Bilaterals benefits exceed expectations, according to MOSL’s early analysis

Annual benefits are 100% higher than was estimated in the business case for the Bilaterals Transaction Programme for six of the 15 financial benefits identified, according to initial analysis from MOSL.

In its April Market Focus newsletter, the market operator said efficiencies from these six processes were worth £937,000 a year, compared to the £468k estimated in the business case. It extrapolated that total annual savings for all bilateral processes could exceed the "high case" of £1.7m (compared to a conservative "mid- case’"of £1.2m).

Highlights from the analysis included:

• 46% reduction in the time taken for retailers to initiate transactions for the first process launched in the hub (C1).

• 127% reduction in effort from fewer rejections.

• 167% reduction in wholesaler effort to produce Operational Performance Standards (OPS) reports.

• 242% reduction in time taken for wholesalers to initiate C1 transactions.