With deregulation imminent, the session will focus on how the deregulated market will work supplying water through the deregulated retail sector matching water customers, retailers, MOSL and water companies under OFWAT regulation.
2. what matters
• How the market will work to supply
water through the deregulated retail
sector?
• New relationships with customers
choosing Retailers, Wholesalers and
Retailers interacting through a Market
Operator and bilaterally -with OFWAT
providing regulatory oversight
3. A strong partnership with integrated working between Ofwat,
Defra, MOSL and the water companies is helping to ensure
successful deregulation. It is on track.
4. We are following a planned critical path – now in ‘Shadow’ –
a key phase to test out processes and data, ahead of the
market opening
5. The market shape is emerging
• Preparation for Shadow - customer data has been
cleansed and uploaded onto the Central Market
Operating System (CMOS) – the first time we have had
a central database
• Shadow Market is underway providing further testing of
central system processes and operational processes-
using transactions to improve data quality
• 11 suppliers (retailers) have been granted licenses by
Ofwat
• Wholesalers and Retailers are interacting at a business
level
• The main market codes are out for consultation after
years of development
6. Matching customers to services and
protecting them.
• Protection
Ofwat has published a Customer Protection Code of
Practice – aimed particularly at small andmicro-
businesses.
Statutory protections for customers impacted by a
retail exit by an existing water company; interim
supply arrangements to deal with supplier failure.
Ongoing work on Third Party Intermediaries –
promoting a voluntary code of practice
Enforcement: New licence conditions and codes
along with existing obligations – some of which are
split between wholesalers and retailers
7. Ofwat’s role in the new market
• Monitoring
New monitoring arrangements are being developed
with a consultation on a framework planned for the new
year. Understanding the baseline of the existing service
levels is important.
We do expect issues to emerge because of increased
transparency.
Challenge to Ofwat in managing issues into the right areas.
• Enforcement under the new regime through licenses and
codes
• Operational activities to support the market – including
licencing, retail exit support, interim supply, supplier of first
resort
8. What can customers expect?
• Ofwat expects water retailers to be already
engaging with customers ahead of April 2017.
Current evidence shows this to be good in parts
• Ofwat is supporting a wide ranging programme
to raise customer awareness and ensure all
eligible customers have access to reliable
impartial guidance so they can make an
informed decision
• At least 1.2 million eligible business, charity and
public sector customers (mainly in England) will
be able to shop around for their water retailer so
knowledge is key.
• In doing so they could benefit from lower prices,
consolidated water bills, higher standards and
more tailored services, for example in relation to
water saving advice.
9. Do you know about it?
The programme has planned to increase customer
awareness activity at this time. Work has started
• New refocused Open Water website
www.open-water.org.uk
• Customer awareness survey now underway in England to
benchmark current levels of awareness.
• We are supporting companies to deliver best practice in
engagement.
• Companies and their existing relationships will remain the key
players in delivering awareness
• The programme will provide sources of trusted and unbiased
materials
• There is no option to let this work time out and a lack of effort will
result in more regulatory scrutiny and intervention where
necessary