Water industry regulator Ofwat has launched a new consultation on the Wholesale Retail Code (WRC) which plays a key role in the regulatory framework for the new business retail market which opens next year.

The WRC has been developed through detailed consultation with the industry over a period of nearly two years and has been subject to change control by the Interim Code Panel (ICP) since August 2015.  It sets out the relationship between wholesalers and retailers and how the market will operate.

Ofwat is now consulting on the restructured WRC and is seeking feedback from respondents on whether any further changes are needed to the WRC before it comes into effect at Market Opening in April 2017.

The WRC applies to all Licensee and Appointees in England and Wales. Ofwat also intends to introduce a derogations process to relieve Licensees and Appointees from compliance with obligations in the WRC, if they can demonstrate to the regulator’s satisfaction are disproportionate in effect and unduly burdensome on the business.

Ofwat said the WRC consultation paper should also be considered together with its proposed policy on derogations.

Deadline for submission of responses to the consultation is Friday 16 December 2016.

Click here to access the consultation paper.