Utility Week

UTILITY WEEK | 18TH - 24TH MARCH 2016 | 29 Markets & Trading Analysis T he report details developments in the water market in the first quarter of 2016, with a particular focus on progress towards the opening of the non- domestic water market, and the impact that potential opening of the domestic retail mar- ket could have. The start of 2016 marks the beginning of a significant year for Market Operator Services Limited (MOSL) and the Open Water pro- gramme in which all of its plans and prepa- rations need to come to fruition. Full market opening – for the non- domestic sector – may not be until April 2017, but by the end of this year, MOSL is expecting to have completed the design, the build and the testing of the market architec- ture, and be well into the process of shadow operation. As things stand, MOSL says it is "within a few days" of the plan it has set out. While MOSL is insistent the plan will remain unchanged in light of news from the Treasury that domestic retail competition could start to be introduced by 2020, the plans of the companies involved – and those with an interest in the water retail market – could be set for alterations. The detailed plan created by MOSL is being closely followed. MOSL chief executive Ben Jeffs remains as confident as ever that the April 2017 deadline will be met, but he is aware how significant 2016 will be for the industry. "Every single part of the plan will be completed this year," Jeffs told Utility Week Intelligence. The market operator has also said that the tight timeframe set out in the market delivery plan means that no significant changes or alterations will be made despite the prospect of domestic competition by 2020. Peter Simpson, MOSL non-executive director representing licensed undertaker members, said, "We need to deliver what we've been asked to deliver, and that's it." Over the past quarter, there have also been significant movements by a number of the incumbent suppliers, with Portsmouth 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. Key milestones • 24 March: Central market system functional design to be signed off • 25 March: Plan for enduring panel drawn up • 28 March: Market report to Ofwat/Defra • 31 March: Design and build phase due to be completed • 31 March: Market operations resourced • 31 March: Initial market training to begin • 1 April: Market testing to begin • 1 April: "Solid MOSL brand" being developed • 25 April: Agreed understanding of shadow market operations • 6 June: Enduring panel change process agreed PROFILES The following are extracts from full profiles, which are available to Utility Week Intelligence subscribers. United Utilities and Severn Trent joint venture United Utilities and Severn Trent unveiled their plan to create a joint venture combining their non-household water and wastewater retail businesses in England and Scotland. The move is about creating a retail business of scale – something the joint venture will achieve with its estimated market share across England and Scotland of 25 per cent. Business Stream Business Stream is the retail arm of Scottish Water and is the dominant retailer in the Scottish non-household retail market, with a market share in Scotland of around 75 per cent. Its commercial strategy has three key components: retaining market share in Scotland; growing market share in England; and increasing financial contribution from its water and wastewater solutions business. Tesco Tesco stores' water consumption has fallen in recent years, from 32.9 million m 3 in 2013/14 to 32.6 million m 3 in 2014/15. This sits along- side the company's commitment to reduce its environmental impact, something it reviewed last year, coming up with the aim to be carbon neutral by 2050. Water selling its non-household customer books to Castle Water. United Utilities and Severn Trent have created a joint venture that will take over both companies' non-domestic accounts, while Northumbrian Water has also launched a new non-household water brand, Wave. This article provides a snapshot of the most recent report. To access Water Market Quarterly in full, simply log into your Utility Week Intelligence account. For information on Utility Week Intelligence, including a free trial promotion, contact Peter Bissell, Utility Week Membership, on +44 (0)1342 332057 or email peter.bissell@utilityweek.co.uk.

• Cover