Supporting improvements in the utility’s asset planning approach aligned to Ofwat’s Asset Management Assessment (AMA) framework

Affinity Water Asset Planning Improvement Programme

The Asset Management Assessment (AMA) framework is a benchmark used by Ofwat—the water industry economic regulator for England and Wales—to assess whether a company is following a best practice approach to prepare its investment needs for capital maintenance.

At price review 2009 (PR09)—when water companies set a five-year business plan and corresponding tariffs—Affinity Water (AW) scored the lowest of all English and Welsh water companies. During the run-up to the 2014 price review (PR14), AW commissioned Stantec to provide periodic assurance and benchmarking of their asset management and planning approach against Ofwat’s previously defined AMA framework. Following an audit and evidence-based benchmarking, we presented our outputs and recommendation to AW’s asset management director. Subsequently, we provided support and mentoring to AW’s programme manager for asset management improvement. As AW was focused on improvement, they were fully bought into the programme and had executive sponsorship.

This commission supported the improvement of AW’s approach and overall AMA score to exceed 4.0 on a 5-point scale. They were able to receive Enhanced Business Plan status and an early determination from Ofwat for PR14—saving them money in business planning costs and earning them additional reputational and financial incentives.