Wholesale Retail Code Change Proposal – Ref CPW070b-1 – Phase 3 – bilateral transactions
| Date | 18 January 2022 |
1
Wholesale Retail Code Change Proposal – Ref CPW070b-1 –
Phase 3 – bilateral transactions
Modification
proposal
Wholesale Retail Code Change Proposal – CPW070b-1 – bilateral
transactions
Decision
The Authority has decided to approve this Change Proposal
Publication date
18 January 2022
Implementation
dates
Additional functionality: 2 February 2022
B5 Process: 31 May 2022
Background and the issue
The communications between Retailers and Wholesalers regarding completion of the
processes set out in the Operational Terms (e.g. locating, repairing or replacing water
meters) are known as bilateral transactions. For the majority of operational processes,
Trading Parties currently self-determine how these bilateral transactions occur, and
therefore the processes for undertaking them varies between Trading Parties. These
individual solutions have resulted in a lack of consistency across the market which has
contributed to ongoing market frictions and inefficiencies, increased Trading Parties’
costs and has resulted in a negative impact on customer service levels.
To address this issue, Ofwat raised an Authority Timetabled Change Proposal (initially
CPW070, now CPW070/CPM043 following revisions) to contribute towards addressing
cumbersome and inefficient Wholesaler-Retailer interactions. This provided the
mandate, and set out the requisite governance, for the Market Operator (MOSL), to take
forward work on a proposed solution to the issues that had been identified relating to
bilateral transactions. The Authority Timetabled Change Proposal enables MOSL to
develop a solution in phases, and prior to amendments being made to the Wholesale
Retail Code (WRC).
We are approving this Change Proposal. Inclusion of the B5 process and the
additional functionality improvements proposed by CPW070b-1 should contribute to
resolving cumbersome Wholesaler-Retailer interactions, delivering time and cost
savings. These time and cost savings will benefit customers who may see
improvements in service and more efficient progression of Requests.
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