MOSL asks for 7.5% budget increase
MOSL has asked wholesalers and retailers to approve a 7.5% budget increase in its 2020-21 business plan, published for consultation last week.
The plan, shared with MOSL members on 22 November, set a budget of £11.5m, a 7.5% uplift on its forecast outturn 2019-20 costs. In her introduction, chief executive Sarah McMath said: “To put this in context, our budget represents an average cost of 17.7p per month per wholesaler and retailer for each of their SPIDs (compared to 16.5p in 2019/20).” She said this would fund “a more sustainable market operator that will deliver on the commitments and key themes of this plan” – and that the primary objective for the plan was “to make the market an easier place to do business in” by reducing indirect cost and frictions.
McMath pointed out too that the plan included team costs for the bilaterals project MOSL is working on. She shared that the indicative cost range for the technical bilaterals solution would be an additional £1-2m.
The plan is built on five key themes
“We will place a relentless focus on providing transparent, measurable and value for money core and additional services, supported by improvements in how we engage and interact with trading parties.”
“We will use a range of tools to measure, understand and provide evidence based assurance of the performance of the market, including MOSL’s own performance, taking action where necessary to address both individual trading party and overall market issues and risks.”
“We will work proactively with trading parties, governance groups, Ofwat and other stakeholders to identify solutions and make improvements that contribute towards a simpler, better functioning market that works in the interests of participants and customers.”
“We will provide support and, where appropriate, evidence-based input and challenge to the market governance groups to facilitate and promote an effective and value for money model of governance for the market.”
“We will continue to build MOSL’s people, data insight and technology capabilities, seeking to foster a culture of learning, collaboration and innovation across the market to help to move the dial in all areas of market operation and improvement.”
The consultation runs until 20 December, after which MOSL will reflect on feedback from the Panel and its members before publishing a final plan on 17 January 2020 for members to vote on 31 January 2020.