Click to edit Master title
Open Water
Legal workshop – 28 January 2015
Shepherd & Wedderburn LLP
Overall
work
programme
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edit
Master title
•
Working collaboratively – DEFRA, Companies, OFWAT, Programme
•
Codes recommended by Programme – OFWAT makes codes subject to any
ministerial direction
DEFRA
•
Commencement
•
Charging guidance
•
Exit regulations
•
CMA appeal rights
Companies
•
Decisions on overall structure and approach to the retail market
•
Data preparation, cleansing and alignment with Data Transaction Catalogue
•
Systems procurement, design, development and testing
•
Assurance activities
•
Wholesale tariffs
Overall
work
programme
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edit
Master title
Ofwat
•
Market Design/policy review
•
e.g. eligibility, interim supplier code, interim governance
•
Charging – wholesale/retail charging, access pricing, charging rules
•
Licensing – design and transition, giving effect to market documents,
consultation in parallel with MAP 3
Programme
•
Developing the codes and agreements required to support retail market
reform
•
Developing and setting up the enduring Market Operator
•
Carrying out the central systems procurement
•
Collaborative approach with companies through consultations and workshops
Market
documents
– the story
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title so far
•
Developing the agreements, codes and processes required to underpin retail
market reform
•
MAP 1 – July 2014 – initial outline of arrangements
•
Summer/Autumn 2014 – consultation workshops, constructive feedback and
engagement with companies
•
MAP 2 – December 2014 – legal architecture and draft Wholesale-Retail
Code, Market Arrangements Code, Wholesale Contract
•
Consultation response date for detailed comments on market documents –
11 February 2015
•
Part E operational terms update
•
Other comments on MAP 2 – 2 March 2015
Market
documents
– what’s
next?
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edit Master
title
•
Workshop today to provide an overview of current thinking and documents
with a legal focus
•
Facilitate your work in developing consultation responses and/or in supporting
strategic decision making within businesses
•
Further Open Water workshops
•
29–30 January – walk through MAP 2 concepts, structures and material
•
25–26 February – present new material under preparation for MAP 3
•
24–26 March – Open Water thinking in response to comments received on
MAP2 consultation
Market
documents
– what’s
next?
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title
MAP 3
•
early May
•
complete any gaps identified in MAP2
•
develop any new required CSDs – e.g. understand and accommodate
wholesale tariffs published on 2 February
•
address consultation responses
MAP 4
•
late September 2015
•
incorporating final technical detail and feedback from IT systems vendor
•
baselined for market opening to allow companies and MO to continue with
their preparations
Legal
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Tools available to support introducing rules and processes
Joint working with Tom Sharpe QC
Appendix 2 of MAP 2
Time for consultation, engagement and feedback
Next steps/implementation – DEFRA/OFWAT/Open Water
•
Commencement
•
Interaction with retail exit
•
Wholesale tariffs and charging guidance and rules
•
Licensing framework
Legal
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Appointment
Acts
Exit
Regs
CMA
Regs
Charging
Guidance
Wholesale-Retail
Code
Charging
Rules
Other
P&Ds
BT
OT
MT
CSDs
Forms
Wholesale
Tariff
Document
Interim Supply
Code
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
IS
T&Cs
Legal
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Key
People and companies
Legislation (primary and secondary)
Licences and appointments
Statutory codes and contracts
Documents relating to wholesale charges
Multi-lateral contract
Legal
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Undertaker
C
C
Licensed Retailer
C
Legal
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Undertaker
MO
C
C
Licensed Retailer
C
Legal
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Acts
Exit
Regs
CMA
Regs
Other
Undertaker
MO
C
C
Licensed Retailer
C
Legal
Clickoverview
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Appointment
Acts
Exit
Regs
CMA
Regs
Other
Undertaker
MO
C
C
Licensed Retailer
C
Legal
Clickoverview
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Appointment
Acts
Exit
Regs
CMA
Regs
Other
Wholesale
Undertaker
MO
Retail
C
C
Licensed Retailer
C
Legal
Clickoverview
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Appointment
Acts
Exit
Regs
CMA
Regs
Other
Wholesale
Undertaker
MO
Retail
Licence
C
C
Licensed Retailer
C
Legal
Clickoverview
to edit Master title
Appointment
Acts
Exit
Regs
CMA
Regs
Other
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
Legal
Clickoverview
to edit Master title
Appointment
Acts
Exit
Regs
CMA
Regs
Wholesale-Retail
Code
Other
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
Legal
Clickoverview
to edit Master title
Appointment
Acts
Exit
Regs
CMA
Regs
Wholesale-Retail
Code
Other
P&Ds
BT
OT
MT
CSDs
Forms
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
Legal
Clickoverview
to edit Master title
Appointment
Acts
Exit
Regs
CMA
Regs
Wholesale-Retail
Code
Other
P&Ds
BT
OT
MT
CSDs
Forms
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
Legal
Clickoverview
to edit Master title
Appointment
Acts
Exit
Regs
CMA
Regs
Charging
Guidance
Wholesale-Retail
Code
Charging
Rules
Other
P&Ds
BT
OT
MT
CSDs
Forms
Wholesale
Tariff
Document
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
Legal
Clickoverview
to edit Master title
Appointment
Acts
Exit
Regs
CMA
Regs
Charging
Guidance
Wholesale-Retail
Code
Charging
Rules
Other
P&Ds
BT
OT
MT
CSDs
Forms
Wholesale
Tariff
Document
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
Legal
Clickoverview
to edit Master title
Appointment
Acts
Exit
Regs
CMA
Regs
Charging
Guidance
Wholesale-Retail
Code
Charging
Rules
Other
P&Ds
BT
OT
MT
CSDs
Forms
Wholesale
Tariff
Document
Interim Supply
Code
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
IS
T&Cs
Legal
Clickoverview
to edit Master title
Appointment
Acts
Exit
Regs
CMA
Regs
Charging
Guidance
Wholesale-Retail
Code
Charging
Rules
Other
P&Ds
BT
OT
MT
CSDs
Forms
Wholesale
Tariff
Document
Interim Supply
Code
Wholesale
Undertaker
MO
Wholesale
Contract
Licence
Retail
C
C
Licensed Retailer
C
IS
T&Cs
Discussion
session
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Master title
Overall legal architecture
Statutory Code – Wholesale-Retail Code and Wholesale Contract
Market Arrangements Code
• MO membership and board/constitution
• Panel set up and membership and change process
• MO budget and sharing
Some
Clickkey
to themes
edit Master title
Company decisions on structure – legal architecture includes
factors that will influence those decisions
•
Statutory code plus a multilateral Market Arrangements code – regulated
access
•
Ofwat’s developing licensing strategy and approach and the developing Exit
Regulations
•
Treatment of legally integrated companies
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Termination, default, disputes and liability
•
Decision to separate/exit or remain legally integrated is key
Moving forward
•
Companies will be involved in MOSL and any enduring MO set up and
constitution, interim governance and Board/panel elections
•
Wholesale contract signing and the transition to market opening
•
Data issues
Next
Clicksteps
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Supporting companies in their consultation responses – 11 February and 2 March
Working collaboratively with companies as we move from defining rules towards
implementation
Contact and queries: Stephen Beddoes, Ofwat – feedback@open-water.org.uk
Thank you
Gordon Downie
Regulation/legal
architecture
Liz McRobb
Codes and processes
lead and market terms
Fiona Parker
Regulation/legal
architecture and
operational terms
Joanna Boag-Thomson
Wholesale contract/
business terms and
procurement