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Thursday, 28 September 2017 05:06

Retail market: Ofwat issues Direction to Supply guidance

Ofwat has published guidance setting out the arrangements for ensuring that eligible customers in a Retail Exit Area can secure a retail supplier following the exit of their existing supplier from the business, charity and public sector retail market.

Th Guidance is relevant to existing suppliers in the retail market, new entrants and the Market Operator MOSL .

The Exit Regulations, which came into force on 1 October 2016, set out the processes to be followed if suppliers that have exited the retail market receive requests for retail services from owners or occupiers of Eligible Premises

Under the Regulations Ofwat is required to maintain a List of eligible water supply and sewerage licensees for each Retail Exit Area. The Acquiring Licensees for that area must be included in the List unless they are a selfsupply licensee or Ofwat has decided not to include them.

Eligible customers who have been transferred from an exiting supplier to an Acquiring Licensee as part of a retail exit can apply to Ofwat to be allocated to a licensee. The regulator is required to direct a licensee to supply the customer from the List.

The guidance covers the following:

  • how holders of water supply and/or sewerage licences (WSSL licensees) other than Acquiring Licensees can participate in the Direction to Supply arrangements by becoming part of a List of eligible licensees
  • how WSSL licensees, including Acquiring Licensees, can be removed from the List and how Acquiring Licensees can request to be excluded from the List; and
  • the approach to allocating licensees to customers.

Click here to download Direction to Supply: guidance

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