In England and Wales, Asset Management Plan (AMP) periods frame the municipal water and wastewater market. Structured in 5-year cycles, AMPs rely on utilities' dedicated business plans that establish investment levels, performance targets, and service standards, and are overseen by the sector's regulator, Ofwat. Over the past months, preparation for AMP8 has stepped up, as the industry has been bracing for the next investment cycle that will start in April 2025.

AMP8 promises to be a critical landmark, given the proposed investment levels, required performance improvements, and public pressure the sector is under. Over the last years, utilities have faced a wave of unprecedented public protests over their level of underperformance with leakage and pollution incidents having drawn the most public outcry. In September 2023, Ofwat requested utilities to return an overall £114 million to customers in underperformance payments for the year 2022/23. The sector’s financial health also remains a key concern as accumulated debt has left some utilities on the verge of bankruptcy.

Water and wastewater utilities’ proposed business plans accounted for a never-before-seen £104.6 billion overall investment package. On July 11, Ofwat published its draft determinations regarding those plans, requesting significant revisions from utilities.

This Insight Report provides a comprehensive analysis of the English and Welsh water and wastewater market. Bluefield reviews features of the utilities’ proposed business plans, including core investment areas, key performance targets, and financial strategies, and provides an assessment of Ofwat’s draft determinations covering authorized investment levels and major areas of requested improvements.