Business retail market: 2021-22 review of the Retail Exit Code

Since the opening of the business retail market in April 2017, around 1.2 million business customers in England can choose their water retailer. To protect those business customers who have not engaged in the market and remain on ‘deemed’ contracts, the Retail Exit Code (REC) sets out requirements for price and non-price terms in the default tariffs offered to these customers. A ‘deemed’ contract is terms and conditions applied to a customer where the customer is receiving a water supply and/or wastewater service, but no contract has otherwise been agreed between the retailer and the customer.

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). Our final decisions set out the changes we are making from 1 April 2023 and also explain the reasons why we are making these changes. ‘The version of the REC applicable from 1 April 2023 is available here.

The REC review focuses on the price and non-price terms protections afforded to business customers who are eligible to choose their retailer. It does not, for example, affect household customers.