Water retailers call for tighter scrutiny of wholesaler data

Gaps in data are “significantly impairing” retailers’ ability to provide quotations to customers

Water retailers have called for Ofwat to collect and monitor wholesaler data, as well as information from the market operator and retailers, in the new market.

SES Business Water said one area it believes requires closer scrutiny by Ofwat in the new market is the completeness of data provided by wholesalers.

In its response to Ofwat’s consultation on monitoring the business retail market, the retailer said it was “already identifying issues” with gaps in data provided by wholesalers for market opening, and that was “significantly impairing” its ability to provide prices and quotations to customers.

“We would therefore urge Ofwat to request a report from MOSL on the gaps existing in the market dataset and to take immediate and direct action to require wholesalers to fulfil the data requirements within a given timeframe,” it added.

“At best, this is constraining the amount of market activity that will occur and at worst could be seen as a deliberate attempt by wholesalers to protect market share of their associate.”

In its response, Business Stream insisted Ofwat should collect data from wholesalers and customers, as well as retailers and the market operator, to “gain an accurate picture” of whether the market is working.

The Scottish retailer said good wholesaler operational performance is “crucial” to the success of the market.

“We propose the peer comparison of wholesaler performance should be added to the list of items requested from the market operator, and that an additional list of items should be developed for wholesalers to provide,” said the retailer, in its response

It also added overall customer satisfaction should be one of the most important metrics of market success, and a regular survey should be carried out in order to provide this.

Anglian Water Business agreed, stating: “We note that there does not appear to be any proposal to collect data in relation to retailer satisfaction with wholesaler services. This is an omission and should be included.”

In its decision document, Ofwat said: “We recognise that wholesalers have a crucial part to play in the effective functioning of the market, and there are a number of reasons to look at their performance, including ensuring a level playing field for competition.”

The regulator said it does not intend to alter the scope of the information request at this time, although they will keep this under regular review.