Shaping future regulation in the water industry

Who?

Facing increasing scrutiny over water quality and pollution control, a high-performing water company was invited to provide an independent assessment of its working relationships with its regulators as part of the National Audit Office’s (NAO) value-for-money study. This engagement was an opportunity for the water company to shape future regulation while addressing broader sector-specific and investment challenges. Given the significance of this initiative, a robust, evidence-based response was required, delivered within a short timeframe to meet the NAO’s deadlines.

What was the challenge? 

The water company was navigating a period of heightened uncertainty, driven in part by the PR24 process and recent change in government. Resource constraints and competing priorities added complexity to the task. 
 
The company needed a submission that was not only rigorous and well-supported but also forward-looking and aligned with their strategic objectives. Balancing sensitivities, managing multiple stakeholders—including its major shareholder—and aligning with the broader industry perspective through the sector’s trade association made the challenge even more pressing. 

​How did we help? 

Moorhouse rapidly deployed a targeted team to deliver the evidence-based submission within the tight timeframe. Our approach included:  

• Challenging convention with fresh perspectives: Our blend of deep water industry knowledge and cross-sector expertise enabled us to challenge conventional thinking, bringing fresh perspectives to the regulatory discussion. 

• Engaging leadership: We conducted one-to-one interviews with senior leaders to capture a broad spectrum of perspectives and identify key themes. 

• Validation and alignment: A playback session ensured findings were validated, messaging was aligned, and sensitivities were addressed. 

• Iterative development: A draft report was shared early in the engagement, giving the Executive team and major shareholder confidence in the emerging findings. 

Recognising the high stakes of the submission, we adopted a ‘no surprises’ approach, providing full transparency to the water company at every stage. The tone and positioning of the report were critical to ensuring credibility. The final submission was balanced, forward-looking, and aligned with the perspective of the sector’s trade association.

In addition to delivering the report, we provided strategic insights into operational challenges and improvement opportunities, equipping the company with lessons learned for future regulatory engagements.​

Outcomes

• Influencing regulation: The water company successfully shaped discussions around future regulatory design, positioning itself as a proactive leader in the sector. 

• Strengthened relationships: Engagement with the NAO and sector’s trade association built stronger communication channels and partnerships for future collaboration. 

• Strategic alignment: The submission aligned with the company’s broader strategic objectives, reinforcing its commitment to operational excellence. 

• Leadership insights: The engagement provided clarity on the Leadership team’s alignment and highlighted the need for a proactive policy management capability to navigate future regulatory challenges.