Thursday, 18 February 2021

Natalie Lamb and the overview of water industry regulators in England

A number of regulators coordinate to better protect all aspects of water. Here is a brief overview of these regulators and what they do.

  • The Drinking Water Inspectorate (DWI) is a branch of government that regulates water companies in England and Wales to assess how “wholesome” water supplies are through auditing and the submission of monthly water quality data.

  • The Water Services Regulation Authority (Ofwat) is the independent economic regulator of the water and sewerage industry in England and Wales which aims to provide consumers with value for money, for example by limiting how much water companies can charge consumers and ensuring consumers receive a good standard of service.

  • The Environment Agency (EA) aims to maintain and improve the quality of raw water sources in England and Wales.


So what is an AMP year?

The regulation and maintenance of these regulations is set by The Water Services Regulation Authority (Ofwat), which decide how much consumers should pay for their water every 5 years, known as the AMP (Asset Management Plan) period. 

These AMP periods began when the privatisation of the water industry began in 1989, meaning that AMP 6 is the period running from 2015-2020, beginning on 1st April. 

As this price review determines how much money a company will have for the next 5 years, the AMP periods are also frequently used to define the duration of programmes of work as well as frameworks with contractors. This means that Research and Development Departments are required to show their progress during a 5-year period.