The
industry is currently driven by environmental legislation. But these same
regulations can restrict innovation when compliance is needed 24/7. These
tighter environmental standards get even tighter as the mitigate down the
supply chain to sub-contractors who understandable want to impose a safety
margin to avoid liquidated damages for performance failure.
There
is innovation happening in unexpected places. Fat from restaurants and
build-ups in drains is set to power Britain’s largest sewage works at Beckton.
Certainly over the next 10 years the rate of change will be unprecedented. But
utility management is about evolution not revolution due to the need to avoid
taking massive risks.
Customers
certainly do not want risk. Many prefer the predictability of a fixed water bill,
especially having been stung with unexpected changes in electricity bills. Who
wants a different colour of water out of the tap?
How are long term targets
such as CO2 reduction to be achieved if the rules are changed. Money is spent
on carbon reduction projects then the rules affecting their financing get
changed. It is not an incentive to innovate instead it pushes unrealistically
short term paybacks.
