30/10/08
In responding to the innovation questions in the Cave Review call for evidence, Water UK has emphasised that consistent regulation is critical to the water industry’s ability to innovate.
Regulation, when it sets targets that are directly in the control of water companies (whether in customer service or leakage control), can be a spur to excellence and innovation. But innovation may suffer when regulation sets the industry contradictory or short-term targets, which creates undesirable uncertainty.
Since privatisation, the water industry has engaged in a significant amount of innovation, which has enabled it to invest massively and effectively in order to increase drinking water quality significantly, contribute to a vast improvement in the water environment and markedly improve efficiency. This last has been recognised by Ofwat, which has said that household bills are £100 less than they would have been without the efficiency gains made by companies.
Examples of innovation include trenchless technologies, techniques of leakage detection and repairs, mobile working and management techniques such as Enterprise Resource Planning, and methods of collaborative working with the farming sector in support of the government’s Catchment Sensitive Farming initiative.
There is also innovation among suppliers to the industry, spurred by competition to win out-sourcing contracts.
Water UK response to Cave Review on innovation
Contact: Jeanne Golay
