Taking the risk out of water procurement
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Deregulation of the non-domestic water market is now less than six months away. How should your business be preparing for the changes?
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Taking the risk out of water procurement
- 1. Taking The Risk out of Water Procurement Bill Clarke Director SES Business Water
- 2. Will the market be ready? I’m not sure if my data is accurate enough Should I get involved straightaway or wait? Preparing for deregulation
- 3. 2008 Scottish Market opened Oct 2016 Shadow Market opened April 2017 Go Live Market readiness Who? Wholesalers Retailers Market Operator Systems Ltd (MOSL) Central Market Operating System (CMOS) Central Marketing Agency (CMA)
- 4. Market readiness Decide whether to participate Data preparation and verification Select potential suppliers Tender or place contract Switch 1 2 3 4 5
- 5. Compare your data against CMOS records: this holds billing data, region by region Address any resulting inaccuracies Determine whether any sites/ supplies are not currently being billed and rectify Data readiness – now is the time to take action! 1 2 3
- 6. Going to market: • Commodity is traded on a fluctuating wholesale market • Requires complex decisions: profile, volume, and a risk management strategy • Non-commodity charges include policy and network charges, making them less predictable • Water isn’t a traded commodity open to price volatility • 4 year price frameworks, driven by Ofwat, make costs predictable (although some price fluctuations year-on-year) • Retailers are operating in a low margin market and hungry for new business Electricity v Water
- 7. …Introducing Wholesale Tracker Plus™ • Buy at a wholesale price, lowest cost allowed by the Water Act • You agree a water management service that meets your needs and a monthly fee • Buy direct or via your TPI • 3 or 5 year supply agreement • 28 days exit notice, no penalty • We support you in reducing consumption, charges and indirect costs Removing risk
- 8. Your next steps Get started internally Get your data in order Take action