Data-Driven Currents: Revolutionising Water Utilities in the UK

Where is the UK water sector today?

The challenges currently faced by the UK water sector are well-documented: breakdowns in operations, talent and skills shortages, intense regulatory scrutiny, and waning public trust. These issues are compounded by mounting debt, regulatory penalties, and the delicate balance of maintaining affordable customer bills. And of course, AMP8 only adds another layer of complexity. While the industry tries to respond with a sweeping evolution in processes and ways of working, a crucial question emerges... What will drive meaningful change for you?

Here's the thing, though—the scale of AMP8 surpasses what the current water industry model can handle, creating an urgent need for innovative solutions that can revolutionise the sector. But this same pressure actually presents an equally unique opportunity. The heightened attention on your sector, coupled with AMP8's demands, gives you a chance to prove you can deliver essential services, excel in customer satisfaction, protect the environment, and provide customers with real value. Your challenge now isn't just to evolve—it's to reimagine the very foundations of your water utility operations.

Embracing a data-driven future

Water companies are already embracing the data revolution. And as AMP8 approaches, the industry is rapidly scaling up the deployment of solutions like smart meters and sensors across water networks to usher in a new era of data-driven decision-making. 

The flood of consumption and performance data will enable you to understand what's happening in your network in real-time, allowing for significant operational improvements like: 

• Precision problem-solving. Organisations can pinpoint issues to individual properties and detect them within hours instead of days. This dramatic improvement in response time and accuracy is revolutionising network maintenance. 

• Targeted investments. With granular data at leaders’ fingertips, companies can direct their resources where they'll have the most impact. The result? Significant reductions in leakage and per capita consumption, plus lower customer bills. 

• Customer-centric approach. Data-driven insights enable personalised customer experiences, leading to improved satisfaction scores and lower bills. 

• Enhanced resource management. Rich data sets are powering more sophisticated modelling of water demand, enabling companies to proactively and efficiently allocate resources. 

This data revolution isn't just about operational efficiency—it's about reimagining your water management ecosystem. By harnessing the power of data, you can simultaneously improve service, reduce costs, and enhance environmental stewardship. As we stand on the brink of AMP8, the message is clear:  those who master this data-driven approach will lead the industry into a more sustainable and efficient future. 

Three key opportunities for AMP8 success

Data alone won’t  drive fundamental performance improvements. You need to transform the way your company operates to fully realise the value of your data investments, and that means focusing on your people and your systems. 

In our experience, highly regulated industries (like yours) achieve maximum ROI on data-driven initiatives by focusing on three key areas:  

1: Preparing your people (for the future of water utilities.) 

The water sector’s skills shortage will intensify with the increased focus on data-driven operations. To bridge the gaps, you must align to a more flexible, adaptable operating model, transform through new ways of working, re-skill to embed effective use of data and systems, and employ strategies to retain your talent through AMP8 and beyond. 

2: Unlocking data’s full potential while navigating AMP8. 

Rushing to embrace data-driven solutions puts your company risks creating an isolated data ecosystem that, paradoxically, can impede your ROI. Preventing this means evaluating how data and technology are managed throughout your organisation. This includes assessing how data and technology interact with your operating model and identifying opportunities for better coordination, cost reduction, risk mitigation, and performance improvement.

Don’t lose sight of your people when embarking on data and systems modernisation. It’s all about building the right data and technology capabilities to develop a future-ready talent pipeline. 

3: Maximising investment impact with Strategic Portfolio Management (SPM). 

The water and utilities sector is juggling a lot right now. new tech, evolving people needs, operational change, and unprecedented AMP8 investments. With so much in play, tracking value and staying on strategy has never been more crucial.  

That’s where Strategic Portfolio Management (SPM) comes in. It’s not just another buzzword—it's a framework that helps you prioritise what truly matters and ensures every pound invested aligns with your goals. For water companies, SPM is your tool for navigating AMP8’s complexities, balancing short-term needs with long-term vision. It helps you adapt to market shifts and regulatory changes while demonstrating real improvements in efficiency, customer service, and environmental stewardship.  

Bottom line? SPM isn’t just nice to have—it's essential. It’s how you ensure you’re not just spending more, but spending smarter.

Your partner in water utility transformation

The water industry's moment of truth has arrived. AMP8 isn't just another regulatory period—it's your industry's chance to prove it can rise to meet the defining challenges of our time. The companies that will thrive aren't those with the biggest budgets or the fanciest technology. They're the ones that recognize this simple truth: Sustainable transformation happens when you put people at the center of change, harness data as a strategic weapon, and make every investment count toward a clear vision.  

The question isn't whether your industry will transform—it's whether you'll lead that transformation or be left behind by it. The time to act is now.  Continue your journey here. 

North Highland was recognized as a Challenger in the 2025 Gartner® Magic Quadrant™ for Strategic Portfolio Management Report.  

Gartner, Magic Quadrant for Strategic Portfolio Management,  John Spaeth, Shailesh Muvera, et al., 4 August 2025 

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