To enter the market, participants must complete a series of steps in order to become fully operational. This includes applying for a licence, completing various stages of assurance known as Market Entry Assurance (MEA), becoming a member of MOSL and signing contracts with other parties.
Through completing MEA, market participants demonstrate they are market-ready through stages of compliance and planning. This covers everything from an organisation's retail strategy, the capacity and capability of the company to comply with market codes to their ability to interact with the Central Market Operating System (CMOS).
In order to enter the market, market participants will need to:
1. Apply for a licence from Ofwat:
Every company planning to operate in the water retail market needs to obtain a licence. The type of licence you apply for depends on whether you want to operate as a new entrant retailer or wholesaler. You can apply for a licence on the Ofwat website.
2. Submit a Trading Application
This is the first stage in the MEA process. The Trading Application is a simple form that all participants must complete, to inform MOSL that they wish to enter the market. You can downloand a template form from the Documents section of the MOSL website.
3. Complete Market Entry Assurance (MEA)
The MEA process provides MOSL with assurance that as a company you are able to uphold your market obligations. Depending on the size and nature of your business, there are two routes you can take – either self-certification or enhanced certification. You can find out more on this process on the MEA page here.
4. Become a member of MOSL
Once you’ve completed MEA and been granted a licence, you can join MOSL. To become a member, please download MOSL’s Membership Application.You can download a template form from the Documents section of the MOSL website.
5. Sign the Accession Agreement
To participate in the new retail market, you will need to sign an Accession Agreement. This confirms that you will uphold the obligations set out in the Market Arrangement Code (MAC) as prescribed by MOSL and its members.
6. Sign a wholesale contract
In order to sell water on to customers, retailers will need to sign contracts with the relevant and agreed upon wholesalers. It is the wholesaler’s responsibility, however, to ensure these are uploaded into the Central Market Operating System (CMOS).