The AMP (Asset Management Plan) period is a monumental event for water companies. Starting this April, AMP8 kicked off with a large pot of funding aimed at upgrading infrastructure, boosting sustainability, and improving customer service within the water industry. Now is a critical time for water companies looking to spend this funding accurately, effectively and with positive impact. AMP8 also marks the final funding period before the sector’s new zero operational emissions target in 2030. The stakes are high: water companies must balance regulatory compliance, customer expectations, and the need for innovation, all while demonstrating tangible improvements and value for money. Here’s how you can get the most out of your AMP8 funding.
What is the AMP Framework in a nutshell?
Think of AMP as a five-year cycle. Ofwat lays out what water companies need to achieve – whether that’s fixing aging pipes, cutting emissions, or enhancing service reliability. Then, it’s up to the companies to plan and deliver. The money is there, but so are critical regulations and tough performance targets. It’s not just as simple as spending a large sum of funding, if you miss the mark then the consequences aren’t just financial – they could hit your reputation and your customers too.
Risks of inefficient AMP funding spending
If AMP funds aren’t managed well, it’s not just wasted budget, it’s missed opportunities and real risks:
- Projects that don’t deliver could leave customers with poor service or result in environmental harm.
- Falling short on targets or not meeting Ofwat regulations could lead to financial penalties.
- And in today’s climate, poor delivery can seriously damage trust with regulators, customers, and stakeholders.
AMP7 highlighted some of these risks. As we transition into AMP8 it’s important that water companies learn from these challenges to ensure funds are channelled into projects that deliver measurable outcomes. Ultimately, with an aim to create a lasting impact.
Planning for long term success with AMP8
While it may be tempting to chase quick wins, the real value comes from strategic, long-term thinking. That means:
- Using frameworks to prioritise projects that align with your biggest challenges and opportunities.
- Looking beyond immediate fixes to investments that build resilience, improve sustainability, and raise service standards.
- Closing resource and skills gaps early and setting up the right level of governance that keeps projects on track.
- Managing your portfolio so you can clearly show progress and benefits – avoid simply ticking boxes, show some real outcomes.
Digital tools, predictive analytics, and data-driven decision-making are the current buzzwords, but they’re also your best allies for smarter asset management. Build future success with AMP8 by shifting your approach from reactive asset management to proactive, data-driven approaches.
Innovate responsibly with AMP8
Innovation is exciting, but it’s got to be balanced with reliability. Regulators and customers expect you to maintain core services while pushing forward with new technologies. So it’s a bit of give and take in that respect. AMP8 places a strong emphasis on:
- Investing in digital and green tech that’s proven and scalable, such as IoT, AI and machine learning.
- Meeting net zero goals without compromising day-to-day operations by driving sustainable initiatives.
- Ensuring any new solutions are both robust and scalable to ensure the reliability of essential water and wastewater services.
This is about setting a standard globally for responsible water management whilst attracting new generations of talent to tackle the growing environment demands we face in today’s climate. Ultimately, innovation is key, but not to the detriment of services and our climate.
What does AMP8 funding mean for you?
This is all well and good saying this in a blog post about AMP8, but what should you actually look to do right now? This isn’t just another funding cycle – it’s a chance to lead transformation in the water sector. To make the most of it:
- Embed strategic prioritisation and benefits tracking into everything you do.
- Champion sustainable, digital solutions that deliver long-term value.
- Build partnerships that amplify impact and share knowledge.
- Stay relentlessly focused on compliance, transparency, and customer outcomes.
Your leadership will shape not only your company’s success but the future of water services for millions. It’s a heavy crown to wear, but that’s where we can come in to help. Nine Feet Tall specialises in delivering complex change and accelerating transformation. AMP8 spending comes down to one simple point, strategic planning. Let’s chat about it today.
