MOSL to administer Ofwat’s innovation competition funding

MOSL is to manage and administer funding for Ofwat’s Innovation Fund.

The regulator has approved code change CPM044 to enable the market operator to look after the transfer of money from wholesalers to the project leaders of winning bids in the Water Breakthrough Challenge.

Ofwat explained that under current arrangements, each contributing wholesaler has to set up and make payments to multiple payees each time a challenge is run, and each winning project lead has to collect its funding from the 17 contributing wholesalers. “This is inefficient and time-consuming and provides scope for miscommunication due to the number of parties involved. As a result, the payment of monies to the winner(s) of the relevant challenge are at risk of delay meaning that the subsequent realisation of any benefits by customers, society or the environment may also be delayed.”

Ofwat added that the extension of MOSL’s role will be funded through Innovation Fund allowances and would not result in increased market operator charges.