As a result of the opening of the business retail market in April 2017, around 1.2 million business customers in England can choose their Retailer. To protect those business customers who have not engaged in the market, the Retail Exit Code (REC) sets out requirements for price and non-price terms in the default tariffs offered to these customers.
We have reviewed the price and non-price protections currently set out in the REC. Following two public consultations in December 2021 and September 2022 we have decided to make changes to the price protections that apply to smaller consumption business customers (those with annual consumption below 0.5Ml). This decision document sets out the changes we are making from 1 April 2023 and it also explains the reasons why we are making these changes.
To be clear, our proposals set out in this document do not affect household customers.
**UPDATE 1 September 2022: We have published updated versions of both ‘Annex A – Methodology’ and ‘Annex C – Proposed amendments to the Retail Exit Code’. The updates correct two errors within the documents.**
**UPDATE 29 SEPTEMBER 2022: We have updated four elements of our proposed allowance and four associated charts – these are available at: REC22: Update to the proposed REC allowances for Group One customers**
**UPDATE 29 NOVEMBER 2022: We plan to publish our decision on the business retail price caps on Thursday 15 December.
Where to send submissions
We seek views on the consultation questions in this document and would also welcome any comments. Please email them to firstname.lastname@example.org with the subject “REC review September 2022 proposals consultation”.
Alternatively written responses may be posted to: Review of the Retail Exit Code September 2022, Consultation response, Ofwat, Centre City Tower, 7 Hill Street, Birmingham B5 4UA
The closing date for this consultation is 5pm 14th October 2022.
We intend to publish responses to this consultation on our website at www.ofwat.gov.uk. Subject to the following, by providing a response to this consultation you are deemed to consent to its publication.