Water & Wastewater Treatment Magazine
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10 | july 2016 | WWT | www.wwtonline.co.uk Events Round table: Procurement in AMP6 Risk management approach presents procurement puzzle THE SPEAKERS "The best whole-life cost is not necessarily the most affordable solution in the period, so when you make it a constrained whole-life cost, that gives a different outcome." Andy Clark Yorkshire Water "We've begun to challenge the culture within the industry, and most of us have entered into incentivised relationships with our Tier 1s. The challenge is how we engage Tier 2s within those relationships." Steve Crake Northumbrian Water "As a supplier, we can have an excellent solution, but within the model of the water company it has to pay back within the AMP cycle." Keith Hayward Hydro International W hile the second year of AMP6 is well and truly underway, the water industry is still getting to grips with the challenges that the current five-yearly cycle has brought with it. These challenges – Totex and whole-life cost assessment, outcome delivery incentives (ODIs) and the peaks and troughs associ- ated with the AMP cycle – ensured a lively discussion at the WWT and WET News' round-table Water Industry Procurement in AMP6 and Beyond, held in association with Hydro Inter- national. The arrival of AMP6 was meant to be the start of a new era, with the boom and bust aspect tradition- ally associated with the five-yearly regulatory cycle being consigned to the scrapheap once and for all. Work behind the scenes to make this hap- pen ensured a feeling of optimism in the industry's supply chain. However, the reality is that it has been the same old story, with contrac- tors and suppliers having to cope with slow project starts in AMP6 and the continuing impacts of cyclicality on their businesses. The introduction of "As we go forward we'll get more Opex data and, therefore, will get more granularity. We'll be able to make better decisions." Neil Wilson Wessex Water Round table participants: Andy Clark, head of procurement & contract management, Yorkshire Water; Paul Horton, chief executive officer, Future Water Association; Jeremy Mitchinson, UK business director for water, MWH Global; Keith Hayward, European Wastewater sales & marketing manager, Hydro International; Steve Crake, head of procurement, Northumbrian Water; Ian Pemberton, principal, analytics, Ofwat; Paul Mullord, UK director, British Water; Neil Wilson, head of risk & investment, Wessex Water; Phil Tomlinson, sales & marketing director, Metasphere. "We're seeing much more engagement in looking for solutions away from the water company asset, dealing with the problem at source." jeremy Mitchinson MWH "A big change and challenge in AMP6 and beyond is to not just capture data but to understand that data. On the process side we're awash with data, but we're not using it to its potential." Ian Pemberton Ofwat