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26 | 18TH - 24TH DECEMBER 2015 | UTILITY WEEK Markets & Trading Analysis T he second edition of Water Market Quarterly (WMQ), a premium publica- tion for the Utility Week Intelligence platform, has been released. The report details developments in the water market in the final quarter of 2015 with particular focus on progress towards the opening of the non- domestic water market. In Q4 this ambitious programme for market reform stepped up a gear, moving from a set-up phase to "readiness". The market codes have been finalised and the central market operating system design has taken major steps forwards. The new issue of WMQ explores the significance of these developments for market participants. It also explains the structure for the emerging competitive market and its operator, Market Operator Services Limited (MOSL), and much more. This article provides a snapshot of the most recent report. The full version is avail- able to Utility Week Intelligence subscribers. (utilityweekintelligence.co.uk). Plans in place Following a trio of overhauls to the original programme, MOSL was established in Octo- ber 2014 and it has now laid the foundations on which market delivery can be built. Its key aim – procuring the central IT systems – was completed in October when it awarded the £15 million contract to CGI to design, build, and operate the central IT sys- tem for the English water market for the next five years. The system will be based on that used in the Dutch and Danish markets, with CGI adapting the basic framework to make it applicable for England. CGI says this will ensure the design and build phases are mini- mised to allow for more market testing. Tara McGeehan, vice president, energy and utilities for CGI in the UK, said: "We have a very tight timescale to design, build and implement the system, but by working in partnership with all the key stakeholders and leveraging our central market systems experience, we will develop a system that will make competition work for the water industry." In October, Ofwat also published the legal framework for market opening, setting out the ground rules for exactly how it will be set up and function. This describes the different elements of the legal framework for the new retail market – and who is responsible for creating them. This framework will evolve as more provi- sions of the Water Act 2014 come into force, and as the new market is set up. Another key element of moving from the planning stage to the delivery phase has been MOSL's integrated market open- ing plan. The latest version, published in November, sets out when the critical mile- Water Market Quarterly Utility Week presents an executive summary of the latest quarterly report from its premium information service, Utility Week Intelligence, on developments in the UK water market. Market Arrangements Code Establishment of Market Operator Customer Contacts Eligibility Guidance Wholesale Contacts Licence Application Guidance Schemes of terms and conditions for interim supply Schemes of terms and conditions for supply on exit Transition Scheme Primary legislation Secondary legislation Statutory code, licences, rules and guidance Other codes, schemes and guidance Commercial agreements/ arrangements Key n Made by ministers n Made by Ofwat n Proposed by Ofwat n Made by companies GSS Regulations Water Industry Act 1991 (WA91) Water Act 2014 (WA14) Exit Regulations Transition Order Licence Application Regulations Wholesale Retail Code Customer Code of Practice Charges Schemes Charging Rules Water Supply and Sewerage Licence (WSSL) Instrument of Appointment Source: Ofwat THE LEGAL FRAMEWORK Standard conditions of WSSL Licences Changing Guidance Interim Supply Code Retail Exit Code