Today, 3 April 2020, MOSL and Ofwat issued a joint letter to retailers to provide further clarity on the expectations of retailers in respect of the urgent Authority Timetabled changes CPW091: ‘Temporary Changes to Vacancy’ and CPW093: ‘Payment deferral interim measures’.
The letter outlines retailers’ responsibilities and obligations under the Code changes and the expectation of Ofwat during this period (March – June).
As described in the Ofwat decision letter, CPW093 is intended as an interim solution. It is the intention of both Ofwat and MOSL that by the May 2020 settlement runs, at the latest, a more enduring solution to address the issue of late payment (for the period of Covid-19 pandemic) will be in place.
A number of discussions are currently taking place between MOSL, Ofwat and key stakeholders to develop a medium-term solution to the liquidity issues and a longer-term solution to unwind the cash flow impacts of the COVID-19 pandemic. This includes discussions with Water UK and the UKWRC as representatives of wholesalers and retailers, respectively.
Today, Ofwat has also issued a Request for Information (RFI) on CPW093. Responses to this information request will help to inform thinking on the enduring solutions, and support Ofwat to gain a better understanding of retailers’ current and projected financial position in light of Covid-19. Responses are requested by Tuesday 7 April.
The High Level Group (HLG) with senior representatives from across industry will also meet on Monday 6 April to discuss potential market solutions with a few to progressing a preferred solution ahead of the April Panel meeting on Tuesday 28 April.
For further information on what MOSL and Ofwat are doing to support the market during COVID-19, including the package of initiatives we have developed to minimise the disruption to the market, its customers and the trading parties operating within it, please visit the Ofwat website.
If you have any questions regarding the information set out in the letter or would like more information on the above, please contact firstname.lastname@example.org.