Ofwat unveils new AMP8 assessment framework to monitor £38bn investment delivery

Ofwat has launched a consultation on a new monitoring and assessment framework designed to track how water companies deliver the significant investment commitments set out for AMP8.

The consultation will remain open until 18 June and forms part of the regulator’s efforts to strengthen oversight during what is expected to be the sector’s largest ever investment programme.

The framework will measure how each company progresses against its agreed delivery plan, covering major infrastructure and environmental projects such as storm overflow upgrades, nutrient removal schemes, smart meter installations, water mains replacement and new supply interconnections. Together, these projects represent investment of approximately £38 billion across the five-year AMP8 period.

Under the proposed approach, Ofwat will establish expected delivery timelines based on company plans, enabling progress and spending patterns to be monitored throughout the AMP. The regulator intends to use a range of delivery metrics to identify potential risks at an early stage and assess how effectively companies respond to emerging issues.

Where concerns arise, Ofwat said it could introduce a range of interventions, including enhanced reporting requirements, formal regulatory engagement or enforcement action where necessary. The framework will also support company-specific supervision to ensure oversight is tailored to individual delivery risks and performance challenges.

An Ofwat spokesperson said transparency would play a central role in the process, with both company delivery plans and Ofwat’s own assessments made publicly available to improve accountability across the sector.

The spokesperson added that Ofwat is working closely with other regulatory bodies to maintain a coordinated understanding of sector-wide risks and ensure the substantial AMP8 investment programme delivers lasting benefits for customers, communities and the environment, while also supporting wider economic growth.

Ofwat expects to publish the final version of the framework during the summer, with its first assessment of company delivery progress and emerging risks scheduled for release in the autumn.