In April 2017, the Government opened the non-household retail market for water (‘the Business Retail Market’), allowing all eligible business customers in England and Wales to choose the provider of their water and/or wastewater retail services.
From time to time, companies in competitive markets exit the market for various reasons, including where they fail financially. Where this is the case, it is important that robust arrangements are in place to protect customers from the potential consequences of such exits and promote a well-functioning market.
We are considering how the current interim supply arrangements can be strengthened so that they can adequately protect customers and are robust for the longer-term functioning of the market. We propose that a ‘Cost Recovery Mechanism’ be developed to enable a Retailer appointed under the interim supply arrangements (an ‘Interim Retailer’) to recover the costs they efficiently incur in acting in that capacity and which cannot be recovered through other means.
This document sets out, for consultation, our proposals about how such a mechanism might be developed and operated. It also discusses a number of other options that we have considered. We have set out specific questions that we would like responses to throughout this document. Where appropriate, views and responses should be supplemented with supporting data and evidence.
How to respond
We would welcome any comments on this document. Please email them to [email protected] with the subject ‘Cost Recovery Consultation’ or post them to:
Cost Recovery Mechanism consultation response
Centre City Tower
7 Hill Street
Birmingham B5 4UA
The closing date for responses to this consultation is 5pm on Wednesday 1 November 2023.