Utilities are no longer utilitarian

Britain is fast approaching a crunch point. Without some decisive action, we could soon see the same problems that affect countries that we think of as far less advanced than the UK – water shortages, power cuts and energy prices so high that they drive inflation at a rate of knots.

It may seem far-fetched, but then how did California find itself a couple of years ago in a position where daytime powercuts started to become the norm? Then, many in the UK thought it would never happen here.

Already, though, we are increasingly dependant on oil and gas supplies that come from countries that are less than settled politically. Our network of nuclear power stations is ageing and legions of NIMBYs are rejecting the alternatives such as wind power out-of-hand. And it’s not good news for water companies either; there’s either too little or too much rain, pipes that leak like sieves, and environmentally devastating sewage problems when floods occur.

The list of work that needs tackling is good news for construction. But when, exactly, will the government and utility companies release enough funds for all of this work to take place? Yes, water companies and power networks are in the throes of spending £22bn over five years, but it is likely to take more money – and much longer – than that to tackle all the infrastructure that needs attention.

While spending has increased, it hasn’t increased enough. When we reach the tipping point, consumers will demand action. And while government can suddenly make funds available, yet again it will be the construction industry that will be seen to be taking its time to deliver – no matter that some of these projects will be hugely complex.

To make sure Britain retains its status as an apparently well-developed, sophisticated country, the government needs to make decisions now. The UK’s construction industry can certainly tackle the utilities challenge, but it needs a fair chance to get things underway before Britain reaches a crucial crossroads.