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Ofwat creates panel to shape water market

Ofwat is creating a panel to help shape how the non-domestic water retail market will function once it opens in 2017.

The nine person interim codes panel will feature members elected by the industry to consider changes proposed to the workings of the water market, and a regulator appointed chair.

The group will assess and vote on changes the wholesale-retail code, which sets out the operational terms that apply to all two-way arrangements between wholesalers and licenced retailers.

It will also have to approve any alterations to the market arrangement code, which sets out the arrangements to establish the market operator and an advisory codes panel. This will include the process for creating, joining and operating the market operator.

The interim panel will evaluate each proposed change, vote on it, and then provide a recommendation to Ofwat on whether to approve the potential code change.

The panel will be made up of two members elected by wholesale companies, two elected by associate retailers, two elected by new entrant retailers, and independent members appointed by the chairman.

The chairman will be appointed by Ofwat, and will be someone who has not been employed by a water licence holder in the previous five years.

The water companies have to nominate potential panel members to Ofwat by 22 May, with the elections of the panel members scheduled to take place in early June.

The independent chair will be appointed at around the same time, with the final two members being named by the new chair at the end of that month.