on this page
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Markets
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Services
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Location
South Australia
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Client
Essential Services Commission of South Australia (ESCOSA)
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Completion date
2025
Graydon Jeal
Technical Director, Epsom, UK contact form
Every four years the Essential Services Commission of South Australia (ESCOSA) undertakes a review of SA Water, the state’s water and wastewater provider. This review assesses their plans for capital investment in water infrastructure, ensuring that the company can continue to provide safe, reliable water services at a fair price to businesses and households. ESCOSA appointed AtkinsRéalis to independently review SA Water’s proposed capital expenditure program for the 2024-2028 period – assessing a $2.8 billion investment that touches everything from drinking water quality to sewer overflow prevention.
With over 20 years of experience supporting water utilities in Australia, as well as in the UK, Middle East and South-East Asia, the AtkinsRéalis team was well-placed to support ESCOSA. Our mission was clear: help ensure that every dollar spent would deliver value for SA Water customers, while supporting infrastructure that protects public health and the environment.
Please note that you are now leaving the AtkinsRéalis website (legal name: AtkinsRéalis Group inc.) and entering a website maintained by a third party (the "External Website") and that you do so at your own risk.
AtkinsRéalis has no control over the External Website, any data or other content contained therein or any additional linked websites. The link to the External Website is provided for convenience purposes only. By clicking "Accept" you acknowledge and agree that AtkinsRéalis is not responsible, and does not accept or assume any responsibility or liability whatsoever for the data protection policy, the content, the data or the technical operation of the External Website and/or any linked websites and that AtkinsRéalis is not liable for the terms and conditions (or terms of use) of the External Website. Further, you acknowledge and agree that you assume all risks resulting from entering and/or using the External Website and/or any linked websites.
BY ENTERING THE EXTERNAL WEBSITE, YOU ALSO ACKNOWLEDGE AND AGREE THAT YOU COMPLETELY AND IRREVOCABLY WAIVE ANY AND ALL RIGHTS AND CLAIMS AGAINST ATKINSRÉALIS, AND RELEASE, DISCHARGE, INDEMNIFY AND HOLD HARMLESS ATKINSRÉALIS, ITS OFFICERS, EMPLOYEES, DIRECTORS AND AGENTS FROM ANY AND ALL LIABILITY INCLUDING BUT NOT LIMITED TO LIABILITY FOR LOSS, DAMAGES, EXPENSES AND COSTS ARISING OUT OF OR IN CONNECTION WITH ENTERING AND/OR USING THE EXTERNAL WEBSITE AND/OR ANY LINKED WEBSITES AND ANY DATA AND/OR CONTENT CONTAINED THEREIN.
Such waiver and release specifically includes, without limitation, any and all rights and claims pertaining to reliance on the data or content of the External Website, or claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute. You also recognize by clicking “Accept” that the terms of this disclaimer are reasonable.
The information provided by Virtua Research cited herein is provided “as is” and “as available” without warranty of any kind. Use of any Virtua Research data is at a user’s own risk and Virtua Research disclaims any liability for use of the Virtua Research data. Although the information is obtained or compiled from reliable sources Virtua Research neither can nor does guarantee or make any representation or warranty, either express or implied, as to the accuracy, validity, sequence, timeliness, completeness or continued availability of any information or data, including third-party content, made available herein. In no event shall Virtua Research be liable for any decision made or action or inaction taken in reliance on any information or data, including third-party content. Virtua Research further explicitly disclaims, to the fullest extent permitted by applicable law, any warranty of any kind, whether express or implied, including warranties of merchantability, fitness for a particular purpose and non-infringement.
The consensus estimate provided by Virtua Research is based on estimates, forecasts and predictions made by third party financial analysts, as described above. It is not prepared based on information provided by AtkinsRéalis and can only be seen as a consensus view on AtkinsRéalis' possible future results from an outside perspective. AtkinsRéalis has not provided input on these forecasts, except by referring to past publicly disclosed information. AtkinsRéalis does not accept any responsibility for the quality or accuracy of any individual or average of forecasts or estimates. This web page contains forward-looking statements based on current assumptions and forecasts made by third parties. Various known and unknown risks, uncertainties and other factors could lead to material differences between AtkinsRéalis' actual future results, financial situation, development or performance, and the estimates given here.
Water and sewerage services in Australia operate under strict regulatory requirements covering safety, water quality, environmental protection, customer standards and pricing. Water companies are under pressure to help customers with the cost of living whilst also raising standards and supporting development. In the 2024-28 period alone, SA Water proposed to invest A$1.2 billion in water and wastewater infrastructure to support housing growth across the state.
With significant pressure on the sector, rigorous scrutiny is essential to ensure efficient delivery and fair pricing for customers.
Water and sewerage services in Australia operate under strict regulatory requirements covering safety, water quality, environmental protection, customer standards and pricing. Water companies are under pressure to help customers with the cost of living whilst also raising standards and supporting development. In the 2024-28 period alone, SA Water proposed to invest A$1.2 billion in water and wastewater infrastructure to support housing growth across the state.
With significant pressure on the sector, rigorous scrutiny is essential to ensure efficient delivery and fair pricing for customers.
Our approach
Before we could look at SA Water’s future expenditure proposals, the team first assessed the performance of SA Water in the preceding regulatory period. COVID-19 had introduced significant challenges, delaying several projects and creating cost changes. It was essential to determine whether past overspend or underspend was justified, whether it delivered tangible customer benefit, and how it might inform future investment planning.
We then began a process of comprehensive interviews and workshops with SA Water staff. These sessions were designed to provide insight into the business, its priorities, and the reasoning behind the proposals. We then conducted a week of intensive face-to-face interviews, supported by deep dives into key areas including:
- Processes and governance
- Performance measures
- Deliverability
- Long term planning
- Capex processes and governance
- Approach to costing, risk and contingency
We also brought in subject matter experts for targeted reviews of complex or emerging initiatives. Our goal here was not just to evaluate the expenditure but to listen, constructively challenge, and build a shared understanding of what best-in-class capital planning looks like.
Please note that you are now leaving the AtkinsRéalis website (legal name: AtkinsRéalis Group inc.) and entering a website maintained by a third party (the "External Website") and that you do so at your own risk.
AtkinsRéalis has no control over the External Website, any data or other content contained therein or any additional linked websites. The link to the External Website is provided for convenience purposes only. By clicking "Accept" you acknowledge and agree that AtkinsRéalis is not responsible, and does not accept or assume any responsibility or liability whatsoever for the data protection policy, the content, the data or the technical operation of the External Website and/or any linked websites and that AtkinsRéalis is not liable for the terms and conditions (or terms of use) of the External Website. Further, you acknowledge and agree that you assume all risks resulting from entering and/or using the External Website and/or any linked websites.
BY ENTERING THE EXTERNAL WEBSITE, YOU ALSO ACKNOWLEDGE AND AGREE THAT YOU COMPLETELY AND IRREVOCABLY WAIVE ANY AND ALL RIGHTS AND CLAIMS AGAINST ATKINSRÉALIS, AND RELEASE, DISCHARGE, INDEMNIFY AND HOLD HARMLESS ATKINSRÉALIS, ITS OFFICERS, EMPLOYEES, DIRECTORS AND AGENTS FROM ANY AND ALL LIABILITY INCLUDING BUT NOT LIMITED TO LIABILITY FOR LOSS, DAMAGES, EXPENSES AND COSTS ARISING OUT OF OR IN CONNECTION WITH ENTERING AND/OR USING THE EXTERNAL WEBSITE AND/OR ANY LINKED WEBSITES AND ANY DATA AND/OR CONTENT CONTAINED THEREIN.
Such waiver and release specifically includes, without limitation, any and all rights and claims pertaining to reliance on the data or content of the External Website, or claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute. You also recognize by clicking “Accept” that the terms of this disclaimer are reasonable.
The information provided by Virtua Research cited herein is provided “as is” and “as available” without warranty of any kind. Use of any Virtua Research data is at a user’s own risk and Virtua Research disclaims any liability for use of the Virtua Research data. Although the information is obtained or compiled from reliable sources Virtua Research neither can nor does guarantee or make any representation or warranty, either express or implied, as to the accuracy, validity, sequence, timeliness, completeness or continued availability of any information or data, including third-party content, made available herein. In no event shall Virtua Research be liable for any decision made or action or inaction taken in reliance on any information or data, including third-party content. Virtua Research further explicitly disclaims, to the fullest extent permitted by applicable law, any warranty of any kind, whether express or implied, including warranties of merchantability, fitness for a particular purpose and non-infringement.
The consensus estimate provided by Virtua Research is based on estimates, forecasts and predictions made by third party financial analysts, as described above. It is not prepared based on information provided by AtkinsRéalis and can only be seen as a consensus view on AtkinsRéalis' possible future results from an outside perspective. AtkinsRéalis has not provided input on these forecasts, except by referring to past publicly disclosed information. AtkinsRéalis does not accept any responsibility for the quality or accuracy of any individual or average of forecasts or estimates. This web page contains forward-looking statements based on current assumptions and forecasts made by third parties. Various known and unknown risks, uncertainties and other factors could lead to material differences between AtkinsRéalis' actual future results, financial situation, development or performance, and the estimates given here.
Key findings
Our assessment found that SA Water’s approach to capital planning had a number of significant strengths. We found mature procurement practices and a clear commitment to delivering the services customers value and expect.
However, large scale infrastructure programs always contain uncertainties, and we made recommendations to help SA Water strengthen early project scoping, refine procurement approaches, and ensure costs can more explicitly reflect risk.
We also provided recommendations across many of the individual projects. For example, the adoption of a phased roll out of a change in treatment approach. SA Water had proposed installing new treatment technology at two major water treatment plants. This offered promising benefits, but also carried risks associated with the roll-out of new technologies and construction inside existing critical facilities. We recommended completing the installation of the new treatment system at one plant before beginning construction at the second. This would reduce potential disruption, allow the provider to gain real-world experience installing and operating the technology, and protect communities during a period of significant construction activity.
Please note that you are now leaving the AtkinsRéalis website (legal name: AtkinsRéalis Group inc.) and entering a website maintained by a third party (the "External Website") and that you do so at your own risk.
AtkinsRéalis has no control over the External Website, any data or other content contained therein or any additional linked websites. The link to the External Website is provided for convenience purposes only. By clicking "Accept" you acknowledge and agree that AtkinsRéalis is not responsible, and does not accept or assume any responsibility or liability whatsoever for the data protection policy, the content, the data or the technical operation of the External Website and/or any linked websites and that AtkinsRéalis is not liable for the terms and conditions (or terms of use) of the External Website. Further, you acknowledge and agree that you assume all risks resulting from entering and/or using the External Website and/or any linked websites.
BY ENTERING THE EXTERNAL WEBSITE, YOU ALSO ACKNOWLEDGE AND AGREE THAT YOU COMPLETELY AND IRREVOCABLY WAIVE ANY AND ALL RIGHTS AND CLAIMS AGAINST ATKINSRÉALIS, AND RELEASE, DISCHARGE, INDEMNIFY AND HOLD HARMLESS ATKINSRÉALIS, ITS OFFICERS, EMPLOYEES, DIRECTORS AND AGENTS FROM ANY AND ALL LIABILITY INCLUDING BUT NOT LIMITED TO LIABILITY FOR LOSS, DAMAGES, EXPENSES AND COSTS ARISING OUT OF OR IN CONNECTION WITH ENTERING AND/OR USING THE EXTERNAL WEBSITE AND/OR ANY LINKED WEBSITES AND ANY DATA AND/OR CONTENT CONTAINED THEREIN.
Such waiver and release specifically includes, without limitation, any and all rights and claims pertaining to reliance on the data or content of the External Website, or claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute. You also recognize by clicking “Accept” that the terms of this disclaimer are reasonable.
The information provided by Virtua Research cited herein is provided “as is” and “as available” without warranty of any kind. Use of any Virtua Research data is at a user’s own risk and Virtua Research disclaims any liability for use of the Virtua Research data. Although the information is obtained or compiled from reliable sources Virtua Research neither can nor does guarantee or make any representation or warranty, either express or implied, as to the accuracy, validity, sequence, timeliness, completeness or continued availability of any information or data, including third-party content, made available herein. In no event shall Virtua Research be liable for any decision made or action or inaction taken in reliance on any information or data, including third-party content. Virtua Research further explicitly disclaims, to the fullest extent permitted by applicable law, any warranty of any kind, whether express or implied, including warranties of merchantability, fitness for a particular purpose and non-infringement.
The consensus estimate provided by Virtua Research is based on estimates, forecasts and predictions made by third party financial analysts, as described above. It is not prepared based on information provided by AtkinsRéalis and can only be seen as a consensus view on AtkinsRéalis' possible future results from an outside perspective. AtkinsRéalis has not provided input on these forecasts, except by referring to past publicly disclosed information. AtkinsRéalis does not accept any responsibility for the quality or accuracy of any individual or average of forecasts or estimates. This web page contains forward-looking statements based on current assumptions and forecasts made by third parties. Various known and unknown risks, uncertainties and other factors could lead to material differences between AtkinsRéalis' actual future results, financial situation, development or performance, and the estimates given here.
The review demonstrated the importance of independent, expert scrutiny in safeguarding both customer value and the integrity of essential public services.
These investments – carefully planned, well-governed and grounded in evidence – will help ensure safe clean drinking water, protect the environment, and build a backbone of resilient infrastructure that can support the state’s growth for decades to come.
The review demonstrated the importance of independent, expert scrutiny in safeguarding both customer value and the integrity of essential public services.
These investments – carefully planned, well-governed and grounded in evidence – will help ensure safe clean drinking water, protect the environment, and build a backbone of resilient infrastructure that can support the state’s growth for decades to come.
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