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The water regulator has extended the change it made to retail market codes to the end of July to offer protection for business customers that are still unable to open.
Properties have been marked as ‘vacant’ during the coronavirus lockdown to stop bills being generated or the customer being charged for consumption when the business was not operational.
Ofwat updated the market code in March and, with MOSL, passed a series of alterations to the code to reflect the reality many businesses face in lockdown. The measure, which was temporarily in place until the end of June has been extended until 31 July.
The allowance applies for any business customer premises that cannot open to workers, the public or visitors; or has seen a 95 per cent reduction in normal activities.
Ofwat took the decision to extend the vacancy allowance inline with its liquidity support, which extends until 31 July 2020.
As lockdown restrictions are eased and businesses resume trading Ofwat said its ruling was to give flexibility to customers that may not be able to open yet or become subject to localised lockdown if an outbreak occurs.
The decision received support from a consultation of retailers, wholesalers and CCW – the consumer watchdog for water.
Ofwat will consult with trading parties again in July regarding liquidity measures and to consider further use of temporary vacancies and how to unwind the use the measure. It said that retailers should be aware that the consultation may include the decision to stop using all temporary vacancy notices by the end of August.
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