Responding to Regulatory Pressure in AMP8: Innovation, Transparency, and Trust

The 2025–2030 Asset Management Period (AMP8)
signals a decisive regulatory shift for the UK water sector. 

Mounting public and governmental scrutiny, particularly concerning pollution, sewage discharges, and environmental performance, is reshaping expectations of how water companies operate, report, and engage with their customers.

AMP8 introduces a more demanding regulatory framework, with Ofwat requiring clearer accountability, measurable outcomes, and evidence of action. Water companies must now demonstrate visible progress in addressing storm overflows, leakage, and environmental degradation, while maintaining high standards of customer service. Success will depend on embedding transparency and digital capability across operations, service delivery, and communication.

Tactics for Regulatory Alignment

1. Build Transparent, Customer-Facing Digital Platforms

Companies should invest in centralised digital hubs that give customers direct access to service updates, environmental performance data, and incident reporting. These platforms can serve as a transparency tool, publishing real-time metrics on pollution events, response times, and leakage performance, showing regulators and customers what is being done and when.

2. Use Predictive Analytics to Minimise Risk

Machine learning and big data models can anticipate network failures, reduce unplanned outages, and prioritise maintenance. Sharing this proactive approach with customers,
via personalised updates or explainer content, can demonstrate responsibility and reassure them that infrastructure is being actively managed.

3. Develop Digital Self-Service Tools

Providing online billing, personalised usage insights, and live chat support helps meet growing customer expectations. These tools not only improve convenience and satisfaction but also reduce call centre pressure, freeing up resources for more complex or vulnerable customer cases

4. Deploy Behaviour Change Campaigns with Measurable Impact

Water efficiency campaigns can be enhanced through nudging techniques, such as gamified apps or community challenges that encourage reduced consumption. Pairing these with usage dashboards helps customers visualise their impact
and strengthens their role in achieving regulatory targets.

Making Innovation Visible

Smart infrastructure and IoT-enabled monitoring are already being used to detect leaks and manage assets more effectively, but their value must be visible to the public. Communicating what’s happening behind the scenes, through infographics, dashboards, or even augmented reality tools, can help turn operational improvements into customer confidence. Moreover, by integrating digital twins and real-time data sharing, companies can offer regulators a clearer audit trail, while demonstrating to customers that service improvements are evidence-based, proactive, and accountable.

Strengthening Trust Through Proactive Communication

Regulators and customers both expect more than basic reporting, they want timely, two-way communication. This means using push notifications, personalised alerts, and digital newsletters to keep customers informed before, during, and after service issues. Water companies should also explore community listening platforms to capture and respond to localised concerns, closing the loop on engagement.

Collaborate for Sector-Wide Progress. Regulatory pressure is also driving the need for shared solutions. Collaborative platforms between companies, academia, and technology providers can support co-developed innovations that meet compliance needs and scale across the sector. Public-facing innovation dashboards, updated quarterly, could be introduced to showcase sector-wide initiatives and their real-world benefits, reinforcing transparency and trust.

AMP8 is not just a compliance exercise, it is a reputational turning point. Water companies must demonstrate that they are listening, innovating, and acting in the public interest. Those that embed digital solutions into the customer journey, communicate with clarity, and collaborate for collective progress will be best placed to build lasting trust and outperform regulatory expectations.