Leakage Business Models: F1 Leaders, or mid Grid?

By Simon Dray: Strategy Director Energy Assets

Are there new funding, ownership or performance models that could help the industry move from narrowly achieving targets to truly transforming outcomes? I'd welcome thoughts, challenge, and examples from members that could inspire greater investment and innovation across the water sector. I guess this type of debate is why we all join the Future Water Association. A place to debate, innovate, and develop new ideas.

There are countless new leakage detection techniques, AI solutions, sensors, analytics platforms, and operational innovations entering the market. But are we putting the same level of thought into developing new business and performance models?

A Formula 1 analogy comes to mind. After approaching 40 years in the water and environmental sector, I've seen almost every regulatory period follow a familiar pattern. In the first couple of years of an AMP, the leakage sector races out of the blocks with fresh funding, enthusiasm, and ambitious targets. Midway through the period, fatigue can set in, priorities shift, and the track begins to feel more challenging. Then, as the finish line approaches, everyone finds another gear, driven by the excitement, pressure, and jeopardy of winning or losing.

More often than not, the industry reaches the target, or perhaps just edges beyond it. Yet I rarely see anyone crossing the line so far ahead of the field that they fundamentally redefine what is possible. That is not to diminish the achievement. Leakage performance has improved significantly over the years, and records continue to be broken. But most improvements still feel evolutionary rather than revolutionary.

What happens when someone changes the game, while still operating within the rules? What would be possible if we fully exploited the capacity of emerging technology, AI, advanced analytics, and digital infrastructure, supported by a fundamentally different commercial model?

For example, could organisations such as Energy Assets, as long-term asset owners, and operators, function as an accelerator for leakage performance? Rather than utilities funding technology deployment solely through capital programmes, could a specialist partner invest in, own and operate the infrastructure at scale?

Imagine a model where the sponsor procures the hardware, sensors, telemetry, data platforms, and analytics capabilities, working alongside inhouse teams, contractors, technology providers, and equipment manufacturers. The utility then benefits from a long-term, outsourced asset ownership and performance model.

The result could be substantially greater deployment of proven technologies, far beyond the limits of a conventional business plan especially when overlapping with asset health and smart metering. More sensors. More telemetry. More data. More insight. Ultimately, faster leakage reduction, followed by a calmer maintenance plan, a predictive model, and improved performance.