Last week MOSL submitted its response to Ofwat’s PR24 consultation, which closed on 22 July.
We welcomed the opportunity to respond to the consultation and to share our views on how we might build on progress to date and lessons learned from PR19. We are also encouraged by the strength of our engagement with Ofwat and its commitment to monitoring the evolution of new markets.
During the last business planning period (PR19) the non-household (NHH) market was in the process of opening. At this time, wholesalers were not fully aware of the requirements for investment and performance incentives. As such, very little on the NHH market was included in water companies’ business plans.
We believe there are opportunities within PR24 to set clearer targets and performance commitments for the NHH market, particularly in the areas of metering, water usage and customer service. Focus to date has been on reducing Per Capita Consumption (PCC) for domestic customers, but greater measures are also required to secure the reduction in demand for business customers and to improve the existing and aging NHH meter stock. We would welcome Ofwat’s support in developing these targets through new or, where appropriate, existing frameworks.
We also believe stronger incentives are required to support water companies’ performance specific to the NHH market – where focus and investment are currently low. Any investment should be cost beneficial and we would expect wholesalers to develop business cases for improvement with their relevant retailers.
For full transparency, we are publishing our full consultation response and the accompanying letter to Ofwat Interim CEO, David Black.
With Ofwat’s encouragement and support, we believe we can set out clearer obligations and incentives for water companies to reinvigorate competition and deliver value and choice for customers.
We welcome the opportunity to discuss any of the points raised in our consultation response. If you have any questions or would like to provide feedback please email
Notes to Editors:
- MOSL was set up in 2015 and is the market operator for the non-household retail market in England
- MOSL operates the non-household market for the benefit of its members and the customers they serve
- MOSL’s members are the wholesalers and retailers who operate in the market. A full list of members can be found on the MOSL website here: https://mosl.co.uk/about/our-members
- We work with retailers, wholesalers, customers and stakeholders to identify – and implement – ways to improve the market and contribute to wider sector goals
- Our response to PR24 is focused on the questions within our remit/strategic priorities. We have not sought to respond to all questions.
