Ofwat seeks information on whether business customer credit protections are working

Ofwat has issued a Request For Information (RfI) to retailers to inform its assessment on whether new regulatory requirements regarding non-household customer credit balances are working as intended.

In July 2022, Ofwat amended the Customer Protection Code of Practice to require retailers to:

• inform customers of the risk of losing any credit accrued should the retailer become insolvent;

• frequently communicate the level of credit on customers' accounts;

• refund outstanding credit balances within 60 calendar days of issuing the final bill at the end of a customers' contract; and

• retain a log of instances where they have not been able to refund credit balances within 60 calendar days of the final bill being issued..

It now wants to check in on whether CP0010 has delivered the intended outcomes and to establish whether further regulatory protections need to be introduced. The RfI specifically seeks information on customer credit balances and credit refunds for 2021-22 and 2022-23.

It was issued under Standard Condition A8 of the Water Supply and Sewerage Licence. Retailers have until 25 July to respond. Self-suppliers are excluded from the request.