England and Wales are increasingly facing an acute water scarcity challenge. The Environment Agency has predicted a demand gap of five billion litres per day by 2055 unless urgent action is taken. In response, the Government is taking steps to develop new water resources, and to reduce water consumption through water efficiency measures (Consultation Review of Water Efficiency Standards in the Building Regulations 2010 - Defra - Citizen Space)

One element of the solution involves making better use of non-drinking water (rainwater and greywater) for applications which do not require a supply of water of drinking water quality.

The arrangements for supplying collected rainwater and greywater reuse systems require a dual pipe supply system within a property. One supply is the normal wholesome drinking water supply, used for all domestic purposes such as for drinking, food preparation and washing. The second supply is labelled as non- drinking water, intended for a limited number of specific domestic purposes which do not require water treated to drinking water standards, mainly toilet flushing, some garden uses and sometimes laundry.

There are two main public health risks with supplies of non-drinking water:

1. Contamination of the wider drinking water supply network through inadequate backflow protection, cross connections and poor plumbing
2. Potentially harmful to health exposure to non-drinking water by the end user.

Safeguards must be in place to ensure that non-drinking water systems work effectively and safely, at the time of installation, whilst being maintained and during the whole operational life of the system. Failure to control risks can result in serious illness in the community, and there is sufficient evidence that incidents of cross connection to the drinking water supply are likely to occur, if the system is badly maintained. Risks from exposure to pathogens or other harmful hazards therefore must be controlled for rainwater harvesting and greywater reuse to be practiced safely, and without risk to the drinking water supply.

In July 2025 an Expert Group was convened by the Drinking Water Inspectorate (the Inspectorate) on behalf of the Defra Secretary of State to consider water quality standards and the regulatory framework for dual supplies.

Regulation of rainwater and greywater reuse systems

The Expert Group supported a risk-based approach with standards for system design, operation and maintenance. They made recommendations, which consider the existing legislation and guidance, and set a direction for further regulatory control supporting the Government’s growth agenda while protecting consumers and users. It was not possible within the timeframe to recommend with confidence which water quality standards should apply to non-drinking water, and there were differences of opinion as to whether standards are necessary, with some views that it is for Government to decide on an acceptable risk. The report identifies some next steps to implement the recommendations. It sets out further work to develop an Approved Code of Practice for rainwater harvesting and greywater reuse, and to inform options for a single set of water quality standards for non-drinking water.

Read the Drinking Water Inspectorate's full Governnance Framework for rainwater harvesting & greywater reuse systems

Dear Ofwat delivery team,

Thank you for the opportunity to respond to your proposals on the PR24 Delivery Plans assessment framework.

Please treat this letter as British Water’s submission in response.

About British Water

British Water represents the interests of UK water and wastewater supply chain companies, together with wider stakeholders across the sector. Our membership is diverse and growing, and includes many of the organisations that will actually be delivering water, wastewater and drainage outcomes on the ground – including through consultancy, contracting and construction services, and through the supply of products, resources and technology.

We have four specialist forums, one each for the UK, technical and international markets, and a fourth to provide challenge-led, independent thought leadership as we navigate the challenges facing the sector. These forums involve experts in their fields, who between them have many decades of hands-on delivery experience.

Your Proposals

We warmly welcome Ofwat’s intention to operate a monitoring and assessment framework to oversee water company delivery against unprecedented levels of AMP8 investment. We fully support the greater transparency this will bring, and believe it will benefit all stakeholders –including customers and the environment – to identify any delivery risk promptly so it can be addressed in-period.

In terms of the proposed methodology, we agree that tracking each company’s progress against its own Delivery Plan is a good starting point. As these are companies’ own proposals for delivering the key items of expenditure to which Price Control Deliverables (PCDs) are attached, it seems reasonable and fair to judge progress against these intentions.

You propose a two-part assessment: the first part assessing companies’ PCD output forecasts to gain a view on the percentage of output each company is forecasting to deliver by March 2029-30; and the second part gaining confidence on these output forecasts, including by looking at early works, mobilisation, programme planning, risks and assurance. You said you will also consider the quality and consistency of the data submitted by companies to inform your level of confidence. We also encourage that you look at actuals delivered as part of this process, as that is indisputable evidence of progress and of where companies currently stand. It will help establish the credibility of the forecasts for the remainder of the AMP.

Additional Evidence

In the consultation, you said you will supplement the assessment outlined above with “targeted engagement with companies and the supply chain, where appropriate”. While we welcome this, we believe supply chain engagement should be a core part of the main monitoring and assessment framework, rather than supplementary to it in certain circumstances only. As noted above, British Water members are at the coalface of delivering the outcomes agreed at PR24 and have an enormously valuable perspective in terms of assessing Delivery Plan progress. Our annual Water Company Performance Survey includes feedback from British Water members and non-members so our influence extends beyond member company contacts.

British Water stands ready to support Ofwat, and has already been working proactively and constructively to ensure AMP8 delivery is on track in partnership with the Pipeline Industries Guild, the Association for Consultancy and Engineering and the Civil Engineering Contractors Association. This is designed to aid constructive engagement with water companies and others, and provide visibility on actual delivery against business plan ambition.

The British Water leadership team has been in close dialogue with water company leadership teams and we regularly engage with our members including through our Consultant and Contractor Roundtables.

Finally, for further contextual information, please see our annual Water Company Performance Survey results here: https://www.britishwater.co.uk/page/SupplyChainImpactSurveys. Every year, contractors, consultants and suppliers (both members and non-members) are invited to rate their water company clients across 12 key areas, including innovation, professionalism, contractual approach and communication. The 2026 survey is open until 10 July: https://www.surveymonkey.com/r/BW2026WaterCompanyPerformanceSurvey. We will happily share the 2026 results when these are available.

I hope you find these offers and suggestions helpful, and hope to hear from you on taking them forward. The size and nature of the AMP8 programme is transformative, and we believe we all need to work together to deliver the profound shift it promises.

Yours faithfully,
Lila Thompson 
Chief Executive 
British Water

Procurement Unlocked: Enabling Innovation

How can we make procurement and vendor onboarding better enable the implementation of innovative solutions?

Procurement and vendor onboarding play a vital role in ensuring water companies can work with the right suppliers, manage risk, deliver value for customers and uphold high standards of governance and assurance. They are essential processes for a sector that must spend efficiently, operate safely and deliver better outcomes for customers, communities and the environment.

However, innovators, suppliers and water companies frequently point to procurement and onboarding processes as a barrier to implementation of innovation in the sector. These processes are often designed around larger, established contracts and may not always be well matched to smaller-scale, fast-moving or innovative solutions. This can make it difficult for promising suppliers to move from early engagement, trial or pilot into wider adoption.

For small and medium-sized enterprises (SMEs) and start-ups in particular, unclear routes into water companies, complex pre-qualification and compliance requirements, rigid legal frameworks, long decision times and extended payment terms can create real commercial pressure. This makes it difficult for smaller innovators to remain engaged long enough for their solutions to be properly tested or scaled.

Once past initial commercial hurdles, vendor onboarding frequently prioritises administrative compliance over operational integration. Standard requirements can be applied uniformly, often without addressing gaps in an innovator's understanding of UK utility regulations and industry standards.

These restrictions are not limited to new market entrants. For larger suppliers and longer-term contracts, existing terms can inadvertently lock in traditional delivery methods and may not always create the right conditions for innovative solutions to be developed, delivered and improved over time.

As the sector faces increasing pressure to improve performance, reduce costs, build resilience and deliver better environmental outcomes, the ability to engage with innovative suppliers quickly, fairly and effectively is more important than ever. Solving this challenge is critical if we want to turn promising ideas into implemented solutions. We must work together to understand where procurement and onboarding processes slow innovation down and identify practical changes that can help the sector move faster without compromising fairness, value or assurance.

Find out more about the Water Innovation implementation Programme

To attend for free, register here

New Partnership Opens New Possibilities

British Water has signed a co-operation deal with the Australian Water Association (AWA) to encourage knowledge exchange in key areas such as water reuse, the circular economy, nature-based solutions and workforce events.

The Memorandum of Action was signed at Ozwater’26, the AWA’s flagship three-day event held this year in Brisbane at the end of May, with both sides making committing to sharing knowledge and opportunities for collaboration and workforce capacity building.

British Water will now become a gateway for AWA members seeking to engage with the UK water sector.

Founded in 1962, AWA membership now numbers around 5,000 individuals and business, who include utilities, regulators, government bodies as well as research organisations and technology partners.

“This partnership with the Australian Water Association reflects British Water’s mission to amplify collaboration across the global water sector. It will give our members access to valuable best practice insights and experiences on shared industry challenges and facilitate strategic partnerships that can aid business development and support transformation. By strengthening links between the UK and Australian water sectors,we are creating practical opportunities for knowledge exchange, innovation and international engagement that will help our members to manage the big change happening in the sector.” said Lila Thompson, CEO, British Water.

As part of the agreement, British Water and AWA will also jointly partner at international events, enhancing both sides’ ability to learn from global experience and creating a new opportunity to highlight Britain’s expertise to new audiences.

“Strong international partnerships are essential to solving the water challenges of today and tomorrow. We are delighted to formalise this new agreement between Australian Water Association and British Water, strengthening collaboration between our organisations and creating new opportunities for our members to connect, learn and innovate,” said Corinne Cheeseman, Chief Executive Australian Water Association.

Innovators, suppliers and water companies frequently raise slow and complex procurement and onboarding processes as a barrier to moving promising innovations from pilots to wider implementation across the sector.

Overcoming this barrier is vital. The sector now has a growing pipeline of proven and emerging innovations, but they need clearer, faster routes into everyday operations (‘business as usual’) to deliver real value. Unlocking this pipeline is essential to deliver benefits for customers, communities and the environment while supporting job creation and economic growth.

That is why we have selected this barrier as our next focus for the Water Innovation Implementation Programme’s Implementation Enablers stream, which focuses on tackling broad, cross-cutting barriers that slow or block innovation adoption across the sector. In this blog we set out:

• why this barrier matters;
• what happens next and how you can help us explore the barrier in more detail;
• an update on the Regulation 31 Challenge which tackles our first barrier selected for the Programme; and
• how you can have your say on future innovation barriers selected through the Programme.

Why Addressing The Challenges With Procurement And Onboarding Matters

Procurement and vendor onboarding – the sourcing of goods and services and the process of vetting, registering and integrating new suppliers – play an important role in the water sector. They help water companies manage risk, demonstrate value for money, meet regulatory and legal requirements and ensure suppliers can deliver safely and effectively.

However, these processes are often designed around larger, more established contracts and can be slow, complex and difficult to progress through. They may not always be well matched to smaller-scale, fast-moving or innovative solutions, particularly where suppliers are new to the sector or where the opportunity sits somewhere between a trial, pilot and full-scale deployment.

For Small and Medium-sized Enterprises (SMEs) and start-ups in particular, unclear routes into water companies, complex pre-qualification and compliance requirements, rigid legal frameworks, long decision times and extended payment terms can create real commercial pressure. This can make it harder for innovators to stay engaged long enough for their solutions to be adopted and their businesses scaled to meet wider sector needs.

These challenges are not limited to new market entrants. For larger suppliers and longer-term contracts, existing procurement and commercial terms can inadvertently lock in traditional delivery methods and may not always create the right conditions for new approaches. If contracts are too rigid, or if incentives are not aligned with improved outcomes, the sector can miss opportunities for innovative solutions to be developed, delivered and improved over time.

As the sector faces increasing pressure to improve performance, reduce costs, build resilience and deliver better environmental outcomes, the ability to engage with innovative suppliers quickly, fairly and effectively is more important than ever. This is not about reducing important safeguards or bypassing good procurement practice. It is about exploring how procurement and onboarding can be made more proportionate, transparent, and effective for innovation, while still protecting customers, companies and the sector.

Solving this challenge is critical if we want to turn promising ideas into implemented solutions. We must work together to understand where procurement and onboarding processes slow innovation down and identify practical changes that can help the sector move faster without compromising fairness, value or assurance.

What Happens Next: How You Can Help Us Explore Procurement And Onboarding Challenges In More Detail

The first step will be a collaborative sprint at the Northumbrian Water Innovation Festival this summer, 6-9 July.

The sprint – Procurement Unlocked: Enabling Innovation – will bring together water companies, procurement and commercial professionals, innovation teams, SMEs, larger suppliers, legal and contract specialists, sector bodies and others with practical experience of this challenge.

Together, participants will explore the procurement and onboarding journey from end to end. This will include looking at how innovators first engage with water companies, how opportunities are assessed, how trials are contracted, how suppliers are onboarded and how successful solutions move from pilot activity into wider adoption.

The aim of the sprint will be to build a shared understanding of where the most significant barriers sit, identify examples of good practice and develop practical ideas that could make the process faster, clearerand easier to navigate.

Following the sprint, the outputs will be used to help design a funding package through the Water Innovation Implementation Programme’s Implementation Enablers stream to support potential solutions that address the barrier. This could include support for shared tools, guidance, frameworks, processes or other activities that help create better routes for innovation implementation across the sector.

Visit the Northumbrian Water Innovation Festival website to find further information about the ‘Procurement Unlocked: Enabling Innovation’ sprint and register for the event.

Regulation 31 Challenge: An Update On Our First Barrier

The application window for Stage 1 of the current Implementation Enablers challenge – focused on addressing the lack of resilient UK-based facilities capable of undertaking full Regulation 31 testing – closed on Friday 1 May 2026. All applications for Stage 1 funding were assessed by the delivery team in collaboration with Ofwat and the DWI and we look forward to sharing news of the successful applicants soon.

Successful Stage 1 applicants will receive £50,000 to develop a detailed delivery plan, including a feasibility assessment, for the proposed solution. Each successful delivery plan will be eligible for Stage 2 awards of up to £1 million each to accelerate implementation of their solution.

Please follow along for further updates on the Implementation Enablers stream website and Ofwat social media and newsletter announcements.

How You Can Have Your Say On Future Innovation Barriers Selected Through The Programme

The Implementation Enablers stream focuses on shared barriers that slow or block innovation implementation across the water sector.

Barriers are identified through engagement with water companies, innovators, suppliers, regulators, delivery partners and wider sector stakeholders. Anyone with experience of a barrier to implementation can share their insight through the barrier prioritisation form below.

These barriers are then reviewed and prioritised with support from the Sector Implementation Committee. The Committee brings together sector representatives to consider the evidence, discuss which barriers are most pressing, and advise on which should be taken forward for focused activity through the Programme.

When selecting barriers, the Committee considers factors such as the scale of the issue, its relevance across the sector, the potential impact of addressing it, and whether there is a practical opportunity to develop solutions through collaborative activity.

Once a barrier has been selected, the Programme works with stakeholders to explore the issue in more detail, develop potential solutions and, where appropriate, design funding support to help those solutions move forward.

Rank and Share Barriers Through The Barrier Prioritisation Form

Learn more about the Implementaton Enablers Stream here

Overview

A roundtable discussion held at Utility Week Live, organised by the Civil Engineering Contractors Association, the Association for Consultancy and Engineering, and British Water, brought together clients, consultants, contractors, and the wider supply chain to explore how risk is identified, allocated, and managed across the water sector.

The discussion considered how current approaches to risk management can better support productivity, innovation, resilience, and long-term delivery performance across AMP programmes.

Participants recognised that while risk transfer remains an important component of commercial and contractual arrangements, better outcomes are often achieved where risks are clearly understood, proportionately allocated, and actively managed through collaborative working relationships.

There was broad agreement that improving outcomes depends on earlier engagement across the supply chain, greater transparency, stronger alignment between responsibility and control, and consistent professional behaviours throughout programme delivery.

Managing Risk To Improve Productivity And Delivery

A number of consistent themes emerged around how risk management practices could be strengthened across the sector.

Participants highlighted the importance of proportionate and effective risk identification processes that support informed decision making and enable delivery, while avoiding unnecessary procedural complexity. Risk management was viewed as most effective when embedded within programme, project and asset lifecycle governance rather than treated as a standalone compliance exercise.

Clear communication of risk was repeatedly identified as essential. Risks need to be understood in practical and operational terms, including their potential impact on programme outcomes and which party is best placed to manage or mitigate them.

There was strong support for earlier involvement of the wider supply chain, including consultants, contractors, and specialist suppliers, to improve the identification and management of technical, commercial, and delivery risks before key decisions become fixed. Participants noted that early technical, engineering and advisory input can play an important role in reducing whole-life cost and improving project resilience.

Discussion also highlighted the importance of aligning risk allocation with the party best able to influence outcomes, while maintaining clear accountability and appropriate professional responsibilities across all organisations involved in delivery.

Participants recognised that prolonged negotiation of risk positions can contribute to delay and inefficiency, and there was support for greater consistency and clarity in how risk allocation principles are applied across programmes.

Supply Chain Confidence, Investment, And Capability

Pipeline certainty emerged as one of the most significant factors influencing supply chain confidence.

Visibility of future workload, including both volume and duration, was considered essential to enable long term investment in skills, technology, and innovation. Without this certainty, organisations are more likely to prioritise short term resilience over capability development.

Frameworks were discussed in terms of their role in either enabling or constraining confidence. Effective frameworks were described as those that provide openness, honesty, and clarity around workload expectations.

There was strong agreement that stable, long-term relationships support better outcomes, particularly where they enable sustained investment and continuous improvement.

The importance of capturing and sharing lessons learned more effectively was also emphasised. Participants noted that recurring inefficiencies across projects could potentially be reduced if knowledge and experience were shared more systematically across the sector.

Strengthening Partnerships And Sector Resilience

Trust was identified as an important foundation for effective collaboration and long-term sector resilience. Participants linked trust closely to transparency, fairness, technical competence, and consistency of behaviour across organisations and delivery teams.

There was broad agreement that stable and collaborative relationships support improved delivery outcomes, particularly where they enable long-term investment in people, skills, innovation, and capability development across the supply chain.

Participants also discussed the importance of effective governance, clear decision making, and well-defined responsibilities within collaborative delivery models. It was recognised that contractual models alone cannot create collaboration, and that successful outcomes depend equally on behaviours, leadership, and organisational culture.

The discussion highlighted the value of capturing and sharing lessons learned more consistently across programmes to support continuous improvement and reduce recurring inefficiencies across the sector.

Responsibility, Ownership, And Professional Practice

A central principle emerging from the discussion was that risk should be managed by the party best able to influence and own the outcome.

There was further discussion around client understanding of risk, particularly in relation to clarity over which risks should remain with clients and which should be shared or transferred appropriately.

The role of professional standards and design responsibility was also referenced, including whether existing frameworks are consistently applied in practice in line with their intended purpose.

Accountability was discussed as both an organisational and professional responsibility, underpinned by integrity in decision making and delivery.

Behaviour, Culture, And Systemic Challenges

The discussion recognised behaviour change as one of the more persistent challenges facing the sector.

It was noted that movement of individuals between organisations can transfer both positive and less effective practices, reinforcing existing behaviours unless they are actively addressed.

Examples from other sectors were referenced to illustrate that cultural change requires sustained commitment and cannot be achieved through process change alone.

It was also recognised that procurement models, commercial structures, and programme design all play an important role in shaping behaviour and can either support or limit collaboration.

Conclusion

Participants agreed that the water sector has the capability, expertise, and experience needed to manage risk more effectively and deliver better long-term outcomes. However, the discussion also highlighted that achieving meaningful improvement will require continued progress in how organisations collaborate, allocate responsibility, and support delivery across programmes.

There was broad recognition that earlier engagement, proportionate risk allocation, transparent pipelines, and stronger partnership working can all contribute to improved productivity, resilience, innovation and whole-life value across the sector.

Participants emphasised that clients, consultants, contractors, and the wider supply chain each have an important role to play in creating delivery environments that support effective decision making, technical excellence, and long-term investment in skills and capability.

The discussion highlighted the importance of continuing to evolve procurement and commercial approaches in ways that encourage collaboration, support professional accountability, and align risk management with the parties best placed to manage outcomes.

Ultimately, participants agreed that improving sector performance will require sustained behavioural and cultural change alongside process and contractual reform. Risk management was therefore viewed not simply as a commercial or compliance activity, but as a shared leadership responsibility that underpins successful delivery, resilience, and public confidence in the sector.

Read the Environment Agency’s position on the use of nature-based solutions (NbS) to support sustainable water resources.

The statement is addressed to:

• Water companies
• Regional water resources groups
• Environmental non-governmental organisations (NGOs)
• Local authorities
• Farmers and landowners

Dear Secretary of State,

You may be familiar with British Water from your time as Secretary of State for Environment, Food and Rural Affairs. I am pleased that your role as Secretary of State for Housing, Communities and Local Government keeps you in a water-adjacent sphere and I hope to work with you in this capacity.

I am writing to offer British Water’s services in support of MHCLG as it delivers Commitment 24 of the revised Environmental Improvement Plan (EIP) concerning sustainable drainage.

About British Water

As a reminder, British Water represents the interests of UK water and wastewater supply chain companies, together with wider stakeholders across the sector. Our membership is diverse and growing, and includes many of the organisations that will actually be delivering water, wastewater and drainage outcomes on the ground – including through consultancy, contracting and construction services, and through the supply of products, resources and technology.

We have four specialist forums, one each for the UK, technical and international markets, and a fourth to provide challenge-led, independent thought leadership as we navigate the challenges facing the sector. These forums involve experts in their fields, who between them have many decades of hands-on delivery experience.

British Water And Sustainable Drainage

A number of British Water members manufacture and supply sustainable drainage systems (SuDS). We see these systems as an essential part of future development design, capable of providing multiple benefits for resilience, growth and the environment. SuDS can reduce flooding, alleviate pressures on sewerage systems, reduce mains water demand, create habitats for nature and cut carbon.

We are therefore very pleased to see Commitment 24 in the EIP: that standardised SuDS will be required in all new developments with drainage impacts, and that MHCLG will ensure sustainable maintenance arrangements are in place by 2029. We look forward to contributing to your department’s consultation on a set of national policies, including on long-term maintenance and adoption options.

Ahead of that, I thought it would be helpful to share some insights from British Water members on current SuDS challenges. The principal issue has been the lack of certainty about incoming policy and regulation. Unlike in Wales, Schedule 3 of the Flood and Water Management Act has not yet been enacted in England; nor is there clear guidance on the technical, installation or maintenance requirements for sustainable drains. This:

• hampers the business case for manufacturers and suppliers to invest in developing innovative stormwater management solutions at scale;
• makes it harder for developers to forecast design requirements and costs; and
• can leave people that live and work alongside sustainable drainage solutions frustrated, where systems are neglected and fall into disrepair over time.

Another key issue is the varying quality of the SuDS that are built by developers. Without clear specification and regulatory requirements, systems vary enormously, leading to a wide spread of user experiences.

Collaboration And Innovation

British Water is keen to work constructively with MHCLG as its delivers Commitment 24 in the EIP. Here are a few initial ideas that we think could help navigate some of the issues:

• Building a robust evidence base – Government will understandably desire quantifiable evidence on the costs and benefits of SuDS, in particular on how the approach will contribute to its flagship growth mission and commitment to build 1.5m homes this, Parliament. A large-scale trial could provide this. However, this has so far proved difficult to fund. For the reasons cited above, it would be risky for commercial SuDS suppliers or buildings developers to invest in such an initiative; meanwhile local government has been unable to help. Could a major trial be centrally funded or cofunded?
• Learning from experience in Wales – England has the advantage of being able to study and learn from the implementation of Schedule 3 in Wales. Good experience can be built on, and pitfalls avoided. Mainstreaming SuDS in England has the potential to be effective, with holistic, place-based solutions pursued and robust monitoring and enforcement.
• Innovate funding approaches to ease upfront costs for developers – Where developers are concerned about, or unable to, take on the full up-front cost of adding sustainable drainage to their building plans, it would be useful to explore alternative approaches that would ease this burden. For instance, could costs be spread through the life of the sustainable drainage system, with the building owner taking on some of the cost and paying this back over time?
• Innovative funding approaches for maintenance costs – a wide range of options should be considered here, from adding costs to consumer water bills, to making provision in local authority budgets.
• As part of its consultation, could MHCLG consider mandating quality assurance requirements for ‘last mile’ sustainable drainage connections, to reduce quality variations and improve user experiences
• SuDS schemes and assets should be recorded on an asset register with a defined maintenance schedule to ensure they are operating at full capacity. Although provision for an asset register already exists within the Non-Statutory SuDS Standards, full implementation of Schedule 3 would formalise and strengthen this approach. Clear funding arrangements -whether through local authorities, water companies or private management- are essential to avoid schemes falling into disrepair.

Next Steps

These are just some of the ideas British Water members have. We believe our experiences and expertise will be vital in coming up with practical, workable solutions for SuDS that support long-term, sustainable growth.

We urge you to move at pace with implementing Commitment 24, and would be delighted to meet with your team to discuss this further and assist. I look forward to hearing from you on this important matter.

Yours Sincerely,
Lila Thompson 
Chief Executive 

Peer Calls For Water Sector To ‘get Into Banking’ At British Water Event

A group of 200+ leading water and wastewater professionals attending British Water’s 2026 Spring Reception at the House of Lords, heard that the sector “needs some banking to tell the stories that many don’t get to hear”. Lord Wei of Shoreditch, who hosted the annual gathering, told attendees that the sector should join forces to create “a story bank, a money bank, and a people bank”.

The story bank will help to promote the work that water and wastewater professionals are doing at a time when positive storytelling is not always heard outside of the sector. He spoke candidly to member companies, water company leaders and other key industry figures about needing to do more to highlight the brilliant innovation in water and wastewater as the sector undergoes a once-in-a-generation transformation.

Continuing the banking analogy, the peer also suggested sovereign financing, similar to that in Singapore, to support long-term water infrastructure investment, together with better knowledge sharing on people, skills and resources across the sector.

“We have great examples of people working hard to innovate and transform the way we manage, consume and save water, so let’s create a bank of positive stories that the whole sector can share. Through a common narrative, we can shift the perception of the sector as one that is not only critical to our national infrastructure and security, but also essential to the government’s long-term growth mission.”

Skills was a common theme at the event as guests discussed the struggle to attract new people into the sector. Stephen Slessor, Chair of British Water, put forward the idea of human capital being on the balance sheet, while Paul Cox at Energy & Utility Skills, suggested that the sector needs to create more ‘stickyness’ to tackle worker churn.

British Water has since announced a partnership with Energy & Utility Skills, championing and supporting the need for a skilled, resilient and forward-looking workforce, ensuring the supply chain’s voice is heard clearly.

Lila Thompson, CEO at British Water, comments: “This is a continuation of the work we’ve done with key stakeholders to raise awareness and discussion about the human capital in water. We are committed to supporting the need for a national skills strategy to support the replacement of people retiring out of the sector and fill the new roles that will be needed as the sector fast tracks infrastructure upgrades. We need to continue to work together to make the sector an attractive place to work, ensuring retention and recruitment, as well as improving the sector’s performance on inclusion.”

Now in its 19th year, British Water’s Spring Reception continues to raise the profile of the UK water sector and gives the supplier community a valuable opportunity to build the professional networks that will help address sector challenges.

Attendees also heard from guest keynote speaker, Becky Wood, Chief Executive, National Infrastructure and Service Transformation Authority (NISTA) who spoke about water’s central role in supporting the government’s long-term growth plans.

“Stability, confidence, collaboration and a commitment to deliver the 10-Year Infrastructure Strategy sit at the heart of NISTA’s work. Strengthening investor confidence and linking long-term outcomes to near-term decisions are crucial to helping supply chains plan effectively and avoid capacity issues. The Dynamic Infrastructure Pipeline (recently updated with workforce demand data), a slimmed-down Government Major Projects Portfolio, and working with Public Financial Institutions on new financing and business models, are among the tools NISTA is using to transform how infrastructure is planned and delivered.”

Addressing water scarcity by delivering new water and wastewater infrastructure – not least reservoirs – was, she said, “crucial to the success of the government’s goals of 1.5 million new homes by 2030 and building new towns”.

She also stressed that “better management of the country’s legacy assets was equally as important to the strategy’s overall success. NISTA’s spatial planning approach, supported by its ALIGN tool, would ensure the infrastructure a community needs – not just water but transport, housing, energy and digital – is considered in the round, making subsequent trade-off decisions easier. Using AI to improve NISTA’s capacity to synthesise and analyse government and private sector data will also allow government to better identify pinch points and gaps, and better sequence projects to reflect resource constraints and workforce readiness”.

In closing, she said NISTA’s focus on addressing cross-cutting barriers and ensuring better alignment of policy, regulation and delivery are all about giving supply chains the confidence to plan ahead and invest. She also welcomed the chance events such as the reception offered to hear directly from companies at the sharp end of delivery.

Al Hashemi Construction Group, a Kuwaiti company, plan to bid for this project, which is part of the State of Kuwait's plans to develop integrated stormwater drainage more widely. Al Hashemi believe that their bid will be enhanced by working with UK supply chain partners and would like to hear from providers of relevant UK solutions interested in collaboration ahead of their bid submission.

Some examples of technologies required include:

• AI-driven monitoring
• Predictive maintenance systems
• Digital twin environments, automation
• Centralized control platform
• Pipeline networks
• Large retention facilities
• Advanced pumping and discharge systems

Budget: approximately KD 135 million (approx. £320 million)

Tender fee: KD 20,000 (approx. £48,000)

Bid bond: KD 2,650,000 (approx. £1.1 million)

Qualification criteria: 2 projects outside home country and 1 specialized contract with same nature of works with value of at least KD 75 million. 

Submission date: the deadline for Al Hashemi to bid was originally 19 May 2026, but it has been confirmed that it will be extended for a further two months until around 19 July 2026. Al Hashemi would like to hear from UK companies well ahead of this deadline for further discussion.

For full details of the project, please visit this folder. The folders from 'Document 2' down to 'Document 6' include English text. 

To express interest in the project, or for any questions, please contact Gula from DBT Kuwait and copy Tom Kirkham.

We have submitted a response to the Welsh Government’s Green Paper consultation, calling for a clear shared strategic vision, stronger system-wide planning, and long-term coordination across the sector. Our submission also highlights the need to address skills shortages, supply chain constraints, and investment cyclicality, alongside greater collaboration across government, regulators, industry, and the supply chain to support resilient infrastructure and sustainable growth. 

Please read the response below.

Chapter 1: Our Strategic Direction for Water in Wales

Question 1: What factors or priority areas should Welsh Government consider when setting the strategic direction for the water system in Wales?

The water sector needs a common vision and purpose. At present, there is no agreed destination for what the ecosystem of stakeholders (including government, regulators, water companies, supply chain companies and eNGOs) are collectively trying to achieve. This makes it impossible to communicate clearly and effectively with external stakeholders (such as customers), which compounds the loss of trust in the sector. We need a clear, consistent, common vision and narrative, driven by the UK and Welsh Governments and encompassing all major water and wastewater sector stakeholders.

This narrative reset is urgent, not only to restore trust in general, but also to:

• Head off new storms – for instance, water scarcity (and the resulting restrictions on economic growth) that could easily be spun into a story of water company failure.
• Make the sector a more attractive place to work, in the face of looming skills shortages. These are a critical risk for the water sector. Energy & Utility Skills data from September 2024 shows 43,700 new people need to join the sector by 2030, to replace retirees and fill new roles. This could be a struggle without a joined-up approach. In addition, we need to address the sectors poor performance on diversity.
• Bring people (customers/the public) into the system as active participants – with a better understanding of the water cycle and human impacts upon it, tailored water efficiency messages would stand a better chance of being heeded.

While Wales will carve its own future water path, we believe it would be beneficial for Wales and England to be joined-up in this strategic-level narrative.

For Wales specifically, Welsh Government should set high level outcome targets. These should be science-led, rather than driven by popular sentiment.

We also need to move from a reactive to a proactive place in terms of defining priorities. High level outcomes should plan to preempt problems – such as from water scarcity, emerging contaminants, microbial resistance and lead in water – rather than to react to them. 

Question 2: How can the Price Review Forum and a potential Ministerial Statement of Water Industry Priorities (MSWIP) best support transparency and effective delivery? If introduced, what priorities should MSWIP include?

Government priorities should include:

• Lead the creation and curation of a common vision and purpose, as above.
• Mandate a public education/information campaign about the water cycle and sector, to dispel myths. At present, data (such as from storm overflow EDMs, FoIs and EIRs) that hasn’t been properly explained or contextualised is fuelling a combative and limited account of the sector’s performance and standing.
• Mitigating climate change and adapting to its effects should be central to water sector objectives. Climate impacts are felt powerfully through water, from drought to flood. Many of our assets are old and already struggling to cope with more extreme weather patterns. Asset resilience in the context of climate change – together with net zero initiatives and policies/regulations supporting adaptation efforts – need to be prioritised. Affordability impacts of the need to build greater infrastructure resilience should be managed through affordability support.
• Be clear with the public what higher water bills are for and what they will deliver and when; if people have over-inflated expectations, they will be disappointed and this could compound the loss of trust.
• Take a position on, and publicly articulate, what ‘fair’ returns for investors are, given outrage at perceived corporate greed is a large part of the trust depletion picture. (This will apply for Hafren Dyfrdwy, given Welsh Water is not-for-profit).

Question 3:What milestones or review mechanisms should be built into the strategic direction to ensure accountability and alignment with Welsh priorities?

Bringing any strategic direction to life will hinge on targets and promises being delivered on the ground. Typically this will be through supply chain work – building/replacing/maintaining assets. Therefore we think it essential that delivery milestones and review mechanisms are part of the accountability landscape. 

Chapter 2: Planning Together for a Resilient Welsh Water System

Question 4: Do you support establishing a National System Planning Function for the water sector in Wales? Where should it sit, within the new economic regulator, as an independent body, or integrated into another Welsh Government or arms length body functions?

Yes. The 'water sectoris broader than the water industry and direct water stakeholders. It encompasses all stakeholders that impact on and interact with water and the water environment. British Water is supportive of system planning and managing catchments as a whole, with budgets from different sectors pooled and more creative approaches taken to cross sector financing. We do not have strong views on where the NSPF should sit. 

Question 5: How should water industry investment planning cycles (e.g. 5, 10, and 25 years) balance affordability, resilience, and environmental priorities?

AMP cyclicality needs to be addressed. Typically, years three and four of each five-year period are very busy, with lower workload in the other years. Water consultants, contractors and suppliers struggle with workforce numbers, efficient operation, profitability and maintaining focus on UK water given the boom-and-bust cycle. Well over ten years ago, British Water identified that boom and bust work cycles create recruitment costs of around £600k per AMP, and that over the decades since privatisation, work peaks and troughs have caused sustained damage to our sector, estimated to stand at £4.2bn by the end of AMP7.

There have been some attempts to address cyclicality, such as early start programmes. We welcome these but they have fallen far short of what is needed. Continued cyclicality, in the context of the greatly enlarged AMP8 work programme, is not compatible with successful delivery.

British Water recommends considering moving to a longer cycle – e.g. ten years; exploring the idea of a rolling programme with annual reviews; performing water and wastewater price reviews separately; or conducting price reviews for different water companies at different times.

Please refer to our recent publication, A Framework For Change in AMP8, for detailed recommendations on supporting the delivery of the UK’s future water needs https://www.britishwater.co.uk/page/Publications

Addressing cyclicality would reduce costs, increase resilience and have associated benefits for customers and the environment.> 

Question 6: What do you see as the added value a system planning approach could bring? What would your priorities be for implementing it in Wales?

System planning will offer:

• The ability to link up strategies, work, budgets and more across sectors, to produce a more coherent result.
• System planning could also provide greater visibility of requirements in each location but across sectors. This would be helpful, as visibility of workload is a critical planning tool for the supply chain.

We do not have any specific priorities for implementing this in Wales. 

Question 7: How should cross-border relationships with England be managed?

From a supply chain point of view, consultants and contractors will often work in both England and Wales. Join-up and coordination between the two geographies would therefore be valuable to British Water members. 

Chapter 3: Modernising our Legislative Framework in Wales

Question 8: Do you agree the current water legislative framework for Wales requires amendment? Which areas should be prioritised for review, and why?

N/A 

Question 9: Should public health outcomes and nature-based solutions be incorporated into future water legislation?

Yes. Nature-based solutions can complement asset solutions to provide best value. Regulators need to accept these come with uncertainty, rather than demand absolute performance guarantees; nature-based solutions should be allowed if they are, in the round, better than grey solutions, albeit less certain. 

Question 10: What innovations or enforcement approaches could strengthen compliance for wastewater and drainage?

N/A 

Chapter 4: Strengthening Welsh Water Regulation and Accountability

Question 11: Subject to enabling powers being provided to Welsh Government, do you agree with the proposal to establish a new, stand-alone economic regulator for water in Wales?

Whatever formal structure is adopted, the sector’s regulators need to be more joined up and need to adopt a more unified approach. At present, some valid regulatory requirements seem subjugated to more populist ones (e.g. to focus on reducing storm spills). We need to be courageous and ensure customers’ money is allocated in the best ways. 

Question 12: What governance principles should underpin the design of a Welsh economic regulator, and how should its supervisory approach balance oversight with flexibility for innovation?

There have been steps in the right direction for innovation with Ofwat’s Innovation Fund, the new Water Efficiency Fund and Spring, but these are not enough alone.

British Water conducts an annual survey of how supply chain companies find water companies to work for. We ask contractors, consultants and suppliers to rate their clients’ performance in 12 areas, including innovation, professionalism, contractual approach and communication. Innovation is consistently the lowest scoring area. See 2025 results here: https://www.britishwater.co.uk/page/SupplyChainImpactSurveys

Innovation unfortunately ranks low consistently. We recommend:

• Revisiting the 2009 Cave Review and implementing its recommendations.
• Moving away from comparative competition – water companies should be encouraged to work more closely together to address water industry challenges, including by supporting open data, research and collaborative innovation.
• Addressing particular pinch points that are frustrating innovation – for instance, Regulation 31 and nature-based solutions.

Question 13: If enabling powers were not conferred by the UK Government, what changes to the plans proposed by UK Government would be required?

N/A 

Chapter 5: Delivering Better Outcomes- Reforming Regulation in Wales

Question 14: Which changes to performance commitments and outcome delivery incentives should be prioritised?

Regulatorsexpectations need to be more realistic. While British Water members have some differences of view here, many believe AMP8 Performance Commitments are too stretching and/or too numerous – that we are trying to boil the ocean, leading potentially to many companies failing.

Regulatory metrics need to be more sensible. These should recognise that water sector performance in England and Wales is already strong on many metrics compared to other countries, with the obvious example our world-leading drinking water quality. At the same, they should acknowledge areas in need of improvement. This suggests regulators need to be courageous and choose priority commitments to focus on, rather than trying to drive improvements in everything.

British Water also believes comparative benchmarking has run its course. Water companies could be benchmarked against how well they are delivering on their commitments within their own local communities/geographical locations, rather than benchmarked against each other somewhat arbitrarily, given how circumstances vary place to place. Supervisory regulation should help here. 

Question 15: How can digital enforcement and monitoring be implemented affordably for Welsh customers, and what steps could strengthen operator self-monitoring while maintaining confidence in compliance?

N/A 

Question 16: How should civil sanctions and enforcement powers be applied proportionately?

N/A 

Question 17: Do you agree that tighter regulatory control on the application of sewage and septic tank sludge to land in Wales is required?

• Yes - Why do you think tightening regulatory oversight is required? Please provide evidence if possible
• No - Why do you think tightening regulatory oversight is not required?

If yes, which option do you consider most appropriate? (Select ONE):

• Option 1: Apply full EPR control
• Option 2: Voluntary approach adapting Biosolids Assurance Scheme and Code of Practice
• Option 3: EPR control with earned recognition adaptation
• Option 4: Amend Sludge Use in Agriculture Regulations and underpin with regulator-approved Biosolids Assurance Scheme
• Option 5: Do Nothing

Why did you select this option? What are its advantages and disadvantages? Please feel free to suggest any counter proposals, submitting evidence where possible.

N/A

Question 18: Should crop fed anaerobic digestion be subject to regulation and its output controlled? Is action needed to strengthen existing regulation of anaerobic digestion fed from other feed sources or to improve compliance and if so, how might this best be delivered?

N/A 

Question 19: Do you think having a waste exemption for anaerobic digestion is correct based on the risks of the process?

N/A 

Question 20: Are there better ways to valorise digestate for beneficial application to land, what are these and what is the evidence that shows this could lower the overall environmental risk of current digestate application to land.

N/A 

Chapter 6: Ensuring Strong, Responsible Water Company Governance in Wales

Question 21: What measures would strengthen governance standards and senior accountability in Welsh water companies?

N/A 

Question 22: How can financial resilience requirements (e.g., minimum capital levels, environmental bonds) support sustainability, and what principles should guide decisions on alternative ownership models?

N/A 

Chapter 7: Building Resilient Water Infrastructure and Healthy Water Assets for Wales

Question 23: What outcome-based resilience standards would be most appropriate for Wales, and how can asset health mapping and forward-looking metrics be strengthened without disproportionate costs?

British Water members are in agreement that many assets are inadequately maintained and/or nearing the end of their shelf life; that regulators might not appreciate the degree to which treatment works are in poor condition (it is considered that our wastewater plants are in a poorer state than typical European wastewater plants, for instance); that the current approach to capital maintenance is ‘broken;’ and that we need a clean slate on what a reasonable amount of capital maintenance funding looks like. We would like to see an ‘amnesty’ on asset health – an honest conversation on true totex levels, and a pooling of all the work done/knowledge accumulated on this issue. Maintenance is often the first casualty of cost cuts; we need a true picture of where we are, otherwise some companies will never be able to catch up and restore their assets to health.

 There will be cost associated with revealing the truer state of asset resilience and replacement needs. Welsh Government will need to make choices on how to trade this off against other upward pressures on bills. We note too that failing assets can have significant economic and human costs. This should be borne in mind: the cost of not acting as well as the cost of taking action.

Question 24: What steps should improve supply chain and workforce capacity for future infrastructure delivery?

Perennial issues

Perennial supply chain problems need to be resolved – In April 2021, British Water formed working groups under a Supply Chain Taskforce to address three fundamental water industry regulatory and behavioural issues our members experience:

• Cyclicality – typically, years three and four of each five-year period are very busy, with lower workload in the other years. Water consultants, contractors and suppliers struggle with workforce numbers, efficient operation, profitability and maintaining focus on UK water given the boom-and-bust cycle. Well over ten years ago, we identified that boom and bust work cycles create recruitment costs of around £600k per AMP, and that over the decades since privatisation, work peaks and troughs have caused sustained damage to our sector estimated to stand at £4.2bn by the end of AMP7.
• Procurement terms and conditions – water company commercial terms are often onerous and complex. Contracts can run to hundreds of pages for jobs worth a few thousand pounds. There is little standardisation either, further pushing up work and costs. Some water companies pass on a disproportionate amount of risk to suppliers, which makes collaborative working difficult.
• Barriers to innovation – the supply chain continues to be frustrated by the slow pace of innovation in water, hampered by companies working in silos on multiple trials that can take over a decade in some cases to conclude. There have been some positive developments, including Ofwat's Innovation Fund and the creation of Spring as a water sector centre of innovation excellence. But more needs to be done to accelerate the adoption of innovation.

Our working groups have produced a series of recommendations on these issues:https://www.britishwater.co.uk/page/Publications 

Growth context

All of the perennial issues summarised above have frustrated supply chain companies for decades. But in the context of the Governments flagship growth mission, they take on new importance. Water companies need to deliver more water and wastewater capacity at pace to enable sectors like clean energy, digital/data infrastructure and advanced manufacturing to thrive, as well as thousands of new homes to be built. In many instances, it will be supply chain contractors actually doing this work.

If our members are to support growth to the best of their ability, they need consistent and visible work programmes and the opportunity to collaborative to unlock any obstacles to progression. We need to be fast and agile, and in addition to addressing cyclicality (see Q5). We recommend:

• Regulators require water companies to coordinate their delivery schedules. At present, each company follows its own path. This can lead to tenders for similar assets and work being issued in close succession, which in turn can lead to higher costs and – potentially – insufficient availability of products, services and other resources. Smart metering is a good example. Each company is running its own smart meter procurement, many simultaneously and to different specifications. That is simply inefficient and unnecessarily risky. Greater coordination and collaboration would produce better results for all.
• Regulators require water companies to provide better visibility of forward work programmes. This is essential for the supply community to continue investment, make timely preparations, and enable new/prospective suppliers to assess opportunities.

These are clearly England and Wales-wide issues, but Welsh Government requirements of the two Welsh water companies will be part of the solution. 

Reducing dependencies

There is one particular issue we feel it is urgent to highlight in terms of reducing dependencies. Products for use in drinking water need to obtain Regulation 31 approval. This involves strict and very specific testing protocols. However, laboratory facilities are severely limited and there is a backlog of products waiting to secure approval. We are highly dependent on European laboratories, and need a new UK facility.

We need the government to show leadership, take ownership of the issue, and spearhead work to initiate the development of a new Reg 31 laboratory here in the UK. Failure to do so will hold back innovation, delivery and growth. 

Skills

Finally, We need a skills strategy for England and Wales. Skill shortages is a critical risk for the water sector (see Q1). No organisation can address this alone and co-working between the UK and Welsh Governments would be valuable. 

Chapter 8: Making Change Happen - Transition and Implementation for Wales

Question 25: What should be the key priorities in the Welsh Government’s transition plan for water sector reform to provide clarity and stability?

Our ask here is that business-as-usual delivery is not neglected as water reform is pursued. We need both to happen in parallel. The Transition Plan should be clear on expectations of BAU work as well as expectations of water reform. 

Question 26: How can governance and advisory mechanisms ensure effective stakeholder engagement during the transition period, and would independent oversight add value? If so, what form should it take?

British Water has members with operations in Wales, as well as an experienced central leadership team. We would welcome involvement in any advisory/governance/delivery working or consultation groups that our skills are suited to. We would like to support Welsh Government to make water reform in Wales a success. 

Mandatory Welsh Language Impact Questions

Question 27: What, in your opinion, would be the likely effects of the proposals in this Green Paper on the Welsh language? We are particularly interested in any likely effects on opportunities to use the Welsh language and on not treating the Welsh language less favourably than English.

Do you think that there are opportunities to promote any positive effects?

Do you think that there are opportunities to mitigate any adverse effects?

N/A 

Question 28: In your opinion, could the proposals in this Green Paper be formulated or changed so as to:

• have positive effects or more positive effects on using the Welsh language and on not treating the Welsh language less favourably than English; or
• mitigate any negative effects on using the Welsh language and on not treating the Welsh language less favourably than English?

N/A 

Question 29: We have asked a number of specific questions. If you have any related issues which we have not specifically addressed, please use this space to report them:

Please enter here:

N/A 

On Tuesday, 21 April 2026, Spring, South Staffs Water, and Cambridge Water invite you to a free webinar on shifting customer support from reactive assistance to proactive, data-driven care.

Register now to secure your place

Current vulnerability strategies often miss the true scale of community need. Partnering with Sustainability First and Kelp, this project used gap analysis and long-term health projections to create a new blueprint for the sector. This trial demonstrates how to evolve the Priority Services Register (PSR) to meet the challenges of an aging population and weakening household resilience.

Joined by Alex Wilkes, Customer Services Director at South Staffs Water, as well as the wider project team, we will explore how to evolve the Priority Services Register (PSR) to meet the challenges of an aging population and weakening household resilience.

In this session, you’ll learn how to:

• Identify hidden need by closing the gap between PSR data and actual regional requirements.
• Future-proof support using long-term projections of health and social trends.
• Enhance accessibility for affordability schemes and priority services.
• Drive innovation by thinking beyond current regulatory and funding constraints.

If you lead in customer care, vulnerability, or strategy, join us to see how socio-demographic intelligence can be implemented at scale to build a more resilient, human-centred water system.

Sign up today

Every two seconds, a woman gives birth in a healthcare facility without clean water, decent toilets and good hygiene. The solution is simple: clean water saves lives. World leaders have the power to fix this. Together, we can tell them: it’s time to deliver.

Join the global movement demanding that world leaders deliver safe healthcare for women everywhere. Sign our global petition to demand clean water for every woman, every birth.

Tell world leaders it's time to deliver | WaterAid

Water and wastewater ‘services’ that the environment has long provided to the global water industry for free are in decline, and need to be replaced by paid-for alternatives. This fundamental shift underpins recent increases in water investment, and means water consumers need to prepare for higher water bills for the long-term.

That’s according to a report from the Water Services Association of Australia (WSAA), the peak body for water utilities in Australia and New Zealand, and The UK Water Report (TUKWR), a specialist publication focusing on UK water policy, regulation and finance.

WSAA and TUKWR draw evidence from Australia and New Zealand, and England and Wales, to contend that the global water industry is undergoing a major transition akin to the energy transition. Water systems are changing to become sustainable, efficient and circular, as the fossil-based energy system is giving way to renewable, low carbon sources. As the air environment can no longer be used as a free disposal route for greenhouse gas emissions, the water environment can no longer be used to draw free resources from or to discharge waste to at minimal cost.

Adam Lovell, Executive Director at WSAA, said: “Globally, we are seeing less reliance on natural catchments and moves to manufactured water. We are seeing the need to treat wastewater to higher levels because rivers and beaches have reached their capacity to absorb the community’s wastewater. And across the globe, we are having discussions on the best way to manage biosolids from wastewater treatment.

“Just as the energy industry is in a fundamental transition, so is the water industry. The underlying driver of change in the water industry is the reduced reliance on the environment to provide ‘free’ inputs or services to industry. The sector is now investing in systemic changes in infrastructure, management and consumption.”

Christopher Gasson, Publisher of TUKWR and its parent Global Water Intelligence, said: “Although this report focuses on the situation in Australia and the UK, it is a common theme throughout the world. Whether it is the states in the US South West wrestling with the fact that 29% of the free water they were allocated from the Colorado River in 1922 no longer exists, the European Union contemplating spending €10 billion a year to remove a chemical few people have ever heard of (trifluoroacetic acid) out of drinking water, or African cities like Cape Town and Dakar investing in new desalination plants, people all over the world are discovering that nature no longer owes us a free drink.”

The decline of free environmental services is a landmark point of change, and sets the global water industry on a path to sustained higher investment and bills. In Australia and England and Wales, charges were flat for the decade before the latest price determinations. Now, England and Wales will spend 71% more on water in 2025-30 (£104bn) than in 2020-25, pushing average bills up by 36%. Australia is set to invest AU$120bn over the next ten years, and Australian customers are facing similar price increases. In Sydney, for instance, bills will rise 35% over five years.

Forward projections in both countries suggest that today’s elevated level of investment and bills will not only be sustained, but will need to increase further.

Mr Gasson commented: “Unlike the energy transition, which will eventually pay for itself through low cost renewable energy, the water transition only brings additional costs. But this report is not just about warning the public that water services will cost more in the future. Water bills are not money down the drain. They represent an investment in the future: an investment in the smart, green, flexible infrastructure that will ensure that future generations will find our cities liveable, nature flourishing, and the economy growing. The alternative is not just more expensive in terms of the scale and impact of future water crises. It is also much more unpleasant in terms the quality of life.”

Reflecting on the significance of the report, Water in transition – Rising costs and the decline of free environmental services, Mr Lovell added: “Without a detailed understanding of the fundamental transition underway, policy makers risk drawing the wrong conclusions and creating the wrong policy settings for the industry.”

Read the full report HERE.

The National Engineering Policy Centre (NEPC) shares their latest policy report published in December 2025, Reviving our Ageing Infrastructure.

Led by the Royal Academy of Engineering, the report highlights the tipping point faced by our ageing economic infrastructure. The combination of its age, deterioration accelerated by climate change, and the growing and changing demands we are placing on it means that we must change the way we look after these critical systems or risk growing long term costs and disruption. The report goes beyond why we need to change to look at how we can achieve that change.

The NEPC calls on the government to urgently prioritise, invest in, and reform the management of the UK’s ageing infrastructure – moving from a mindset of “fix it when it breaks" to “monitor and maintain”. The report identifies seven cross-cutting enablers of change, which emerged from consultations with a diversity of experts and stakeholders across water and wastewater, flood defence and road and rail transport systems. These in turn lead to fifteen urgent actions, including:

• Asset owners, regulators and standard-setters should collaborate to develop a set of meaningful metrics and standards to assess asset condition and infrastructure system health and how it is changing.


• Regulators, asset owners and research funders should establish innovation challenge funds for addressing our ageing infrastructure.


• Better data is needed to recognise the bespoke skills needs for asset management. Asset owners, working with regulators and government skills bodies, should conduct regular forecasts of skills needs for infrastructure maintenance, renewal and enhancement, considering asset portfolio, geography and demographics.

The National Engineering Policy Centre (NEPC) hopes the report starts a national conversation on stewardship of our critical infrastructure and the costs and trade-offs required to effectively balance maintenance, renewal and enhancement.

If you would like to discuss the report and its findings in any more detail, please contact their Digital and Physical Infrastructure team at infrastructurespolicy@raeng.org.uk .

Read the NEPC Reviving Our Ageing Infrastructure Report HERE.

Women make up nearly half of the UK workforce, but hold just 29% of technology roles. As digital and AI transform the water sector, Microsoft is launching TechHer for Water to help close that gap and equip more women with the skills to shape the sector’s digital future.

Launching in April 2026, TechHer is a free digital skills programme for women across the UK water sector.

Find out more and register here:

https://aka.ms/TechHerWater

Designed for women and led by women, the programme offers women at all career stages, especially those without a technical background, a supportive and accessible way to strengthen their digital capability and gain new practical skills.

Delivered through five interactive 90-minute sessions, the programme covers:

• Cloud
• Artificial Intelligence
• Power Platform
• Copilot Agents
• Security Fundamentals

Participants who complete the programme will also have access to mentoring and free professional certification opportunities to support their ongoing development.

Learn more about the wider TechHer programme:

https://ukstories.microsoft.com/features/techher-digital-skills-programme-to-expand-in-2025-if-i-did-it-any-woman-can-do-it/

We encourage you to sign up and share this opportunity across your organisation to help more women in the water sector build the digital skills, capability and connections needed to thrive in the age of AI.

Microsoft is a longstanding sponsor of Women’s Utilities Network, and are pleased to share this opportunity. Please note that the programme is delivered solely by Microsoft, and WUN is not involved in the delivery of the sessions.

BIM4Water are seeking a passionate individual to lead the forum as Chair for BIM4Water. Recognised as a major contributor to the UK water sector, our not-for-profit forum consists of dedicated volunteers from consultants, water companies and their supply chain.

BIM4Water mission is “to lead the digital transformation of the water sector through Better Information Management”. Having strong leadership, strategy and interpersonal skill qualities within the water sector is key for this role. This position has a track record as a development opportunity for individuals seeking to further their careers.

If you want to lead BIM4Water in supporting the digital transformation of the Water Sector, then please get in touch for more information by emailing BIM4Water@wearenima.im by Friday, 20th March, 2026.

The UK Water Partnership has released its latest white paper: ‘River Health & Restoring Public Trust’, produced in collaboration with AECOM, ARC Limited, and Northumbria University.

Our rivers are under pressure from pollution, climate change, and fragmented governance. Public trust in those responsible is at an all-time low. The report sets out a bold, collaborative roadmap to restore river health and rebuild confidence.

In the paper the following three strategic recommendations are proposed:

• Establish a unified strategic framework for river health
• Rebuild public trust through transparency and engagement
• Create a UK-wide, independent data reporting system
• We call on all stakeholders: regulators, water companies, industry, agriculture, urban planners, environmental groups, and government to take swift, decisive action.

Together, we can protect these vital ecosystems and restore trust.

You can access and download the white paper on The UK Water Partnership website 

Registrations are still open. Learn more and sign up HERE 

PIPEON invites professionals with direct experience in sewer inspection and maintenance to complete their survey.

This survey is part of Task 1.1 of the PIPEON project, which focuses on understanding user requirements and establishing shared definitions. Your responses, especially as a utility managing sewer systems, are crucial to ensure that the technologies developed meet real-world needs and can be effectively implemented across Europe.

Submit your responses by Friday 6 March 2026

PIPEON Survey: https://form.jotform.com/251183108883055

The project aims to develop innovative solutions based on robotics and artificial intelligence to make sewer network inspection and maintenance activities safer, more efficient, and more sustainable. Given the strong operational relevance of the topic, input from utilities is essential to ensure that the solutions being developed genuinely reflect real needs and challenges in the field.

The questionnaire takes approximately 20–30 minutes to complete.

In addition, if participating utility companies are interested, there is an opportunity to contribute to dedicated workshops with the project consortium to discuss key operational challenges and outline the solutions and functionalities they would expect in this domain; please contact the organisers to express interest and receive further details.

Learn more about the PIPEON project, Robotics and AI for Sewer Pipe Inspection and Maintenance

Read the latest UNU‑INWEH research, Global Water Bankruptcy: Living Beyond our Hydrological Means in the Post-Crisis Era HERE

Published on the occasion of UNU-INWEH’s 30th anniversary, and ahead of the 2026 UN Water Conference, this flagship report, Global Water Bankruptcy: Living Beyond Our Hydrological Means in the Post-Crisis Era, argues that the world has entered a new stage: more and more river basins and aquifers are losing the ability to return to their historical “normal.” Droughts, shortages, and pollution episodes that once looked like temporary shocks are becoming chronic in many places, signalling a post-crisis condition the report calls water bankruptcy.

The report makes the case for a fundamental shift in the global water agenda—from repeatedly reacting to emergencies to “bankruptcy management.” That means confronting overshoot with transparent water accounting, enforceable limits, and protection of the water-related natural capital that produces and stores water—aquifers, wetlands, soils, rivers, and glaciers—while ensuring transitions are explicitly equity-oriented and protect vulnerable communities and livelihoods.

Crucially, the report frames water not only as a growing source of risk, but also as a strategic opportunity in a fragmented world. It argues that serious investment in water can unlock progress across climate, biodiversity, land, food, and health, and serve as a practical platform for cooperation within and between societies. Acting early, before stress hardens into irreversible loss, can reduce shared risks, strengthen resilience, and rebuild trust through tangible results.

Support Paper

Madani K. (2026) Water Bankruptcy: The Formal Definition, Water Resources Management, 40 (78) doi: 10.1007/s11269-025-04484-0

The United Water Supply Company of Georgia (UWSCG) has launched a new procurement process under international rules for the selection of a consulting firm to prepare the Detailed Design of the Water Supply Network for some regions of Georgia.

The Expression of Interest (EOI) has been officially published and can be accessed via the link, https://water.gov.ge/page/full/44

UWSCG is gradually implementing its long‑term water sector development strategy, and several major procurement processes are expected in the coming years. In the near term, the company is preparing for the second phase of the ADB Result-Based Loan (RBL) programme. Under this phase, design and construction works for water supply infrastructure across more than 70 locations are planned. The final selection of these locations is underway, and UWSCG anticipates launching the tender for detailed design services in the second quarter of 2026. Once the design phase is completed, the corresponding construction works will be tendered and carried out.

In parallel, UWSCG is planning significant investments to address longstanding challenges in urban sewerage networks. This includes a large-scale programme valued at approximately 4 billion GEL (around 1 billion GPB), which will be implemented progressively based on priority areas. The first tenders, expected at the beginning of 2026, will be for the detailed design of sewer networks and wastewater treatment facilities in 15 priority cities. Construction works will follow after the design phase, while design tenders for subsequent priority groups will be launched at roughly one‑year intervals. The entire programme is planned over a ten‑year period, creating a sustained pipeline of opportunities for design and construction firms.

Recognising that international consulting companies may struggle to access early information about such opportunities, UWSCG intends to conduct direct outreach at the initial stage to ensure the most qualified firms are aware of the tenders. Later, a series of conferences and high‑level meetings will be organised, during which senior government and UWSCG representatives will present more detailed plans. To ensure strong participation by experienced international actors, UWSCG aims to build a communication network that will help reach the right organisations as these opportunities unfold.

Interested in driving optimisation in water or wastewater treatment? United Utilities hosts a free, one-day event, 27 February in Warrington, exploring cutting-edge instrumentation and innovation in water and wastewater treatment. Delivered by Spring, the central hub for intelligence across the UK and Ireland water sector, the event will spotlight unconventional, multi-parameter and emerging technologies with a clear focus on enabling chemical, cost, process and automation optimisation.

For Water Companies

Whether you’re a decision-maker, operational lead, or simply curious about what’s next, the programme is designed to broaden knowledge, spark ideas and offer a unique cross-sector perspective.

What To Expect

• Direct engagement with a wide range of technology suppliers
• Insight into how tools are being deployed across the sector
• Structured reflection with subject matter experts, decision-makers and budget holders

Register your Interest at https://form.typeform.com/to/gPFw4JnK

For Innovators

We’re seeking technologies that can drive optimisation in water or wastewater treatment. Selected suppliers will:

• Deliver a 10-minute pitch & 5-minute Q&A to United Utilities and other UK water companies
• Choose to join the networking lunch and breaks to explore collaboration and showcase innovation

Register your Interest at https://form.typeform.com/to/V19LOYqJ

For The Wider Water Sector

We’re gathering expert input on instrumentation for optimisation: what’s new, what matters, and what this event should cover. Your perspective can help shape the conversation even if you are unable to attend on the day.

Register your Interest at https://form.typeform.com/to/EIXrHbuJ

I am pleased to launch our Green Paper, Shaping the Future of Water Governance in Wales. Our ambition is clear and bold: clean and thriving rivers, safe and high-quality drinking water, fair and affordable services, and modern infrastructure ready for the future. We will strengthen accountability, rebuild trust and create a system that is simpler, stronger and more transparent.

The Green Paper sets out our response to the recommendations and evidence of the Independent Water Commission, published in July 2025, and sets out a pathway to cleaner water in Wales. The Welsh Government and UK Government jointly established the Commission to undertake the most comprehensive examination of the water sector since privatisation, recognising the urgency of cleaning up our rivers and seas and improving our water system. At its core, the review was about shaping a clear, shared vision of what people in Wales expect from their water system. The Commission was clear that this vision must be ambitious but achievable, rooted in the experiences of communities, and able to earn and sustain public trust.

This Green Paper marks the next step in that journey. The proposals represent a once‑in‑a‑generation reset of water governance in Wales. We are proposing a dedicated Welsh economic regulator for water, underpinned by new legislation and a modern regulatory framework that encourages investment and delivers a water system that works for Wales.

Water is essential to every part of life in Wales and over the past decade we have made real progress, improving drinking water quality, investing in environmental protection and enhancing support for consumers. Since 2022, we have invested more than £56 million to tackle water quality challenges through enforcement, monitoring and nature‑based solutions. We have made progress on improving water quality but there is much more to do.

Wales now faces an urgent reality. Climate and nature emergencies, ageing infrastructure and public concerns about sewage discharges demand decisive action. The system we have today was designed for a different era. It no longer meets the needs of our people, our environment or our economy. It is time for a fundamental reset.

Our proposals place environmental protection, public health, and ecosystem resilience at the heart of water governance. People want cleaner rivers, coasts and lakes, and a regulatory system that is fair, effective, transparent and fit for purpose. Achieving this requires a whole‑system approach. This is not just about the water industry; it is about how every sector of our economy and society manages pressures on our water environment. Only through shared accountability can we protect this vital resource for current and future generations.

This Green Paper outlines the opportunity before us. Transforming our water system requires sustained investment and so investor confidence is essential. We are committed to creating a regulatory environment that supports long‑term investment in Welsh water infrastructure—from drinking water networks to nature‑based solutions—so the right projects happen in the right places and deliver maximum public value. A trusted and predictable regulatory environment will attract investment while protecting the public interest. Infrastructure fit for the future means jobs today and resilience for tomorrow. Building a modern, resilient water system will support skilled, long‑term employment across Wales.

Investor confidence matters, and so does accountability. That is why we support establishing a clearer legislative framework - one that enables regulators to act decisively and hold all sectors to account. And that’s why our ambition is to create a new Welsh economic water regulator with the authority and independence to act decisively for Wales. To deliver this, we must secure the necessary devolved powers. We will continue to work closely with the UK Government to seek additional legislative competence and bring forward a new Water Bill that places public value and environmental resilience at its core.

This Green Paper is not the final plan, but a high‑level statement of intent and an invitation to engage. We are seeking views, evidence and insight to help shape the next phase of reform, ensuring future arrangements are coherent, accountable and capable of delivering for Wales. I welcome your contribution to this national conversation.

This is a pivotal moment. Change is taking place across the UK, and we are committed to working with partners to ensure alignment where it matters, avoid duplication and support a smooth transition. Together, we share a responsibility to leave our water environment in a better state than we found it—resilient, sustainable and ready for future generations.

That work begins now.

Learn more about the Shape the Future of Water Green Paper via the Welsh Government's website

British Water is supporting the PIPEON (Robotics and AI for Sewer Pipe Inspection and Maintenance) project and encouraging utilities to take part in a survey that will help shape the future of sewer inspection and maintenance across Europe.

PIPEON is an EU-funded research and innovation project focused on the development of autonomous robotic and AI-enabled solutions for sewer systems. These technologies aim to improve safety, reliability, and efficiency in sewer inspection, cleaning, and maintenance activities.

The survey forms part of Task 1.1 of the PIPEON project, which focuses on understanding user requirements and establishing shared definitions. Input from utilities that manage sewer systems is essential to ensure that the solutions developed reflect real-world operational needs and can be effectively implemented in practice.

Organisations that contribute to the survey will be actively involved in the project’s co-creation process. This includes opportunities to participate in dedicated workshops and seminars designed to connect PIPEON’s research and innovation activities with real-life environments, operational challenges, and user expectations. These interactions will also support the smooth transfer of solutions from laboratory development to field application.

The survey takes approximately 20–30 minutes to complete. Responses will directly influence the design, relevance, and practical application of the technologies being developed.

Utilities are encouraged to share their practical experience to help ensure that PIPEON addresses the realities of sewer maintenance and inspection.

For further information about the PIPEON project or this questionnaire, please contact:
aip-implementation@watereurope.eu

Complete the survey here.