Redesigning wastewater R&M framework to deliver 10% annual savings

The challenge: Legacy delivery models creating exposure to AMP8 penalties

A major UK water utility company’s wastewater infrastructure framework had become inefficient and costly. Heavy reliance on subcontractors, weak commercial transparency, and SLAs not aligned to regulatory outcomes created inefficiencies and service delays. With OFWAT’s AMP8 regulatory cycle introducing tougher ODI penalties for pollution and flooding, the existing delivery models required change.

The approach: Embedding accountability into supplier relationships

Efficio restructured the R&M framework into competitive multi-lot contracts with transparent pricing and direct supplier accountability. Traffic management and plant services were integrated to reduce duplication, and rate cards replaced cost-plus pricing. New SLAs and KPIs were aligned with ODI targets for pollution, sewer flooding, and service failures, supported by enforceable service credits and performance metrics.

Results: 10% annual savings, with stronger AMP8 resilience

The redesign delivered 10% annual savings and improved regulatory resilience. Enhanced transparency and reduced dependence on subcontractors increased delivery control, cutting response times and improving restoration rates. By embedding ODI-linked KPIs, the framework reduced penalty exposure and ensured alignment with the client’s AMP8 performance commitments.