Totex and ISO 55000, going beyond PAS55 in the water industry

Abstract

The water industry in England and Wales is going through a major change in regulation. Aside from targeting the customer’s requirements through long-term outcomes, the new model includes a total expenditure price control, customer cost to serve measures and the extension of competition in the non-household services. The industry mind-set and culture are being challenged to consider innovative operational solutions with increased focus on operational costs both direct and indirect. An accurate understanding of whole life cost and value is required at the scheme level and at the local, catchment and company levels. Some water companies are realising that the challenge takes them beyond PAS55:2008 Asset Management in aligning and optimising their organisations including the supply chain. ISO 55000:2014 is replacing PAS55 and supports aspects of the required improvements. This paper describes the industry position and the steps that one water company is taking. It reviews the capital, operational and planning processes that provide an integrated approach. It, in effect, looks for a comprehensive approach that supports the eternal business imperative to understand all the costs and to ‘do more for less’.