Infrastructure health in the water sector

The water sector is coming together to tackle the challenges posed by climate change and population growth – to ensure that the critical water supply, waste and treatment assets we all depend on are resilient to future risks and continue to support safe, reliable and environmentally sustainable water services for customers in England and Wales.

Led by a steering group of water companies, with participation from Water UK, Ofwat and the Department for Environment, Food and Rural Affairs, this collaborative project is identifying critical elements of a new regulatory framework for measuring, managing and funding asset maintenance.

The project has been supported by the consultants Reckon and Jacobs, with the aim of looking at different approaches and metrics, informed by good practice in the water sector and beyond – including the water sectors in Scotland and Northern Ireland, as well as the energy sector in Great Britain. This project aims to inform decisions relating to the next price review in England and Wales, expected in 2029.

This work builds on some of the thinking that informed Ofwat’s Future Ideas Lab for the 2024 price review (PR24), as well as previous industry studies into asset health, operational resilience and capital maintenance.

Next steps

The next phase of this project will continue to collect views from stakeholders and build out potential policy reforms. The project’s governance will need to evolve as we approach the next price review, expected in 2029.

By working together, we can meet the future challenges facing the sector.

Implications for PR24

As part of its response to the draft determinations for the 2024 price review (PR24), Water UK commissioned Reckon to produce a report setting out potential changes. Read Water UK’s response in full, as well as Reckon’s report, here.