Basic form to be used by all applicants to initiate the MEA process.
Trading Application
26 February 2016
Trading Application
1. Trading Application
1.1
About this document
This document provides the form and guidance on how to complete a Trading Application; a form used
to initiate the Market Entry Assurance (MEA) process. The form applies to MEA prior to Go-Live and will
be replaced by a similar version for business-as-usual MEA during the live market, which will fully reflect
CSD0001.
This is the first stage of the Market Entry Assurance process, which is outlined in the accompanying MEA
Process slides diagram (a diagram of the process is included below).
Trading
Application
This document is based on CSD0001: Market Entry Assurance and Re-Assurance. Where some
differences exist, this is largely in recognition of the fact that in the newly opening market Wholesalers
and Associate Retailers will also have to undergo Market Entry Assurance and Re-Assurance, which is
not accounted for in the CSD. A list of differences is included in Annex 1.
Confidentiality
Any information provided through this Trading Application will be held securely and will only be used for
the purposes defined in this request. MOSL will fully respect any level of confidentiality marking
attached to your information and in so doing will comply fully with the provisions of the Data Protection
Act 1998.
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Trading Application
1.2
Trading Application overview
A Trading Application should be completed by all market participants who are seeking to undergo
Market Entry Assurance (MEA) in order to enter the market; wholesalers, associate retailers and new
entrants.
Prior to submitting this Trading Application, the applicant must have applied to Ofwat for a Water and
Sewage Supply Licence (WSSL) or already hold an Instrument of Appointment.
Market participants should complete this application for each of the businesses through which they seek
to attain a licence and / or compete in the live market, rather than for each legal entity, i.e. incumbents
will need to apply for wholesale and retail certification separately.
The questions in this form aim to determine, at the highest level, the nature of an incoming MEA
application, the nature of the applicant business, and to confirm the applicant is seeking to fulfil the
trading conditions required for entry into the competitive retail market.
The trading conditions are that a wholesaler or retailer, as appropriate:

Has applied to be admitted to trading by completing and delivering an accurate trading
application to the market operator,

Holds an appointment or a Water Supply Licence and/or a Sewerage Licence (WSSL),

Has completed the Market Entry Assurance Process,

In the case of a retailer only, has entered into a wholesale contract(s) in relation to the area(s) in
which it intends to trade,

Has become a member of MOSL, and

Has entered into an Accession Agreement to be admitted as a party to the Market
Arrangements Code.
This form therefore fulfils the first trading condition and initiates the third.
1.3
The process
Trading Applications can be submitted from 1 April 2016. The cut-off date for companies seeking to
obtain Market Entry Assurance Certification (MEAC) in time for entry into the Shadow Market and retail
exit is 30 June 2016. This period is set to coincide with the window for WSSL licencing applications and
to enable all required testing to be carried out.
Whilst applicants can submit until this date, MOSL would expect most participants to have submitted
their Trading Application in April 2016 and only in exceptional circumstances would MOSL expect to see
applications in June. MOSL would strongly advise participants to undertake the MEA process as soon as
is realistically possible, to:
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Trading Application

Increase the time available for each phase

Increase the time available for closing down any identified risks

Increase the likelihood of achieving MEAC and entering the shadow market.
Within two business days of receipt of a valid Trading Application, MOSL will review the form and
confirm receipt and completeness to the applicant.
MOSL will also give notice of the Trading Application submission to Ofwat, and where applicable ask for
confirmation as to whether Ofwat intends on granting a licence. So that the MEA process is not delayed,
MOSL will not await a response from Ofwat before progressing an application and allowing the applicant
to submit their Applicant Information Return.
Once this confirmation has been received from MOSL, applicants are able to submit their Applicant
Information Return. Please see the accompanying MEA Process diagram for an overview of the MEA
process.
If the Trading Application has not been properly completed, or MOSL requires any additional
information or documentation to validate the Trading Application, then MOSL will respond to the
applicant setting out the reasons why the Trading Application is incomplete. The applicant will then be
invited to submit any missing or additional information or documentation.
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Trading Application
2. Completing the Trading Application
Company contact
Applicants should provide the named individual who MOSL should contact in connection with the
Market Entry Assurance process. This will be taken by MOSL as the applicant’s proposed Contract
Manager.
The Contract Manger is defined in the Wholesale-Retail Code Part 1: Objectives, Principles and
Definitions, and is viewed as the individual authorised to speak with MOSL on behalf of the applicant.
Certification type
Applicants should state whether they are seeking to attain a wholesale certification or a retail
certification.
Assurance type
Applicants should indicate in this box the type of Market Entry Assurance they are currently applying for;
Assurance or Re-assurance.
The first time applicants fill out this form represents assurance. Re-assurance applies if an applicant has
already completed this form once for assurance, and requires re-assurance due to changes in their
business.
Applicants will be asked to consider whether they may need re-assurance during their Applicant
Information Return, in which more detail about this is provided. For a more complete description of reassurance, please see CSD0001.
Licence type
Applicants should state the type of licence they hold or are applying for, for instance an Instrument of
Appointment (IoA) or WSSL.
Where an applicant already holds an appropriate licence, please enter ‘N/A’ in the application date box.
Where an application is underway, please include the date that the application was submitted to Ofwat.
Market and interface training
Due to request by market participants, the Market and Interface (M&I) Training dates will be allocated
by MOSL. This will be done following receipt of the Trading Application.
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Trading Application
The Trading Application is needed to allow MOSL to understand the requirement in terms of number of
applicants, number of participants per applicant, and whether applicants are expecting to need training
on the low or high volume interface.
To this end, applicants should tick the relevant box to indicate how many people they plan on sending to
the market and interface training (maximum two per company).
Trading area [Retail only]
As stated within CSD0001, retail applicants are required to indicate the areas in which they expect to
trade, upon satisfaction of the Trading Conditions. This is to give MOSL an idea of the scale of operations
and assist with resource planning, and doesn’t affect the type of certification received.
For Associate Retailers this could be incumbent area only, or in and out of area.
For New Entrants this should indicate whether they expect to trade in one, or more than one, Trading
Area.
Area is defined in the Wholesale-Retail Code Part 1: Objectives, Principles and Definitions, as “any area
for which an appointment is held”. In the context of this question we are asking about the existing
wholesale areas.
Wholesale contracts [Retail only]
Retailers should indicate their target date for concluding Wholesale Contract(s) or equivalent, for the
area(s) in which they expect to trade as per their programme plan.
Signing this form
In signing this form, applicants are confirming that they intend to satisfy all elements of the trading
conditions as listed under the Trading Application Overview.
It is up to companies to decide who the appropriate person to sign this form is, but it should be
someone with the authority to act on behalf of the company.
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Trading Application
Annex 1
Differences from CSD0001
This Trading Application is based on CSD0001: Market Entry Assurance and Re-Assurance. Notable
changes to the CSD are outlined below:
Change
Reference to ‘Relevant Authority’ has been replaced by ‘Ofwat’.
The CSD assumes MOSL will have a proposed Contract Manager; as this isn’t the case the form instead
asks for it.
Rather than ‘Market Operator’, this form uses the term MOSL in respect of the status MOSL has in
implementing the MEA process.
Adaptation of some aspects in recognition of the fact that in the opening market Wholesalers and
Associate Retailers will also have to undergo Market Entry Assurance and Re-Assurance, which is not
accounted for in the CSD. For instance, having general and retail-only sections and the form being
specific to Market Entry Assurance (MEA) prior to Go-Live.
Addition

Certification type; to understand the type of certification applicants are applying for

Assurance type; so this form can be used for both market entry assurance and re-assurance

Licence Type, Application Date and Service Type; to give detail of the requested Licence
application confirmation

Low / High Volume Interface: to understand the likely route of the market entry assurance
process

Market & Interface Training attendees: so MOSL can allocate training dates upon receipt of the
Trading Application.
Removal

Within two business days, MOSL will send out an Applicant Information Pack; applicants will
have this from the end of January 2017, to help with their preparations

Licence confirmation from the Authority; due to the tight timescales of the MEA process, MOSL
will allow applicants to continue with the process by submitting their Applicant Information
Return without receiving confirmation from Ofwat that it is minded to grant a licence.
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3. Trading Application Form
Please complete this application and e-mail it to: [email protected]. MOSL will aim to respond within
two business days.
Company
Name:
Registered
Address:
Registered
No:
Company
Contact:
Email:
Title:
Tel:
Date:
Certification
Assurance
Type:
Type:
I confirm [market participant] possesses / has applied for (please delete as applicable) a relevant
Licence to allow us to provide the below service type:
Licence
Type:
Please indicate your service type(s) by ticking
the boxes below:
Application
Date:
Water Supply
Sewerage Supply
Please indicate your planned MOSL transaction method(s) by ticking the boxes below:
Low Volume Interface
High Volume Interface
Please tick to indicate your planned number of attendees for the Market & Interface Training (maximum
2):
1
2
Retail only
Please indicate your planned trading area and planned timescale for concluding Wholesale Contracts:
Trading
Area:
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Wholesale
Contract:
MOSL
Ref:
Trading Application Form
In signing and submitting this form, I confirm [market participant]:


Has completed this Trading Application accurately and completely, providing any supporting
documentation as MOSL may reasonably require in order to validate such information;
Holds an appointment or has applied for a Water Supply Licence and/or a Sewerage Licence;


Agrees to enter into and complete the Market Entry Assurance process;
In the case of a Retailer only, will enter into a Wholesale Contract(s) in relation to the Area(s) in
which it intends to trade;

Is already/is applying to become a member of MOSL, and;

Will apply to become a party to, and therefore accede to, the Market Arrangements Code.
Name: ……………………………….
Signed: ……………………………………..
Position: …………………………….
Date: ………………..
4. MOSL Use Only
Date TA
Received:
If yes, date of confirmation to applicant:
Complete
(Y/N)?
If no, reasons / additional docs required:
If the original Trading Application was not complete:
Date
Received:
If yes, date of confirmation to applicant:
TA
Complete?
If no, reasons / additional docs required:
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MOSL
Ref: