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Twenty-five respond to Ofwat’s market monitoring plans

The regulator will use responses to its market monitoring consultation to update its policy

Ofwat has received 25 responses to its plans for monitoring the business retail market when it opens.

A spokesperson for the regulator told Utility Week it would now go through the responses and update its policy, which will be issued before the market opens in April.

In its consultation document, published 12 January, Ofwat warned water retailers that it will keep a close eye on them when the market opens in April, and will “take action” against any form of misconduct.

It said it will use several different methods, such as water retail company reports, the experience of customers and water retailers, any complaints it receives, market research and proactive checks, to “get a full picture of the market”.

It will then intervene where there is a risk to the effective operation of the market, or where there is significant detriment to customers.

From April this year, eligible business customers in England will be able to choose who they pay for their water and wastewater retail services. The UK government has estimated the market will contribute around £200 million to the UK economy, and bring significant environmental benefits.

However, these benefits will only be achieved if the market is “truly competitive and efficient”, with all retailers giving clear advice to customers about the opportunities to switch tariffs or suppliers.