---
title: "Review of Credit Arrangements in the Business Retail Market"
ocid: "ocds-b5fd17-ab07c548-33ac-44a3-9f2a-52e21ec3a816"
canonical_url: "https://d3tenders.com/contract/?ocid=ocds-b5fd17-ab07c548-33ac-44a3-9f2a-52e21ec3a816"
markdown_url: "https://d3tenders.com/contract/ocds-b5fd17-ab07c548-33ac-44a3-9f2a-52e21ec3a816.md"
json_url: "https://d3tenders.com/contract/ocds-b5fd17-ab07c548-33ac-44a3-9f2a-52e21ec3a816.json"
source: "Contracts Finder"
current_stage: "Award"
buyer: "WATER SERVICES REGULATION AUTHORITY"
published: "2018-05-17"
---

# Review of Credit Arrangements in the Business Retail Market

Buyer: WATER SERVICES REGULATION AUTHORITY  
Current stage: Award  
OCID: ocds-b5fd17-ab07c548-33ac-44a3-9f2a-52e21ec3a816

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## Summary

The WATER SERVICES REGULATION AUTHORITY is seeking to enhance credit arrangements within the business retail market through the tender titled "Review of Credit Arrangements in the Business Retail Market." This project falls under the industry category of business and management consultancy services and is located in regions such as West Midlands and London. The procurement is currently in the award stage, with the contract having an active status and an award value of £58,996.25. The contract period starts on January 15, 2018, and concludes on March 30, 2018, following a selective procurement method through a call-off from a framework agreement.

This tender presents growth opportunities for SMEs specialising in consultancy services, particularly those with expertise in financial assessments, market entry strategies, and credit management within regulated markets. Interested businesses should be prepared to provide insightful recommendations that could identify and rectify barriers to entry for new retailers. A collaborative approach to engaging with market participants and addressing potential barriers will be essential for those aiming to compete effectively for this contract.

## Notice

The objective of the work is to lead a review of the current credit arrangements included within the Market Codes, provide recommendations on areas that should be reviewed and options that Ofwat should consider to remedy any issues identified. In particular, we are keen to understand whether the current arrangements provide any barriers to entry and/or foreclose the market to new entrants of particular scale. Associated with the credit arrangements, the WRC provides a process and timelines for default and termination for failure to provide eligible credit support. We are keen to understand whether the current provisions of the Code align with the intended timescales. MOSL (the Market Operator) carried out an engagement exercise with the industry where it sought views on the wider credit issues faced by market participants. From stakeholder responses, the potential wider policy issues appeared to be: * Barriers to entry and expansion for retailers from currently available credit support options. * Payment windows and notification processes (includes cashflow issues e.g. cliff edge, incentives for paying on time, Thames). * Schedule 3 - is it working effectively and if not what are the issues surrounding its use. * Financial assessment and market entry. Taking the above into account, the scope of the work is therefore to provide Ofwat with a suite of options it may want to take into account in reviewing the current credit arrangements. In particular, this should focus on: a) Whether the current credit arrangements are fit for purpose, taking into account Ofwat's policy objectives for the business retail market, its strategy and its statutory duties. b) Whether there are any barriers to entry to new entrant retailers (in particular independent retailers) that arise from the construct of the current Codes or the current collateral requirements and whether these barriers to entry are undue. This includes an assessment as to whether the risk sharing allocation should be amended to favour new entrant retailers with accompanying analysis and evidence. c) Any alternative credit options that are not currently provided for in the current suite of credit options available to retailers, drawing on precedent in other sectors and experience of relevant financial instruments. d) An assessment of whether modifications to the current credit arrangements need to be made for self-supply retailers. e) Areas of the Code that require modification or clarification, with accompanying evidence and analysis to support any such modification along with a recommendation for the change itself. f) Examining whether the current timelines and processes for termination and default included within the Codes are clear and aligned with the exposure of the wholesaler. g) Workshopping with trading parties/market participants and other relevant stakeholders to gauge views on issues relating to the above. h) Any suggestions the Contractor may have in addition to the above list.

## Key Details

| Field | Value |
| --- | --- |
| Publication source | Contracts Finder |
| Latest notice | https://www.contractsfinder.service.gov.uk/Notice/657e168c-c3ca-4706-8796-a59964eb8d6e |
| Notice type | Award Notice |
| Procurement type | Framework |
| Procurement category | Services |
| Procurement method | Selective |
| Procurement method details | Call-off from a framework agreement |
| Tender suitability | SME |
| Awardee scale | Large |
| All stages | Award |

## Dates

| Field | Value |
| --- | --- |
| Publication date | 17 May 2018 |
| Submission deadline | 8 Jan 2018 |
| Future notice date | Not specified |
| Award date | 12 Jan 2018 |
| Contract period | 15 Jan 2018 - 30 Mar 2018 |
| Recurrence | Not specified |

## Values

| Field | Value |
| --- | --- |
| Tender value | Not specified |
| Lots value | Not specified |
| Awards value | £58,996 |
| Contracts value | Not specified |

## Status

| Field | Value |
| --- | --- |
| Tender status | Complete |
| Lots status | Not specified |
| Awards status | Active |
| Contracts status | Not specified |

## Buyer

| Field | Value |
| --- | --- |
| Main buyer | WATER SERVICES REGULATION AUTHORITY |
| Locality | BIRMINGHAM |
| Post town | Birmingham |
| Postcode | B5 4UA |
| Country | England |
| ITL 1 | TLG West Midlands (England) |
| ITL 2 | TLG3 West Midlands |
| ITL 3 | TLG31 Birmingham |
| Local authority | Birmingham |
| Electoral ward | Ladywood |
| Westminster constituency | Birmingham Ladywood |
| Delivery location | TLG West Midlands (England), TLI London |

## Supplier

| Field | Value |
| --- | --- |
| Number of suppliers | 1 |
| Supplier names | KPMG |

## CPV Codes

### Divisions

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

### Codes

- 79400000 - Business and management consultancy and related services

## Release History

- 17 May 2018 at 13:56 - AwardUpdate - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/657e168c-c3ca-4706-8796-a59964eb8d6e
- 18 Apr 2018 at 14:38 - Award - Award Notice - https://www.contractsfinder.service.gov.uk/Notice/657e168c-c3ca-4706-8796-a59964eb8d6e

## Documents

- https://www.contractsfinder.service.gov.uk/Notice/657e168c-c3ca-4706-8796-a59964eb8d6e
  17th May 2018 - Awarded contract notice on Contracts Finder
- https://www.contractsfinder.service.gov.uk/Notice/Attachment/12af8cbb-16bb-4144-b45e-2be402486c0a
  Contract

## Provenance

This Markdown file is an alternate public rendering of the D3 Tenders contract record. The canonical page is https://d3tenders.com/contract/?ocid=ocds-b5fd17-ab07c548-33ac-44a3-9f2a-52e21ec3a816. The underlying structured data is available as OCDS JSON at https://d3tenders.com/contract/ocds-b5fd17-ab07c548-33ac-44a3-9f2a-52e21ec3a816.json.