“The approach to infrastructure investment is in transition across the utility industry. Whereas spending was previously mainly output-driven, future investment decisions will be increasingly centred on innovation, asset optimisation and long-term outcomes. Operators will also be challenged by rising pressure from industry regulators to reduce costs for consumers, which highlights the importance of cost efficiencies in capital investment decisions.

Although changes in the regulatory framework are likely to restrict traditional network investment, they also provide opportunities for the supply industry, particularly for companies offering innovative solutions and new technologies that facilitate efficient and optimised asset management. The strongest growth is expected in the energy networks sector, driven by rising electricity demand versus the closure of generation capacity, changes in the energy mix and the growth of low-carbon technologies.”

Claudia Preedy - B2B Analyst

This report answers the following questions:

What does the shift towards total expenditure (Totex) and long-term outcomes in AMP6 mean for the water and sewerage industry?

What are the implications of Brexit on the UK water and sewerage sector?

Will the UK's decision to leave the EU affect the country's renewable energy generation and decarbonisation targets?

What are the key drivers for investment and challenges facing the electricity transmission sector?

What are the key drivers for replacement expenditure by gas distribution network operators?