The Regulatory Cycle and its Impact on the Efficiency of Supply Chain Delivery
ISBN: 1 84057 459 3
Since water industry privatisation in 1989, dramatic variations in capital expenditure have had a profound effect on the industry's suppliers who are often faced with a 'feast or famine' situation and little long-term visibility of workload.
This project has explored the root causes of the expenditure cycle and for the first time attempted to quantify its economic impact, based on detailed information provided by Ofwat, the water companies and a diverse cross section of suppliers.
The report identifies specific costs attributable to the expenditure cycle and highlights growing concerns about the impact that uncertainty is having on recruitment and retention of specialist skills within the sector.
The report includes over 30 recommendations for integrated action by regulators, water companies and suppliers which could help to minimise the adverse impacts of the cycle and lead to more sustainable long-term arrangements for delivering future investment programmes.
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