Ofwat sends panel back to drawing board on code changes
Ofwat sent the Panel back to the drawing board on two Code change proposals last week, saying it could not form an opinion and that the Panel should resubmit final reports.
One – CPW061 – concerned a proposal developed by the Credit Committee to introduce an additional option to receive an Unsecured Credit Allowance based on payment performance into the Wholesale Retail Code (WRC). This was to address credit problems in the market experienced by small new entrant retailers in particular, without a credit history.
Ofwat said it supported the principle but had not seen sufficient evidence that the Credit Committee had fully considered or sought to address the concerns raised by some respondents to its Request for Information.
The other – CPM006 – concerned introducing a formal process for change proposals that are considered urgent, notably implementing a constrained timetable for them. Again the regulator supported the principle but said it needed more information.