Water & Wastewater Treatment Magazine
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www.wwtonline.co.uk | WWT | JUNE 2018 | 15 Water companies urged to adopt non-asset solutions a er PR19 W ater companies must take the opportunity aer PR19 to investigate a range of non-asset solutions to meeting the needs of their customers, and engage the supply chain in doing so, delegates heard at WWT's Water Industry Asset Management confer- ence last month. Water utilities are set to submit their 2020-25 business plans to Ofwat by Sep- tember 3rd, and at the core of their plans will be how to meet 14 industry-wide performance commitments and business- specific bespoke commitments covering 6 further areas, Jon Ashley, Director of Customer Engagement and Outcomes at Ofwat, outlined to the conference in Birmingham. Performance commitments should be closely linked to customer priorities, with the regulator "expecting a step change in customer engagement," said Ashley. Companies should remain focused on these outcomes rather than specific projects or solutions, he explained. Since The Talk: Events Totex (total expenditure) will be allocated to achieving performance against these commitments rather than for specific pro- jects, water companies will be encouraged to add to and amend their programme of activities in pursuit of their goals, explained Ashley. Non-asset solutions are very much part of this mix. Where innova- tive approaches are proposed these will attract additional incentives to recognise the additional risk the water company is taking, he said. John Bentley, head of strategic invest- ment at Severn Trent, said that the PR19 approach meant that water companies were being challenged to "not start with a solution in mind" but instead to talk to customers to find out what they value. "We focus a huge amount on cost but we don't think enough about value… it is quite hard to think differently, but we as a sector should welcome the opportunity." Matt Wheeldon, Director of asset strategy and compliance at Wessex Water, pointed out that the regulator's PR19 The challenge of the forthcoming price review will be for water companies to consider a range of solutions beyond traditional assets, and to deliver such solutions collaboratively in a way that meets customer needs James Brockett reports from Birmingham methodology document does not use the terminology 'asset management', 'asset management period' or 'AMP7' at all, reflecting how the tide is shiing towards non-asset solutions such as catchment management, work to change customer behaviour, operational improvements and data analytics. "If we are truly committed to taking service levels to new heights, we have to think broader than just asset solutions," said Wheeldon. He highlighted customer campaigns to prevent sewer blockages, and Wessex's EnTrade trading platform for catchment solutions, as examples of the type of thinking required. However, he said that intervention by government and regulators would be needed at times to support the industry's efforts – for example, by taking a harder line with manufacturers of wet wipes and unflush- able products for their effect on sewers. Data analytics would need to be cru- cial to water company plans to improve performance, he added. He drew the SPONSORED BY