Asset management plan period

The first four asset management plan periods were focused on modernising infrastructure inherited from the public sector to meet strict new European Union limits on acceptable water quality. Funding was targeted on the construction of new facilities and the upgrading of existing assets.^[4]

In AMP5 (2010-2015) there was a shift towards minimising operational costs and making better use of existing assets. The trend was predicted to continue into AMP6 (2015-2020) with a reduction in the proportion of expenditure allocated for capital projects. Ofwat also wanted companies to become more sustainable in their operations in AMP6 and incorporate longer term thinking into their business plans.^[4] The water companies were set a target of saving 370 million litres of water per day from wastage and to reduce the length of time customers were left without supply.^[5] It was believed that AMP7 (2020–25) will target environmental improvements, particularly with regards quality of water bodies.^[6] AMP8 (2025-2030) features almost double the investment of AMP7 into Water Infrastructure, from £59 to £104 Billion, following intensive scrutiny into river pollution and increased combined storm overflow events.^[7] Under the Cunliffe Report however, Ofwat was recommended to be scrapped, with future AMP's to be replaced with a new management plans, or managed by new bodies separated by England and Wales.

The nature of the AMP period model leads to a "boom and bust" cycle of investment repeating every five years.^[8] Spending peaks during the central 12–18 months of the period before tailing off.^[9] Businesses supplying design and construction services often lose 40% of their staff in the "winding down" phase of the cycle, many of whom do not return to the sector in the next AMP period. This leads to increased costs to the industry.^[8]