Post on 03-Oct-2020
Strategic planning for long-term asset delivery
Implementing your 5-year business plan
Neil Wilson – Director of Risk & Investment
1. Building risk and resilience into our plan
• Understanding risks
• Assessing relevant shocks and stresses
• Creating combinations of risks as scenarios to test
• In our case we looked at • Financial (long term viability)
• Corporate
• Operational
• Environmental
• Identifying strategic solutions
Integrated water supply grid
Outcomes
• Security of supply / resilience
• Meet demand for water
• Reduce abstraction, improving the ecology of sensitive rivers
• Manage raw water deterioration
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0 10 20 30 40 50
0 10 20 30
Kilometres
Miles
B R
E L
BristolChippenham
Salisbury
Bournemouth
Poole
Dorchester
Taunton
Bridgwater
Yeovil
.SPINE
Existing network
Integrated Grid
Source at risk of exceeding nitrate limits
Stand alone source
Low flow source
INTRA-COMPANY GRID
Blandford
Forum
Shaftesbury
INTER-COMPANY TRADING
Existing
New
Area of surplus
Area of deficit
Bath
North Bristol Strategic Sewerage Programme
2. Long-term resilience aligned with customer preferences
• We asked our customers.
• Aligned our resilience plan:
• Forward planning - overlap programmes to achieve long-term improvements
• Partnering - with our community and environmental stakeholders to find the lowest impact solutions
• Targets - challenging package of performance commitment targets aimed at environmental improvement.
Long-term planning – smoothing the investment cycle
• We have succeeded in substantially smoothing the investment cycle
• This benefits our in-house delivery resource and our supply chain
• As a result procurement, standardisation & innovation can improve6
AMP5 AMP6 AMP7 AMP82015-16 2020-21 2025-26
Transition programme Transition
programme Transition programme
Integrated water supply grid
North Bristol sewerage strategy
WINEP Environmental programme
Strategic capital maintenance
Partnering and alternative approaches
Catchment management and EnTrade
Nitrogen offsetting
Catchment permitting
Optimise the
installation of
tertiary
treatment at
STWs
Safeguard zone protection
Customer priority targets - reducing leakage & pollutions
• Particular future focus on monitoring, smart
networks, artificial intelligence and machine learning
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3. Aligning risk and return with innovation and customer focus
• Minimising cost while making step changes in performance and resilience.
• Over £100m savings identified BEFORE we submitted the plan
• Mitigating risks through • Customer and community focus
• Environmental priorities
• Long-term resilience through not building assets…
We are part of a system & a community
Our solutions approach
• Focusing on understanding the challenge and identifying solutions
• ‘No build, later build, smaller build’ mantra
• Seeking opportunities for early procurement, standardisation, modular build
• Identify alternative, innovative solutions and delivery routes
• Recognising we don’t have all of the answers…
Sharing challenges to deliver better value
We will share challenges with the market, with the supporting data, to identify whether there is a better value solution than the traditional asset led approach.
Increasing partnerships with other organisations that can help us deliver our plan:
– agricultural sector
– debt advice sector
– opening our data to academia and our supply chain
– engagement with other local businesses, suppliers and contractors
Wessex Water Marketplace
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Visit marketplace.wessexwater.co.uk
WW Community Commitment
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• Community engagement
• Volunteering
• Addressing water poverty
• Vulnerability
• Refill points
• Education
• Investment
• Water efficiency
WW Community Foundation
• A single “Wessex Water Community Foundation” encompasses all our
funding of charities, foundations and community projects
• The Foundation aims to increase the resilience of communities by funding:
– independent debt advice and benefits assistance
– financial literacy
– community environmental schemes
– schemes which improve STEM skills
– schemes that increase workforce diversity
– schemes that promote social cohesion
• The Foundation will be governed and administered by an independent
organisation and report each year on its activity14