Retail Water Market for Non-Household Customers Opens
Article Date: 1st April 2017
Retail Water Market for Non-Household Customers is now Open
Market operator services limited (MOSL) became the operator of the world’s largest competitive water market today, just 21 months after it assumed responsibility for preparing the market for launch.
More than 1.2 million businesses, charities and public sector customers in England, from micro businesses and SMEs to large corporates and the public sector, can now choose their water retailer for the first time.
The launch marks the successful delivery of one of the largest and most complicated industry-wide change programmes ever undertaken by the water sector in England and creates a market that generates revenues of £2.4 billion per year.
The ‘Open Water’ programme, which has been led by the Department for the Environment, Food and Rural Affairs (Defra), the water industry regulator Ofwat and MOSL, is likely to drive the next phase of efficiency improvements in the sector, reducing customers’ bills and improving service levels.
MOSL was established in July 2015 by the water industry to work with Defra and Ofwat, to build the central market capability and to procure, build and test the central IT system (Central Market Operating System or ‘CMOS’) at the heart of the new market, which enables customers to switch between suppliers.
The CMOS also acts as a central market settlement system, calculating usage charges between wholesalers and retailers, enabling retailers to charge customers and wholesalers to recover their regulatory income. The CMOS has been developed and delivered by CGI, based on a similar system developed for the electricity markets in Denmark and Holland.
The opening of the non-household market is transformational for the water sector, affecting virtually every customer-related system and process. The implementation of the CMOS is just part of the equation, with water companies having to re-engineer their in-house systems and processes to interface to MOSL, whilst implementing major operational and culture change programmes.
Read Full Article from the MOSL website here
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future water association
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