MOSL to report on how trading parties are coping with the pandemic

MOSL and the Market Performance Committee (MPC) have set out how they plan to monitor wholesaler and retailer performance during the Covid 19 pandemic.

In a joint letter to trading parties, they said they would take a "light touch" approach and ease off on business as usual expectations. On top of the usual market and operational performance charges being suspended, performance monitoring would be “to inform the timing of, and approach to, "restarting’ normal market activities rather than for the purposes of peer performance publications”.

To that end, MOSL and the MPC will use new and existing reporting tools to “provide clear and regular Covid-19 performance updates to Ofwat, Panel, MPC and the wider market”. MOSL will also seek updates on any material changes to trading parties’ operational capabilities.

To help trading parties in this difficult time, no new Initial Performance Rectification Plans (IPRPs) will be triggered or existing IPRPs/Performance Rectification Plans (PRPs) escalated where actions are legitimately inhibited by Covid-19. Where parties are currently subject to IPRPs, PRPs and Performance Improvement Plans, reporting requirements impacted by Copvid-19 will be re-scoped.

However, the implication was action would be taken if trading parties were found to be behaving inappropriately in the new circumstances. The letter said: “Where areas of concern are flagged regarding issues such as erroneous changes to key market data which require further engagement, MOSL will use the appropriate channels including portfolio managers and our market performance team, with a view to escalating concerns to the MPC or Ofwat as necessary.

“Any intervention deemed appropriate would need to carefully consider the impact on essential operational services delivered by parties.”