The Utilities Compliance Assurance Body will be established on 17 March by Liberal Democrat peer and chief executive of the Energy Managers Association Lord Redesdale, in order to maintain confidence in the deregulated water sector.
Speaking exclusively to Utility Week, he said the not-for-profit body will use “regulation by a code of conduct” across the sector and that it will introduce a set of standard protocols for water retailers to follow once the sector opens up to non-domestic retail competition from April 2017.
He added that the organisation will help prevent misselling in the sector, particularly with water performance contracts, and also help retailers and financial managers deal with data protection issues.
Lord Redesdale said that the key benefit of the scheme is that it will allow the water performance contracts to become “secure financial assets” which will be attractive acquisitions for investors.
The code of conduct established as part of the Utilities Compliance Assurance Body will ensure it is clear in the contract how the financial benefits of a reduction in water consumption will then be divided between the retailer and the consumer in a water performance agreement.
He added: “We want to create a market place where the customer can trust it and for it to become one of those markets that becomes financeable.”
Lord Redesdale said he expects the body and code of conduct to be fully functional by July this year.
“It gives the water companies a chance to get to their own customer base, as the contracts will take months to get them signed, before the rest of the world joins in,” he said.