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  • by Karma Loveday

Europe Economics endorses B-MeX concept

The idea of introducing an incentive mechanism to track wholesaler service provision to non-household customers in the business retail market has been endorsed by the specialist commissioned by Ofwat to scope out the concept.

Europe Economics advised Ofwat that a B-MeX incentive could “fill important gaps in the existing regulatory framework” and incentivise wholesalers to improve their service offering. Its report, published last week, said the focus should be on the qualitative aspects of service and should depend primarily on evidence from surveying business customers who have had recent dealings with wholesalers.

It advised a pilot be set up to run from April 2022, initially without financial rewards or penalties but with wholesaler scores published (unless there are compelling reasons to believe the data is unreliable). Europe Economics said the expectation should be to have a financial incentive regime in place for 2024, be this via PR24 or the Market Performance Framework, and potentially including compensation for business customers.


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