Utility Week

26 | 15TH - 21ST NOVEMBER 2019 | UTILITY WEEK Reset the water market As the non-household water market operator MOSL prepares to publish its 2019-21 business plan, Jane Gray comments on the friction points which continue to stymie the potential of the market and detract from customer value. Comment Jane Gray I t's no secret to anyone working in or around the competitive non-household water market that things are far from rosy when it comes to delivering on the value case that prompted market opening just over two-and-a-half years ago. While the market opened on time and success- fully introduced the capability for businesses to switch their water supply services between a variety of new and incumbent retailers, engagement from the total potential customer base remains low and, as Ofwat evidenced in its recent state of the market report, a range of market friction points are negatively impacting the e• ciency of trading party operations. Ultimately, these friction points – such as poor quality meter data and a lack of consistency in wholesaler tari• structures – are leading to a lower than desirable customer experience for many and are distracting trading parties from work they could be doing to innovate and add value. Last week, the new chief executive for the mar- ket operator MOSL called on the market to formally acknowledge this situation and unite for a "reset". At an industry forum with participation from key movers and shakers in market opening and the subsequent operation of the market, Sarah McMath set out the bones of MOSL's new business plan, will be put up for consultation later this month and looks out to 2021. At its core, the plan is all about increasing "ease of doing business" – forˆtrading parties interacting with core market systems, but ultimately for non-household customers who, it was acknowledged at the meeting, currently have to overcome an unreasonable level of market complexity in order to access questionable value in terms of bill savings or e• ciency bene‰ ts. If trading parties decide to back MOSL's new vision – which repre- sents a signi‰ cant change in direction from the "thin" operating model set out for the organisation at market opening – a number one priority will be gaining industry consensus behind changes to meter reading obligations. Current arrangements, which place the whole responsibility for meter reading on water retailers, have been attracting growing discontent. Water retailers are struggling to ful‰ l the expectation due to lack of knowledge about meter location (partly as a result of incomplete data at market opening), and this is leading to customer billing problems. But water wholesalers too are suf- fering from losing touch with non-household meter data in an environment of regulatory crackdown on leakage levels – so much so, that several wholesal- ers have reinitiated meter reading operations in this space, doubling up on retailer activity but adding nothing to the completeness or accuracy of data in the central market operating system (CMOS). While it might have seemed politically expedi- ent to put meter reading solely in the hands of water retailers at market opening, subsequent market developments have proved that it was not the best choice for delivering longer-term value. If the market can coalesce around an agreed plan to alter meter reading rules and open up access for providing veri‰ able meter reads to a wider range of players, then regulators and policy makers would be well advised to accept the recommendations. It could be a ‰ rst signi‰ cant step to a wider market reset and a big step forward for delivering the open market value case. Jane Gray, content director, Utility Week Customers Current arrangements, which place the whole responsibility for meter reading on water retailers, have been attracting growingdiscontent

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