MOSL has responded to Ofwat’s consultation on strengthening protections for customers in the business retail market by implementing a cost recovery mechanism and cashflow support tool into the interim supply arrangements.

The business retail market operator has emphasised sits upport for robust interim supply protections for both customers and retailers in the event of an unexpected retailer exit from the market.

The response says the proposed changes by Ofwat, including the introduction of a Cost Recovery Mechanism (CRM) and Cashflow Support Tool (CST), represent an important step towards ensuring retailers can recover costs and maintain ongoing business operations after taking on new customers. In MOSL’s view additional steps need to be taken to create a strengthened and sustainable interim supply process.

MOSL says that ultimately the success of the changes will depend on retailers being more willing to take on customers, on an interim supply basis, in the event of a retailer failure.

MOSL is encouraging Ofwat to carefully consider retailer feedback to ensure the proposed changes create sufficient incentives for retailers to act as interim suppliers.

Mosl has also highlighted the need for alignment with wider policy and legislative developments, including reforms proposed in the Water White Paper, saying:

“It is also important to ensure these changes align with the White Paper’s proposal to introduce a new supplier of last resort mechanism in legislation.”

“We look forward to continuing to work with Ofwat to ensure any new interim supply arrangements are attractive to retailers and provide strong, effective protections for all market participants,” the response says.