Ofwat nudges wholesalers and retailers to support MOSL’s plan for 2020-21

Ofwat has confirmed its support of MOSL’s business plan for 2020-21.

The move – what seems like a clear signal to wholesalers and retailers to get on board with MOSL’s agenda rather than try to frustrate it – came in a public letter from Ofwat chief executive Rachel Fletcher to MOSL chief executive Sarah McMath, published on Thursday.

Fletcher (pictured) wrote: “I wholeheartedly support your vision of making the business retail market an easier place to do business in. I believe the market needs a market operator that can work collaboratively and decisively with industry to resolve market frictions and help to create an environment that facilitates rather than frustrates innovation.

This is in addition to overseeing the effective day-to-day running of the market processes and holding trading parties to account for their performance.” She cited specifically support for MOSL’s review of the Market Performance Framework and its work on a central bilaterals solution as illustrations.

Fletcher referenced the budget increase MOSL has proposed (7.5%), but pointed out this “needs to be set against an ambitious plan of reducing time, effort and overall cost of operating in the market”. She noted that on top of frustrating trading parties, the current high indirect cost of doing business in today’s market “also undermines the customer experience – for example where bills are inaccurate and the subject of dispute by the customer”.

She wrapped up by hoping trading parties vote in support of the business plan in January and by calling it “an effective and proportionate approach”.