The UK’s ageing wastewater pipe network is increasingly in the spotlight. High-profile challenges such as internal and external flooding, Combined Sewer Overflow (CSO) spills, and pollution incidents dominate headlines daily. These issues are not only disruptive to communities but also directly impact Outcome Delivery Incentives (ODIs), which set performance commitment levels and unlock outperformance payments for water companies.

The logical conclusion for many is to build additional capacity – yet this approach raises a critical question: how do we balance the need to spend more with the need to spend more efficiently?

At Adler & Allan, we believe the answer lies in maximising existing assets to improve outcomes and transform environments. By combining three key capabilities, we can achieve three transformative results: extend asset life, boost capacity, and reduce pollution risks.

This approach is detailed in a comprehensive whitepaper, which outlines practical strategies for tackling the industry’s most pressing challenges.

1: Optimising commercial and sustainable value

As we enter AMP8, Ofwat’s focus on affordability and performance presents water companies with a dual challenge: deliver more, while spending less. Optimising commercial value is not just about cost-cutting; it is about ensuring that every pound invested generates maximum impact, balancing immediate efficiency with long-term sustainability.

Regulatory Capital Value (RCV) plays a pivotal role in determining water company price limits. With fixed investment expenditure guided by Ofwat’s final determinations, efficient delivery is essential. Maximising asset value within these constraints highlights performance and creates a unique opportunity to pair enhanced outcomes with reduced delivery costs.

This requires expertise in strategic planning, cost management, and risk mitigation. By aligning these disciplines, water companies can ensure that capital delivery programmes meet performance objectives without compromising quality or environmental standards.

2: Leveraging data and analysis for actionable insight

Despite growing efforts to enhance data capture across the UK’s wastewater network, an estimated 75% of the system remains unmonitored. This significant data gap raises an important question: how can we optimise capacity and performance when we lack a clear understanding of our infrastructure’s usage?

We believe that the network holds untapped potential. The key to unlocking it lies in insight-led investment planning, leveraging technology to deliver actionable intelligence without the need for significant expenditure.

Insight-led investment planning

The power of data is exemplified by the transformation of potable water management. Following the 1997 Emergency Leakage Summit, water companies adopted rigorous monitoring practices, enabling proactive responses to leaks and data-driven investment plans. These changes revolutionised performance, demonstrating how evidence-based strategies can create sustainable improvements.

A similar approach can be applied to wastewater systems. Comprehensive data points not only reveal underutilised capacity but also provide the baselines necessary to secure enhancement funding from Ofwat.

Transformational technology

Advancements in Event Duration Monitoring (EDM) are revolutionising wastewater management. Cutting-edge technologies, such as advanced sensors, artificial intelligence (AI), and the Internet of Things (IoT), are delivering unprecedented insights into system performance:

  • Advanced sensors: Highly sensitive and durable sensors now provide millimetric measurements of water flow, reducing maintenance costs and improving accuracy.
  • AI and machine learning: These technologies analyse vast datasets in real time, identifying patterns and predicting overflow events. By enabling quicker responses, they enhance efficiency and reduce pollution risks.
  • IoT-enabled smart monitoring: Connected sensors and control systems offer real-time insights, delivering a holistic view of network performance.

Such innovations not only optimise existing assets but also provide water companies with the tools to proactively manage their systems, reducing reliance on reactive measures.

3: Improving hydraulic capacity and extending asset lifespan

Storm overflows are a persistent challenge, and volumetric storage is often seen as the solution. However, building larger storm tanks is not always effective, particularly in urban areas. Tanks fill rapidly, fail to return to capacity before subsequent rainfall, and struggle to keep pace with urban development.

A more sustainable approach focuses on outcome-driven storage. By analysing inflows and outflows, companies can right-size their storage solutions. Often, a more effective strategy is to reduce the amount of water entering the system upstream, minimising the need for pumping and treatment – two of the most significant operational costs and sources of CO₂ emissions.

Operationalising your assets

Maximising hydraulic capacity starts with ensuring that assets operate as originally designed. This involves asking three fundamental questions:

  • Do you know where your assets are?
  • Do you understand their design standards?
  • Are they performing to those standards?

Locating assets is the first step. Expert CCTV surveys provide a detailed map of underground infrastructure, highlighting blockages, cracks, and other issues. Regular maintenance prevents these problems from escalating, extending the lifespan of assets and improving performance.

For networks perceived to lack capacity, a closer examination often reveals opportunities to optimise performance. By leveraging data, companies can identify underutilised assets, diagnose issues, and implement cost-effective maintenance measures to boost hydraulic capacity without resorting to large-scale construction projects.

Redirecting capital investment

Improved flow capacity not only reduces the immediate strain on assets but also frees up resources for broader strategic initiatives. Proactive maintenance reduces dependency on the supply chain, allowing capital to be reinvested into projects with greater environmental, operational, or customer impact.

The power of combined capabilities

We recognise that water companies face mounting operational, regulatory, and environmental pressures. To meet these challenges, a clear and coordinated strategy is essential. By combining three key capabilities – optimising value, leveraging data, and improving hydraulic capacity – companies can achieve measurable results, including reduced flooding, increased asset performance, and alignment with ODIs.

A future-ready approach

The water industry’s rapidly evolving landscape demands innovative solutions and collaborative expertise. While there is no one-size-fits-all roadmap, the steps outlined in this article – and explored further in our whitepaper – provide a clear path forward.

By adopting the 3×3 formula, water companies can harness their existing assets, technologies, and insights to drive impactful and sustainable change. To explore these strategies in greater detail, download our whitepaper HERE.