MOSL has published its second CEO Quarterly Market Review to reflect on the first six months since the opening of the non-household retail water market on 1 April 2017.

The second CEO Quarterly Market Review provides information on market activity and changes considered by the industry Code Panel as well as a forward look at MOSL’s plans as market operator.

MOSL’s remit is to enable the market to operate effectively and efficiently, providing a ‘level playing field’ for all companies operating in the market.

Six months since full market opening on 1 April 2017 key highlights in the review include:  

• There are currently 22 national retailers, 12 regional retailers, one self-supply retailer and 25 wholesalers in the market. One new national retailer also entered the market this quarter
• Switching has continued at a steady rate with 25,010 switches this quarter bringing the total switches to 61,311. This represents 2.3 per cent of the 2.7 million supply points in the market
• New entrants gained around 35 per cent of the supply points switched this quarter. Switches awayS from the current largest five retailers accounted for around 70 per cent of all switches since market opening.

MOSL’s CEO, Chris Scoggins, said:

“The last quarter has been a productive one for us at MOSL. We have welcomed our new Chair, Jim Keohane and our new Wholesaler Director, Mel Karam to the MOSL Board. We have also continued working on our Strategic Review, improved the functionality of the central system and launched our new monthly User Forum. MOSL will continue to provide data and information about the market as part of our commitment to transparency as well as to working with our members and other stakeholders to improve and evolve the market.”

The review says that MOSL has also been exploring how it can introduce innovation to improve the efficiency of the market, especially through digital. This includes implementing early pilots this year. The digital initiatives will reduce costs, improve transparency and reduce overall friction in the market, the report says.

According to the review, during the quarter several retailers announced their intention to enter into joint ventures or mergers to consolidate their market shares. Currently the largest five national retailers, which include two new entrant retailers, serve around 75 per cent of all supply points in the market.

Ofwat: still like to see more transparency from retailers about offers available to customers

Commenting on the review, Emma Kelso, Ofwat’s Senior Director of Customers and Casework, said:

“It is promising to see continued growth in the market since it opened in April this year. Providing customers with choice and innovation is key to continuing success and positive outcomes across the sector.

“The fact that we are also seeing a broad range of retailers gaining new supply points and new entrants to the market, is encouraging.

“As well as those who have switched, we have heard that others continue to agree new deals with their existing retailer and innovative water saving ideas are being introduced.

“We would still like to see more transparency from retailers about offers available to customers and will continue to monitor this closely. We are also engaging with customers via insight surveys to find out more about experience and how we can work with retailers to make the market work in the best way possible. ”

Earlier this week the water industry regulator announced details of what it described as a “major change in policy” to tighten up on unsecured credit arrangements put in place in the Wholesale Retail Code (WRC) for retailers in the non-household business market.