UK utilities remain confident in delivering critical…

As the UK’s energy and water sectors prepare to deliver part of an unprecedented £725 billion infrastructure investment over the next decade, a new report from PA Consulting and Utility Week reveals a confidence gap between UK utilities and their supply chain partners. While utilities are optimistic in their ability to deliver, their supply chain partners are far less certain.

This confidence gap raises questions about the UK’s readiness to meet its climate goals, including Clean Power 2030 and AMP8 ambitions.

Key findings from ‘The deliverability divide: From infrastructure pipe dreams to collaborative delivery’ include:

Confidence crisis: While 80 per cent of utility leaders are confident in delivering their business plans over the coming five years, fewer than half of supply chain partners share that optimism.
Skills shortage: 65 per cent of electricity network respondents cite lack of skilled workers as the biggest barrier to capital delivery.
Digital drag: Slow progress on digitalisation is the second most cited blocker to improving capital delivery, despite its potential to boost efficiency.
Procurement reform: Contracting and procurement processes are a top priority for organisations to focus on in the near term to improve capital project delivery. It is an issue across the sector however a clearer priority for electricity transmission and distribution networks (52 per cent) than for water companies (29 per cent).
Innovation imperative: Utilities must shift from bespoke builds to modular, scalable solutions to meet demand.

The report warns that unless systemic blockers – such as skills gaps, regulatory inertia, materials shortages, lead times for equipment and outdated delivery models – are addressed, the UK risks over-promising and under-delivering on its infrastructure goals. The report points to more agile design approaches, embracing digital innovation, and modernising delivery practices as key to unlocking progress.

To avoid the risk of over-promising and under-delivering, industry and its supply chain must work together to achieve a radical step change. Expectations are high and from 2028, suppliers will be expected to deliver three to four times what they achieved last year. To meet this challenge, we need all players to accelerate design cycles, embrace digitalisation, and foster a culture of innovation. This is not just about building infrastructure; it’s about building confidence, capability, and a new normal for delivery.”

Greg Bradley Capital programme expert, PA

The report draws on the combination of a survey followed by in-depth interviews with senior leaders in water and electricity utilities and key supply chain stakeholders.