Blog Hero Water Treatment - Copperleaf Decision Analytics

September 24, 2024

Written by: Matthew Bather

Preparing for AMP8: Copperleaf Supporting UK Water Companies During the Largest-Ever Investment Period

With Draft Determinations issued and responses submitted, the period between now and the Final Determinations in December is crucial for preparing for Business-As-Usual (BAU) in AMP8. This is a significant time for the UK water sector, which must develop detailed investment plans that meet or exceed performance commitments, targets, and ODIs (Outcome Delivery Incentives). AMP8 requires the sector to deliver the largest capital investment amidst high regulatory and public scrutiny, while keeping customer bills at acceptable levels.

Most UK water companies have been relying on Copperleaf’s Asset Investment Planning (AIP) solutions for PR24 planning. They will continue to depend on Copperleaf to ensure efficient and transparent development and delivery of AMP8, aimed at meeting ODIs and stakeholder expectations.

1. Mitigating Delivery Challenges in AMP8

Copperleaf supports water companies in mitigating delivery challenges through:

  • Reduced Uncertainty: Improved investment planning increases confidence in meeting capital commitments.
  • Strategic Planning: Early achievement of outcomes reduces the risk of missing targets later in the AMP8 period.
  • Enhanced Visibility and Agility: Better visibility and business agility align decision-making with strategic objectives.
  • Scenario Analysis: Insight into project impacts under various scenarios aids in making informed trade-off decisions.

2. Facing Intense Scrutiny

Water companies face intense scrutiny from shareholders, customers, and regulators. The Copperleaf solution helps companies mitigate this scrutiny by:

  • Justifying Investment Plans: Quantifying benefits and understanding the impact of changes and alternatives.
  • Transparency: Creating transparency for stakeholders, reassuring them of the company’s commitment and capability.
  • ODI Balancing: Incorporating advanced capabilities to ensure optimal decision-making and quickly identify underperforming areas.
  • Long-term Strategic Planning: Considering uncertain factors like changing demands, climate impacts, and political oversight.

3. Managing Ongoing Changes and Risks

Changes and risks are inevitable during the delivery of asset management plans. The Copperleaf solution enables companies through:

  • Risk Management: Assisting in managing emerging risks and integrating them into planning and operations.
  • Resource Management: Helping manage plans within existing and fluctuating resource and supply chain capabilities.
  • Enhanced Line of Sight: Ensuring commitments are visible and achievable from the boardroom to delivery teams.
  • Organizational Agility: Allowing rapid recalibration and optimization of plans as conditions change.
  • Regulatory Reporting: Managing project data to support regulatory reporting requirements.
  • Governance and Control: Providing governance and control to assure any deviations from original plans.
  • Collaboration: Promoting collaboration and efficiency by breaking down silos across planning and delivery teams through automated integration with key systems.

The period between Draft Determination and Final Determination is critical for the UK water sector. Copperleaf’s AIP solutions are essential in ensuring that plans for AMP8 are meeting, and exceeding targets, while keeping stakeholders and regulatory bodies informed.

Join us at WWT (Water & Wastewater Treatment) Next Generation Asset Management & Capital Projects Conference for a cup of good coffee and further discussions on how Copperleaf can assist during this crucial period.