British Water Members' Handbook 2017 2017 Edition | Page 50
MESSAGE FROM THE UK
FORUM CHAIR M A N
We are embarking on a period of probably the most
significant change that our industry has experienced
since privatisation over 25 years ago – fundamental
change in the economic environment in which we
operate, change in the organisational structures of
many water companies and the opening up of market
competition. This unprecedented level of change will
undoubtedly present many challenges in the next
three to five years but for some it will also create many
opportunities.
British Water is uniquely placed to help member
organisations steer their way through this period
of uncertainty through ongoing engagement with
the water companies, regulators, delivery partners
and the wider supply chain. It is however equally
important that member organisations seize the
opportunity to proactively engage in the process
because now is the time to help influence and shape
the future of our industry.
The start of AMP6 has already experienced its fair
share of change with the introduction of a TOTEX
based approach and an ‘Outcome’ rather than
‘Output’ lead regulation, with associated Outcome
Delivery Incentives. This change in approach, coupled
with the structural reorganisation of a number of
water companies to enable vertical segregation in
preparation for the changing market conditions, has
undoubtedly contributed to another slow start to the
AMP period despite the early contractor involvement
in some areas.
Whilst we have experienced another slow start I
believe that the industry is better placed now and
more open to innovation than at any other time in
its history. Innovation in technology; innovation in
methods of construction, particularly with off-site build
solutions; innovation in the collection and intelligent
use of data; and innovation in commercial models, all
of which will be vital in helping our clients outperform
against their business plans to deliver excellent service
to their customers.
Retail competition starting in 2017 (followed later by
competition in the retail domestic market), should
not have a dramatic effect on the wholesale activities
during AMP6 but as we move forward with PR19 the
relationship between water companies, operators
in the retail sector and customers will need to be
carefully managed to maintain customer satisfaction.
The Water 2020 regulatory reforms and the opening
of the sewage sludge market has huge potential
to unlock the true asset value of sludge treatment
facilities and provide additional opportunities for
British Water Members.
Provided that environmental permitting and
regulation is aligned we are very well placed as an
industry to provide innovative technological and
commercial offerings for the movement, treatment
and disposal of biosolids to maximise energy
generation and resource recycling.
So in this period of change I look forward to working
with you and representing member interests to help
ensure that we meet the challenges ahead of us and
maximise our business potential.
Michael Froom
Chair of the British Water UK Forum
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www.britishwater.co.uk