The latest water industry asset management programme

folder_openCivic & Public Sector, Construction, High Security, Industrial, Utilities

UK water companies will come under increased pressure for the next five-year Asset Management Programme (AMP6) to improve their relative efficiency while improving wastewater effluent quality. Regulators are driving this in the light of customers’ expectations and increased competition within the water industry.

Water companies face key strategic questions, such as totex and asset management, the need for frameworks and alliances, managing the supply chain, and whether to recruit technical capability in-house or outsource or co-source.

With AMP6, water regulator Ofwat confirms its move away from the “ticking regulatory boxes” approach of previous AMPs to focusing on value for money for customers.

This will see water companies trying to get the most out of their existing assets and find ways to minimise total operating costs.

This shift in emphasis leads to water companies looking for different skill sets from their supply chains – expertise that will help them make more of existing assets.

The focus on long-term thinking is also being reflected in how some water companies are looking to procure the firms that will deliver work during AMP6, with many opting for alliances or frameworks that run beyond the traditional five-year AMP period.

r_1706-thames-water-picks-two-joint-ventures-for-amp6-workThames Water is the most advanced of the water companies in its procurement for AMP6, having announced a full two years ago the list of firms in its “super-alliance”.

Thames Water asset director Lawrence Gosden has described the decision to appoint an alliance for AMP6 as a “complete transformation” of the way the company delivers capital investment.

He said: “The tender process started with extensive consultation with our supply chain to form a delivery strategy with collaboration at its heart, and it ended with us joining forces with some of the leading names in the industry.

“We have a significant amount of work to do, upgrading our deteriorating infrastructure over the next 25 years and beyond while keeping customers’ bills affordable. However, if we are to achieve this, a different approach is required.”

The super alliance includes MWH Global as programme manager and has already started on some parts of the programme and expects to carry out between £2bn and £3bn of work.

Thames Water has allocated £1.4bn for security and general asset upgrade, with £200m alone for security, bringing its estate up to Defra standards and fully prepared for any security eventuality.

Thames Water has turned often to Zaun to deliver full turnkey security solutions of integrated perimeter fencing, CCTV and access control systems.

Since privatisation, the UK water industry has invested more than £90 billion to help replace and upgrade a largely antiquated asset base that, in some cases, dated back to the Victorian period, such as Thames Water’s Lee Valley Tunnel.

As a result of this capital investment programme, the quality and quantity of the asset base have significantly improved, delivering considerable benefits to the customer.

Having successfully tackled this challenge, the industry is now shifting its focus towards operating, maintaining and managing these assets, and ensuring that inefficiencies are minimised during such activities.

A study of operational costs for wastewater treatment works in the UK shows that top-performing sites can be nearly 50% more efficient than their counterparts.

Our range of perimeter fences spans from ornate fences and gates to high security rated mesh fencing, all of which can be integrated with access control, perimeter detection, locks and CCTV monitoring systems, enabling them to play a part in cost savings and demonstrate a return on investment.

By linking access control with a building’s energy management system, such as lights that trigger when you enter the room, establishments can reduce energy costs, address environmental concerns and improve energy efficiency.

About Zaun

Zaun Limited is the sole remaining manufacturer of welded and woven mesh fencing systems that manufactures the entire system in the UK.  Zaun makes the mesh, fencing panels, posts, clamp bars and fixings at its state-of-the-art five-acre production facility in Wolverhampton in the West Midlands.  Products have been tested and approved by testing organisations including CPNI, LPCB and Secured by Design.

Zaun works very closely with all stakeholders within the business including employees, local, national and international suppliers and a long-established customer base of fencing contractors to design, manufacture and supply high-quality fencing systems, increasingly often providing expertise in integrating PIDs and other systems into holistic security solutions.

Zaun was founded in 1996 and remains a private company solely owned by co-founder Alastair Henman with a regional office in Dubai.  They are certified to the ISO 9001 quality standard. It is also a member of the Perimeter Security Suppliers’ Association (PSSA), of which Alastair Henman is a director.

Zaun is a proud British manufacturer and founder member of the Made in Britain campaign, a key player in the UK fencing market and one of the fastest-growing companies in an increasingly competitive industry.

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