MOSL issues a Call for Inputs on business retail Market Performance Framework

MOSL has issued a Call for Inputs (CFI) on the future of the Market Performance Framework (MPF).

The current framework was constructed before the non household retail water market opened in April 2017. MOSL said this focuses on process rather than outcomes and: “After four years of operation, there is evidence that the current MPF does not drive improved outcomes for customers or the market.”

The MPF review work is being led by the MPF Review Working Group, which comprises a subset of trading parties, MOSL, Ofwat and CCW. As part of the CFI, the working group has identified “some early candidate considerations” in relation to a new potential framework. These include: a smaller number of more focused performance standards; quality-based standards (both relative and absolute); use of the full range of incentive types; uncapped underperformance payments; alternative uses for underperformance charges; improved performance rectification arrangements; and careful consideration of audit provisions.

MOSL said: “This CFI is an opportunity for us, as a market, to consider what a future framework may look like and the outcomes it should drive. Feedback from this CFI will directly inform the design of the framework as part of MOSL’s review in 2022.” In particular, the paper noted: "A recurring theme in this CFI is the need to identify and drive positive customer outcomes.”

Trading and other interested parties are invited to respond by 30 November.