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  • by Karma Loveday

Retailers told to apply exit code price protections on an individual customer basis

Ofwat has issued a ‘direction to comply’ to non household market retailers found to be applying the Retail Exit Code (REC) price protections for small (Group One) and medium (Group Two) customers as an average protection rather than to each customer on an individual basis.


In a letter, business retail market director Shaun Kent said this has resulted in some customers paying more than the maximum charge afforded by the REC.


The direction takes effect on 1 April. Kent said the decision reflected that the misapplication of the REC did not appear to have been deliberate non-compliance and does not appear to have benefited the retailers in question “as we have no evidence to suggest that they have over recovered revenue from customers in their totality”.


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