Final market opening decision to be taken in ‘early 2017’

The final decision on whether the non-household water retail market will open as scheduled in April 2017 will be made in “early 2017” according to the Department for Environment, Food and Rural Affairs (Defra).

Gabrielle Edwards, Defra’s deputy director for water reform, said at a Westminster Energy, Environment and Transport Forum last week the final go/no-go decision would be made only a matter of months before the market is set to open.

She said: “Realistically I would say the final decision is in early 2017 when we’ve been through the third stage of the assurance framework.”

Publicly, the water companies remain confident that the April 2017 deadline is achievable, but two senior figures from leading water companies have told Utility Week making the final go-live decision at that point would be “too late” and damage trust and confidence in the entire sector.

They stated that there needs to be an appropriate amount of time to engage with the market and stakeholders to inform them of the delay, and the modified plans.

Leaving it until early 2017 would “impact the industry’s reputation” and “make it all look a bit disjointed”, especially as the non-domestic sector will have been “stoked up” about the benefits of competition.

One said: “If we’re going to have the final go/no-go decision about Christmas 2016, only a few months before market opening, it is too late.”

The Consumer Council for Water chief executive Tony Smith slammed the decision to make the final call so late. He said: “A late decision could risk disappointing customers whose expectations may increase as we draw closer to April 2017.”

However, he added CCW would welcome the choice to delay market opening if it was not ready on time and the decision would have to be “communicated clearly to customers and at the earliest opportunity”.