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Water

The perfect commercial model for capital investment will take utilities to a new frontier

The best starting point to the winning formula is a model that loops and links the capital business strategy. This ties the overall capital strategy to the latest price review.

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100% visibility of actual costs can reduce expenditure programmes by up to 7%

Regularly faced with poor data quality, weak financial controls and limited visibility of suppliers’ systems and processes, quite often capital and operational expenditure is ineffectively monitored.

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Improving regulatory returns

Improving regulatory returns With utilities’ regulated businesses governed by RPI-X models of funding, it is important that they constantly find new ways to remain competitive and extract real business value from the supply chain.

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Bottom line improvement

The credit crunch is tightening its grip on financial resources and the utility regulatory review process is scrutinising business efficiency. So it is no suprise that renewed vigour has been applied to strategies of business efficiency and thrift.

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The AMP5 Challenge

There are several critical elements of best practice delivery models but are the lessons learnt comprehensively considered, implemented and maximised before the onset of the next AMP period?

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Effective close-out will enable water companies to focus on the new regulatory period

Effective close-out will enable water companies to focus on the new regulatory period Effectively closing out the current regulatory period can unlock significant efficiency savings. Traditionally however, this has been given a low priority.

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Water
 

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Terry Povall
Head of Utilities
t + 44 (0) 151 243 8490

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