The upcoming AMP8 period in the water sector is set to double capital investment, raising both challenges and opportunities.
- Monisha Gower of Northumbrian Water highlights the potential to drive supply chain innovation through this increased investment.
- Collaboration across the industry is essential to manage risks while pushing for innovation, according to sector experts.
- Gower stresses that regulatory pressures should not hinder the pursuit of innovative solutions.
- The integration of diverse organizations, including regulators, can address planning challenges effectively.
The forthcoming eighth asset management period (AMP8) in the water sector, spanning from 2025 to 2030, promises a significant doubling of capital spending compared to its predecessor. Northumbrian Water’s asset director, Monisha Gower, views this as an “exciting” opportunity to propel innovation within the supply chain. Her enthusiasm was evident during NCE’s Water conference on June 20th, where she emphasised the scale of AMP8 as both a challenge and an opportunity to explore new avenues in product standardisation and socio-economic advancement.
Gower calls for industry-wide collaboration to tackle the remarkable scale of investments anticipated in AMP8. Such collaboration should not only involve water companies but also extend to regulators, ensuring that innovative endeavours are not hindered by regulatory obligations. Gower highlighted the need for a shared understanding of the challenges and risks involved, advocating for transparency and cooperation among all stakeholders, which she believes are crucial for the sector’s success.
One of the key aspects of this collaboration is engaging the supply chain. Gower encourages a paradigm shift where client organisations take measured risks to foster innovative solutions, balancing these risks with the requirement for regulatory compliance. The imperative is to implement incentive structures that motivate outperforming regulatory settlements, compelling companies to exceed baseline expectations without compromising on consumer water supply reliability.
Gower also identified the significant hurdles posed by planning consents, which often obstruct timely investment delivery. Addressing this, she advocates for including a broad spectrum of industry participants to collectively navigate these challenges. The emphasis is on shared objectives and communal problem-solving, ensuring that the sector not only overcomes the regulatory and logistical barriers but also thrives through innovation.
AMP8 presents a unique chance for the water sector to reinvent itself through strategic collaboration and innovation.
