Tapping into efficient water management in the public sector
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1 Public sector NOV Tapping into efficient water management in the public sector Setting effective strategies, understanding the data at your disposal and being assured of security of supply
2 In 2017, the water industry in England will be deregulated, allowing organisations of all sizes to choose their water supplier for the first time. This will provide businesses, public and private, with a real opportunity to review their approaches to water procurement, water efficiency and water management, bringing benefits such as a choice of provider and contract rates. United Utilities commissioned a research study into the attitudes, approaches and priorities of businesses and public sector organisations in the UK all with moderate to heavy water usage a year before the market changes will take effect. This paper outlines what those organisations are doing and the positive steps you can take from the findings, to reduce and better manage your water consumption. Summary of findings Public sector organisations recognise that water management is an important operational goal and, in many cases, work is taking place to deliver water efficiency and management strategies. However, there are opportunities to further improve performance, save costs and drive efficiencies. With deregulation on the horizon, now is the time to act. What actions should be taken? From the development of a documented water strategy through to implementation of waste reduction measures, from better information collection and reporting to improved benchmarking capability, research shows there is the opportunity to do more. p 2
3 56% of 56% public sector organisations see water management as fundamental to achieving operational goals, more than any other sector questioned Straightforward, cost effective measures can be easily adopted to turn a reactive approach into a proactive one and get the best from your water efficiency and management. This research highlights how to make a difference not just to the bottom line. KEY STATISTICS: 8% 22% 38% 16% Only 8% have a standalone water strategy, 28% have nothing formally documented and a further 8% have no strategy at all have not conducted a water audit within the last five years that would allow them to identify where to make savings Cost reduction is the top water-related priority (38%), followed by water efficiency (22%) and corporate social responsibility (14%) Only 16% have benefitted from smart technology in the last five years to reduce water consumption, despite recognising the need for improved water efficiency 5yrs Top ranked drivers of efficiency over the next five years prioritised by the public sector are Automated Meter Reading (AMR), leak detection and repair combined (80%) and installation of water efficient devices (78%) p 3
4 1. WATER STRATEGY Attitudes towards developing and implementing active water efficiency and management programmes Water is required by all businesses and for many in the public sector, such as large hospitals or higher education campuses, it is essential. It is a business utility that requires active control and monitoring alongside other costs. What emerges in this research is that while 56% of public sector organisations consider water and water management as a high business priority, this is not reflected in how it is managed. Over a third (36%) of respondents responsible for water management, energy or environmental programmes in public sector organisations do not have a written water strategy and 56% include it within their wider energy or environmental policy. Only 8% have a standalone documented water strategy. Cost management and water efficiency are ranked as the top two goals by all businesses, 38% of government-funded institutions saw reducing costs as their top goal and over a fifth (22%) put water efficiency as the priority This has implications for cost management. A dedicated water management strategy would help set clear priorities, deadlines, roles and responsibilities. Goals might simply be behavioural a strong narrative emerged from the research in terms of changing attitudes and perceptions and raising awareness among end-users about water consumption or built around driving efficiency through technology, such as Automated Meter Readings (AMR). Cost management and water efficiency are ranked as the top two goals by all public sector businesses, as 38% of the public sector organisations questioned saw reducing costs as their top goal and over a fifth (22%) put water efficiency as a priority. The two areas are interlinked; having a dedicated water strategy in place supports the drive towards efficiency and as a consequence, reduced consumption rates. p 4
5 MAIN WATER MANAGEMENT GOALS IN PUBLIC SECTOR ORGANISATIONS Cost reduction Water efficiency Corporate social responsibility Regulatory compliance 14% 12% 38% 22% Many organisations have a water strategy as part of an overall environmental policy. While there are environmental factors in successfully managing water, it is important to go beyond compliance and regulatory requirements and view water management as an expenditure that can be controlled to deliver potential business savings. Senior management play an important role here. The research indicates that getting their buy-in and understanding of how water management can reduce the running costs of a business is a challenge. With deregulation in England, there is now an opportunity to educate senior management to the positive impact water management can have. A water strategy provides the structure to streamline this process. 2. USING DATA TO DRIVE EFFICIENCY Water efficiency priorities and the role of data capture in the public sector Data capture and analysis is fundamental to improving water efficiency, which in turn has a positive effect on costs. Familiarisation with, and proper use of all available technology, needs to be a priority for all those engaged in water management. It is not simply about collecting data but turning it into smart data through analysis and knowledge whether this is supported by external expertise, delivered internally, or a combination of both. While there is high awareness of the need to improve water efficiency overall, there is a gap between public and private sectors. Only 22% of the former ranked water efficiency as their main water management goal compared to 34% of commercial and 30% of industrial firms. p 5
6 Yet when it comes to monitoring consumption and changes in consumption over time, public sector bodies match and even exceed their private counterparts. In terms of real-time alerts for anomalies in water usage patterns, 30% of public sector bodies are already benefitting, compared to only 24% and 18% of commercial and industrial ones respectively. While this is a positive step, it also demonstrates the opportunity for the other two thirds of respondents. Real-time technology is available now and can be easily implemented. Again this is where the link with a dedicated strategy and keeping up-to-date with efficiency measures through external advice becomes so important. 30% 30% of state-owned organisations benefit from real-time alerts for changes in water consumption patterns, compared to only 24% of commercial and 18% of industrial ones For publicly-funded bodies, where league tables are increasingly the norm, measuring 56% performance will be particularly relevant. There is an opportunity for all sectors to do more in terms of competitor or industry analysis, with only 18% of public sector organisations and 21% of private sector ones already doing this. Technology develops rapidly. Keeping up with these developments is key to continuous water efficiency. When asked about specific actions relating to water management undertaken in the last five years, 78% of respondents had installed water efficient devices with just over half using Automated Meter Reading (AMR) to capture data and consumption, but only 16% are taking advantage of the latest smart network technology to pinpoint the issue on their site. One in ten public sector organisations had taken no action to manage water consumption, which not only has cost implications, but efficiency ones too. One in ten public sector organisations had taken 1/10 no action to manage water consumption, which not only has cost and efficiency implications, but regulatory ones too p 6
7 Top ranking water efficiency measures undertaken by the public sector since % 62% 52% 28% 16% Installation of water efficient devices Leak detection and repair AMR (Automated Meter Reading) Water recycling and reuse Smart networks 3. EFFECTIVE RISK MANAGEMENT Identifying actions to minimise risk and control water consumption Collecting and interpreting data to identify positive actions for water management is an important step, but it needs to be done within the wider context of strategic goals. Understanding the effectiveness of measures already in place as well as sourcing new tools that might have become available can only really be achieved if approached methodically. Structured water and efficiency management programmes also allow for better mitigation of risks such as interruption of supply or security in terms of water quality detection of micro-organisms such as legionella is always critical, but especially within the healthcare sector. In this age of increasing accountability and ever tougher regulatory targets, managing risk is therefore of key importance. To what extent is water supply quality and availability a business concern? LOW only addressed at a departmental level 18% MEDIUM senior management recognise its importance 56% HIGH fundamental to operational goals 26% p 7
8 Water Management Audits With more than one in five organisations (22%) not having undertaken a water audit to identify where to make savings and efficiency gains within the last five years, there is opportunity for the public sector to improve in this area. With more than one in five organisations (22%) not having undertaken a water audit to identify where to make savings and efficiency gains within the last five years, there is opportunity for the public sector to improve in this area Those with responsibility for water recognise the need for more tools to help them manage it better. 40% of respondents who hadn t undertaken any actions are aware of what they should be doing but don t have the support or tools to implement these measures. This is where internal and external backing can be indispensable. It is about accessing the right kind of expertise to support water management both at a development and implementation level. Encouragingly, the benefits of automation to mitigate risk are being recognised. Installation of efficiency devices (78%) and take-up of automation measures (80%) are identified as priorities over the next five years, which will enable more active management of water and, crucially, help organisations to take it from an uncontrolled to a controlled cost. Undertaking an audit to identify the most effective water management measures also supports a more informed procurement process and delivers regulatory and compliance best practice. p 8
9 Conclusion It is encouraging that over half of organisations questioned recognise that water management is fundamental to operational success. Active water efficiency and management programmes that include a water audit and water strategy to determine the right measures for an organisation will be key to achieving this. Technology is becoming more and more sophisticated, but with no regular audit or wider strategic framework to provide a context for water management, organisations are finding it hard to capitalise on measures that are already available, such as smart metering. By acting now and addressing these immediate knowledge gaps, organisations will be better placed to get the most out of the deregulation changes ahead. Your water strategy checklist Carry out a water audit. Make time to understand the recommendations and then prioritise to ensure positive action is taken. Develop a solid water strategy that all stakeholders buy into and can confidently see through to implementation. Analyse as well as capture data to maximise efficiency. Explore how technology can help you harness smarter ways of working alongside your provider. Act now. Look for all-round value that matches your water strategy. About this research This research was carried out by global water and renewable energy experts, Amane Advisors, on behalf of United Utilities. 150 respondents from across public sector, commercial and industrial organisations in England and Scotland contributed to the study which took place in Contact us: at uub@uuplc.co.uk or speak to your key customer manager For more information, updates and downloads visit: p 9
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