Managing essential infrastructure

Modern society has total dependence on key national infrastructure. Privatisation has led to a perennial search for efficiency gains, one manifestation being multiple subcontracting to least cost providers. The danger of ineffective control of subcontractors calls for a new approach to the management of essential infrastructure. The author describes the business model of 24seven in the electricity and gas market in the UK. In this market full competition in the energy supply (retail) sector is resulting in lower prices for customers and innovation in the market place. It has also produced a structural change that allows ownership of delivery infrastructure to be separated from the product´s marketing and sale. The benefit is that infrastructure experts focus on their core skills, as do the retailers. The 24seven model takes the path of separation a stage further. The ownership of the assets is separated from the management and servicing of those assets. The result is a business model that addresses the ´value for money´ needs of customers and ensures safety and long term health of vital infrastructure assets.