Ofwat has published an integrated plan setting out key milestones and assumptions for the opening of the retail market to competition in 2017.
According to the assumptions in the plan, which is set out in the form of an excel spreadsheet, the water companies will continue to engage in the same positive and proactive way that they have over the last several months.
All parties will monitor delivery against planning milestones and will work together to manage any slippage through a change control process, and keep companies informed.
On the procurement of the central IT systems that will support the competitive market, the assumption says that the procurement route will remain private. Details of Ofwat's latest plan set out in a letter sent to the MDs of the water companies on 13 February from Ofwat chief executive Cathryn Ross said that Market Operator Services Ltd (MOSL), a private company set up by Anglian Water, Northumbrian Water and United Utilities, would procure the IT systems. The procurement will be based on a set of business requirements to be produced by Open Water Market Ltd by the end of April.
The integrated plan also assumes that a contract for the IT systems would be awarded by early August 2015 and that the IT system build will be completed by September 2016, with a six month period for testing and commissioning. Key dates include:
- Market Operator established and key appointments (Chair) made by April 2015.
- Assurance framework in place by end of March 2015.
- Engagement with industry on plans and requirements is established by early March 2015.
- Assurance on market readiness is complete by 'Go-Active' milestone.
The assumption is that the integrated programme plan will be aligned with the assurance framework, resulting in the identification of a series of gateway decision points. It also says that exit will be available at the point of market opening.
It also says that MOSL becomes the market operator as originally envisaged - re-affirming the reference in Cathryn Ross's letter that Ofwat expects MOSL to become the market operator in due course
The plan also includes the assumption that the process of establishing a new government "goes smoothly post-election."
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