WET News

COMMENT Learning from the Beast from the East James Brockett, Editor, WET News JULY "Thames Water failed its customers in tackling leakage and the measures we've announced today illustrate the scale of the company's shortcomings and how seriously we take them" Ofwat CEO Rachel Fletcher after Thames has agreed to pay £65 million back to customers as part of a package of payments and penalties worth £120 million "With unacceptable levels of suicide within the industry, Galliford Try is creating an inclusive workplace where it is OK to open up and discuss these important issues that a• ect us all" Galliford Try group health, safety & sustainability director David White after its Be Well programme triumphed at the Inspire Awards and the Employee Benefi t Awards £100M Severn Trent generated an extra £100 million in savings through operational e… ciency improvements and plans to invest the funds in initiatives including 20,000 extra pressure monitors in its network of pipes 200,000 the number of water customers cut o• from supply during the 'Beast from the East' " e more contractors we have working to the high standards that have been set, the more e ective the UK's grease management equipment will be" Grease Contractors Association co-chairman Edward Palin is eager to sign up all contractors involved in the maintenance of grease traps £26M South West Water has completed a £26 million project to improve water quality in the Plymouth Sound and maintain excellent bathing water quality for the city's two beaches O fwat last month published its report on the water sector's response to the "Beast from the East" cold weather that engulfed Britain in February and March of this year. More than 200,000 customers without water supply for more than four hours, while tens of thousands were le o- supply for days, according to the report. The report will have made grim reading for several water companies, with several blamed for "poor advance planning, inadequate communication with customers and a lack of basic support, such as bottled water." Ofwat is now requiring four water companies – Thames Water, Severn Trent, Southern Water and South East Water – to submit a detailed, externally audited action plan by late September setting out how they are addressing the issues identi… ed. The investigation and subsequent changes are bound to involve the utilities' contractors and the supply chain which carries out so much emergency repair and maintenance work on their behalf. The scale of leaks and bursts experienced during the Beast from the East was unprecedented, and the unexpected rapidity of the thaw also caused particular issues. However, with so much conversation in the industry in the current price review focused around building resilience, it's a reminder if one was needed that the unexpected and the unprecedented can happen. The point about resilience is that when such incidents hit, the industry needs to be prepared, to be better at responding and where disruption occurs, better at rebuilding its service quickly. Technology can help provide the answer in some cases, and the integration of weather forecasting data into water company operations is one step that could help anticipate problems. More sensors in the network will help response teams zero in on bursts and leaks and repair them quicker; the use of real- time data is an essential step to a truly real-time response. Beyond this, contingency planning and better communication with customers is needed to make disruption more palatable to those a- ected, and to ease the impact on vulnerable customers. Nobody doubts the tireless hard work that was put in around the clock by water sector employees when the snow and ice was seemingly plunging the country into chaos. It's invariably the case that utilities workers step up to the plate when extreme weather hits and are highly committed to helping the public. But if there's a lesson from the Beast from the East, it's that regulators and the public expect the water industry to work smarter, not harder. Putting in the time to prepare a better emergency response is key to building the resilience that everybody is looking for. IN A NUTSHELL P AI Partners has secured an agreement to acquire M Group Services from First Reserve. PAI, a major private equity investor in businesses across Europe, is due to complete the purchase following European Commission antitrust approval, which is expected to be com- plete by the end of August. M Group Services – a £1 bil- lion turnover business – made a series of acquisitions in recent times and, in addition to Morri- son Utility Services, it also owns Morrison Data Services, Dyer & Butler, Magdalene, PMP Utili- ties and M Group Services Plant & Fleet So lutions. Jim Arnold, chief executive of M Group Services (pictured) said: "Over the past two years, First Reserve's strategic invest- ment in our group has enabled the successful delivery of our business strategy. This has resulted in continued pro… table growth. We have broadened the markets in which we operate, we have diversi… ed our service o- ering and we have created a strong foundation for future success across the utilities, data, transport and telecom markets with their support. "During the last few months, we have continued to work closely with First Reserve on the next stage of our growth. As part of this process an Ÿ M Group owns businesses including Morrison Utility Services M Group Services to be acquired by PAI Partners opportunity arose that has allowed First Reserve to realise the bene… ts of their investment to date and for us to introduce PAI, as a new long-term investor to sit alongside the existing sen- ior management and actively support the future development of the group." Arnold added: "PAI, which manages €12.3 billion of dedi- cated funds, is a major investor in businesses across Europe, providing them with the … nan- cial and strategic support required to pursue their devel- opment. I am delighted that they have chosen, alongside the existing management, to acquire M Group Services. PAI were very keen to invest given our proven track record in suc- cessful service delivery within the regulated markets in which we operate and the leading positions we hold in those markets. "PAI is also hugely support- ive of our vision to be the lead- ing service provider for essen- tial infrastructure in the UK and Ireland. We now look forward to forging a strong partnership with PAI as we embark on the next phase of sustainable long- term growth, organically and through strategic acquisitions. "Our excellent people, long- term client relationships, ser- vice delivery ethos, focus on safety and ability to deliver reli- able and stable revenue streams, margins and cash ¤ ow were all instrumental to PAI's decision to invest in M Group Services." The acquisition will not involve any change to owner- ship of the businesses within M Group Services Divisions, which includes Morrison Utility Services and Morrison Data Ser- vices, he added. Je- Quake and Neil Hartley, managing directors at First Reserve, said: "We have been proud to work with M Group Services' management to dou- ble the size of the company through both organic growth and accretive acquisitions, and we are pleased to see their hard work recognised. We wish Jim and his team all the best as they continue to deliver for their clients." 2 WET NEWS JULY 2018 | wwtonline.co.uk £60M Severn Trent's £60 million thermal hydrolysis plant at its biggest sewage treatment works in Minworth is starting to become operational, with 100 tonnes of sludge being processed on a daily basis. 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