In the past 10 years, virtually every major organisation has announced a “vision for 2020,” and the UK’s water regulator, Ofwat, is no exception.
As part of its 2014 price review (PR14), the organisation launched its “Water 2020” initiative, which set ambitious goals for the future of the water industry in England and Wales. With 2020 now around the corner, Ofwat has reconfirmed its ambitions for the UK’s 21 water and wastewater companies, insisting that each of these organisations meet ambitious targets in terms of direct customer outcomes, environmental impacts, and costs.
In the PR19 methodology, we challenged water companies to create business plans to stretch themselves to deliver more of what matters for their customers, the environment, and wider society. Overall we have seen a considerable step up in the ambition across the sector. [...] Some companies have made good progress on resilience and innovation. More progress is needed in these areas so that the industry is well prepared for the challenges that will arise from climate change and population growth.
Ofwat signalled the new reality in the sector with its challenging draft determination in January 2019, which triggered additional planning and analysis for the majority of UK water providers. It’s clear that these organisations will need to innovate and transform to be able meet performance commitments and delivery efficiency targets included in Ofwat’s forthcoming final determination in December 2019.
At Copperleaf, we’re closely following these developments, especially through our work with Anglian Water, whose ambitious PR19 plan will increase resilience to drought and flooding, support sustainable regional growth, and significantly improve ecological quality across its catchments. That said, as a leading provider of decision analytics, we’re asking:
What happens after 2020?
After all, the PR19 plan is just a starting point. As organisations begin to execute their PR19 plan, successful ones will continuously adapt as permits languish, rivers flood, and new, innovative solutions come to market. Only those with the right tools and processes will be able to overcome the challenges and meet—or even outperform—Ofwat’s high expectations.
Delivering Value in the UK Water Sector
In our new executive white paper, we outline the top 5 things companies can do to ensure success in the next planning cycle and beyond.
We hope you’ll enjoy learning more about how some of the world’s most innovative and agile companies plan to deliver on their commitments over the next five years.
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