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Ofwat Challenges UK Water Utilities to Evolve
On 21 November 2017, the outgoing head of UK water sector regulator Ofwat provided an update on price review 19 (PR19), which underscored its outcome-focused approach. The update also offered a longer-term vision for making utilities more efficient.
PR19 has received significant criticism from UK utilities who argue that the tariffs will stifle investment. In this Research Note, Bluefield water experts look at Ofwat’s call for change as well as market forces impacting the water utility model.
More Bluefield analysis on this topic:
- Thames Water Penalized £8.6 million as Leakage Skyrockets
- AMP6 Seeks Sea Change for UK Utility Market
- Water Plus JV Ripples through UK Utility Competition
- Leakage Management in Europe: Water Utilities Develop Multi-Vendor Strategies
DC Water De-risks Innovation With Impact Finance
DC Water, one of the 850 water & wastewater utility networks across the U.S. with a combined sewer system, has deployed an innovative financing tool to minimize risk and fund infrastructure projects.
Under a 2005 EPA consent decree, the utility launched a US$2.6 billion initiative to construct three underground storage tanks to store stormwater during peak flow, and reduce untreated discharge.
However, in 2015, DC Water renegotiated its consent decree to explore offsetting the need of a capital intensive storage tunnel with over 490 acres of green infrastructure. With approval, the utility has partnered with Quantified Ventures to launch the first Environmental Impact Bond (EIB) in the U.S.
Given the increasing number of large weather events and combined sewer overflows, the emergence of EIBs and green infrastructure solutions are expected to scale.
Rockwell Still Resisting Emerson’s Offers for Deal
On 22 November 2017 Milwaukee-based Rockwell Automation rejected St. Louis- based Emerson Electric’s proposed acquisition for to US$225 per share, or approximately US$29 billion. This latest offer represents the third time in as many months that Emerson has been stymied by its smaller rival.
The roll-up of Rockwell and more diversified Emerson would shake up the competitive landscape for electrical drives, including those for water and wastewater applications.
In this Research Note, Bluefield’s water experts analyze the implications and likelihood of such a deal going forward and the impact on competing suppliers. More analysis of U.S. Municipal water markets.
Bringing Water Balance to Business
Bonneville Environmental Foundation (BEF) CEO Todd Reeve provides a fascinating look into BEF’s work. Todd discusses BEF’s creation of water restoration certificates, relates his insights into key...Declining Construction Spend Raises Questions for Water Sector
In September 2017, the U.S. Census’ monthly construction report further highlighted a downward trajectory in water supply and sewage and waste disposal spend. This negative trend, which has been ongoing since 2008 for water supply, has begun to undermine the confidence of companies across the municipal water sector’s value chain.
The bigger questions addressed in this Research Note include: Is it real? What is the reporting methodology? What factors are influencing this trend? How does it stack up against Bluefield’s projections?
In the wake of tightening municipal budgets, environmental violations, and aging infrastructure, the municipal water and wastewater sectors are undergoing a change that has longer-term impacts on supply chain strategies, private participation in water, and overall investment.
Bluefield water experts put the data in context and lay out a perspective of the construction spend in the water and wastewater markets going forward.
Coal Ash Ponds: Regulatory and Market Trends for Water Solutions Providers
Market forces are rapidly undermining the U.S. electric power sector’s reliance on coal and increasing pressure on utilities to take action. The EPA recently finalized the Coal Combustion Residuals (CCR) rule that establishes requirements for the disposal of coal ash in landfills and surface impoundments.
These new regulatory measures, even if ultimately repealed by the current administration, add to broader and more impactful economic market forces that are compelling utilities to close and remediate coal ash ponds. There are approximately 1,227 coal ash ponds located at 321 storage facilities. More than 95% of coal ash storage capacity is located in 20 U.S. states.
Remediation and closure of coal ash ponds will require investment in dewatering systems and treatment systems for contaminated water.
In this Data Insight, Bluefield water experts frame the market by geography, scale, and regulatory outlook for closures & remediation and analyze the impact on water solutions providers.
