The UK water industry has adopted an inherently risk-based approach for determining investment requirements for asset stocks. Understanding risk demands knowledge of probabilities and consequences of failure, impacts on serviceability indicators, and an awareness of uncertainties / asset deterioration. This knowledge enables estimation of 'whole of life' costs of asset ownership, which can be used to determine cost benefits of asset rehabilitation and maintenance. However, there is currently no accepted strategic methodology for comparing risks and costs across the range of asset groups. Hence, there is no effective method for strategic prioritisation.
This project developed a methodology to facilitate the understanding of risk and costs of managing the risk across the range of Water Utility assets. This has provided a basis for consistent asset management across the business and for estimating relative priorities of capital or operational expenditure.
The methodology supports effective, integrated decision-making helping Utilities to optimise investment and meet demanding efficiency targets by maximising value from available spend and minimising risk across the asset base. Specific benefits are:
- Improved efficiency and consistency of investment decisions
- Provision of a consistent basis for prioritising spend
- Definition of a focus for gathering key data in the future.