This Market Insight, AMP6 Seeks Sea Change for UK Water Utility Market, highlights the long-term impacts on the UK’s municipal water sector from a series of policy changes that have been implemented over the past two years, including the Pricing Review 2014 (PR14) and the Regulator Ofwat’s Open Water Program.
Overall, a broader industry restructuring is expected due to current regulatory shifts and utility responses for UK water utilities to ensure profitability amidst compliance with policies. Utility business plans will require greater efficiency to meet performance targets for Ofwat compliance, which will increase pressure on margins and lead to greater retail competition and market restructuring.
AMP6 Seeks Sea Change for UK Water Utility Market highlights the following:
- Ofwat PR14’s approach, impact on AMP6 driving fundamental shifts
- Utility business plans aim for efficiency, performance targets for Ofwat compliance
- Increasing pressure on margins, prospect of greater competition
- Increase in innovation for efficiency (i.e. Smart water)