Consultation on the Market Arrangements Code

About Consultation

At the moment only a small number of business, charity and public sector (“business”) customers across England and Wales can choose their water retailer and most business customers must use services provided by the monopoly water companies. The Water Act 2014 (WA14) will allow eligible business customers to choose their supplier of water and wastewater retail services from April 2017.

This means that for business customers who use the water supply or sewerage system of an appointed company whose area is wholly or mainly in England, the market will be extended to include all business customers. However, for those who use the water supply or sewerage system of an appointed company whose area is wholly or mainly in Wales, the market will not be extended, reflecting the different policy position of the Welsh Government which retains the 50ML threshold.

A new legal and regulatory framework is being put in place to facilitate the new business retail market, and provide the necessary market governance. This framework includes a number of codes which together set out the rules for the new market.

This consultation focuses on the Market Arrangements Code (MAC). Please also note our separate consultation on the Wholesale Retail Code.

We welcome your comments on the Market Arrangements Code by Friday 16 December 2016.

Please submit email responses to [email protected], with the subject MAC Consultation or post them to:

MAC Consultation
Retail Market Opening Programme
Ofwat
21 Bloomsbury Street
London
WC1B 3HF

The MAC is a non-statutory code which is established by conditions in Water Supply and Sewerage Licences and Instruments of Appointment (MAC Condition). The MAC applies to all Licensees and Appointees in England and Wales as a consequence of the MAC Condition.

Update 20/02/17:

This is the proposed final version of the document which we expect to designate as the Market Arrangements Code pursuant to Condition R3 of the Instrument of Appointment of appointed water and/or sewerage undertakers and Condition B1 of the Standard Conditions of Water Supply and Sewerage Licences. When these conditions come into effect at Market Opening, undertakers and Licensees will be obliged to be party to and comply with this document as a condition of their Appointments or Licences. Undertakers and Licensees who wish to trade from Market Opening will be required to accede to this document by signing the MAC framework agreement or the accession agreement set out in the Market Arrangements Code before Market Opening. On Wednesday 8 March 2017, Ofwat will be holding an event at which appointed water and wastewater companies and water supply and sewerage licensees (‘Original parties’) together with the Market Operator (MO) will sign the MAC Framework Agreement. For more information, see our letter to Appointees and Licensees.