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INFORMATION – available for immediate release Ref. BWM HL 011 article for WWI |
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| UK Investment Needed To Exploit the Benefits of New Technology | ||
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Significant opportunities exist for UK Water Companies to improve the incorporation of new technologies. Following interviews with key staff in 8 of the UK’s major water companies, it is clear that British conservatism is alive and well, but that this is not necessarily attributable to the psyche of the British businessperson. The research upon which this article is based, involved a study of the processes by which new technologies are sought and/or acquired and by which they are assessed and incorporated into the infrastructure of the British water industry. A new dissolved oxygen measurement technology that is currently at various stages of assessment and incorporation in all of these companies, will be used as an example to demonstrate the process. All British water companies believe that they are conservative in their approach to new technology, and there are four main reasons for this. Firstly, some of them concede that the British might be conservative by nature – they prefer to invest in technologies that are well proven, rather than taking risks. However, most companies pointed out that the British water industry is heavily regulated, and as such it is risk-averse and the penalty for failures can be severe. In addition, Robin Lennox, ICA Specialist for South West Water reminds us that the value of our end product is relatively low, and consequently the payback on investment in technology is lower than it would be in the Oil Industry for example. Dr Issy Caffoor from Yorkshire Water and Marie-Pierre Whaley from Northumbrian Water, both add that there is little incentive for British water companies to invest in new technology unless the payback is both high and highly predictable. The process by which companies acquire, evaluate and incorporate
new technology are broadly similar across all of the water companies interviewed.
In many instances, if a technology is likely to be purchased in a significant quantity, it may become the subject of a Purchasing or Framework Agreement. These agreements generally run for 2 two 5 years and follow the regulatory 5 year periods, and their benefit lies in both a reduction in purchase prices and in administration costs. However, opinion varies as to whether such agreements can hinder the introduction of new technology. Anglia Water, Severn Trent Water, and Yorkshire Water all agree that if a new technology is approved at a time that does not coincide with the review of a Framework Agreement, then incorporation may have to wait for a window of opportunity. In contrast, Southern Water, South West Water and Welsh Water are able to assimilate new technologies irrespective of any existing agreements. A new technology that is currently at various stages of
either evaluation or incorporation in all of the British Water Companies
is Hach Lange’s new Luminescence Dissolved Oxygen (LDO™) sensor.
This technology was developed to resolve some of the maintenance and calibration
issues that exist with traditional membrane-based sensors. Its main benefit
lies in the improved control of aeration in activated sludge, which is
an important application because the energy consumed in this process accounts
for 60 to 70% or the total plant operational costs. As such, most companies
have recognised a need to improve the aeration control process. It is interesting to note that the incorporation of a
new dissolved oxygen measurement technology is furthest back in the process
at Welsh Water, and it may be that the company’s structure is the
cause - Welsh Water is structured in a different way to the UK Water PLCs
in that under the ownership of Glas Cymru, it has outsourced the delivery
of many of its day-to-day operations. . However Tim Speakman, Engineering
Manager at Meica Process, one of Welsh Water’s strategic contractor
partners delivering its investment programme, believes that “this
structure, coupled with a ‘bath to bay’ approach puts us in
a better, more flexible, position to exploit new technology. This ‘bath
to bay’ approach provides a more holistic view of a ‘catchment’,
which means that we can prioritise action for improvements. As a result,
capital and operational budgets have to work together very closely. So,
from a new technology supplier’s point of view the benefits they
can offer will have to compete with, say, the benefits of action on flooding
or sewer overflow.” Another area of the new technology process with obvious
potential for improvement is the sharing of knowledge and experience.
For example, some new processes are expensive to pilot, so one company
might invest in a trial and invite others to view the results. Similarly,
companies may instigate research internally, at Universities or with organisations
such as WRc. However, UK water companies are essentially in competition
with each other so there is a danger that it would not be in their best
interest to share knowledge. In conclusion, the processes by which UK water companies incorporate new technology are well developed, however, the continuous incorporation of new technology is only likely to improve if the UK Government and the Regulator are able to create appropriate incentives, and if the industry as a whole is able to share knowledge and experience, without affecting competitiveness. Ends For
further information, contact Nikki Mellor, UK Marketing Manager, Hach
Lange |
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