Our perspective
Technologies like data analytics and artificial intelligence (AI) are revolutionizing utility management by transforming vast amounts of network-generated data into actionable insights.
In recent years, the UK water sector has faced intense scrutiny over the numerous storm overflow spills that have increased the pollution of rivers and seas. This issue, and debates over whether water firms have prioritized shareholder dividends over necessary infrastructure and asset maintenance, have sparked widespread controversy.
In response, the Office of Water Services (Ofwat) has set ambitious targets for its latest AMP8, pressuring water companies to make significant changes, including greater investments in digitalization to promote sustainability and proactivity.
Published every five years, the AMP provides a framework for how water companies should manage their assets, deliver services to customers, and invest in infrastructure. The requirements are based on a detailed review of each company’s business plan and past performance.
AMP8—which covers the period from April 1, 2025, through 2030—mandates water firms to drastically reduce storm overflow spills, eliminate sewer flooding, and enhance the reliability of their infrastructure. Additionally, the determination calls for improvements in operational areas, such as improving water quality and reducing nutrient pollution, signaling a comprehensive approach to addressing the sector's pressing issues.
The primary goals in Ofwat’S 2025-2030 draft determination are:
This ambitious set of imperatives will touch every corner of water utility operations, and utilities must be cautious about how they deploy capital to achieve compliance.
The long-term success of the water industry (and, critically, its ability to effectively serve its customers) depends on achieving the AMP8 objectives cost-efficiently. Digitalization and automation will be vital to attaining this.
Automation starts with data. Tackling problems related to storm overflow spills, pipe leakages, water usage, and sewer flooding requires detailed, accurate, and up-to-date information about the water network. Many water companies rely on manual inspections and traditional monitoring systems to track water flows and detect issues, which can be time-consuming and prone to human error. These methods limit the ability to quickly respond to problems, leading to inefficient, reactive water management and increased risk of water loss or contamination.
Water companies can mitigate these risks by leveraging data analytics, AI, cloud computing, blockchain, and IoT to increase operational visibility and efficiency. For example, data analytics and AI can predict and identify potential issues in real-time, allowing for proactive maintenance and management. Cloud computing facilitates the storage and analysis of vast amounts of data, making it accessible from anywhere, which is crucial for timely decision-making. Blockchain can ensure the integrity and security of water usage data, enabling transparent and tamper-proof record-keeping for water trading networks.
Some companies have already begun investing in pilot projects to explore the potential benefits of these technologies. Intelligent sensor systems have reduced sewer overflow volumes by more than 80%, and digital twins have facilitated a 30% reduction in aeration energy use, equivalent to an annual saving of 1.1 million kWh. The future looks promising, with an increasing number of water management entities expected to integrate these technologies into their operations, leading to more intelligent, efficient, and sustainable water management practices.
The first step is upgrading operational technology (OT) and distributing sensors for water pressure, flow rate, and temperature throughout networks. Through its partnership with UMPI, the Italy-based sensor design and deployment experts, Wipro unveiled the Wipro Sewage Monitor, an IoT solution for real-time water system monitoring. This platform uses advanced sensors and AI to generate insights for proactive maintenance, helping municipalities and water companies in Europe monitor their systems efficiently, comply with environmental policies, and protect community health.
Wipro has observed that a well-integrated sensor network can help preserve the environment, reduce management costs, increase efficiency, and introduce new services and business models. For example, an Australian water utility deployed a modernized cloud architecture and sensor network across 100,000 remote sites, leading to a tenfold reduction in operational monitoring and repair times from hours to minutes.
Data analytics and artificial intelligence (AI) are revolutionizing utility management by transforming vast network-generated data into actionable insights. A prime example is a solution developed by Wipro for the water sector, which integrates data from numerous sensors across the network to provide a comprehensive view of water flow. This system employs Long Short-Term Memory (LSTM)--based AI models to analyze 35-40 GB of data, including flow and pressure data, weekly leakage, and usage stats, to accurately predict potential pipe leakages and pinpoint specific properties that may be affected.
The solution also incorporates advanced visualization tools, offering a detailed representation of predicted flow rates across various properties over a specified period. This enables utilities to effectively visualize potential issues, prioritize maintenance tasks, improve resource allocation, and plan interventions to prevent service disruptions and ensure a reliable water supply. This approach underscores the significance of visual analytics in mitigating risks and promoting proactive infrastructure management within utility networks.
A similar combination of technologies can be used to reduce nutrient pollution and monitor water quality. Geographic information systems (GIS) can map and analyze land use, identify critical sources of nutrient runoff, and pinpoint factors that influence the water system, whether related to drinking water or wastewater. Scientific tests on the chemical composition of water samples can be recorded over time and used to develop a model using advanced data analytics tools to identify patterns, predict future trends, and optimize future water treatment processes. Firms can further enhance this process by integrating a comprehensive laboratory information management system (LIMS), which can automate data collection and analysis, ensure data is stored securely on the cloud, and provide data analytics capabilities.
Technologies like sensor monitoring and data processing are essential for transporting water safely and reliably. These technologies actively monitor water's movement across regions and facilitate the exchange of water between companies in the industry. As the water trading network expands and becomes more complex, with water flowing in various directions, a decentralized market will be required to automate the trading process and provide a historical record of transactions. For this task, blockchain technology is the perfect fit. Companies can harness it to provide an efficient solution that maintains trust among firms in the industry and with the regulator. Wipro has already implemented secure peer-to-peer trading of liquid natural gas for its clients at Uniper Global and has witnessed the efficiency it can bring to operations in complex marketplaces with many stakeholders. Leveraging digitalization and blockchain-based water trading will speed up water transport, reduce the need for bureaucracy, and ensure the market is as efficient and low-cost as possible while securing water supply in regions where it is scarce.
The next five years are poised to be a period of significant transformation for the water sector's infrastructure, business processes, and operational models. To achieve the ambitious goals outlined in AMP8, UK firms must increase their operational efficiency and visibility through digitalization and the use of technologies like AI, cloud, blockchain, and IoT. While early adopters have a head start in this transformation, the companies that will benefit most, in the long run, will likely be those that demonstrate a deep commitment to investing in the future—to building more robust, more intelligent operations that are as good for the community as they are for the business.
Tim Goddard
Account Executive, UK&I
Tim has over 25 years of industry expertise and is responsible for defining and executing the digital transformation strategy for water sector clients in the UK and Ireland. He has been recognized as a “people leader” and values all team members' contributions and collaboration in building customer value propositions. Tim is dedicated to prioritizing the needs of leading water utility organizations.
Sampathkumaran Hariharan
Consulting Partner, Utilities Consulting, Europe
Sampathkumaran, with over 25 years of experience at Wipro in the utilities sector, has a track record of formulating impactful sales strategies and spearheading transformative solutions. His expertise in leading large-scale projects has consistently resulted in significant program deliveries on a global scale. Known for his strategic approach, Sampathkumaran is adept at navigating the complex utilities landscape, ensuring regulatory compliance, and leveraging his deep understanding of the UK's utility market dynamics across the power, gas, and water sectors.
