Change and Transformation in the Private Sector
PwC helped Welsh Water respond to intense regulatory and financial pressure by restoring financial stability, designing a new target operating model anchored in discipline and accountability, and embedding a high‑performance culture that delivers smarter investment decisions, clearer governance and more resilient, customer‑focused outcomes ahead of the next regulatory cycle.
Dŵr Cymru Welsh Water entered a period of unprecedented scrutiny as the UK water sector faced intense public, political and regulatory pressure. Ofwat’s latest five‑year regulatory cycle (known as AMP8, covering 2025–2030) required companies to deliver a major step‑up in environmental and service performance, backed by tougher penalties and closer oversight of spending, governance and delivery. At the same time, credit‑rating downgrades across the sector increased the cost of capital, and heightened expectations around financial discipline and long‑term resilience.
Recognising the scale of change required to address these challenges, DCWW partnered with PwC to design and deliver a transformation programme – Trawsnewid – focused on stabilising the business, improving affordability, and creating a more integrated, outcome led operating model. The ambition was not simply to cut costs, but to build a more efficient, transparent and resilient organisation capable of meeting regulatory expectations and delivering better outcomes for its customers.
PwC worked alongside DCWW leaders to strengthen core financial controls, align budgets with regulatory commitments and improve transparency across the programme. A new control framework brought together cost, schedule, risk and change information into a single source of truth, enabling clearer oversight and faster, more confident decisions. Early work focused on stabilising spend, identifying non‑value activity and improving operational efficiency, supported by a Spend Control Tower and a structured Activity Value Analysis. This created immediate savings, and helped redirect effort to essential frontline work.
As the programme progressed, PwC and DCWW jointly designed a new Target Operating Model, to shift the organisation away from siloed, engineering led structures towards end to end value chains aligned with customer, water and environmental outcomes. The redesign clarified accountabilities, streamlined governance, and proposed a right sized organisation with clearer decision rights and a stronger focus on performance. This included embedding regulatory accountability within business units and simplifying management layers to free up capacity for frontline operations.
A hallmark of the programme was the strength of the partnership; PwC and DCWW leaders adopted a ‘two in a box’ model across each business group and enabling workstream, ensuring shared ownership of decisions and enhanced capability for the long term. A robust governance structure also ensured coherence, auditability and disciplined delivery. This collaborative approach enabled sensitive decisions to be made constructively, supported by data driven challenge and a shared commitment to improving customer outcomes.
The impact has been significant. DCWW has strengthened financial control, aligned its budgets with regulatory plans and identified multi million pound savings. Operational improvements include reductions in reactive maintenance and improved asset reliability. Governance is more disciplined, decision making is faster, and management information is more integrated and transparent. The first wave of the new operating model has been approved, and the organisation is now better positioned to deliver AMP8 and prepare for the next regulatory cycle.
Beyond the immediate benefits, the programme has created a lasting legacy. DCWW now has an operating model aligned to creating value for its customers, clearer accountabilities, stronger financial discipline, improved insight into asset performance and a credible pathway to long term resilience. The transformation has strengthened confidence among customers, regulators and investors, while demonstrating the value of consulting in helping essential service providers navigate complex regulatory, financial and operational challenges.
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