The water industry finds itself at a crossroads. With the Cunliffe Review laying out an ambitious path forward—one that includes sweeping reforms like scrapping Ofwat—the focus is now shifting from what needs to change to how we make it happen.
Over the coming months, as other recommendations are formalised, attention will turn to how these changes - such as establishing regional systems planning – are implemented and enabled.
High on the list should be our ability to harness the power of digital and data capabilities in a way that truly supports people working in the sector and the communities they serve. The report itself calls for greater and faster adoption of technology by regulator and industry alike, but the devil is in the detail.
In this piece, our Director of Water & Energy, Ben Lever, points to three cross-industry data and digital priorities that will enable a raft of Cunliffe’s 88 recommendations.
1. Asset ontologies:
Running through Cunliffe’s recommendations is the ambition to create a systems view of sector assets and plans – so we can better plan, monitor and act. To do this we need a common language for assets and components, so we know we are comparing like-for-like when we integrate them. Ontologies – our common language - is the building block for this ambition. It’s the foundational enabler that allows currently siloed data sets to be joined together in a way that makes sense for systems-level planning and decision making. Some water companies are developing their own ontology databases to create a common view of their assets; but to get truly “systems’ about it, we need an industry-wide set of definitions, with overarching stewardship and governance.
The bottom line: Industry collaboration and stewardship of an ‘ontology dictionary” is the foundations for systems-thinking.
2. Open data:
However we structure our data, the ability to make better decisions that reflect the true nature of our blurred, messy geographical and policy boundaries, depends on pooling data of value – from sensors, meters, operations and citizens. Clearly there are challenges in sharing critical national infrastructure data and having a neutral broker for data exchange and quality assurance. Initiatives such as Stream are helping tackle this, and will need continued support and funding to give us a truly open data institution. From a Cunliffe perspective, open data helps unlock several key recommendations, including the transparency that enables a “polluter pays” principle, developing regional systems plans and supercharging innovation.
The bottom line: Sharing data, underpinned with trust and security, is key to smarter planning and operations.
3. Regulator digitisation
Cunliffe has pointed the finger firmly at the industry regulator and the government has followed suit. Ofwat will be no more. A new, combined body, equipped with wider powers and remit will replace it. Structural, legislative changes will bring this about and quick wins will be achieved by having previously separate organisations, sitting, albeit virtually, under one roof. But the real value will be unlocked once this new organisation is equipped with the technologies, data and skills that make it efficient, credible and effective. Modern IT infrastructures and user-facing digital services will deliver win-win of operational efficiency and “customer” satisfaction. AI will manage caseloads and improve decision-making; Monitoring tools and analytics will bring polluters to account. Without the investment in these capabilities, the effectiveness and credibility of any new body will be held back.
The bottom line: New regulator capability and credibility will be enhanced by widescale digital adoption.
Conclusions
There are many other capabilities, both technological and otherwise, that are needed. But for me these three data and digital investments represent the cross-industry fundamentals that will enable so many of the recommendations put forward by Cunliffe. With so much change happening, focus will be key; let’s apply it to what’s going to enable the biggest impacts.
And of course, technology is not the whole answer. It is after all, all about people. But people need the tools to make the changes we all want, and need, to see. How these capabilities are designed and deployed needs to be led by the people who will use and be affected by them – rather than a build-it-and-they-will-come approach. Let’s convene those who know the sector alongside those who know the technology, and build the reformed industry that’s been called for. Together.