving the efficiency challenge through be er use of smart data and looking at a more modular approach to asset investment. It's crucial to grasp these more modern approaches." WATER'S BIG QUESTIONS UK Water Industry Research has developed 11 ques ons addressing the key sector challenges. 1. How do we halve our abstrac ons by 2050? 2. How will we achieve zero leakage in a sustainable way by 2050? 3. How do we achieve zero interrup ons to water supplies by 2050? 4. How do we achieve 100 per cent compliance with drinking water standards (at point of use) by 2050? 5. How will we deliver an environmentally sustainable wastewater service that meets customer and regulator expecta ons by 2050? 6. How do we achieve zero uncontrolled discharges from sewers by 2050? 7. How do we achieve zero customers in water poverty by 2030? 8. What is the true cost of maintaining assets and how do we get this be er reflected in the regulatory decision-making process? 9. How do we ensure that the regulatory frame- work incen vises efficient delivery of the right outcomes for customers and the environment? 10. How do we become carbon neutral by 2050? 11. How do we turn all wastes we receive and generate into products by 2030? I N A S S O C I A T I O N W I T H UTILITY WEEK | 25TH - 31ST JANUARY 2019 | 27

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