“In 2015/16, the first year of the new five-year asset management period AMP6, gross capital expenditure across the water and sewerage industry was recorded at £4.45 billion. The figure is not directly comparable to previous years due to changes in reporting categories, but capital expenditure is still believed to have been lower than previous years. This largely reflects the completion of many EU legislation-driven capital projects, which dominated activity in recent spending periods, and a shift in focus from capital spending to totex.

For AMP6, Ofwat has introduced a move towards totex, combining capital and operational expenditure. Ofwat believes this will remove a bias toward capital programmes as capital expenditure has often been preferred over operational expenditure in delivery solutions due to the design of the regulatory framework.”

- Claudia Preedy -B2B Analyst

This Report answers the following key questions:

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

What recent developments are preparing the industry for the opening of the non-domestic retail market in 2017?

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

What are the initial expectations of the regulatory framework for the Price Review and beyond?