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The chief executive of Wessex Water has called for a more “formal” assurance process to establish the progress being made by the sector ahead of the opening of the non-domestic water market.
Speaking exclusively to Utility Week, Colin Skellett said as assurance process monitoring the milestones achieved by the water companies is required to ensure the opening of the water market in April 2017 it is delivered smoothly and on time.
He said: “It would be best to have an objective assessment so we know what needs to be done.
“It is stupid to proceed on hope. We need to proceed by measuring at certain key points. It will show if you are on track or not and allow you time for mitigation.”
Skellett warned that the “reputation of the industry rests on getting this right” and that failing to have a centrally run assurance programme increases the risk of one or more participants not being fully prepared for the go live date.
“If a chunk of customers can’t participate, it will be difficult for them and gives the perception we can’t organises ourselves properly,” he added.
The Water Industry Commission for Scotland chief executive Alan Sutherland, also told Utility Week that a set of “readiness tests” should be introduced to ensure the sector will be ready for April 2017.
He said this is something “that needs to be hands on” and could be run by the regulator, as was the case when the Scottish market opening in 2008, or by the market operator “if it is ready and able to take on the responsibility”.
Sutherland added that these tests would help to establish whether retail and wholesale arms of water companies are acting independently and creating a level playing field, and whether the retail arms are financially sustainable on their own.
Skellett and Sutherland take a differing view to the assurance process than that of Yorkshire Water head of business retail Nick Topham and South West Water regulatory director Iain Vosper, who both urged Ofwat to maintain its self-assurance programme.
The claims come as new market opening director Adam Cooper, appointed by Ofwat in March, is listening to the industry on how best to proceed with market opening and how to monitor the sector’s progress.
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