Code changes start to trickle through

The first changes to the codes that govern the business retail market are starting to come through. Being implemented today (3 July) are two changes recommended by the Code Panel and agreed by Ofwat:

• A modification to the Wholesale Retail Code proposed by Northumbrian Water concerning the disconnection of self supply licensees. The WRC specified that retailers who default on payments to wholesalers can have their contract terminated but that the wholesaler would continue to supply the end customer premises. The situation was unclear in the case of self supply, as the licensee is both retailer and end customer. Ofwat said: “As the codes currently stand, there is no operational process for a wholesaler to disconnect a self-supply retailer for the non-payment of primary charges, which places undue risk on wholesalers. This proposal will add a new operational process so that customers can be disconnected for non-payment for both retailers and self supply retailers.”

• A modification to the Market Arrangements Code proposed by MOSL to make it easier for market participants to propose codes changes. Change Proposal forms will be removed from schedule 7 of the MAC and instead MOSL will publish them.