CGI has been selected by Market Operator Services Ltd (MOSL) to design, build and operate a central market system to support the operation of the English water market when competition is introduced to non-household customers in April 2017. The five-year contract is valued at approximately £15 million.
As part of the contract, CGI has partnered with Bridgeall. CGI and Bridgeall have direct experience of developing and operating the central market system for the creation of the competitive water market that opened in Scotland in 2008. Bridgeall will use its water market expertise to deliver a sub-system that will calculate the primary charges for water and waste water services and allocate those charges to the relevant wholesalers and retailers.
CGI’s central market system will be adopted by MOSL as the underpinning solution for its central market operating system (CMOS). The CMOS will facilitate interaction among all participants (retailers and wholesalers) in the competitive non-household water market. CGI will also host and operate the CMOS system on its secure commercial cloud.
MOSL is working with the UK Government’s Department for the Environment, Food and Rural Affairs (Defra) and regulator Ofwat as part of the ‘Open Water’ programme to introduce competition in the non-household market in England. MOSL has been created to deliver the operational capabilities to support the programme. CGI will contribute its knowledge and experience in designing, building and operating central market systems for utility markets across the globe, including the world’s first competitive water market in Scotland.
CGI’s central market system is a proven solution that has been implemented for the Danish and Dutch central energy markets. For the English water market, it will be configured to meet specific processes defined by the requirements set out in the Market Architecture Plan (MAP). When the CMOS system is implemented, it will be supported by CGI’s SDI five star certified service desk, which will provide 24×7 assistance to all market participants.
“The introduction of competition for non-household customers in England by April 2017 is a major challenge, both in terms of timescales and complexity. The CMOS will be at the heart of the new market, so we are delighted to appoint the CGI team to work alongside us in this critical role. The team’s combined experience in the Scottish market and the wider energy industry will be invaluable in ensuring success in the English market,” said Ben Jeffs, Chief Executive of MOSL.
“This is a very exciting time for the water industry,” said Tara McGeehan, Vice-President, Energy & Utilities for CGI in the UK. “Competition for non-household customers will create new business opportunities for many operators. At the same time, water market competition will help to drive innovation, as well as offer customers improved service at lower cost. We are delighted to be working with MOSL to deliver its new central market operating system. We have a very tight timescale to design, build and implement the system, but by working in partnership with all the key stakeholders and leveraging our central market systems experience, we will develop a system that will make competition work for the water industry.”
Stephen Beer, Managing Director of Bridgeall, commented: “Bridgeall’s experience in the design, development and operation of central systems in the Scottish water market will be valuable in addressing the challenges faced by MOSL in the UK. We are uniquely positioned to make a very significant contribution to the success of the Core Market Operator System for the English market.”
More on the new water market opening in England
Water and sewerage services in England will be opened up to competition for non-household customers beginning in April 2017. The new water market will offer choices to customers in the retail market by allowing all business, charity and public sector customers in England to switch their water and sewerage supplier. The competitive water market aims to encourage innovation, efficiency, resilience and sustainability that will benefit both water operators and customers.