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United Kingdom

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The UK water and wastewater sector, particularly in England and Wales, is set for an exciting few years. The regulatory environment of the new Asset Management Plan (AMP6) is forcing the water and wastewater utilities to achieve more for less, while ongoing market reform in the sector will see a disaggregation of the value chain. These developments are combining to offer plentiful opportunities in the sector in the coming years, notably in asset management and for new entrants in both the retail and wholesale space that have been traditionally under the domain of water utilities.


Water in England and Wales to 2020: risks and opportunities in AMP6

Amp6

Every five years, the regulated water companies in England and Wales put forward their expenditure plans to Ofwat, the sector’s economic regulator, for approval. The Price Review (PR14) for Asset Management Plan 6 (AMP6) reached its conclusion in December 2014 when Ofwat published its Final Determination for each company in the period 2015-2020.

This process opens a window of opportunity for suppliers to the sector to sell into a £40 billion market. It also marks an important transition for those involved in financing expenditure in the industry: previous price reviews have led to dramatic changes in the financial structure of the industry.