British Water Members' Handbook 2017 2017 Edition | 页面 57
M AR K ET R EFOR M
The fi nal push
Of course, with a programme of this size and reach,
there remains a lot to do before April. Transitioning
the programme to enduring arrangements is work in
progress. At a system level, work is underway to train
users, while MOSL is gearing up to operate the open
market. It will also begin the process of facilitating “pre-
switches” in February to manage the high volume of
transfers (97%) resulting from retail exits.
Water companies are pushing on with their readiness
preparations, which include “softer” aspects such as
developing separate wholesale and retail cultures as
well as the more formal requirements. There are also
likely to be more corporate moves (mergers, joint
ventures and so on) to come.
Some problems look inevitable, though – for instance,
the data in the central system is reputed to be of poor
quality and some customers will be confused by the
new deal. The latter won’t be helped by the very low
customer awareness levels that persist with just a few
months to go before switching becomes possible.
The important thing for such matters is how they are
handled once they emerge.
Thoughts of all the involved stakeholders are now
turning to after April and what the live market will
be like. Among the key questions are: will customers
switch? And what will the switching and new billing
journey feel like? Are retail margins big enough to
support an active market? What kind of service
will retailers be able to provide on the costs they
have been allowed? Will the playing fi eld be level in
practice? Ofwat published its draft market monitoring
plans in January 2017 and proposed using a basket of
measures. It has proposed using a basket of measures
to evaluate progress in the round, rather than setting
specifi c targets to achieve.
www.britishwater.co.uk
There will be a lot of evidence to sift through, and a lot
of aspects to watch. But whatever happens it is clear
that the water sector will never be the same again;
that customers have choice like never before; and that
more reform is on the horizon.
Karma Loveday is the founder and editor of The Water
Report, a monthly print and digital publication covering
water policy, regulation and competition issues in
depth. For more information, a free trial and/or to
sign up to the free weekly news bulletin, visit www.
thewaterreport.co.uk
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