Defra Roadmap actions
Defra has five actions (D1-D5) allocated to it in the Strategic Panel's Roadmap to a Flourishing Market. Find out how Defra is progressing with these below.
Each action is assigned a red, amber or green (RAG) status depending on its progress. The definition of the RAG status is as follows:
- Green – on schedule, no concerns OR delivered and under review
- Amber – flagged because an issue has been encountered that may or may not delay the completion of the action
- Red - delay or issue identified that is preventing delivery to schedule
| Action | Latest update | End date | Status |
|---|---|---|---|
|
D1. Define incentive schemes to reduce demand Water saving credit schemes similar to those trialed in the Stort Water Resource Zone (WRZ) should be established as scalable models that are compatible with all regions. |
October 2025: Defra is supporting the Ministry of Housing, Communities and Local Government (MHCLG) in assessing options for measuring, reducing and monitoring demand in premises that make up the Cambridge Business Retail Market premises in support of new growth and development. MOSL is supporting this programme with data on premises, segmentation, consumption and benchmarking.
August 2025: The Independent Water Commission referenced possible incentive schemes (specifically recommendation 38, 39 and 40) to reduce demand. MOSL will follow up with DEFRA to understand their approach post report.
June 2025: pending the final recommendations from the Independent Water Commission which are expected in July 2025. The commission was established in October 2024 to deliver recommendations to government on reforms to the water sector. |
31 March 2027 |
On schedule |
|
D2. Review provisions for independent networks and new builds Provide clarity on the role of, and opportunities for new appointments and variations (NAVs), temporary building supplies and self-lay customers. This should ensure developers have choices to lay pipe that includes the wholesaler, self-lay providers and NAVs and encourage new parties into the market. There may be benefits of removing the need for NAVs to enter the market as both a retailer and wholesaler. |
October 2025: Defra is considering the recommendations set out in the Independent Water Commission. Our response to this will be set out in a Government White Paper is due course.
August 2025: The Independent Commission was clear that New Appointment and Variation (NAVs) independent networks play an important role in new build connections and housing growth, but current processes are too complex and burdensome. It recommended reforms to streamline NAV applications, reduce duplication, ensure proportionate regulation, and maintain oversight to prevent market fragmentation. MOSL will follow up with Defra to understand their implementation approach.
June 2025: pending the final recommendations from the Independent Water Commission which are expected in July 2025. The commission was established in October 2024 to deliver recommendations to government on reforms to the water sector. |
31 March 2028 |
On schedule |
|
D3. Make changes to the Water Industry Act for the Interim Supply Allocation (ISA) process Make changes to the Water Industry Act to strengthen the Supplier of Last Resort (SOLR) element of the ISA process |
October 2025: Defra is considering changes to the Water Industry Act to strengthen the Supplier of Last Resort (SOLR) element of the ISA process following the Independent Water Commission’s recommendation. Our response to this will be set out in a Government White Paper in due course.
August 2025: In line with Ofwat and CCW, the Independent Commission highlighted the need to create a ‘supplier of last resort’ mechanism that ensures business customers are fully protected from retailer failure. MOSL will follow up with DEFRA to understand their implementation approach.
June 2025: pending the final recommendations from the Independent Water Commission which are expected in July 2025. The commission was established in October 2024 to deliver recommendations to government on reforms to the water sector. |
31 March 2028 |
On schedule |
|
D4. Deliver a market awareness campaign if needed Evaluate the need for a centrally driven market awareness campaign, focusing on group 1 (smaller) customers, if the other roadmap actions such as end contract notices, fairness commitments, new entrant notifications, plain english guides, and website relaunches have not raised market awareness. |
October 2025: The Strategic Panel will monitor the success and look for any lesson learned from the awareness campaign strategy designed for the Cambridge Program in conjunction with retailers, wholesalers, Defra and the Ministry for Housing, Communities and Local Government - with the potential for a marketing campaign to drive behaviour changes and pledges.
August 2025: The Independent Commission highlighted continued low awareness and engagement levels among smaller business customers and suggested that addressing these issues must form part of any reforms made to the business retail market (BRM)- including through the Retail Exit Code (REC) and the Customer Protection Code of Practice (CPCoP). MOSL will follow up with Defra to understand implementation approach to BRM recommendations.
June 2025: pending the final recommendations from the Independent Water Commission which are expected in July 2025. The commission was established in October 2024 to deliver recommendations to government on reforms to the water sector. |
31 March 2028 |
On schedule |
|
D5. Make changes to the WIA (Change process) Make changes to the WIA to reduce Ofwat obligations on some code changes in support of a more efficient change process. |
October 2025: The Strategic Panel has confirmed that it will be seeking changes within the Water Industry Act to facilitate the operation of the business retail market. A key change will be to permit Ofwat to delegate approval of certain code changes to speed up the process and enhance market efficiency.
August 2025: The Independent Commission noted that the legislative framework for water in England and Wales has become fragmented and overly complex. The Commission additionally reported that many of its reforms will require primary legislation, with MOSL to follow up with Defra to better understand expected legistive requirements and areas for input.
June 2025: pending the final recommendations from the Independent Water Commission which are expected in July 2025. The commission was established in October 2024 to deliver recommendations to government on reforms to the water sector. |
31 March 2028 |
On schedule |
The table above includes the most recent three updates for each action. If you would like to view a full list of past updates please contact panel.secretariat@mosl.co.uk. For more information on how other stakeholders are progressing with their actions, please follow the links below.