MOSL responds Ofwat's draft 2021-22 Forward Work Programme

MOSL has published its response to Ofwat's draft 2021-22 Forward Work Programme, which outlines the work the regulator plans for the financial year to meet its strategic priorities, and how that aligns with the Strategic Policy Statements by both the Welsh and UK Governments. 

We support Ofwat’s approach to forward planning and its focus on customer and environmental outcomes, which we feel is mirrored through the key themes in our draft 2021-24 Business Plan and further articulated in our purpose of “advancing simple and effective water markets to unlock value and choice for customers”.  

We fully support Ofwat’s encouragement of, and engagement with, the water sector’s net zero and water efficiency ambitions and the need for ‘reliable, resilient, safe and good quality water and wastewater services’. MOSL has a unique role to play in supporting the sector’s net zero ambitions, particularly through the demand-led pathway, as outlined in our response to Water UK’s Net Zero 2030 Routemap.

We agree that “there is still more to be done to maximise value for customers through the business retail market” and our 2021-24 Business Plan addresses this through several key improvement programmes. 

In addition to the improvement programmes in our business plan, In 2020/21 we also committed to improving the Market Performance Framework (MPF). We worked closely with the Market Performance Committee (MPC) to develop the scope and roadmap for improving the MPF to ensure it incentivises the right behaviours.

We are grateful for Ofwat’s collaborative approach to supporting trading parties and business customers throughout the pandemic and are committed to working with Ofwat as the non-household market, and wider water sector, understands and adjusts to the long-term impacts of the pandemic.

We will work with Ofwat on its annual state of the market assessment later in 2021. In addition, we will produce a strategy paper on the ‘shape of the market’, informed by independent economic analysis and engagement with stakeholders, regulators and trading parties. This will set out the steps we think could be taken by MOSL, government, the regulator and trading parties to ‘health check’ the market, identifying indicators for success and unlocking value and choice for customers.

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