Code committee consults on how to change the way market codes are changed

The Code Change Committee (CCC) is consulting until 30 January on making improvements to how the non-household retail market codes are changed. This follows a mandate from the Strategic Panel.

In the consultation document, the Committee observed that market participants, MOSL, Ofwat, and Strategic Panel and Code Change Committee members can propose amendments to the Market Arrangements Code (MAC) and Wholesale Retail Code (WRC). But that since 2017, the change process has been “under-utilised". It said: “Changes to the codes have by and large been of small scale, operational and piecemeal in nature. The code change process needs to facilitate effective, targeted change and prioritise the use of industry resources in the change process.”

The key proposals are:

• expanding the range of eligible code change proposers to include all Strategic Panel committees and the Consumer Council for Water;

• focusing changes initially on a problem statement, which must be clearly defined and evidenced before solutions are developed and assessed – change proposers may present a solution to a problem statement but will not be obliged to do so. The market operator may propose solutions instead of or as well as proposers;

• the CCC will set clear criteria for assessing if problem statements are ready for acceptance into the change mechanism, based on Strategic Panel priority market outcomes and code principles – only changes that meet these criteria will be progressed and others rejected and the criteria will also be used to prioritise code changes and re-prioritise as new information becomes available; • Ofwat will only be asked to approve code changes the CCC recommends for implementation;

• proposers may re-submit rejected change proposals, but these should be supported by additional information not previously available; • stakeholder engagement will be proportionate to the complexity and impact of change proposals; and

• provision will be made for early engagement and discussion on potential problems. Committees and sub-groups may be engaged as advisors to the proposer and the market operator. CCW will continue to be consulted on change proposals but will not be required to respond in every case.

The CCC is hosting a webinar to discuss with stakeholders on 20 January - see