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Click to edit Master title Non-household retail competition Presentation to IoW Eastern Area 8 th May 2014 Paul Fry, OpenWater.

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Presentation on theme: "Click to edit Master title Non-household retail competition Presentation to IoW Eastern Area 8 th May 2014 Paul Fry, OpenWater."— Presentation transcript:

1 Click to edit Master title Non-household retail competition Presentation to IoW Eastern Area 8 th May 2014 Paul Fry, OpenWater

2 Click to edit Master title The story so far … Legislation High Level Group Open Water Working Groups Market Blueprint v1 Industry Consultation Today Department for Environment, Food and Rural Affairs (DEFRA) Water for Life (published 2011), Draft Water Bill (published 2012), Water Bill (published 2013) DEFRA, Welsh and Scottish Government, Ofwat, WICs, Industry CEOs and customer representative Programme reporting to the HLG and responsible for market design and implementation Open Waters first version of a recommended market design published Full industry consultation on the Market Blueprint v1 OpenWater led industry working groups to help shape the recommendations More to do! OpenWater led industry working groups to help shape the recommendations /2014 Jan 2014 Jan-Apr 2014 May 2014

3 Click to edit Master title What is retail competition? The incumbent companies who presently manage all parts of the supply chain for most customers will continue to provide wholesale services and retail services. New entrant companies will be allowed to enter the retail market All non-household customers will be able to choose the retailer from whom they buy their water and sewerage services

4 Click to edit Master title WholesalersRetailers RegulatorsGovernmentCustomers Facilitators & operators Market operator Market Participants

5 Click to edit Master title What choices should customers have? Customers should be able to choose their retailer for each separately delivered and measured service type at a premises If service types are not separately delivered customers should be able to choose separate retailers at the grouped services level We expect a range of specialist and bundled retailer offerings to emerge Service point level Service type level Grouped services level Premises level All services Water Potable water Non- potable water Sewerage services Foul water Surface water drainage Trade effluent Developer services Water DS Sewerage DS

6 Click to edit Master title Key interactions in the water and sewerage markets Service flows Contracts Data/communication flows Financial flows Licence and code obligations Wholesalers Retailers Wholesalers will be responsible for water and sewerage infrastructure and ensuring physical services are available for customers. Retailers will provide customer service Customers will contract with retailers, who in turn will contract with wholesalers Market operator A customers primary point of contact will be with their chosen retailer(s). A new market operator (MO) should provide services which help make the market effective. This includes managing most data exchange between participants Customer will make payment to retailers, who in turn will pay the wholesalers, based on payments calculated by the MO Regulator Retailers and wholesalers will continue to have licences and will be required to sign up to market codes, as will the MO Customers Premises and meters

7 Click to edit Master title Registration and switching strategy New retailer Customers Premises and meters Customers should be able to choose their retailer for each service type at each premises. If they choose to switch they should apply to their new retailer, either directly or through an appointed intermediary, and enter into a contract with the retailer The new retailer should initiate a switch request. Industry standard processes should manage objections from the current retailer and necessary customer protections. The MO should manage most data exchange Market operator Current retailer Wholesalers When the switch is complete the MO should update a central register of service points which it maintains, and inform wholesalers if necessary. The central register will be developed top-down to produce a single record of the constable premises and service points The new retailer should be responsible for obtaining a switching meter read, which is communicated to the current retailer through industry processes. The current retailer should then issue a final bill which the customer then pays Contracts Data/communication flows Financial flows

8 Click to edit Master title Financial settlement strategy Retailers Customers Premises and meters Market operator Retailers should read meters and inform the MO of meter readings The retailer should then make payment. Credit or cash should be posted to mitigate liabilities Once a month the MO should determine charges due for each daily settlement period, including estimating consumption in the absence of meter readings Wholesalers Wholesalers should inform the MO of operational services they have provided The MO should advise the wholesaler of charges due. The wholesaler should then invoice the retailer The whole process should be repeated after 2, 8 and 13 months to resettle for each settlement period Data/communication flows Financial flows

9 Click to edit Master title Operational services strategy Wholesalers Customers Premises and meters A catalogue of operational services provided across England should be created, and we will seek to make consistent the definition of services Retailers Market operator Operational services requests and notifications should be communicated between market participants through the MO as far as possible. Some non-standard communications may be bilateral Retailers will be responsible for communications with customers. Wholesalers when on site will be able communicate directly to customers Data/communication flows Service flows

10 Click to edit Master title Key interactions in the water and sewerage markets Service flows Contracts Data/communication flows Financial flows Licence and code obligations Wholesalers Retailers Wholesalers will be responsible for water and sewerage infrastructure and ensuring physical services are available for customers. Retailers will provide customer service Customers will contract with retailers, who in turn will contract with wholesalers Market operator A customers primary point of contact will be with their chosen retailer(s). A new market operator (MO) should provide services which help make the market effective. This includes managing most data exchange between participants Customer will make payment to retailers, who in turn will pay the wholesalers, based on payments calculated by the MO Regulator Retailers and wholesalers will continue to have licences and will be required to sign up to market codes, as will the MO Customers Premises and meters

11 Click to edit Master title Systems architecture and data model Systems Architecture: To enable the MO to deliver its defined services IT systems will be required, e.g. a registration system and database; and a charge calculation system Data model: The data model for the market, and for the MO in particular, includes centrally held records of: premises, service points, and associated meters and market participants; service requests and notifications; and meter readings, wholesale charging schemes, and derived wholesale charges. The central data model will not hold customer-level data. Retailer / Wholesaler Industry data exchange hub interface approach: three tiers of interface Market operator Functional Systems IDEX Interface Data Preparation Systems Automated IDEX Interfaces Machine-to-machine interface: for high volumes Manual IDEX Interfaces Manual webforms: for very low volumes and/or as contingency Semi-Manual IDEX Interfaces Manual file up/download: for low volumes and/or as contingency

12 Click to edit Master title Inter Company Data Exchange Usage Data Premise Details Supply Point Details Meter Details Market Operator Reports Meter Readings Retail Providers Wholesale Providers Wholesaler Retailer DATA ££ CUSTOMER Retail Providers Who the retail service providers are for each supply point Meter Reading Periodic Readings Switching Reads Move In/Out Readings Financial Settlement Invoicing, payments and collections Customer Switching The customer choosing to change retailer Meter Asset Details Serial Number Asset Attributes Location Premise Details Address Rateable Value (RV) Classification etc Wholesale Providers Who the wholesale service providers are for each supply point Supply Point Details Water services Waste Water services Market facilitation Customer Switching Financial Settlement Produce wholesale charging reports for retailers and wholesalers RegistrationFinancial Settlement

13 Click to edit Master title Questions


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