Thames Water tries new approach with contractors to promote innovation

Thames Water is asking contractors how they can best work together to meet the challenges of the 2015 to 2020 investment period and beyond.

The water company has made appointments with nearly 50 contractors, both first and second tier – a different approach to previous asset management cycles.

Lawrence Gosden, capital delivery director at Thames Water, said the early engagement was driven by the need to keep customer bills affordable in the face of ageing infrastructure.

“We are going to have to be innovative to a new level in the water sector,” he said. “The key to this is getting right on the front foot.”

Last month, Infrastructure UK (IUK) published a report on tackling the long running problem for water supply chain businesses of the stop-start investment cycle. It recommended water companies integrate better with their supply chains to boost efficiency and promote innovation.

IUK also called on Ofwat to be more transparent and predictable in the price setting process and offer more certainty at the draft determination stage. Gosden said he was “extremely hopeful” that Ofwat would keep its end of the bargain. “There is no point working with contractors early if the determination changes.”

The firm is about a quarter of the way through its first consultation phase and is getting “some fantastic feedback”, Gosden said. “Once we have completed that, we will be using all of that intelligence to underpin our delivery strategy for the next five years.”