The Utilities Act of 2000 revolutionised the utilities market by introducing competition. This landmark legislation aimed to dismantle the monopolies held by incumbent utility providers, paving the way for new market entrants. The result? A more competitive environment offering better value and service for Developers and consumers. Today, independent adopters play a pivotal role in the adoption of utilities networks, with most new housing developments opting for this approach.
However, despite more than two decades of progress, a significant portion of the market continues to default to an integrated model, where the construction partner also acts as the adopter. By separating construction from adoption, competition is enhanced, driving improvements in service quality and value, ultimately delivering the best outcomes for all stakeholders.
Pioneering Change in the Water Market
In 2018, Ofwat issued groundbreaking guidance to water incumbents regarding bulk charging for water and waste water to New Appointment and Variation companies (NAVs). This marked a key milestone in fostering competition within the water sector. Developers began to directly engage with NAVs to explore the advantages of waste and surface water adoption. Engaging NAVs early, even before the tender process, maximises opportunities for risk reduction and value engineering. This shift towards earlier and direct engagement is transforming utility adoption across the board, and the benefits are becoming increasingly evident.
Key Advantages of Independent Adoption
Design Flexibility
Many NAVs and iDNOs have design standards that differ from those of traditional incumbents, offering opportunities for cost savings and streamlined construction timelines. ESP’s industry-leading, flexible design standards allow Developers to unlock significant savings while accelerating project delivery.
Transparency in Asset Values
Utility network adoption generates asset value contributions that can offset construction costs. Historically, these contributions lacked transparency, leaving Developers in the dark. ESP changes this by providing a detailed breakdown of asset values for each project, ensuring fairness and clarity through a variation clause.
Unparalleled Support
Incumbent providers often present challenges in terms of accessibility and responsiveness, making it difficult for developers to secure approvals or adapt designs. ESP’s collaborative approach stands out. By working closely with Developers, ESP optimises loads, incorporates value engineering, and provides ongoing support to help Developers adapt to market changes.
Accelerated Timeframes
Compared to the outdated incumbent models, ESP significantly streamlines processes and reduces delays, ensuring faster approvals and adoptions. ESP’s commitment to efficiency is unmatched. For example, strategic sewer designs are approved within 20 working days and adopted immediately upon construction, compared to the industry norm of waiting until 51% of connected flows are achieved.
Why Choose ESP?
- Pure Adoption – With ESP adopting, construction and adoption are separated – introducing more competition, driving service levels and value – enabling the best outcome for every stakeholder.
- Unmatched Expertise – With 25 years of experience and the largest network of construction partners in the industry, ESP has successfully adopted over 1m multi-utility connections nationally.
- Comprehensive Legal Support – ESP’s dedicated Land Rights team offers expert guidance and seamless support for land rights and third-party negotiations.
- Transparent Asset Values – ESP provides clear, fair, and fixed asset value contributions, giving developers confidence and financial peace of mind.
Driving Progress in Utility Adoption
Independent adoption is transforming the utilities market, creating new opportunities for Developers to save costs, improve timelines, and achieve better project outcomes. ESP is at the forefront of this transformation, setting industry standards and delivering unparalleled service and value to its partners. Whether it’s through flexible design standards, transparent asset contributions, or comprehensive support, ESP ensures that every development benefits from its expertise and commitment to excellence.
Maximise the benefits of independent adoption with ESP – your expert partner for utility solutions, get in touch today for tailored support.
Article by: Kevin Keilty, Head of Multi-Utility Solutions