MOSL to publish alternative credit information in bid to up transparency
MOSL is set to publish details of all the alternative eligible credit support (AECS) agreements wholesalers enter into with retailers on its website from this month, following a decision by Ofwat last week.
The regulator approved Wholesale Retail Code change proposal CPW052, which made provision for MOSL to display information on alternative credit terms all together in one place, rather than each wholesaler publishing its own agreements on its own website.
Ofwat explained: “It is proposed that an obligation is introduced for wholesalers to notify the authority [Ofwat] and the Market Operator in full of any AECS arrangements they enter into with retailers. The market operator will publish details of AECS arrangements on its website within five business days of receipt of the notification from the wholesaler. The intention is to improve the transparency around these arrangements, ensure that there can be an appropriate level of scrutiny and increase the ability for retailers to compare various AECS agreements.”
As an alternative to the provision by retailers of eligible credit support, wholesalers and retailers are able to agree AECS bilaterally.