In early summer we instigated a detailed review of how the retail market in Scotland was working. It was a concerted attempt to listen to the views of both current participants in the market, customers and those who had decided not to participate.
We particularly welcomed the participation of Ofwat as we recognise that it would likely be best for all concerned to move towards a common Anglo-Scottish retail market.
A number of useful issues were raised in two workshops, which we have considered under the following main headings:
- securing financing and returns;
- addressing issues of market power;
- governance codes and effects;
- encouraging innovation at both retail and wholesale levels (likely to develop through both rivalry – retail – and collaboration);
- encouraging further improvement of the wholesale efficiency of Scottish Water; and
- building further confidence in market systems.
I hope that we will shortly be in a position to publish further thinking in these areas on which we would welcome the input of all stakeholders. It is particularly useful to understand the view of those who have not yet chosen to participate in the retail framework in Scotland or from those who are preparing to respond to the UK Government's White Paper, which I understand is due out at the end of the year.
One thing is for sure – your views matter! Over the past three and a half years, many aspects of the original market design have been changed – usually instigated by market participants themselves – with a view to making the framework function better for customers.
No doubt there will be further changes but we see this potential for change as a sign of a robust framework with assertive participants. From a customer’s perspective, long may these current trends continue!