Ofwat has launched a new consultation on its review of the Retail Exit Code (REC) price and non-price protections for business customers in the business retail market.
The REC sets out safeguards for customers on default and deemed contracts, including protections for customers who may be less active or less able to engage in the market.
Around 1.2 million business customers in England are eligible to choose their retailer for their water and wastewater services.
Ofwat is reviewing the price and non-price protections currently set out in the REC applying to business customers and the regulator is proposing some changes.
The consultation is seeking views on its proposed changes to the current protections to ensure they remain effective, proportionate and appropriate as the market continues to develop.
Among the changes Ofwat proposes to make is a redefinition of the categories for protection as follows:
- Group One - customers with annual consumption <0.5ML;
- Group Two - customers with annual consumption 0.5-5Ml;
- Group Three - customers with annual consumption >5Ml.
Ofwat intends to retain:
- the current form of the Group One price control framework
- gross margin-based price protections for Group Two customers
- the current form of no explicit price protections for Group Three customers
Ofwat welcomes views from retailers, customers, customer representatives and other interested stakeholders to help inform its decisions on the future of REC protections.
Closing date to submit comments on the proposals is 5:00pm on Friday 14 August 2026 – responses should be emailed to This e-mail address is being protected from spambots. You need JavaScript enabled to view it with the subject “REC26 Proposals Summer 2026 consultation”.
Ofwat expects to publish its final decision by the end of 2026, with any revisions to the REC and associated protections for business customers to take effect from 1 April 2027.
Click here to download the main consultation document.
Click here to access the consultation online.