Ripples of change assessing the impact of changes to the Business Retail Market governance arrangements

Ripples of change: assessing the impact of changes to the Business Retail Market governance arrangements

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Published

23rd May, 2024

Kind

Publication

Type

Business Retail Market

Detail

The Business Retail Market adopts a market-led approach to governance, meaning stakeholders have the ability to play a key role in shaping the direction of the market and proposing changes to the codes that govern it. Such an approach can enable benefits such as increased collaboration and innovation, but if designed in the wrong way can pose risks, such as customer needs not being placed at the forefront of decision-making. In August 2020, Ofwat published its Review of incumbent company support for effective markets (the 'RISE Review'). The RISE Review found that while the market-led approach should be supported, it was not working effectively; greater focus was needed on the customer interest in decision-making, changes that most benefit customers needed to be prioritised, and decision-making needed to better facilitate innovation. This report sets out our findings that led to these conclusions, covering areas including the prioritisation of customers in decision-making, the focus on facilitating innovation, Wholesaler engagement with governance processes, and the effectiveness of decision making and clarity of roles in the governance process. We set out the actions we think are necessary for further improvements in each area.