Water industry regulator Ofwat has published a briefing paper setting out the legal framework for retail market opening in 2017 which will enable eligible non-household customers to choose their supplier of water and wastewater retail services.

The new market will rely on a number of legal documents to work  ranging from legislation to non-statutory guidance. Ofwat said the legal framework will evolve as more provisions of the Water Act 2014 come into force, or the new market is set up. For example, various powers exist for the Secretary of State to issue further regulations, including regulations for the licensing arrangements between England and Wales and Scotland.

However, at this stage the regulator has not included the equivalent legal framework for the existing market in Scotland - Ofwat said “efforts are being made to achieve a seamless cross-border market.”

The framework also currently does not include other relevant legislation, such as the Competition Act 1998.

Click here to download Legal framework for retail market opening