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