docx 154 KB - Open Water

1

Comments Table

Company Name: South West Water

Document in the MAP

MAP – Main Report

MAP – Main Report -

Governance

MAP – Main Report -

Assurance

Section of the Document

Pg 47 – Market Operator

Activities

Page 24

Page 49

MAP – Main Report – What needs to be done, by when

Section 8 and Appendix 11

MAP – Main Report – What needs to be done, by when

Section 8. What needs to be done, by when?

Managing information and transition. P45.

Lack of clarity

Issue

“We also propose to arrange a bi-monthly roundtable meeting with the programme managers within

Defra, Ofwat and the companies to discuss progress against the plan”

“[Open Water] expects to agree a format for the wholesale and retail arms of companies to report

progress [on market readiness]”.

Comment

It is unclear from reading this section as to what element of the programme is being proposed to accelerate?

Given the extent of work needed in 2015, we think that Open Water should produce a) a monthly update on progress and b) give better visibility of the working groups and conference call underway and their outputs

We suggest that a “minimum” checklist is produced for participants to set out their progress on key aspects of market readiness. This would allow the

Open Water programme to collate information on a consistent basis.

- We strongly support the transparency on the key risks facing the programme

Access to historic records Will water fittings teams still be permitted access to this important information?

Water fittings enforcement teams rely on historic information to:

 inform their assessment of risk at a property and to identify which properties to inspect; and

Can MAP 3 be updated to be clear on how this information is accessed?

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MAP – Main Report –

Financial Settlement

Map – Main Report –

Wholesale Tariffs

Map – Main Report –

Wholesale Tariffs


Section 5, page 32

Page 20

Page 43

Issue

 to support water quality investigations.

This information is integral to enable them to carry out their statutory duties to protect public health effectively. This information may include previous customer contacts and previous inspections and enforcement notices.

“The escrow account should maintain a minimum balance of £50,000”

Comment

The £50,000 minimum threshold may act as a barrier to entry for some retailers who only have a few customers.

A lower threshold say £10,000 per wholesaler or

£1000 per customer may be more appropriate.

Non-household customers can expect the same standard service level from all retail suppliers in the market. The maximum price payable in an appointed area reflects this level of service. Retailers will be able to compete by offering enhanced services for the basic price or a combination of better service and lower

charges

This is not the case as non-household customers will receive a specific standard of service for the specific default tariff. Customers can sign up to any combination of service and price not just better price.

The wording in MAP 2 as it stands is therefore potentially misleading to customers and stakeholders and should be made clearer on the options available at market opening.

“Wholesale tariffs are likely to be quite different from retail tariffs. In other words a company does not have to change its retail tariff (with the potential consequences in incidence effects) but could instead set different wholesale tariffs for particular classes of

Tariff policy is a matter for Ofwat and Defra not Open

Water.

Wholesale charges have to be legally set in line with cost reflectivity 1 , not gross retail margins. Defra is likely to end user bill stability principles that

1

Defra (2013), Charging Principles, Para 3.1

2

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Document in the MAP Section of the Document

MAP – Main Report – Legal

Architecture

Main Document, page 29, 40

&

Appendix 2, section 3.4.4

Issue Comment

customer”

The code states that company may wish to ask Ofwat to put in place a licence condition requiring it to apply the terms and conditions of the statutory code to its incumbent business companies have to adhere to as well as the need for wholesale charges to still be set on the basis of regional averages.

Wholesale tariffs should only flex when cost reflectivity is supported. For example, government policy only permits variation for cost drivers to improve wholesale price signals (e.g. large user volumes).

Wholesale charges cannot distinguish between different customers (e.g. public vs private sector buildings) which show no difference in their nature of network and resource use.

As it stands the wording in MAP 2 is misleading in this area and is at risk of setting charging policy. This is a key area to clarify for MAP 3 and we would be keen to work with the Open Water Programme team in this area.

The South West Water Board has agreed to legally separate the incumbent non-household retailer.

And

The code also states that Ofwat may seek to impose such condition to give a level playing field between new licences and incumbents

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Appendix 3 – Part 1,

Definitions


1



Wholesale-Retail Code

Part 2:

Business Terms


Part 2:

Business Terms


2.2

Business Terms. 2.2.1 (b) (ii)

2.4.3

Issue

Definition of information commissioner and nondomestic allowance

Issue

Non-potable supplies not mentioned

Comment

Unclear why these are in brackets?

Comment

MAP 3 should include an additional bullet for the provision of non-potable supplies.

Pressure for fire use.

Is it correct to imply that water pressures should be adequate for fire hydrants and therefore fire fighting purposes. In 2.2.1. (b) (ii) I thought that only a minimum pressure for other uses is to the boundary.

Blank meter standards

Update definition in MAP 3 for pressure for domestic and non-household use to the boundary only

British Standard and ISO for meters should be BS5728 and ISO4064


Part 2:

Business Terms


Part 2:

Business Terms

2.4.5 Damage costs to just the retailer MAP 3 should be updated so that damage costs are reciprocal – For example, if the wholesaler causes damage that affects the retailer.

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Part 2:

Business Terms


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Business Terms


Part 2:

Business Terms


Part 2:

Business Terms


6.1

Warranties and compliance with Laws. 7.5

9.2

9.9

9.9

Issue Comment

The Contracting Retailer may install Retailer

Equipment on or after the

Exit Point(s) (including on the meter, notwithstanding that such meter may be owned or controlled by the Contracting

Wholesaler).

Retail equipment can be installed on the meter as long as it does not affect the wholesalers ability to install their own equipment

Role for retailers in water fittings enforcement

The WRAS welcomes the inclusion of ‘The Contracting retailer shall be encouraged to inform its Non-

Household Customers that they are responsible for compliance with the Water Fittings Regulations.

We would like to see this statement strengthened to recognise the importance of protecting public health for all market participants – for example ‘inform and encourage’ would be stronger than just ‘inform’

£500 de-minimis billing amount and billing period. Agree with the £500 limit for an invoice.

No standard invoicing date. Wholesaler or retailer should invoice as required.

An escrow balance of £50,000 minimum may act as a barrier to entry for small retailers since to operate in

10 Water and Sewerage Companies would require a deposit of £500,000.

The Escrow balance should be reduced to say £20,000 for a WASC wholesaler; £10,000 for a WOC wholesaler but retention of choice for wholesaler to agree other terms.

Liability limited to 1 year Agree Wholesale-Retail Code

Part 2:

Business Terms


Part 2:

Business Terms

17.1 Important to have a common presence of the Market

Operator in all disputes as these will relate to the implementation (or otherwise) of the market terms.

Section 17.1 should be updated to record that the

Market Operator should be party to all communication on disputes (including meetings)

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Part 2:

Business Terms


Part 2:

Business Terms


17.1

Schedule 2

Issue

There may be statutory dispute processes e.g. CA98

Balance of escrow account

Comment

Section 17.1 should be updated to clarify the dispute process only applies where a statutory process or redress does not. E.g. CA98 disputes

The £50,000 minimum threshold may act as a barrier to entry for some retailers who only have a few customers.

A lower threshold say £10,000 per wholesaler or

£1000 per customer may be more appropriate.

Escrow deposit should be retained as consistent with

Ofwat’s policy statement (IN 13/21). It is not Open

Water’s role to change regulatory policy.

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6

NOTE – WE RECOGNISE THAT DISCUSSIONS ARE STILL UNDERWAY WITH DWI ON PART E ‘UNPLANNED EVENTS’. FOR CONSISTENCY WITH OUR INTERNAL

REVIEW PROCESS OUR COMMENTS ON PART E ARE INCLUDED FOR REFERENCE.


General comment


N/A

Issue Comment

Water regulations – awareness of changes that could impact WR/WQ

Where does the Wholesale-Retail code make provision for wholesalers to be made aware of changes to use/premises that may breach/impact water regulations? For example customers sinking boreholes to supplement mains supply.

For MAP 3 this need to be clarified in included in the

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General comment


Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms

-

Section of the Document Issue

Leakage enforcement and treatment of responsibilities on leakage

Comment

Wholesale Contract.

Leakage is often a misunderstood process.

The Code should include specific reference for how leaks are to be managed and enforced (also links to

Process H)

Customer switches whilst an operational request is in progress. P11

Process A2, Step 4

Process A3 – New Connection

Non-Domestic

Process A3 – Step 4

Notification to wholesaler of a transfer registration application.

Should ‘if the wholesaler is informed by the Market

Operator that the retailer has ….’ Be ‘When the retailer is informed..’ In the current process the wholesaler will be informed of transfer registration applications.

Does the retailer need to accept "conditions" and notify the wholesaler before the wholesaler proceeds

? What if the Retailer does not accept the wholesalers conditions?

Code should be updated to say what happens if conditions are not accepted.

The process steps do not make reference to an

Accredited Entity contacting a wholesaler direct validity of quotation

Operational Terms state that quotations will be valid for 6 months from the date of issue, is this an absolute or is there discretion to be allowed for the wholesaler to specify internal rules – currently SWW quotes are valid until the end of the FY in which they

Self Lay code of practice (2 nd addition) allows Self Lay

Organisations to contact the wholesaler direct. Is there conflict?

Update MAP 3 to be clear on whether the wholesaler has discretion to extend the validity of quotation beyond six months.

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Process A3 – Step 6-7

Issue were raised or for 60 days (whichever is longer)

Comment

Retailer to define SLA from receipt from customer

Given the fact that the Wholesaler’s quote is valid for

6 months it may be reasonable for the Retailer to put a timescale on their Customer’s response to their offer to their customer so that the 6 month timescale can be met. The retailer’s quote could therefore be valid for 24 weeks say to allow the Retailer to process.

Update MAP 3 with a time SLA for a receipt from a customer to keep process timescales aligned.

It may not be necessary to always repeat the work after 6 months has lapsed.

If not within 6 months, can MAP 3 reflect that there be some flexibility to honour original quote (at discretion of wholesaler)

If the retailer accepts a quote, is there a timescale for that quote to expire? There is not a stipulation on how long that quote lasts. A develop may then receive a quote, accept it and then not build for 5 years.

Update MAP 3 code to state that a time limit between acceptance of a quote and construction should be included on any quote

This code conflicts with the Self Lay code of practice in terms of accredited entity speaking directly to the wholesaler

Update text in MAP 3 code to allow accredited entity speaking direct to wholesaler

Quote accepted to site ready

No timescale set between steps which is too open ended and could lead to planning and cost risks (eg quote accepted within 6 months in 2015 but site does

Need a mechanism in MAP 3 by which the wholesaler can revisit job (and re-quote) when an agreed timescale has passed. 12 months?

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Issue not progress until 2019 – cost to deliver may change in this period)

Trench inspections

Who receives the drawings supplied by the retailer?

Comment

Proposed SLA differ (currently 24hrs prior to NC for on-sites or within 2 days of notification for off-sites)

This implies that we must inspect, where we currently do not always inspect now. Can wholesaler timescales differ?

Update MAP 3 code to say the wholesaler will receive the drawings.


Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms

Process B2 – Step 7

Process B2 – Installation of a

Meter Performed by an

Accredited Entity

(Equivalent to Scottish

Operational Code Process 8B)

Process B2 - general

Operational Terms Page 33 Step 7 says that

Wholesaler must notify MO within 3 days, whereas in

CSD101 Page18, Step h1 it says that if an Acredited entity installs the meter, the wholesaler must notify

MO within 8 Days.

Step 5

The Retailer will arrange the installation of the meter using an Accredited Entity. Such installation will not take place within the [twenty seven (27)] Business

Days notification period under Step 1, subject to any stipulations by the Wholesaler and having given notice of where the meter shall be located if required.

Where a meter is paid for by the Non-Household

Customer, who owns the meter? Does the wholesaler adopt this as currently? And the retailer pays any cost

Update MAP 3 for 8 days

Not clear what is meant here, should this read

‘installation will take place’?

Update MAP 3 for process where customer provides own meter and how this is paid for.

9


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Processes - B3 and B4:, page

34

Process B3, Step 4

Process B3, Step 4

Issue

(consistent with if the retailer were to provide it?)

If request is declined, is there an appeal process (e.g. as process C5)?

Comment

Update MAP 2 with process if request is denied

Has the actual installation data got to be agreed with the wholesaler?

Can MAP 3 be updated to give clarity on whether the date must or must not be agreed with the wholesaler?

Can the wholesaler specify an SLA for the retailer to notify them within a certain timeframe (say 3 days) to ensure wholesaler meets the SLA requirements to notify MO within 5 days

Where the meter is tested it will be removed and replaced with a new meter to allow the testing. Any replacement meter must be installed on the same day that the meter to be tested is removed and be the same physical size and location as the removed meter.

SLA of 22 days.

Update MAP 3 with an SLA on the retailer

Removing large Electromagnetic flow meters is unnecessary they are designed to be test in-situ with mobile diagnostic equipment and can be recalibrated in-situ if necessary

What if there are streetworks restrictions or the customer wants to delay - how does this affect the

SLA ? Suggest the code is updated to state SLA is subject to access being granted.

Arranging site visits Clarification required on how retailer would agree the time/date of a test. Is the expectation that the wholesaler provides possible dates and the retailer selects a slot; or does the retailer dictate a time/slot?

Assume it is the former. Can the MAP 3 code be clear to avoid confusion as this affects IS system

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Process B4 – Meter Accuracy

Test Performed by an

Accredited Entity

Step 6

The Retailer will notify the Wholesaler of the results within [two (2)] Business Days of the receipt of the results.

Issue Comment configurations.

There is no timescale for getting back the results from the accredited entity on doing the accuracy tests. It should be clear to both wholesaler and retailer that an expected date should be agreed at the time of the testing.

Do the test results have to be provided in a certain format or template? If not, suggest the MAP 3 code is clear on this to avoid confusion.

Process B4 – Meter Accuracy

Test Performed by an

Accredited Entity

Change of Meter

Purpose and scope of

Processes B7 - B10

Process B9

Process B10, Step 1

Format of test results carry out the change of meter where the physical size and location of the new meter are the same as the physical size and location of the installed meter using an Accredited Entity, for example, where a different model (which is of the same size, is to be installed

(Process B9).

Same as Process B8?

Notification period

If a different model is used it needs to be on the approved list provided by the Wholesaler. This is particularly important in relation to ancillary equipment such as AMR that need needs to be compatible with the Wholesalers systems.

MAP 3 needs to reflect the need for interoperability.

B9 seems to be achieving the same as B8. The only real difference is the SLA attached to the installation?

Is there something missing from the document or have we interpreted this incorrectly?

Meter exchange dates of exactly 22days may not be workable in practice e.g. if there are streetworks limitations. Suggest the SLA is set to

Notification period of at least 22 days and no more than 35 days (unless there are exceptional

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Section of the Document Issue Comment circumstances)

Process C3. Gap site found by retailer p49-50

Requirement for retailers to notify wholesalers of gap sites.

Can MAP 2 be updated to make it clear that retailers must notify the wholesaler.

Step 1 - is it clear that retailers must notify even if they don't want to take over gap site. There are water quality risks of not knowing a customer is there.

Process C3. Gap site found by retailer p49-50

Requirement for retailers to notify wholesalers of gap sites.

It would be useful for MAP 3 to cross-refer to process

I3 and A2.

Step 4. Does this need to cross-refer to illegal connection processes - as it may not be a gap site but in fact an illegal connection. In which case process I3

(disconnection for illegal use) and A2 (new connections) would apply

Process C6. P53-54

Process H2, C p95-96

Process H3 p96

Form L

Process D2, Step 3

Change of Use

Could less than the full 22 business days notice be given with Retailers agreement?

Can MAP 3 clarify what sort of changes might trigger a change of use to be registered or notified? Or for this to be included in the data transaction log. This information might useful to water fittings enforcement teams and may include material change of use at premises that must be notified to wholesaler under the water fittings regulations.

Update text in MAP 3 to say “at least 22 days unless agreed otherwise”

Part E: Unplanned Activities. What does "immediate" mean for retailers expected to pass on public health risks immediately. What

Make MAP 3 clearer on SLA for timing e.g. within 1

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Section of the Document Issue Comment

Introduction P60

E1 (step 1) p 61, E2 (declaring an emergency step 1) p64, F4

(process) p77, F6 (Enquiries received by retailer) p79 expectations are there about how quickly this should be done and what are the consequences of not doing so? hour, and consequences for not doing so.

Part E: Unplanned Activities.

Introduction P60

E1 (step 1) p 61, E2 (declaring an emergency step 1) p64, F4

(process) p77, F6 (Enquiries received by retailer) p79

What data should be collected by retailer to pass on to wholesalers to support an investigation / incident?

Critical information is likely to include, but not limited to: premises address, contact name and number.

Helpful to update MAP 3 with expectation on data requirements to ensure all retailers and wholesalers operate similarly.

Process E1, Step 2 Does the wholesaler contact the NHH customer at this point? Step 2 seems to suggest it does.

Make MAP 3 code clearer on whether the wholesaler contacts the NHH customer


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Process E2 - general

Process E2 - general

Will the retailers obligations under emergency legislation (SEMD) be clearly defined and communicated (currently with Defra and WaterUK for discussion)

Update MAP 3 with obligations on retailers under

SEMD

Clarity needed for consistency around how customers such as MOD, local authorities who have a mix of dwellings and NHC assets.

Update MAP 3 with policy on how mixed sites should be dealt with in emergency situations.

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E2, Step 1

E3- Pg 69, Step 3, para 2

E4 - General

Issue Comment

Bullet 1: What are the wholesalers responsibilities for emergency plans? Currently we assist customers but would not produce plans for them as these would come under business contignecy ( for the customer)

We would suggest that it is made clearer in E2 that such that this covers supply and network contingency planning and that any site specific contingency plans for customers non-household premises are the responsibility of the customer to arrange and to make arrangements for alternative supplies in the event of a mains supply failure. These arrangements may include their retailer and wholesaler by special arrangement.

Lack of clarity Step 3 - states that retailers should not ‘materially alter’ content of notices - this is not explicit enough - should be no changes to core messages with only branding changes or additional information should be permitted

This should be reflected in MAP 3.

The process regards pollution incidents and states that the wholesaler needs to contact a NHH customer who is identified as a polluter as well as their retailer.

Need to be clear in MAP 3 to exactly which pollution events this process applies and that the wholesaler can contact all the retailers from whom the culprit of pollution may be contracted to.

Two questions are:

What pollution events does it refer to e.g. pollution from damaged potable mains?

What is the process if a group of NHH are identified ( such as a row of food shops causing FOG) but the actual culprit cannot be identified. Currently we would contact all of them with information about the

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Part F: F1, Step 1, p74

Part F: F2 p75

Issue pollution, this process needs to continue as business as usual as we are obliged by environmental legislation . Would the wholesaler need to identify and contact the retailer for each of the NHH customers that may cause / contribute to the pollution?

Making planned water fittings inspections appointments

The wholesaler should not need the consent of the retailer to arrange an appointment for enforcement inspections directly with a customer? This is creating a barrier to a statutory power and is inefficient.

Definition of planned vs. unplanned visit

An unplanned visit is defined as one that cannot be planned two days or more in advance. This does not take into account weekends or bank holidays.

MAP 3 should be updated to allow wholesalers make the appointment and ensure that retailers are kept informed so they can attend an inspection if they wish to do so.

Update MAP 3 for an SLA of two business days in advance

Comment

Part F, F1, step 4, p75

Part 3: Part F, F2, step 4, p76

Consumers/customers right for enforcement notices, which may lead to prosecutions.

MAP 3 should be updated to clarify position on confidentiality for both a) notices and b) visits so there is clarity on how te market must operate.

Enforcement information could be commercially sensitive and could lead to a prosecution and owners/occupiers of premises may be concerned about it being shared with retailers. Should water fittings teams only notify visits and that an enforcement notice has been sent?

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Part F: F2, Step 3 p76

Process F4

Part F: F6, Step 2 p79.

Enquiries received by the retailer

Part G, Trade Effluent -

General

Issue

If retailers used this information to offer plumbing services, could they be seen as having a dominant position in the market for plumbing and be seen as having an unfair competitive advantage by plumbing firms?

Notification to retailer of unplanned visit

Experience tells us 1 working day may not always be achievable due to site specific circumstances, Two business days would be more realistic.

Comment

Update MAP 3 SLA to 2 working days

Does this need to be a separate process as F4 is covered in E2 relating to Emergencies. All other processes where the customer goes directly to the wholesaler, we have captured that wholesaler directs the customer to speak to retailer.

Is Process F4 needed in MAP 3?

Can we include a sentence here to say that water fitting regulations notification sent to the retailer in error, rather than the wholesaler, will be passed on the wholesaler immediately. Water fittings regulations only have ten days to provide consent for work to be carried out and owner-occupiers could be at risk of carrying out non-compliant work if they send it to the incorrect organisation.

Update MAP 3 code to pass on all notifications to prevent non-compliant work.

Enforcement by the wholesaler Will MAP 3 map the enforcement by the wholesaler

? It would be helpful to do so to ensure the market operation has a clear understanding for all retailers

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Part G, Trade Effluent -

General

Process G1, Step 1

Process G2, Step 1

Process G2, Step 4

Process G2, Step 4

Process G5, Step 3

Self monitoring

What is considered to be a substantive response?

Delivering better service

Issue

Is there an SLA for this activity?

Comment

(who might not be existing water sector companies)

MAP 3 should include a statement on self monitoring and whether this will be acceptable in future.

MAP 3 code to be updated with expectation on what would make a substantive response

The code mentions the wholesaler receiving a form H from the NHH Customer. Form H is very clear in that it’s from the retailer and has a signed declaration by the retailer......code and form do not align.

Update code to state Form H received from the

Retailer

Refers to the retailer providing additional information

"as soon as reasonably practical"

This should have an SLA in MAP 3; say 15 days.

Can Form H in MAP 3 contain a field which can be ticked if retailer gives permission for NHH customer to be contacted directly

The MAP 3 code should set out the standard timeframe for payment e.g. 15 days.

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Process G6, Step 4

Issue Comment

Is there an SLA for this activity – it states “promptly” The MAP 3 code should set a standard timeframe e.g.

5 days.

Process G6, Step 4

Process G6, Step 5

Process G7, Step 4

Process G8, Step 1

H2: Review of Unmeasured

Supply Points or assessed

Charges

States that the Wholesaler needs to inform the retailer and NHH customer - would Wholesaler need to get permission to speak to NHH directly, or would it be better for retailer to go back to NHH directly.

The MAP 3 code should be clearer on communication and suggest that the retailer should contact the customer

Is the wholesaler also required to notify the retailer or Update MAP 3 to be clear that the wholesaler does

CSD0206 page 8 says DPID needs to be updated within two days, but the operational code specifies 5 business days

Update MAP 3 to 5 business days.

Should there be an SLA for the retailer to notify the wholesaler of meter fault once it has become apparent?

MAP 3 to include an SLA on notification to the wholesaler, e.g. 2 days.

The code does not appear to include the process that the Retailer should pay the wholesale for the installation of the commercial meter where the customer/retailer is opting for this. Contributions from the wholesaler are referred to, but it should be explicitly stated about charges for meters as well.

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H1: Volumetric allowance modification

H4: Application for Gap Site

Incentive Payment, 1

Part I: I3 Disconnection for illegal use. P105

Process I1, Step 2

Process I2, General st para

Issue Comment

There should be a distinction made between standard allowances (e.g. return to sewer allowances) and single event based allowances (leaks). The former is a permanent or time limited change to the charging basis (and would be generally result in a permanent change to the customer records on the central market database). Single event based charge reductions will be the wholesaler agreeing to a one-off reduction in charges (typically an agreed volume that will not be charged).

There is a market design choice on leak allowance – this should be standardised for the market rather than left to individual wholesale policies.

“This process sets out the arrangements which apply where the Wholesaler offers an incentive scheme in relation to Gap Sites and the

Retailer seeks to claim an incentive in respect of that scheme”

Must a wholesaler provide an incentive or is it optional?

As written it would suggest it is optional. It would be useful to clarify.

Retailer notification

This process needs to recognise that an illegal site may be recognised by a wholesaler and may not have a retailer to inform

Update MAP 3 code to recognise there may not be a retailer to inform.

Who is responsible for determining if there is a domestic element supplied and hence whether the disconnection can proceed?

There may be different accredited entities performing disconnections.

Update the MAP 3 code for transparency on domestic element

There may be different accredited entities performing disconnections. For consistency the MAP 3 code should set out what the expectations are on temporary and permanent disconnections. E.g.

SWW Ref

SWW 81

SWW 82

SWW 83

SWW 84

SWW 85

20



Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms


Process I2, Step 1

Process I2, Step 2

Process I2, Step 4

Faults on disconnection.

Issue Comment

Removal ferrule and plug connection; or cap comm.

Pipe at the ferrule.

In Process I1 step 1 the accredited entity checks for impact of disconnection in relation to impact on other services. If they fail to identify an impact that then has to be put right by the Wholesaler we assume that the costs would be chargeable to the

Retailer or Wholesaler but which?

Step 2 notification of disconnection date and provision of details of disconnection work only requires 2 days notice of disconnection to retailer to make comment/objection/conditions. This applies for both the water supply and waste water wholesalers.

It is not much time to make a proper assessment and response.

Any such comment/objection/conditions then has to be made to the retailer and/or the Accredited Entity.

It does not seem right that we have to respond to the

Retailers Accredited Entity who we have no contract or relationship with.

Step 4 provides no direction as to what happens if the

Wholesaler has comment/objection/conditions to the notification of the disconnection.

Does the disconnection stop until the Wholesaler and

Suggest code is updated with a 7day time frame and that the wholesaler only needs to deal with the

Retailer

The MAP 3 code should be updated and state that disconnection processes stop until agreement is made. This should be done led by the retailer.

SWW Ref

SWW 86

SWW 87

SWW 88

21



Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms


Process I2, Step 4

Process I2, Step 5

Process I3, General

Process I3,Step 2

Issue

Retailer and/or Accredited Entity agree?

If the disconnection under step 4 is a temporary one and this has entailed removal of the meter what happens about meter reading and the storage of the meter for possible refitting at a later point?

What about meter reading and storage of any meter removed?

Comment

Update MAP 3 code to give clarity on the meter read and asset storage.

Notification route

Clarity needed on cost recovery. Normally costs would be recovered through the courts. If the customer has a Retailer, is the retailer responsible for reimbursing the wholesaler.

The code states “When the Wholesaler is informed of or suspects illegal use of Water Services (including where it has received information from the Retailer), it may schedule a visit to confirm the illegal use and may make a Disconnection without notice when on site or subsequently if it considers it appropriate)”

The requirement is for the Accredited Entity to notify the Wholesaler when the disconnection is made. It would seem more appropriate for this notification to go via the Retailer who then notifies the wholesaler.

The MAP 3 code should be updated accordingly.

The MAP 3 code should (or the standard contract should) be updated to reflect the cost recovery responsibilities of the Retailer if it has a customer has illegal water use.

For the avoidance of doubt, MAP 3 should be clear that illegal use and disconnection need to be considered separately and consistent with existing legislation.

There is a clear distinction between illegal use and disconnection – the latter can only happen under

SWW Ref

SWW 89

SWW 90

SWW 91

SWW 92

22



Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms


Process I3,Step 2

Process I4, General

Process I9

Form A

Form A

Issue certain circumstances (s60, s61, s62, s75). So you may have an illegal connection but not able to disconnect.

It is assumed that cost recovery will come via prosecution, but what if the customer has a retailer?

Comment

Update MAP 3 to be clear that cost recovery will come from the Retailer if the customer has a retailer.

Where does the cost recovery come from? For the reconnection the wholesalers costs of a rectified regs breach (process I10) the costs are recovered from the retailer. there is inconsistency in processes I9 (reconnection by

Accredited Entity) in terms of the WS Retailer notifications to their customer’s other Wholesaler and

Retailer, where they have them, in comparison with process I8 (reconnection by WS Wholesaler) when you would expect the requirement for notification to be the same.

FORM A - is it necessary to fill in separate forms for the request of NHH Domestic & NHH Commercial which are being requested at the same time?

Currently new connection application forms for water companies aim to cover notification requirements under the water fittings regulations. This makes it easier for customers to comply. Form A misses three areas that are needed: the name of the approved contractor (if one is being used), a description of the plumbing work and a schedule of the water fittings being used.

The MAP 3 code should be updated to follow the same process for I4 as I10.

For MAP 3, Step 3 should have the form sent to both wholesalers if there are different operators.

FORM A in MAP 3 should include a flag to show if another connection is being included at the same time.

Update FORM A for MAP 3 as per issues raised.

SWW Ref

SWW 93

SWW 94

SWW 95

SWW 96

SWW 97

23



Part 3:

Operational Terms


Part 3:

Operational Terms


Part 3:

Operational Terms


Form A New Connections

Form F1 and F2

Form F2 p15

Issue

The timing for responses by wholesaler to the new connections form may lead to conflict with the ten working days statutory requirement for water undertakers to grant consent for proposed work under the water fittings regulations. (p18/19)

Water company connections forms have been developed to take account of new emerging public health risks. For example rain-water harvesting was included as it emerged as increasing a risk of crossconnections. How will the form be updated in future as improvements are identified? Will this be referred to the panel? Will this process be quick enough to respond to new public health risks?

Comment

For MAP 3 can the process for updating each FORM be set out. e.g. in Section 1.2 of the Market Code?

Public Health Risks from meters running backwards

A meter running backwards could indicate backsiphonage or back pressure, with the water from a premises entering the public water supply. (F1 2.4, F2

4.4)

For MAP 3

3.4.1 Please add potential back-siphonage to public heath issues under 3.4.1 in F1 and 4.4.1 in F2

Water Fittings Regulations certificate included

There is a tick box for ‘Water Fittings Regulation

Certificate included’. What is this for? If this reflects that an Approved Contractor has provided a work completed certificate then the words should be

‘Approved Contractor work completed certificate

For MAP 3 update the form to expand on what the tick box is for.

SWW Ref

SWW 98

SWW 99

SWW 100

24



Part 3:

Operational Terms


Form R

Issue Comment included’

Title inconsistent with other forms which are requests.

This form is a request, as it may be dependent on contraventions of the water fittings regulations being corrected. Ass other forms are a request. The title should be ‘ Request for reconnection of a supply which has been temporarily disconnected’ rather than

‘Reconnection of a supply which has been temporarily disconnected’

Update title for MAP 3




Part 4:

Market Terms


4.10.2

Issue Comment

Where a Meter Read is taken on one of the change events referred to in Section 4.10.7 below, the reading will always be taken by the physical reading of the register of the meter Registered by the

Contracting Wholesaler. For clarity, meter reading requirements apply to the Contracting Wholesaler’s meters installed on water supplies, privately owned meters installed for the purposes of measuring

Sewerage discharges, whether installed to measure private water supplies or Trade Effluent discharges and deductive meters associated with Meter

Networks. In the case of all meter types, the register

There needs to be recognition of AMR reads. These electronic reads should be included with physical reads as part of the definition.

SWW Ref

SWW 101

SWW Ref

SWW 102



Part 4:

Market Terms


4.10.3

Issue of the meter shall provide the sole evidence of the quantity of water supplied or effluent discharged.

The Contracting Retailer shall ensure that a physical reading of the register of any meter takes place a minimum of once during the period from the date of the last physical reading to the second anniversary of that date.

Comment

See above, with AMR technology there is no need for regular visual readings, there would be a visual read at installation and at exchange. If there was concern regarding the accuracy of an AMR reading then a visual read could be requested, but there is no need for a default regular check

Timing of settlement reports R1-R3 MAP 3 should have all reports available on the same day. This allows simpler processing by participants.


Part 4:

Market Terms


4.14


Code Subsidiary Document

No. 0003:Volume Transfer

Planned


Step c

Step i

Volume transfer plan

Issue

“All transferred meter reads must be submitted within two (2) months of the transfer date”

Comment

Volume transfer may require a lot of data manipulation e.g. name changes for retailer.

Can step c include a statement for the related parties to download the data from the MOS to allow this to be processed as need be.

By including in the codes, this functionality will be in the MOS build

The two month transfer may not be practical for transfer of a large retailer on say, market exit. E.g. were south west to transfer all customers, that would


No. 0003:Volume Transfer

Planned

25

SWW Ref

SWW 103

SWW 104

SWW Ref

SWW 105

SWW 106



No. 0202:Meter Read

Submission: Process


No. 0202:Meter Read

Submission: Process


No. 0301: Data Transaction

Catalogue

26


2.5

2.7

Data Item 2005 (Customer

Classification)

Issue Comment

Meter Read Type – R. The Retailer may supply an

AMR Read in place of a Regular Cyclic Read or Non-

Household Customer Read. In accordance with

Sections [4.10.2ii] and [4.10.2iii] of the Market Terms, a physical reading of the register of the relevant

Wholesaler’s asset meter must be submitted not less than once every two years.

Where the transfer relates to a Main Meter in a

Meter Network then the Data Owner for any associated Sub Meter at the level below the Main

Meter is also required to provide a Transfer Read within two (2) Business Days of the Registration Start

Date. The Incoming Retailer will be responsible for notifying the relevant Data Owner for the Sub Meter, within two (2) Business Days of the relevant

Confirmation Notice date, that a Transfer Read is required.

What are valid classifications, will a list of valid values be published to aid company preparedness? be 70,000 reads, or c140 per hour even if working 7 days per week and success on reading each visit and ignoring domestic meter read requirements..

MAP 3 should update wording to “within two (2) months unless agreed otherwise by the market operator for very large scale transfer”

A physical meter read of an AMR meter should only be required where there is doubt concerning accuracy.

Main meter and sub-meters need to be read on the same day for accurate calculation of a bill.

Can MAP 3 include a list of valid customer classifications.

SWW Ref

SWW 107

SWW 108

SWW 109

27



Appendix 4 – Wholesale

Contract


General


Contract

Execution

Issue

Additional terms

Comment

Wholesalers and retailers may wish to agree the delivery of specific services.

For MAP 2, the wholesale contract should explicitly state that additional terms as agreed by the wholesaler and retailer should be kept separate.

Please confirm how these multilateral agreements will be signed. Will each authorised signatory need to be present or will Open Water hold signatures to account?

SWW Ref

SWW 110

SWW 111

28


Contract

Clause 7 Dispute Resolution


Contract

7.1

Double jeopardy – having to defend against a breach of Statutory Code and a breach of Contract claim even if arising from same breach .

For MAP 3 need to be clearer on process when a breach affects both the Contract and the Statutory

Code to avoid double jeopardy.

Concern that action could be taken against a party

(either Wholesale or Retailer) under a number of different channels, even though this might all arise from the same cause of action. For example a breach of new connection timescales could be bought as a claim for breach of statutory code as well as the business contract. Consider whether there should be a provision in the statutory code that gives requires complainants to take one route or the other and not to forum shop.

The comments during the Legal Architecture

Workshop was that a Court or Defra would have regard to any parallel action and to award remedies accordingly. However, that does not prevent a party having to defend against the same issue on 2 fronts and have to distract resources in doing so.

Query of the same claim might also be heard under the draft voluntary ADR regime that has been developed by Water UK.

How do you deal with issues of redress that are not in the operational or market terms? E.g. a customer has been charged for surface water drainage but is not connected to the sewer system.

Suggest Section 17.2 of the Business terms is updated to include ‘other disputes’ that should follow the same route as those from the market code unless there are other contractual or legal obligations for an alternative route.

SWW 112

SWW 113

29


Contract

- What is the process for dealing with special agreements?

Suggest the wholesale contract or business terms includes detail on how special agreements operate in the market.

Also suggest that the data catalogue includes a flag for any special agreement so retailers understand if a specific contractual arrangement is in place.

SWW 114



Appendix 5 – Market

Arrangements Code


Clause 3.3.2 appointment and removal of MO

Removal of MO

Issue

Escrow arrangements (see Schedule 5) Appendix 5 – Market

Arrangements Code

Clause 3.4

Comment

Before SWWL can objectively comment on this clause, the terms of any exit mechanism (Schedule 4) need to be considered. Any funding arrangements need to be considered so that members do not have to subsidise the financial failing of the original MO.

While the escrow arrangements deal with deposit of various documents, this does not deal with any insurance or financial escrow in the event of failure of the original MO.

For MAP 3 more consideration is needed on the financial implications of a failed MO and how this will be dealt with.

SWW Ref

SWW 115

SSW 116

30



Arrangements Code


Arrangements Code


Arrangements Code



Clause 4 Market Operator

Governance

Query if any disparity with the MO Articles of

Association

Issue

Clause 4.7 Proceedings of the

Board

Looks at whether the MO Articles of Association are sufficient or whether this needs to be developed here.

Clause 5.2

Clause 9.1 Performance

Standards, Monitoring and

Composition of the panel is too small

Meeting performance standards

Comment

SWWL is concerned that any powers or obligations of the Board should be dealt with in one place. The risk of detailing in the Articles and then in market code enforceable by way of Licence/appointment amendment is that either there is a conflict in the two documents, or for some reason one party is not bound by the MO articles so there is a two tier system.

For MAP 3 the powers of the Board should be housed in one place only.

SWWL is concerned that any powers or obligations of the Board should be dealt with in one place. The risk of detailing in the Articles and then in market code enforceable by way of Licence/appointment amendment is that either there is a conflict in the two documents, or for some reason one party is not bound by the MO articles so there is a two tier system.

For MAP 3 the powers of the Board should be housed in one place only.

Suggest membership is increased from 2 representatives to 3. With at 19 wholesalers and, say,

19 retailers at opening this gives a more representative view for the sector.

Clearly any data produced about any party relating to meeting (or not meeting) performance standards

SWW Ref

SWW 117

SWW 118

SWW 119

SWW 120


Arrangements Code

Section of the Document issues Resolution

Issue


Arrangements Code

Clause 9.6 MO Performance The Mo shall comply with its obligations


Arrangements Code

Clause 10.5 Due Date for

Payment

Date when payment of invoices is due

31

Appendix 5 – Market Clause 10.5 Due Date for Allowance for disputed invoices

Comment must be treated as confidential information and not be circulated between the MO secretariat and the members without appropriate measures first being taken to ensure confidentiality and right to a fair hearing.

For MAP 3 a clear process is needed for transparency on general performance standards to ensure data is correct. Where specific performance issues arise this must be dealt with confidentially until such as time that it can be published following hearing of the parties involved.

What sanctions do members have for non performance by the MO(other than the ultimate right to terminate the MO’s authority and appoint a successor company)?

MAP 3 should consider the escalator of interventions if the MO does not perform to its obligations.

Presumably the MO will give prior indications as to level of invoice due (as calculated under 10.4 MO

Charges) prior to issuing invoice so that undertakings can seek their own internal board’s support for payment of invoices.

For MAP 3 can the clause be clarified on this issue.

There does not appear to be any allowance for disputed invoices, and the businesses are obliged to

SWW Ref

SWW 121

SWW 122

SWW 123

32


Arrangements Code


Arrangements Code


Arrangements Code


Arrangements Code


Arrangements Code


Payment

Clause 11 Intellectual Property

Clause 14 Confidentiality

Clause 17 Reference to an

Expert

Issue

Restriction on using MO IP without prior consent.

Flow of confidential information

Clause 17 Dispute Resolution Definition of Expert who would be eligible to hear a dispute is circular

Concern that there may be double jeopardy

Comment pay whether or not they agree with the sums invoiced.


Will the MO grant a blanket prior consent for businesses to replicate any guidance, case studies etc into internal compliance or training manuals, or to include links or document to internet or intranet pages?


Subject to the expected decision on the EIR, would information provided by businesses would be disclosable under any FOI or EIR request.


Currently this is described as “person with appropriate qualifications and experience to resolve a

Dispute”.

For MAP 3 the relevant experience or qualifications should be given to ensure transparency.

There might be any ability to stay proceedings or disputes arising from same set of circumstances either between same parties or if there is a network effect of similar disputes, where those disputes are also being hear/raised under another forum. Parties

SWW Ref

SWW 124

SWW 125

SWW 126

SWW 127

Document in the MAP Section of the Document Issue Comment may have various routes to raise disputes (under the

WA, under the Code or under the agreement – and even query the Water UK ADR provisions).

For MAP 3 the process for dealing with issues that may also arise through other forums should be clarified to make the process clear.

33


Document in the MAP Section of the Document

Appendix 6 – Articles of

Association of the Market

Operator

Clause 4 (Objects of the

Company]



Operator

Clause 5 (Funding)



Operator

Clause 5.3 (Funding)

Issue

The objects include processes required for “non household water and sewerage services” ”

Comment

For MAP 3 this needs to be just those water and sewerage services in the market i.e. retail.

Ofwat have said that it is likely that the obligation on parties to provide subscription to fund the MO will be by way of an amended Licence Condition. Any such funding must be reasonable and only for the purposes of funding the activities of the MO. In the event that the MO’s budgets are inadequate, there must be balance on calls for additional funding against tighter budget controls and forecasting on the MO.

For MAP 3 additional clauses are needed that funding is only for the MO and for reasonable costs.

It is unclear whether the sentence “no subscription or other dues shall be levied upon New Entrant members” would have the effect that new Retailers would not be obliged to contribute to funding the

For MAP 3 confirm that all MO members contribute to funding of the MO.

SWW Ref

SWW Ref

SWW 128

SWW 129

SWW 130

34

Document in the MAP Section of the Document Issue activities of the MO, despite that New Entrant benefiting from the MO’s services.

Any objection must be referred to the chair of the meeting whose decision is final.



Operator

Clause 39 (Disputes)

Comment SWW Ref

For MAP 3 confirm how a member may raise a grievance against the actions of the MO (for example dispute as to decision over processing of settlement etc). How will this be decided?

SWW 131

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