Standard content for Members only
To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.
If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.
The Department for Environment, Food and Rural Affairs (Defra) has outlined plans to introduce a “supplier of first resort panel” to pick up non-domestic customers whose incumbent water supplier has exited the retail market.
The plans have been made in a consultation looking in more detail at how the non-domestic retail market for water will be introduced and created in the UK.
Defra states that all acquiring licensees will be obliged to join the panel, unless they are self-supply licensees or “have another good reason not to do so”.
The suppliers of first resort will be utilised when new customers do not agree a deal with a water retailer but still require a water and wastewater connection.
The consultation also outlines Defra’s plans to introduce “deemed contracts” for non-domestic customers who have not previously negotiated a contract with their water supplier.
This will mean that the terms of supply are formalised into a contract with their supplier and will continue until they are either renegotiated or the customer switches.
Defra adds that it expects most suppliers will offer the customers better deals than the deemed contract, and that Ofwat is expected to publish a template deemed contract by March 2016.
Water minister Dan Rogerson said: “We are committed to opening up the retail market for businesses, charities and the public sector in April 2017, benefitting both businesses and the economy.
“The Retail Exits consultation represents important progress towards that goal.
“We encourage everyone with an interest to respond.”
The consultation closes for responses on Wednesday 18 February 2015.
Please login or Register to leave a comment.