Market Performance Framework (MPF) Reform

The Market Performance Framework (MPF) helps us understand and influence how the non-household water market is performing.

It includes components that help us:

  • Focus on the key activities that deliver the best outcomes for customers
  • Agree minimum performance targets for those activities - and how we measure them
  • Assess how trading parties are performing those activities, and against their peers
  • Take steps to intervene where necessary, which may be in the form of additional audits or charges (financial penalties)

The current MPF has been in place since the market opened in 2017, so we now have a much better understanding of its strengths and weaknesses.

Following stakeholder feedback, the Strategic Panel asked MOSL to work with trading parties and other stakeholders on a 'root and branch' reform of the MPF. It's one of five key market improvements in our 2023-26 Business Plan.

The aim is to create a simpler, more effective, more flexible MPF; one with fewer, more effective measures; that's simple to understand but powerful in application, and which provides confidence in the market at a reasonable cost.

The animation below explains more about the MPF Reform programme.

Consultations

We are working closely with subject matter experts on the Performance Advisory Group (PAG) to help develop, shape and challenge proposals. The PAG includes representatives from retailers and wholesalers, Ofwat and CCW.

Following an initial call for information in November 2021, we are seeking input from all stakeholders via a series of consultations:

  • Consultation 1 (October 2022) considered all possible risks, issues and activities of a future MPF
  • Consultation 2 (March 2023) produced a 'longlist' of around 40 potential activities and considered more than 100 potential metrics
  • Consultation 3 (October 2023) proposed a shortlist of 9 activities, 21 KPIs, 8 intervention tools and 4 levels of governance
  • Consultation 4 (Feb/March 2024) will consider the scale of incentives and penalties, possibly via a series of mini-consultations with stakeholders.
Please note, a descriptive transcript has not been provided as the visuals do not provide additional information.
 

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