The Strategic Panel has published its response to Ofwat’s second consultation as part of the 2025-26 Review of Retail Exit Code (REC) protections. The response sets out the need for a customer protection framework that remains fit for purpose as the non-household water retail market continues to mature.
The Panel is clear that customer protections need to remain available where clear customer harms exist and highlights the need for protections to be evidence-based, proportionate and capable of evolving alongside market conditions. However, the response also emphasises that regulation should continue to support, rather than constrain the development of a flourishing market that delivers better outcomes for customers through effective competition, innovation and investment.
The Panel sets out five key principles for an effective customer protection regime:
- A clear long-term framework is needed for how customer protections should evolve as the market matures
- Ofwat should continue to balance customer protection with competition and greater cost reflectivity
- Protections should be firmly grounded in evidence and targeted at addressing clearly identified customer harms
- Regulation should become increasingly proportionate and focused on those customers who most require protection
- Elements of the REC should be capable of more dynamic review where market conditions, customer outcomes or retailer costs change materially.
While supporting aspects of Ofwat’s proposals, including moves towards more targeted protections and more cost-reflective allowances, the Panel calls for greater clarity on the evidence underpinning proposed consumption thresholds and how customer harms, awareness, engagement and market behaviour have been assessed in determining future protections.
Commenting on the response, Trisha McAuley OBE, Independent Chair of the Strategic Panel, said: "The Panel supports Ofwat’s objective of ensuring customer protections remain effective and proportionate as the market continues to develop. This review provides an important opportunity not only to consider what protections are needed today, but also to establish a clearer long-term framework for how those protections should evolve in future.
Our response highlights the importance of evidence-based decision making, targeted protections and a more dynamic approach that can respond to changing customer needs and market conditions. Consistent with the Panel’s Roadmap to a Flourishing Market, we believe customer protections should support strong customer outcomes while enabling the competition, innovation and investment needed for a thriving market.
We look forward to working constructively with Ofwat as it develops its final proposals."
Click here to read the full Strategic Panel response to Ofwat’s second consultation on the 2025-26 Review of Retail Exit Code protections.
Albion Water, the first NAV (New Appointment & Variation) to have been established in1999 and now under the ownership of SDS Water Group, has appointed Andy Holland as its new Director of Business Development.
UK water companies are invited to join an upcoming webinar which will explore how the sector can take indirect potable reuse (IPR) from concept to full-scale operational reality.
James Sumsion, CEO of predictive water intelligence specialists Kohtari, says the water sector needs to take a giant leap forward, so that it can anticipate and act upon water quality issues - rather than merely react.
Ray Moulds, Sales Director at Flood Control International, takes a look at how automated sliding floodgates are supporting secondary containment at water and sewerage company sites.
Hear how Scottish Water has completed its £235 million Ayrshire Glasgow Resilience Project - customers across Greater Glasgow, Ayrshire and East Renfrewshire will now benefit from a more secure and resilient water supply.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video.