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Wholesaler/Retailer Risk Allocation Model

O F W A T

This public procurement record has 3 releases in its history.

ContractAmendment

03 Sep 2026 at 18:08

UK10 - Contract Change Notice
ContractAmendment

22 Apr 2026 at 16:00

UK10 - Contract Change Notice
Award

13 Feb 2026 at 16:01

UK7 - Contract Details Notice
Summary of the contracting process

The Water Services Regulation Authority (Ofwat) commissioned business and management consultancy services for a wholesaler/retailer risk allocation model in the business retail water market. The work covers reviewing Ofwat’s 2016 credit-support-cost model; analysing prepayment and post-payment timelines under the Wholesaler Retailer Code; and developing quantitative Excel models for retailer and wholesaler costs, collateral and credit-risk exposure. The models must test four credit options and relevant sensitivities, including working-capital costs, collateral levels, retailer default probability and the proportion of a wholesaler’s exposure covered by collateral. The supplier must also provide Word documentation explaining the models and assumptions, support stakeholder review and produce work robust enough for publication on Ofwat’s website. Delivery covers England.

The procurement is complete and the contract was awarded to Cubelynx Limited. It used a direct award below the applicable threshold, without competition, with one completed lot. The award was made on 19 November 2025 and the contract was signed on the same date. The contract value is £35,000 excluding VAT, or £42,000 including VAT. The stated contract period runs from 21 August 2026 to 21 August 2026, with a maximum extent date of 31 December 2026. Ofwat reserved the right to extend or modify the agreement by up to 50% of the original value under the Procurement Act 2023, although the extension may not be taken up. The contract is active and renewal is permitted.

This award indicates demand for specialist regulatory, financial and quantitative modelling support in the business retail water market. A credible competitor for a future requirement would need to understand wholesaler and retailer payment arrangements, credit support, collateral and default risk, and translate those issues into robust financial models. Relevant capability includes reviewing and improving existing models, defining assumptions, testing sensitivities across alternative credit arrangements, and explaining results clearly to external stakeholders. Suppliers should be able to work collaboratively with Ofwat and interim support, produce dependable Excel models and accessible Word guidance, and meet the standard required for publication on a public-sector website. Experience in water-market regulation, utility finance, working capital or credit-risk analysis would be directly relevant.

How relevant is this notice?

Notice Information

Notice Title

Wholesaler/Retailer Risk Allocation Model

Notice Description

Undertake modelling work and produce quantitative models of the costs and risks of different credit and collateral arrangements in the business retail market, together with supporting documentation. The Supplier shall provide the following Deliverables to the Customer as part of the Services: (1) Review the 2016 model of credit support costs to understand principal inputs, outputs and parameters, taking into account any relevant feedback Ofwat may have received regarding that modelling and updates to the modelling documentation. This shall be a Word document. (2) Develop and produce an understanding of prepayment and post payment timelines regarding Retailer payments to Wholesalers, as specified under the Wholesaler Retailer Code The Supplier shall provide the following Deliverables to the Customer as part of the Services: (1) Review the 2016 model of credit support costs to understand principal inputs, outputs and parameters, taking into account any relevant feedback Ofwat may have received regarding that modelling and updates to the modelling documentation. This shall be a Word document. (2) Develop and produce an understanding of prepayment and post payment timelines regarding Retailer payments to Wholesalers, as specified under the Wholesaler Retailer Code (WRC) business terms (WRC Schedule 1 Part 2 Business terms SS9 Billing and terms of payment - Available at: Market Codes - MOSL). (3) Develop and produce a quantitative model of impacts on and costs for a Retailer of providing different levels of collateral, under the payment timetables established in step (2). Principal costs should include the costs working capital and collateral. Modelling work should include sensitivities to four credit options. This shall be an Excel model. (4) Develop and produce a quantitative model of risk exposure and costs for a Wholesaler under different credit options. Sensitivities should include Retailer collateral provided as a proportion of a Wholesaler's total exposure, probability of Retailer default, and four credit options. This shall be an Excel model. (5) Write guidance documentation to explain and accompany both models, with a view to enabling external stakeholders and interested parties to understand and comment on the models and modelling assumptions. This shall be a Word document. Modelling work is to be carried in collaboration with Ofwat and relevant interim support. The quantitative models must be of a sufficient standard and robustness to be published on the Ofwat website.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-065444
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/083674-2026
Current Stage
Award
All Stages
Award

Procurement Classification

Notice Type
UK10 - Contract Change Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Direct
Procurement Method Details
Below threshold - without competition
Tender Suitability
Not specified
Awardee Scale
SME

Common Procurement Vocabulary (CPV)

CPV Divisions

79 - Business services: law, marketing, consulting, recruitment, printing and security

CPV Codes

79400000 - Business and management consultancy and related services

Notice Value(s)

Tender Value
Not specified
Lots Value
Not specified
Awards Value
Not specified
Contracts Value
£35,000 Under £100K

Notice Dates

Publication Date
3 Sep 20261 months ago
Submission Deadline
Not specified
Future Notice Date
Not specified
Award Date
Not specified
Contract Period
21 Aug 2026 - 21 Aug 2026 24 hours
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Active
Contracts Status
Active

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
O F W A T
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
BIRMINGHAM
Postcode
B5 4UA
Postcode Area
Birmingham
Country
England
Major Region (ITL 1)
TLG West Midlands (England)
Basic Region (ITL 2)
TLG3 West Midlands
Small Region (ITL 3)
TLG31 Birmingham
Delivery Location
Not specified
Local Authority
Birmingham
Electoral Ward
Ladywood
Westminster Constituency
Birmingham Ladywood

Supplier Information

Number of Suppliers
1
Supplier Name

CubeLynx

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

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