Utility Week

28 | 1ST - 7TH JULY 2016 | UTILITY WEEK Markets & Trading Analysis T he report details developments in the water market in the second quarter of 2016, with a particular focus on how the attention of the sector has turned to what propositions water retailers will offer cus- tomers and potential customers. There are just a few months remain- ing until Market Operator Services Limited (MOSL) takes the next step towards non- domestic retail competition with the shadow retail market opening in October. The final preparations are now being made to ensure the industry – companies, regulators and market operator – is ready come full market opening in April 2017. The focus has shied from market design, build and the development of codes. Recent months have seen a number of rebrandings, water and sewerage supply licences being applied for, expansion plans being set out and new companies being created – includ- ing the recent deal between Business Stream and Southern Water. This said, the two organisations driving the market opening process – MOSL and Ofwat – have made some notable strides in developing the new market systems and reg- ulatory framework. The systems are now said to be ready, despite a minor delay incurred by Ofwat's decision to li the in-area trading ban, and its plans to limit the period of time over which retailers can back-bill customers. MOSL chief executive Ben Jeffs revealed in April that there had been a three-week delay to the development of market systems. However, he insisted the timetable for the market included enough flexibility to remain on course. Continued hard work, and simultaneous development of several work schemes in the Open Water programme, have resulted in market systems now being ready for shadow operation in October. An update from Jeffs last month stated there are now no "technical impediments to the market opening", although he admitted there remains a lot of work to do in terms of uploading data, testing systems and making relevant changes to future policy and regula- tory processes. 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 • 8 July: Confirmation of test data requirements • 29 July: Support desk resourced (ends) • 12 August: Market entry business solution assessment • 12 August: Data and integration testing due to be completed • 12 August: Market scenario testing • 19 August: Q3 report to Defra/Ofwat • 31 August: MOSL ready – test complete • 1 September: MOSL ready – shadow market (preparations start) • 1 September: 2017/18 business plan approved • 16 September: All known trading parties have been market entry certified • 16 September: Formal market entry assurance testing PROFILES The following are extracts from full profiles, which are available to Utility Week Intelligence subscribers. Coca-Cola Enterprises Coca-Cola Enterprises (CCE) – the company responsible for bottling and distributing Coca- Cola and associated products in Great Britain – has six manufacturing sites and employs 4,000 people. "Water is a precious resource," says CCE. "Not only is it the main ingredient in our drinks and central to our manufacturing but it's also essential for growing many of the ingredients we use." Northumbrian Water Northumbrian Water has been active in its approach to market opening. In March, the company's business arm rebranded as Wave. The group says the new logo retains the company's corporate colours and its hexago- nal shape is inspired by Northumberland's castles. Clear Business Water Founded in 2013, Clear Business Water is the largest independent water supplier in Scot- land and will soon offer its services to busi- nesses across England as well. Its vision is to provide businesses with a "clear and simple" opportunity to save money on their water and wastewater service costs, while providing an exceptional level of service. Furthermore, MOSL rated its own pro- gress towards market opening at 63 per cent in April – up 1 per cent from its position in January, but significantly behind water wholesalers (71 per cent) and retailers (70 per cent). 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