Market Performance Review
Samantha Webb
MOSL Performance and Operations Manager
Samantha Webb
MOSL Performance and Operations Manager
In March 2020, MOSL and Ofwat announced that all market performance charges and Initial Performance Rectification Plans (IPRPs) were being suspended for at least three months to relieve pressure on trading parties. This was implemented through change proposal CPM023/CPW090: Suspension of Performance Standard Charges.
Although charges were suspended, MOSL has continued to track performance and publish peer comparison league tables. The performance timeline below shows the key events which had a direct bearing on wholesalers' and retailers' performance in relation to Market Performance Standards (MPS) and Operational Performance Standards (OPS).
2020/21 Performance Timeline
Ofwat and MOSL announce urgent actions to support market participants and their customers in response to the pandemic.
CPW091 enables retailers to apply a temporary CMOS vacancy flag where a premises is completely closed or activities at the premises are reduced by at least 95 per cent.
The immediate impact of the changes is on Market Performance Standard 18 (MPS 18) (the taking of a bi-annual cyclic read). The time period for taking this read is extended by three months. For these three months (April, May and June 2020) no tasks fail this standard and therefore, performance is recorded as 100 per cent. (More information on the Priority Changes (CPW078/CPM020) is provided later in this report.)
Financial incentives for MPS and OPS tasks are suspended under change proposals CPM023/CPW090. MOSL continues to track and calculate the impact of trading parties failing the standards but no invoices for these failures are raised. Charging resumes in February 2021 (for OPS) and May 2021 (for MPS).
The permitted use of the temporary flag under the provisions of CPW091 ceases on 31 July 2020. Retailers are required to only use the occupancy status of “vacant” if premises are vacant according to Code Subsidiary Document No. 0104 (CSD0104): Maintain SPID Data
The COVID Transition Review Group (CTRG) is established. Under the provisions of CPW091, retailers begin to return all sites with a temporary vacancy flag to a status of “occupied” or “assured vacant”. This allows the occupancy status of “vacant” to be used for its defined purpose. The CTRG, established by Ofwat, MOSL and CCW, monitors the progress of retailers ‘unwinding’ these sites, ensuring all sites are reviewed and the occupancy statuses are set correctly before the end of September 2020.
Some retailers adjust YVEs for non-essential businesses to mitigate the effects of reduced consumption on settlement. The impact varies by region and local approach.
All retailers are affected. OPS Charges resume from 1 January. Further changes to YVEs are made across the customer base.
From 1 January 2021 OPS charges resume; invoices to wholesalers resume in February.
As restrictions are lifted, businesses reopen in phases. Retailers start to make changes to YVEs to reflect this.
From 1 April 2021 MPS charges resume.