Ofwat presses for business retail credit compliance

Ofwat has told wholesalers and retailers to confirm they are compliant with their market code obligations relating to credit arrangements.

Specifically this relates to provisions for Alternative Eligible Credit Support Arrangements, Alternative Payment Terms and Parent Company Guarantees, under code modifications CPW048, CPW052,CPW057 and CPW081.

The action follows discovery that there are discrepancies and omissions concerning the information available on company websites and MOSL’s site. In a letter, business retail market director Shaun Kent said: “In summary, it appears that not all wholesalers and retailers have provided MOSL with timely and comprehensive information, which among other things obviates MOSL's ability to publish the necessary details.”

Trading parties have until 12 December to either confirm their compliance or highlight discrepancies along with the steps that are being taken to remedy these and by when. Kent said this information will inform Ofwat’s view on further action, including potential enforcement action.