Business retail market operator MOSL has suggested that over-reliance on consumer views may lead to regulation and investment in the wrong areas.

The comment comes in MOSL’s response to Ofwat’s consultation on the proposed Consumer Involvement Rule issued under the Water (Special Measures) Act 2025.

The response says that MOSL supports the principle of strengthening consumer involvement in decision-making across the water sector, saying:

“We are pleased that Ofwat has explicitly included business customers when referring to the Consumer Involvement Rule, as businesses account for 30% of the total water supplied across England.”

MOSL supports the introduction of a statutory requirement for undertakers (the water companies) to have arrangements for consumer involvement, and welcome Ofwat’s focus on accessibility, independence, timeliness, representativeness, and transparency.

The market operator also agrees that retailers operating in the business retail market should not be considered consumers under the new rule. However, the response emphasises the importance of retailers' active involvement in engagement strategies with businesses, given that they own the relationships with business consumers.

However, while supportive of the proposed rule, MOSL says it is essential that it remains proportionate and avoids unnecessary duplication with existing water company engagement mechanisms.

MOSL also points out that consumers “may not fully understand” the urgency of asset and infrastructure investment, or how water companies prioritise work to meet the future demands of consumers and the environment.

The response says:

“As such, an over-reliance on consumer views may lead to regulation and investment in the wrong areas.

Ofwat should consider how it balances public interest with the needs of the sector and delivering sustainable solutions needs of the sector and delivering sustainable solutions for water security and resilience……

“For the water sector to be resilient, it is essential that water companies invest in the long-term. Consumers may not have the right level of interest or knowledge to inform longer-term resilience and water resource planning.”

While MOSL agrees that retailers operating in the business retail market should not be considered consumers under this rule, the market operator is calling for Ofwat to be clearer on the need for retailers to be involved in consumer engagement as they own the relationship with business customers.

“We particularly welcome opportunities for business customers, of all sizes, to be included in the development of consumer panels and engagement strategies,” the response concludes.

Click here to download the response