Today we have published our draft 2022-25 Business Plan for consultation. The rolling three-year plan builds on the momentum of our 2021-24 plan and sets out the improvement programmes for the next three years.
Through our business planning process and early engagement with the Panel and MOSL Board, we have rationalised our previous nine improvement programmes down to five. The five improvement programmes are:
- Bilateral Transactions Programme
- Strategic Metering Review
- Data Insight
- Modernisation of Market Facing Systems
- Market Performance Framework (MPF) Reform
As well as tackling the frictions identified by Ofwat, these improvement programmes will drive wider improvements to the non-household market with a continued focus on making it ‘easier to do business' and enabling timely, accurate meter reads –both of which arefundamental to effective market operations.
Our 2022-25 plan continues to be presented in two parts – core service delivery and our improvement programmes. Our proposed Market Operator (MO) charges are £11,400k, an increase of 2.9% (versus 2021/22 budgeted charges), which is below forecast levels of inflation.
We recognise that the financial environment remains extremely challenging for our members. Our plan keeps costs as low as possible, whilst ensuring we remain able to deliver the key programmes of work which will drive significant improvement in the water retail market both for members and for customers.
In publishing our draft plan for consultation, we are seeking feedback from trading parties and wider market participants on the level of MO charges for 2022/23 and the prioritisation of our improvement programmes. These questions remain consistent with the previous year.
Considering its criticality ofincentivising market performance and delivering improved customer outcomes we are also asking a specific question on the funding provision for the MPF Reform, which currently has a proposed budget of £100k.
Theconsultation will run from 11 January to 25 January, after which we will review and collate feedback and make changes, where required, before publishing the final plan for member voting on 8 February.
We would like to thank you in advance for responding to our consultation. Your feedback will ensure our plan is reflective of market priorities and the outcomes you want to see. To make it easier for trading parties to collate a response, we have provided an offline copy of the consultation questions for circulating within your organisation. These are available on page 36 of the business plan document. However, we ask that you please submit one collective response on behalf of your organisation through the online form.