As the UK water industry enters the eighth Asset Management Plan period (AMP8), the regulatory landscape is undergoing a significant transformation. Ofwat’s AMP8 assurance framework is setting the tone for the next five years, with heightened expectations around net-zero commitments, customer-centric outcomes, data transparency, and long-term infrastructure resilience.
For water companies, this means more than just meeting compliance checkboxes. It requires a strategic, integrated approach to assurance, one that not only validates technical and financial submissions but also builds trust with regulators, customers, and stakeholders.
The rising bar of regulatory expectations
AMP8 is not business as usual. Ofwat is demanding greater clarity, consistency, and confidence in the data and narratives that underpin business plans. This includes:
Net-zero alignment: Credible decarbonisation pathways
Customer value: Tangible benefits from investment
Data integrity: Accurate, auditable performance and cost data
Resilience: Protection against climate, operational, and financial shocks
Assurance is no longer a back-end validation exercise. It is a strategic enabler of regulatory success.
Technical assurance: Building confidence in delivery
Technical assurance verifies the feasibility and robustness of asset investment programmes. Whether it’s a major capital scheme or a targeted maintenance programme, regulators want to see that proposals and the ongoing delivery are grounded in sound engineering, realistic delivery timelines, and can justify continued investment.
A structured assurance approach, aligned with ISO19011:2018 and the Institute of Internal Auditors’ Three Lines of Defence model, ensures that technical submissions are not only compliant but credible. This includes:
Independent assurance of asset strategies and delivery plans
Validation of assumptions, methodologies, and risk assessments
Alignment with WRMP, DWMP, RAPID, DPC, and other statutory planning frameworks
Annual performance reporting assurance: Getting the numbers right
Data underpins regulatory decision-making. Inaccurate or inconsistent data can undermine even the strongest business case. That’s why data table assurance is essential.
This involves:
Verifying the accuracy, completeness, and traceability of submitted data
Ensuring consistency across financial, performance, and asset datasets
Identifying and resolving anomalies before submission
With Ofwat’s focus on data quality, robust assurance processes are critical to maintaining credibility and avoiding penalties.
PCD and delivery plan assurance: Turning funding into outcomes
Price Control Deliverables (PCDs) and delivery plans must show that enhancement funding is being used effectively. Without robust assurance, even well-intentioned plans risk falling short.
This involves:
Validating that delivery plans are realistic, well-sequenced, and supported by appropriate governance
Providing independent evidence that PCDs are on track to be delivered to scope, time, and quality
Monitoring progress against key milestones and proactively managing delivery risks
Confirming that outputs meet Ofwat’s completion criteria before claiming delivery
With funding tied to outcomes, assurance protects reputations, secures future investment, and maintains regulatory confidence.
A proactive, risk-based approach
Effective assurance programmes are proactive, risk-based, and tailored to the unique context of each organisation. This means:
Prioritising high-risk or high-impact areas for deeper scrutiny
Coordinating across internal and external assurance providers
Embedding continuous improvement through lessons learned and feedback loops
By taking this approach, water companies can meet regulatory requirements while driving operational excellence and stakeholder confidence.
Business case assurance: Strengthening the narrative
PR29 business plans must tell a compelling story, one that balances ambition with affordability, and innovation with accountability. Assurance strengthens this narrative by:
Testing the coherence and consistency of business cases
Validating cost-benefit analyses and investment justifications
Ensuring alignment with customer priorities and long-term outcomes
Embedding assurance early in the planning process can avoid costly rework, reduce regulatory challenge, and improve the likelihood of funding approval.
Looking ahead
AMP8 represents both challenge and opportunity. Success will come to those who treat assurance as a strategic asset, enabling better decisions, stronger performance, and resilient outcomes.
As the industry prepares for successful AMP8 delivery and looks to PR29, now is the time to invest in assurance capabilities that are agile, insightful, and aligned with the future of water regulation.
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