1. Retail Working Group
26 January 2017

2. Agenda Item. Description Time Who 1. Introduction and Welcome
10: :15
Tom Notman 2.
Introduction to MOSL
Build and Design
What is the future role of MOSL?
Who are the Portfolio Managers
The role of the Portfolio Manager
Where can I find more info
10: :45
Liz D’Arcy 3.
Market Design
What governs the market?
Market Arrangements Codes
How do we shape the market?
Good governance
10: :30
Adam Richardson 4.
Break
11:30 – 11:45 5.
Overview of the Market System
What is CMOS?
What does CMOS look like?
How does it function?
11: :15
Natasha Sinnett 6.
Customer Journey
The regulators perspective
Q&A
12:15 – 13:00
Graham Pontin
Ofwat 7.
Lunch
13: :45 8.
As of today
How do we move it forward?
13: :30
Ben Jeffs 9.
Discussion session
Plenary Session
Questions and Answers
14:30 – 15:15
10.
Open Market Mixer
Key learnings
What do we want for the next Open Market Mixer?
15:15 – 15:30
Julie Carly
11.
Next Steps
Do we want additional retail forums?
What do we want to see on the Agendas?
15:30 – 15:55
12.
Close
15:55 – 16:00

3. Introduction and Welcome
Tom Notman
MOSL

4. Introduction to MOSL
Formed in February 2015 to assist in the development of the competitive water market, MOSL stands for Market Operator Services Limited
MOSL was originally founded by United Utilities, Anglian Water and Northumbrian Water and now has 31 member organisations.
Owned and funded by its members, all of which are water companies, its primary role is to procure, build and test the core systems – the ‘central management operating system’ (CMOS)
MOSL is also responsible for designing the market operator and supporting a range of business readiness activities in the run up to the new open water market.

5. Design and build overview
2015
2016
2017
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Transition from OWML
Market & company readiness plan
Letter of Assurance to Defra
Letter of Assurance to Defra
Letter of Assurance to Defra
Mobilisation
Design
Build
User Acceptance Testing
‘Shadow Market’
Open
CGI appointed to build CMOS
Test & Data strategy
Maintain data via market processes
4-5 company trial sector test
Industry panels
Initial data load

6. The open water market in numbers
Open Water Partners creating an overall benefit of 3
£200m
to the economy. The UK open water market will be
The largest
competitive water market in the world.
2.64m
C1.2m
2.4bn
SPIDs
(Supply Point IDs)
Non-household customers
Financial settlements
annually
10.2m
Year one base budget
Allows incumbent wholesalers and retailers to test interoperability  AND companies using 5ML+
Allows orgs to practice the life cycle of the site
Will surface the worst aspects of commissioning to learn lessons to make MO more predictable – and improve quality for all customers
DRAFT

7. What is the future role of MOSL?
MOSL is a membership based company controlled through a Board of Directors appointed by its members
The board meets on a monthly basis to provide guidance, oversight and challenge to the executive team, including scrutinising the 2017/18 business plan and budget
Original responsibilities, as set out in the 2015/2016 business plan include:
Finalising the market documents that will be set out in the Market Architecture Plan (MAP)
MOSL governance and establishment of the market operator
Engaging water companies to deliver against its responsibilities
Providing assurance to Defra over the effective and efficient operation of the market
Managing risks to overall market opening from the planning, delivery and readiness activities of participants

8. MOSL as the Market Operator
Central system
Digital
Performance
monitoring
Data custodian
Self
regulator

9. What is the role of MOSL going forward?
MOSL has now officially been appointed the enduring Market Operator post market opening 1 April, 2017
As such, MOSL will provide the following services to its members, including both incumbent water companies and potential new entrants:
Registration and switching services which allow customers to change water retailers, either existing or new entrant
Provide financial settlement services bilaterally between market participants
Offer market governance services when required, including the management and modification of market codes
Provide industry data exchange services between market participants
Connect
Register
Read Meter
Change Tenancy
Change Tariff
Change Services
Change Meter
Disconnect
Deregister

10. Portfolio Managers
Liz D’Arcy

11. Who are the Portfolio Managers?
Portfolio Managers are the primary point of contact for each participant and represent a two-way communication channel to the Open Water programme
Each Portfolio Manager represents a region of the UK
North: Liz D’Arcy East Midlands: Pam Nash Wales & West Midlands: Chantal Burgess South West: Julie Carly South East: Natasha Sinnett LD JC PN NS CB

12. Who is my Portfolio Manager?
Julie Carly
South West
Bristol Water           
Portsmouth Water
South West Water
Veolia Water Projects Water2Business
Wessex Water
Waterscan
Pennon Water Services
Veolia Retail
Tor Water
Who is my Portfolio Manager?
Red - Wholesaler
Blue - Retailer
Green – New entrant
Correct as of January 2017
Chantal Burgess
Wales & West Midlands
Dee Valley
Independent Water Networks
Severn Trent Connect
Severn Trent Water
South Staffordshire
Welsh Water
Water Plus
Icosa
Natasha Sinnett
South East
Castle Water
Cholderton & District Water
Cobalt Water
South East Water Choices
South East Water
Southern Water
SSE Water
SES Business Water
Sutton & East Surrey Water
Thames Water Commercial Services
Thames Water
Pam Nash
East Midlands
Affinity Water
Aimera Limited
Albion Water
Anglian Water
Blue Business Water
Clear Business Water
Ondeo
Regent Water
The Water Retail Company
YU Energy
Liz D’Arcy
North
Business Stream1*
Northumbrian Water
Peel Water
United Utilities
Yorkshire Water

13. The Role of the PFM
Your critical friend, your social worker, your citizens’ advice, we’re Siri for the Market!
Flexible first point of call into MOSL
Market Performance Reporting
Information advice and support for New Entrants entering the Market
Introductions for collaboration with other MPs
Data Visualisation and areas for improvement
Industry Themes
Direct you to other MOSL info – self service portal

14. Where can I find more information?
Remember to register for access to members area
Sign up for MOSL s and texts
Follow MOSL on Twitter and Linkedin

15. MOSL Website – Members’ Area

16. Example Sub-Sections
Forms and Processes
Knowledge Base

17. Market Design
Adam Richardson
Market Design Director, MOSL

18. What governs the market?
The Water Industry Act 1991
(modified by the Water Act 2014)
Legislation
Statutory Licenses and Codes
Other Industry Codes
Contracts
Wholesale Retail Code
Licensing Regime
Market Arrangements Code
Wholesale Contracts

19. What governs the market?
The Water Industry Act 1991
(modified by the Water Act 2014)
Retailers and Wholesalers sign up to these multilateral agreements
Wholesale Retail Code
Licensing Regime
Market Arrangements Code
The Panel
Retailers sign standardised contracts with each wholesaler
Wholesale Contracts

20. The Wholesale Retail Code
PART 1: Objectives, Principles and Definitions
PART 2: Business Terms (rights/obligations of parties to Wholesale Contracts)
PART 3: Operational Terms (wholesale-retail processes)
PART 4: Market Terms (MO involved, e.g. registration, settlement calculations)
PART 5: Code Subsidiary Documents (29 process documents including the data catalogue)
PART 6: Forms and Notices (to support Operational Terms)

21. The Market Arrangements Code
Market governance
Entering the market
Role of the Market Operator
The working of the Panel (and its committees)
How to change the MAC and the WRC
Monitoring performance and addressing issues
Various legal elements (including confidentiality, IP and disputes)

22. The Panel Panel Chairman (MO) Panel Secretary (MO, non-voting)
3 Associated Retailer Members
3 Wholesaler Members
The Panel
3 Unassociated Retailer Members
3 Independent Members
3 Associated Members (non-voting)
Anyone can attend a Panel meeting as an observer with prior consent of the Panel Chairman.
The Regulator
Representative of the Commission and the Customer
CEO of MO

23. Interim Code Panel to enduring Panel - transition
Now
Market Design:
Recommend changes to the Authority
Market Performance:
Consider and advise on Market Audit Reports, Market Performance, Market Entry Assurance and Reassurance and Trading Disputes
MO Charges:
Consider and comment on the draft Market Operator Budget and Market Operator Charges
New
New

24. Deliver Monitor Design How do we shape the market?
Code Changes to improve efficiency in Systems and Processes through the Panel and User Forums
Operate Market processes including:
Registration and associated processes (e.g. gap site allocation)
Guidance & FAQs
Settlement
Queries
Disputes
Intel from Market Audits and Performance reports

25. Simplify Customers De-risk Deliver Monitor Design
How do we shape the market?
Simplify
Deliver
Monitor
Design
Customers
De-risk

26. Making a change Authority Approve / Reject Any Party
Raise a Change to the WRC / MAC
Implement
All Parties
Develop / Assess Solution
Consult on Proposed Solution
Recommend Approval / Rejection
The Panel
Panel / Panel Workgroup
Panel Workgroup
Determine next Steps
The Panel
The Market Operator (Panel Secretary)

27. Good Governance A strategic view Keep codes under review
A market that works for the customer
Allow rules to evolve with the market
Make regulatory intervention a last resort
Working practices
Be a critical friend
Ensure a level playing field
Be transparent
Deliver effective and timely change

28. Break
Teas and coffees

29. Overview of the Market Operations
Natasha Sinnett
MOSL

30. What is CMOS? Wholesalers Retailers
CMOS is the Central Market Operating System, developed to facilitate and process the market transactions and generate settlements
Wholesalers
Retailers
CMOS

31. MOSL as the Market Operator
(De)
Register
Tariff
+ meter
Tenancy
Read
We are aware we are a cost – committed to being as low OVERALL cost as possible
We are aware there are over heads on timings
To minimise cost: digital agenda, self-serve, tools to help resolve issues themselves
Switch
Settlement
DRAFT

32. What does CMOS look like?
Depending on your organization’s needs you will choose to engage with CMOS either through:
HVI (High Volume Interface)
LVI (Low Volume Interface)
CMOS
LVI
HVI

33. A closer look… Security
As a CMOS Portal user, you must have an organisation certificate on your desktop/laptop.
You’ll also need a User ID and password to log in.

34. High VoIume Interface (B2B)
How does CMOS function?
Market Operator
Retailers
Whole-salers
Other
3rd Parties
Market Portal
High VoIume Interface (B2B)
System to System messaging
CMOS Portal (Low Volume Interface)
Reports
Standing reports
Ad hoc reports
Market reports
Administration
Participant Management
Configuration Management
Market Performance Framework
Logging
Market Information
Search and View
Submit transactions
List Open Transactions
Manage Notifications
Volume Transfers
Interim Supply Allocations
Content
FAQs
Documents
User Manuals
Training Material
Timetables
Settlements
Tariffs
View Settlement Runs
FTPS
Automated delivery of scheduled reports
Service Management
Remedy
Operational Statistics
System Monitor

35. Who does what? Menu Wholesaler Retailer Market Operator Administration
User accounts management
Search calendars and schedules
Agreements – Retailer contracts
Agreements – ISA and Gap Site
Configuration Management
Participant Management
Market Performance Management
Check logs
Market Information
Manage Wholesaler information (meters) – submit transactions
View transaction details and history
Manage Retailer information (customers) – submit transactions
Search Market Information
Volume Transfers
Interim Supplier Allocations
Settlement
Manage tariffs
N/A
Run settlements
Reporting
Run Wholesaler reports
Run Retailer reports
Run MOSL reports
Service Management
Raise tickets
Monitor system
View operational statistics
Raise and resolve tickets
Content
View documents, user manuals, training, FAQs and timetables
Create, maintain and authorise documents, user manuals, training, FAQs and timetables

36. Where can I find more information?
There are various ways to get started on CMOS
The MOSL website offers CMOS training
You can visit the website to watch our training videos and slides
See the Knowledgebase to download user manuals for wholesaler and retailers
Our ask your Portfolio Manager if you need help getting started.

37. Live Demo Natasha Sinnett Introduction Getting started
Search and view market information
View Business Transactions
Processing inbound transactions
Live Demo
Natasha Sinnett

38. Customer Journey
Graham Pontin
OFWAT

39. Extent of premises flow chart

40. Eligibility criteria flow chart

41. Customer protection code of practice
Code requirements
Certain basic information in a standard template format
Retailers to take reasonable steps to make sure that any TPIs acting as agents on their behalf are aware of the provisions of the code.
Relevant SPID number(s),and ability to switch included on bills
Clear and accessible information
7 days cooling off for micro business
TPI letter of authority signed by the customer
Retailers to ensure they have a valid contract with the customer before they request a switch.
Outgoing retailers to inform customers of the reason for any cancellation of the switching process, and advise the customer on the process and timeframe to resolve the issue.
at least one accurate bill each year all customers
Retailers to issue a final bill to micro-businesses within six weeks of the customer’s transfer or end of contract.
Retailers to use transfer read provided by the incoming retailer to calculate their final bill
Retailers shall not bill or invoice a non-household customer for or recover charges in respect of water supplied or sewerage services provided to that non-household customer beyond 16 months.
Retailers to offer micro-businesses a reasonable payment plan with any back-bill, to allow the customer to pay the bill in a number of instalments.
Retailers to have an effective complaint handling process and to join an ADR scheme in line with criteria/guidance published by Ofwat.
Focus areas
Sales and marketing
Customer engages with market
Contracts, communications and information
Customer agrees to switch to a different retailer
Switching process
Communication between retailer and customer (and back-office technical process)
Billing, back-billing and data quality
Complaint handling and disputes
Customer journey
Customer shops around and chooses a deal (may choose TPI).
Customer reads and understands proposed terms (telesales is binding).
Customer signs the contract.
Incoming retailer sends confirmation message to customer with details of switch date or contract terms and conditions including tariff information.
Data flow between retailers and market operator - incoming retailer can carry out credit checks and processing.
Outgoing retailer can object to transfer: debt or termination procedure related (e.g. customer still in contract – switch date too early – errors).
Complaint handling: what recourse does the customer have?
End of contract – renegotiate or switch away but may not be able to switch (objections).
Customer receives an opening bill from new retailer and choose a payment method.
Customer receives a closing bill from losing retailer.
Customer receives confirmation message from the incoming retailer informing them that everything is OK and the switch will occur as planned.

42. Maturing the Customer Offer
Vanilla supply
Cost management
Risk management
Resilience
Partnerships
Community schemes
Multi-commodity
Energy integration
Carbon
Water efficiency
Bill cycle
Bill consolidation
Price only

43. Open the Market! Linking Ofwat’s regulatory role to innovation
Operationalise- licensing, keep barriers to entry low
Monitoring Framework – state of the market; transparency; tackle design flaws
Water2020/PR19 supply chain reforms; wholesale tariffs- regulation vs markets
Enforcement – Codes, Licenses, Competition Act
Open Change Governance

44. Customer role in innovation
Energy learning
Ability to switch is empowering
Intelligent Data
Cost management, efficiency challenge and corporate responsibility

45. Tools to help retailers with eligibility
Eligibility Guidance
Supplementary Guidance
Flow diagrams
Open Water customer eligibility guide

46. Q&A
Your Thoughts…

47. Lunch

48. Customer Journey Continued
MOSL
Ben Jeffs

49. From 439 (15 Jul 2015) to just 48 working days until 1 April 2017
As of today
2.64m SPIDS/1.4m premises loaded
Around half the market operating ‘Live/Live’, with customers maintained in CMOS
Settlement confidence growing
Work continues on central system
R2.26 deployed
R2.3 in test
R2.3.1?
Finalising enduring code panel
MOSL ready to become market operator
Business plan approved
Articles aligned to MAC
MOSL Letter of Assurance 3 underway
Pre-switching begins 6 March 2017
APRIL ‘17
“It’s like running a marathon while solving a Rubik’s cube”
From 439 (15 Jul 2015) to just 48 working days until 1 April 2017

50. The new service challenge
Connect
Register
Read Meter
Change Tenancy
Change Tariff
Change Services
Change Meter
Disconnect
Deregister
New people
New processes
New systems
New rules
Old data
New relationships
New risks
Higher expectations
Services e.g.
Water
Wastewater
Trade Effluent
Surface Water Drainage
Metered/unmetered
Simple to complex SPID configurations
“Switch to Pay”
Settlement

51. Switching: be prepared for a long tail
Am I prepared to let them leave?
Where’s my bill?
Who are you and why did you send me this bill?
Did I switch? (ETs)
Is this my bill? (premise/customer/meter)
Is the amount correct? (opening/closing
read/tariff/services)
Cancel/re-bill
Is the amount correct?
Debt/collection
Queries
Pre
switch
Time

52. The market maturity curve
4 things to think about
Programme to enduring
Fix on demand
Cancel & re-bill
Level playing field
Commissioning
People
Process
Technology
Market
Data
Reactive
   
Pre-sales
Data Quality
Work-arounds
Raised expectations
Responsive
Proactive
Day 1
Q3 2018
Case-by-case Company Market
Interventions
Lower cost to serve
Improved customer journey

53. Your most unhappy customers are your greatest source of learning
And finally…
Your most unhappy customers are your greatest source of learning
Customers don’t expect you to be perfect. They do expect you to fix things when they go wrong
The best customer service is if the customer doesn't need to call you, doesn't need to talk to you. It just works

54. Discussion Session
Tom Notman
MOSL

55. Q&A

56. Open Market Mixer Julie Carly
What do retailers want from the Open Market Mixer?

57. Key learnings from the last Open Market Mixer: practical steps
Bigger tables for one-to-ones with more seats – preferably situated further apart (or in private rooms)
Publish a full list of attending companies
Clarity on whether attendees are attending as a wholesaler or retailer – comment in RSVP
Microphones for presentations
Implementing Floyd App
Keep presentations on schedule – allotted 15 minutes
Provide additional seating

58. What do we want for the next Open Market Mixer?
Wholesaler contact information
Wholesaler communication plans
Operational activities
Metering
Wholesaler region/coverage
Data and Readiness
Your thoughts…

59. Next Steps
Tom Notman
MOSL

60. Do we want additional retailer forums?
Do we need future Retail Working Group forums?
What do we want to see on the agenda?
What information do new entrants need going forward?

61. Thank you for coming!