Survey shows water leaders struggling with regulator's demands

Researchers at business software firm, SAP, have found that water company chiefs are “struggling to meet impending regulatory requirements and to transform service delivery to meet customer demand”.

SAP’s survey of 50 leaders in the sector found that 34% saw cost pressures as “challenging” while almost one fifth described budget constraints as “unpredictable” as the next asset management period (AMP8) looms. 41% cited challenges from “a lack of digital infrastructure” and 8% said their company will struggle to meet Ofwat’s key performance indicators and objectives.

SAP said: “As public opinion in the industry wanes, water companies must accelerate digital adoption to understand the nation’s water network, operate efficiently and optimise the way services are run.” It found that only 20% of respondents strongly agreed that their organisation was using data effectively to manage and gain insights from water infrastructure. 

Other findings included: 

• 55% do not have the monitoring capabilities needed to understand water demands and consumption.

• 45% do not have a complete picture of their pipeline infrastructure.

• 43% do not have a complete data capture of the environmental emissions of their water network.

• 30% do not have a complete picture of their sewage network.

“Despite this absence of a digital backbone,” SAP reported, “leaders remain positive about the impact existing and emerging technologies such as artificial intelligence will have on service delivery.”

According to SAP, 84% of those polled believed artificial intelligence will shape the future of water service delivery and help to address leaks and spillages and optimise usage. 40% said it was already generating positive results and demonstrating return on investment.

The survey was conducted by Coleman Parkes in June 2024 and targeted “50 business decision makers working in water companies, with more than 500 employees, based in England and Wales”.