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 INTER-COMPANY TRADING Outcomes Existing • Security of supply / New Bristol Chippenham resilience Bath • Meet demand for water B R Area of surplus • Reduce abstraction, Area of deficit improving the Bridgwater Salisbury ecology of sensitive SPINE rivers . Taunton Shaftesbury INTRA-COMPANY GRID • Manage raw water Yeovil Existing network deterioration Blandford Integrated Grid Forum Source at risk of exceeding nitrate limits Dorchester Bournemouth Stand alone source Low flow source Poole E L 0 10 20 30 40 50 Kilometres 0 10 20 30 Miles 3
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 AMP5 AMP6 AMP7 AMP8 2015-16 2020-21 2025-26 Transition Transition programme Transition programme programme Integrated water supply grid North Bristol sewerage strategy WINEP Environmental programme Strategic capital maintenance • 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 improve 6
Partnering and alternative approaches Catchment management and EnTrade Catchment permitting Optimise the installation of tertiary treatment at STWs Nitrogen offsetting Safeguard zone protection
Customer priority targets - reducing leakage & pollutions • Particular future focus on monitoring, smart networks, artificial intelligence and machine learning 8
3. Aligning risk and return with innovation and customer focus • Minimising cost while making step We are part of a system & a community 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…
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 Visit marketplace.wessexwater.co.uk 12
WW Community Commitment • Community engagement • Volunteering • Addressing water poverty • Vulnerability • Refill points • Education • Investment • Water efficiency 13
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 activity 14
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