The UK water industry’s problems in managing its assets are partly due to long-term investment horizons and partly due to underground infrastructure assets—which are often more than 100 years old. These issues are further compounded by the fact that water companies have an exceptional number of assets to maintain, repair, and replace.
Tighter regulation, a drive for cost efficiencies, and the need to address climate resilience concerns all add to the mix of problems. This makes any investment decision to replace, repair, or refurbish the asset base multifaceted, with competing priorities that can create highly complex investment strategies. This leaves water companies in a difficult position when making key investment decisions.
In this Institute of Water Magazine article, Dr Martin Li, principal consultant, discusses considerations around investing in the asset health of networks.