07/05/2013

What is holding back innovation in the water sector?


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.