The Competition and Markets Authority (CMA) review of the PR24 appeals brings yet another period of uncertainty for the water sector. With delays of up to 12 months on the table, the question is—how do we protect our workforce and ensure project continuity when so much hangs in the balance?

The CMA typically has six months to assess appeals referred by Ofwat, but as seen in PR19, this can stretch to a full year under complex conditions. We know the potential risks, yet are we doing enough to mitigate them?

What’s at stake?

If the review drags beyond six months, the consequences could be significant:

• Investment Uncertainty & Project Delays – Without final determinations, critical infrastructure projects may be paused, threatening resilience efforts, leakage reduction, and environmental improvements. Delays now mean a bigger challenge down the line.

• Financial Instability – A prolonged review could hit investor confidence at a time when the sector needs capital the most. Water companies already battling cost pressures may struggle to manage cash flow, especially on large-scale projects.

• Regulatory & Political Pressure – Further scrutiny from government and regulators is inevitable if the sector is seen to be stalling environmental progress. The industry’s environmental record is already under fire—will additional delays only fuel the debate?

• Impact on Customers – Pricing uncertainty could create instability in customer bills. A delayed review means continued ambiguity over future charges, affecting affordability and trust.

• Supply Chain & Workforce Disruption – Contractors and suppliers depend on stable investment cycles. Prolonged delays risk destabilising procurement, supply chains, and workforce planning—driving talent out of the sector when we can least afford it.

• Environmental & Climate Risks – Delayed funding approval could stall progress on storm overflow reductions, flood resilience, and water quality improvements. Regulatory action will only increase if commitments aren’t met.

The impact on engineers

With projects on hold and funding decisions in limbo, engineers face job uncertainty. Layoffs, contract terminations, and redeployments could push skilled professionals to more stable industries—worsening the talent drain we’re already seeing. Training schemes could also be hit, cutting off the next generation of specialists just when we need them most. The question is, do we just let this happen, or do we take action now?

How can water companies navigate this period?

1. Prioritise “No-Regret” Projects – Companies should push forward with low-risk, high-impact work that isn’t tied to regulatory decisions—asset maintenance, digital upgrades, and efficiency improvements. Securing early supplier engagement will be key to keeping momentum.

1. Workforce Retention & Flexibility – Redeployment should be a priority, shifting engineers to ongoing projects across regions or disciplines. Collaborations with adjacent industries (renewables, transport) could provide secondment opportunities, keeping talent within the sector.

1. Strengthen Supply Chain Partnerships – Open, transparent communication with contractors and consultants is essential. Early-stage design and feasibility studies should continue where possible, ensuring the industry is ready to move once funding is unlocked.

1. Employee Engagement & Wellbeing – Uncertainty breeds anxiety. Water companies must prioritise regular, clear communication with their workforce. Retention incentives—whether career development opportunities, extended training, or loyalty bonuses—will be crucial.

1. Future proofing Talent Pipelines – Cutting investment in early-career programmes now would be a huge mistake. The sector must maintain its commitment to graduate schemes and apprenticeships while working with industry bodies to secure a long-term skills strategy.

The long game

Managing the workforce through this period isn’t just about surviving uncertainty—it’s about ensuring the sector is in the best possible shape for AMP8 and beyond. Taking a proactive approach now will safeguard expertise, minimise supply chain disruption, and maintain momentum in critical areas. The question isn’t whether we can afford to act—it’s whether we can afford not to.

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