Infrastructure update: How prepared is the water industry for its biggest ever investment programme?

Tideway 2

Source: Tideway

Geraint Jones and Simon Rawlinson of Arcadis examine the priorities and the sector’s state of readiness

Tideway 2

Source: Tideway

To fund AMP8 investment, Ofwat plans to tap into wider financial markets using models similar to that used for the Tideway tunnel, a 25km-long sewer designed to capture the sewage and rainwater from combined sewers that would otherwise overflow into the River Thames during heavy rain

Tideway 2

Source: Tideway

To fund AMP8 investment, Ofwat plans to tap into wider financial markets using models similar to that used for the Tideway tunnel, a 25km-long sewer designed to capture the sewage and rainwater from combined sewers that would otherwise overflow into the River Thames during heavy rain

01 / Introduction

The arrival of much larger water bills in April 2026 will signal the start of AMP8, the water industry’s asset management programme for 2025 to 2030, aimed at improving water network and catchment performance and resilience while reducing environmental impacts.

In all, total capital and operational expenditure (totex) on water networks in England and Wales to 2030 is planned to total £104bn before adjustments for inflation and so on, representing a 71% increase in spend. Most of this upward leap comes from a fourfold rise in enhancement investment to £44bn.

On paper, the increase in spend is huge. However, Ofwat the regulator, cut £7bn from business plan submissions. This means that the level of planned investment is likely to be the minimum required to meet binding statutory requirements covering environmental improvements, resource management, drinking water quality and emissions management.

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