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Tuesday, 05 May 2015 11:03

WICS to exit opening of competitive English water market

The Water Industry Commission for Scotland (WICS), has decided to withdraw from the opening of the English water market to competition in April 2017, according a report in Utility Week this morning.

The news follows on the back of last week’s announcement by English water industry regulator Ofwat of another series of changes in the delivery structure to support the opening of the non -household retail market.

WICS Chief Excutive Alan Sutherland told Utility Week :

“Ofwat wanted us to take full responsibility for the opening of the market. In reality, we couldn’t, simply because we were not charged with doing everything. We have explored options as to how the existing framework could have been continued through OWML, but that’s not been something Ofwat wants to do. When Ofwat says it wants to transition and give responsibility to MOSL, we have made it clear that’s not something that given its constitution at this stage we could involve ourselves with.”

The news is likely to once again create uncertainty in the marketplace as to how the market will operate. In February Ofwat unveiled its latest plan for market opening in 2017 after a proposal for the Water Industry Commission for Scotland to oversee the programme was turned down by the WICS Board in January.

Ofwat has yet to make any formal announcement about WICS’ withdrawal – but the regulator’s announcement last week said that WICS would be among the organisations able to propose changes to the market codes for the competitive marketplace and one of several invited observers on the interim panel it was establishing to support market opening. 

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