Water industry regulator Ofwat has issued its conclusions and guidance for direction to supply arrangements in the business retail market.
The arrangements have been put in place to ensure that, following the exit of an appointed company from the business, charity and public sector retail market, eligible customers in an exit area can secure a retail supplier. The arrangements are known as the ‘direction to supply arrangements.
Once the new retail market is open, holders of instruments of appointment whose areas are wholly or mainly in England will be able to exit the business, charity and public sector retail market.
This will mean that those appointees will no longer be able to provide retail services to customers in their area and so, for example cannot automatically be allocated new or gap site customers.
The direction to supply arrangements will ensure that all eligible customers in an exit area will have access to a retail supplier regardless of whether they have engaged with the market.
As retail exit is not possible for appointed companies whose areas are wholly or mainly in Wales, the direction to supply arrangements will not apply to customers or licensees who use the supply or sewerage system of appointed companies whose areas are wholly or mainly in Wales.
Click here to access the guidance
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