UK Capital Expenditure Study: Focus on Boosting Operational Efficiency Can Provide Impetus

Capital expenditure among utility providers in the UK is impacted by a range of macroeconomic and microeconomic factors. Changing regulatory guidelines, combined with uncertainty about supply security and future network requirements are likely to influence the market over the forecast period. These insights are according to a new research report added to the database of Market Research Hub (MRH). According to the report, the “Utility Capital Expenditure - UK - December 2017” offers detailed insights and analysis on the key factors that are likely to impede market growth during the assessment period.

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According to the report, the UK utility industry is focusing on replacing old assets owing to increasing emphasis on boosting efficiency. Innovative solutions and equipment is replacing traditional equipment, and this is one of the main sources of expenditure for utility companies in the UK.

There is growing focus on innovation and replacing short-term investments with sustainable long-term solutions. The water and sewerage sector in the UK, and the capital expenditure by key players on this sector has been discussed in the report. The transmission and distribution industry in the UK has also been discussed in detail, along with statistics and information on gas transmission and distribution industry.

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Market factors, along with information on utility industry regulations and legislative factors has been offered in the report. According to the report, Brexit can have an impact on the overall targets to reduce carbon footprint and increase the use of renewable sources of energy. Growing shift towards total expenditure, along with outcomes in the AMP6 can have an impact on the water and sewerage industry. The increases in distributed generation can also have an impact on the distribution of network operators.

Along with information on these crucial factors, the report also details the key influencing trends that are expected to have an impact on the market during the assessment period. According to the report, there is yet a government decision to be taken to open up the retail market to competition.

The report also offers region-wise details pertaining to the capital expenditure by key companies, along with future challenges that the water and sewerage sector is facing. According to the report, the governments in the UK are committed to mitigating climate change, even though the exit from European Union has led to some challenges. Smart grid development has led to an increase to the distributed generation that has been connected to the distribution unit, and this can boost the operational efficiency in many units.

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