1. User Forum
25 April 2019

2. Agenda Item * Description Who Time Registration
Tea and coffee on arrival
Trading parties
09: :00
Live video streaming starts*
10:00 1
Welcome
Housekeeping
Julie Carly
10: :05 2
Market Design update
Huw Comerford
10: :35 3
MOSL communications – new approach
Lyv Nabarro
10:35 – 10:50 4
Update and lessons learned from the first market exit
Update on RF
Miles Robinson
10:50 – 11:10  5
Demonstration of the new operational report for unexpected meter reads
 TBC
11:10 – 11:30
Break
11:30 – 11:45
User Forum April 2019

3. Agenda
Item *
Description
Who
Time 6
Market Performance and Improvement
Annual Market Performance Report (AMPR)
Current position on data improvements
MPOP moving forward
Sam Webb
11:45 – 12:45 7
Lunch
12:45 – 13:30 8
Performance rectification (current position on IPRPs plus policy/approach re escalation)
Luke Austin
13:30 – 14:15 9
Market Performance Framework – workshop on future amends
14:15 – 15:30 10
AOB and close
15:30-15:45
Live video streaming ends*
* Please note: agenda items 1-10 will be videoed and streamed live. Streaming will end at 15:45.
User Forum April 2019

4. Welcome
Julie Carly

5. Market Design Update
Huw Comerford

6. Changes CPM006 - Introducing a process for urgent change proposals
CPM013 - Adding the customer rep as a voting Panel member
CPM015 - Panel self-governance process
CPM016 - Panel voting majorities
CPW057 - Credit proposal 1B: Improving the transparency of guarantee credit arrangements
User Forum April 2019

7. Changes
CPW060 - Credit proposal 4: Amendments to the provision of credit assessment score evaluation for the purposes of unsecured credit allowance
CPW061 - Unsecured credit allowance based on payment history
DCP021 - TDC individual SPIDs
DCP023 - Household indicator flag
DCP024 - Retailer notification
User Forum April 2019

8. Consultation Current in consultation No changes Upcoming consultations
No dates confirmed
User Forum April 2019

9. Awaiting Panel Recommendation
CPM014 - Market Performance Standards charges redistribution clarification
User Forum April 2019

10. Awaiting Authority Decision
CPW056 – Cascade erasure
CPW058 - Removing processes A1-A5 (new connections)
User Forum April 2019

11. Release Schedule User Forum April 2019 17-May-19 CMOS 26-Jul-19
30-Sep-19
Code
08-Nov-19
31-Mar-20
15-May-20
13-Nov-20
Ref
System
Approved
CPW025 Y
CPM014 N
CPM013
CPM006
DCP023
In Progress
CPW038
CPW047
CPW057
CPM015
DCP024
CPW040
CPW050
CPW058
CPM016
CPW042
CPW060
CPW056
CPW053
CPW061
DCP021
User Forum April 2019

12. Updates to MOSL mailing lists
Lyv Nabarro

13. Information and background
For context:
Our mailing lists were originally set up prior to ‘go-live’ in response to the requirements of our members to receive:
Updates on regular MOSL meetings
Communications in preparation for market opening
As we have now passed two years of market operations, these requirements have naturally evolved and should focus more on outputs of the business, across our various Committees and industry groups
The water industry also has a high turnover and a number of contacts may have moved businesses or gone to different sectors, particularly post ‘go-live’.
For context, our mailing lists were originally set up prior to ‘go-live’ in response to the requirements of our members to receive updates on regular MOSL meetings, in preparation of market opening.
As we have now passed two years of market operations, these requirements have naturally evolved and should focus more on outputs of the business, across our various Committees and industry groups. The water industry also has a high turnover and a number of contacts may have moved businesses or to different sectors, particularly post ‘go-live’.
User Forum April 2019

14. Our recommendation
MOSL’s Corporate Affairs team will be undertaking a complete refresh of our current mailing lists. This means deleting all current sign up forms, lists and contacts. Our suggested sign up forms will include:
Difficulties of managing multiple portal logins and architectures
CMOS outages, updates and release notes
Change proposal consultations, Authority decisions and implementations
The Panel and its Committees’ meetings, updates and nominations
Market performance improvements, MPOP and market charts
Bilaterals
Market operations, settlement runs and timetables
Trading disputes, MO and MAC disputes
MPS and OPS charges, distribution and updates
Credit arrangements guidance and documentation
MOSL news and updates
Ofwat notices
Retailer Wholesaler Group updates
Gap sites and opt in notices.
User Forum April 2019

15. Timeline and approach
These sign up options will feature in the sign-up forms available on the MOSL website –> Contact –> Mailing lists.
The changes will be implemented through a phased approach. May will involve planning and engagement with the market. In June we will undertake dual running of the lists, until the existing lists are removed completely on 1 July
User Forum April 2019

16. Any questions?

17. Interim supply process
Update and lessons learned Miles Robinson

18. Interim supply process
In April 2019, MOSL and Ofwat operated the interim supply process for the first time since market opening
Ofwat issued the relevant cessation of supply notice to Aquaflow Utilities on 28 March 2019
MOSL sent comms out to trading parties informing them of the opt in process to receive the SPIDS through the interim supply process
Ofwat made the decision to run the offers process as opposed to the allocation process and issued the offers invitation on 1 April 2019
All offers were reviewed by Ofwat following the deadline on 3 April 2019.
User Forum April 2019

19. Interim supply process
Ofwat issued the allocation notice to MOSL, instructing the transfer of SPIDs from Aquaflow Utilities to Clear Business Water
MOSL completed the transfer of SPIDs on 8 April 2019
Ofwat published comms informing the market of the successful transfer.
User Forum April 2019

20. Interim supply process - lessons learned
From performing the steps required to complete the process, from MOSL’s perspective, there have been a number of learnings from the first run-through of the ISA process. Broken down into three key areas, these are the areas that we would be looking to focus more attention on in future:
Systems
Timescales
Communications.
MOSL and Ofwat are in the process of organising a separate ‘lessons learned’ session to discuss how the process could run more smoothly as a collaborative effort.
User Forum April 2019

21. Update on RF Settlement Miles Robinson

22. Update on RF Settlement
MOSL has now successfully published RF settlement for the first three invoice periods of the open market: April, May and June 2017
There was a total of 111k G-reads created for April 2017, 109k for May 2017 and 117k for June 2017
April 2019 has been the first month in which two RF runs have been published to catch up, following the decision to delay RF settlement in 2018
As detailed on the RF timetable published on the MOSL website and approved by the Panel, there will be two RF runs per month until October 2019 to catch up, then RF settlement will run once per month as normal.
User Forum April 2019

23. Update on RF Settlement
User Forum April 2019

24. Demonstration of the new operational report for unexpected meter reads Miles Robinson

25. Unexpected meter reads report
MOSL published a report on the MOSL portal on 9 April 2019 setting out unexpected variances for meters throughout the month
As mentioned at the March User Forum, this report will replace the current unexpected results and system exception reports that are published to trading party SharePoint sites on the fourth business day of each month
The aim of the report is to enable trading parties to correct settlement impacting data errors, without the need to run corrective settlement
This report has been made available to Contract Managers and Deputy Contract Managers, but can be made available to additional users by request.
User Forum April 2019

26. Unexpected meter reads report
User Forum April 2019

27. Unexpected meter reads report
User Forum April 2019

28. Unexpected meter reads report
User Forum April 2019

29. Unexpected meter reads report
User Forum April 2019

30. Unexpected meter reads report
The aim of this report is to provide trading parties with a view of meters with a variance that might be of interest, based on the consumption
The report does not suggest that the displayed meter variances are errors or anomalies
For further information on how to use the report, we have a guidance note available on our website
For any improvement ideas or suggestions, please
User Forum April 2019

31. Market Performance and Improvement Sam Webb

32. Annual Market Performance Report (AMPR)
5/5/2019

33. Annual Market Performance Report
Introduction and overview of the 2018/19 Annual Market Performance Report (AMPR)
What is it?
The Annual Market Performance Report (AMPR) is code obligated, and MOSL are required to publish before the end of April each year
What is its purpose?
The purpose of the Annual Market Performance Report is to evaluate the application of the Market Performance Framework (MPF) in improving market performance, at both a market level and an individual trading party level.
User Forum April 2019

34. Annual Market Performance Report
How have we approached the AMPR to deliver key messages and insights?
Four main areas of focus:
Getting customer premises into the market
Deregistering, disconnecting and reconnecting supply points
Maintenance and repairs of meters
Meter reading.
User Forum April 2019

35. Annual Market Performance Report
Evaluating the application of the Market Performance Framework
Market Performance Standards (MPS)
Operational Performance Standards (OPS)
Trading party peer comparison
Trading party performance resolution
Market operator performance reporting
Market Performance Operating Plan (MPOP) 2018/19
Financials, including the redistribution of MPS charges.
User Forum April 2019

36. Annual Market Performance Report
w/c 29 April –
Publication of Annual Market Performance Report
w/c 23 April –
AMPR shared with Market Performance Committee to invite feedback
27 March –
AMPR update with Market Performance Committee
14 March –
Market Performance Committee call on overview of approach
To ensure the AMPR is pulled together on time, we will be working to the below timescale:
User Forum April 2019

37. Annual Market Performance Report
What’s new to this years AMPR?
Market Performance Operating Plan (MPOP)
Introduction of MPS charges in April 2018
Launch of Trading Party Performance Resolution Process
Peer comparison (league tables) for MPS and OPS.
User Forum April 2019

38. Annual Market Performance Report
Key messages from the AMPR (Part 1)
Non-household customers are not all getting one accurate bill per year based on an actual meter read and undoubtably this contributes to the high-level of customer complaints regarding billing
The quality of key items of data in the market also gives significant cause for concern. Some of these data items have been addressed through MOSL-led Data Improvement Plans, however customer experience continues to be seriously affected by missing or inaccurate data
We are seeing some encouraging signs of wholesalers and retailers working together to address data quality problems, but for necessary improvements to be made, these improvements need to accelerate  ​
Levels of vacancy reported in the market have significantly increased in 2018/19, which ultimately impacts on wholesaler revenue collection. 
User Forum April 2019

39. Annual Market Performance Report
Key messages from the AMPR (Part 2)
The concerning lack of improvement in meter reading performance has manifested in retailer performance against the MPS remaining largely static throughout the year
Wholesaler performance, as measured by the OPS, whilst generally high with some outliers, is wholly self-reported, masks volumes of tasks submitted by non-standard routes, and lacks qualitative elements. Retailer experience regarding these services has not always been reflected by the high-performance levels reported
This year saw the introduction of IPRPs against MPS performance. These plans have been seen to increase the scrutiny on underperformance, raise the profile within companies driving rectification actions and can be seen to have materially improved performance where applied
For broader market issues we are seeing that different tools, incentives and measures are required to drive improvements. The MPOP workstreams, including the initiation of DIPs, have driven improvements in some key areas including estimation data and pairing of supply.
User Forum April 2019

40. Annual Market Performance Report
Recommendations
At the beginning of May, MOSL will be publishing the 2019/20 Market Performance Operating Plan (MPOP).
The plan will focus on:
Improving the quality of customer, premise, asset and consumption data
Drive forward the development of the existing Market Performance Framework and assess how other incentive mechanisms may be applied
Ensure that there is an appropriate and effectively-targeted suite of reputational and financial incentives in place across the market.
User Forum April 2019

41. Update on Data Improvements
Document title here

42. Overview Update on data improvement plans Long unread meters
Position at end March 2019/20
Additional insight on read rejections and meters unread since market opening
Yearly volume estimates
Unpaired supply points.
Update on development of the 2019/20 MPOP
Consultation feedback
Plan summary
Next steps.
User Forum April 2019

43. Update on data improvement plans Long unread meters
Data improvement plans requested
User Forum April 2019

44. Long unread meters Absolute position versus level of improvement by trading party
Total % of meters not read within past 12 months (high to low)
30%
15%
20%
25%
10% 5% 0%
Note: data shown for trading parties that submitted data improvement plans
Reduction in % of unread meters since August 2018
Increase in % of unread meters since August 2018
-5%
-10%
-15%
+15%
+10%
+5%
User Forum April 2019

45. Long unread meters Age of last meter read – market level view
< 12 months: 85.6% (vs 85.2% previous month)
12 – 24 months: 9.7% (vs 10.0% previous month)
>24 months 4.7% (vs 4.8% previous month)
User Forum April 2019

46. Long unread meters Age of last meter read – market level view
User Forum April 2019

47. Long unread meters Understanding root causes – read rejections
Accepted versus rejected reads in 2018/19 (excluding rereads)
Typically around one third of read submissions are rejected
65-75% of these typically due to volume validation issues
~50% of rejections typically resubmitted as re-reads
User Forum April 2019

48. Long unread meters Meters unread since market opening
A majority of meters unread since before market opening have been read since Initial Data Upload – however more than a quarter have not been read in three years or more.
Meters unread since market opening
5% - last read 5 years plus
21% - last read between 3 – 5 years
23% - last read within 3 years (prior to shadow operation)
51% - last read within 3 years (during shadow operation)
User Forum April 2019

49. Meters unread since market opening
Long unread meters
Meters unread since market opening
There are 190 wholesaler-retailer pairings with meters unread since market opening – however the top 10 pairings account for close to 90 per cent of these meters.
Wholesalers
Retailers
User Forum April 2019

50. Yearly Volume Estimate data – market level view
Over 90% of NULL YVEs are for meters with a read within the past 12 months
Meters with NULL YVE and unread in 12 months
Meter read within past 12 months
Trading party
User Forum April 2019

51. Yearly Volume Estimate data – market level view
User Forum April 2019

52. Unpaired Supply Points
User Forum April 2019

53. Update on Market Performance Operating Plan

54. MPOP consultation – responses
21 responses received to the consultation that ran between Monday 11 March and Thursday 28 March, representing retailer, wholesaler and wider stakeholder views:
… the approach
… the objectives
AVG = 7.5
AVG = 8.2
To what extent do you agree with…
… the programme areas
… the candidate projects
AVG = 8.1
AVG = 7.3
User Forum April 2019

55. Plan overview
User Forum April 2019

56. Overview of IPRPs and Performance Resolution Process
Luke Austin

57. Overview of IPRPs

58. IPRPs - Batch 1 (September 2018 issue)
Status of 19 plans across 12 trading parties (7 retailers and 6 wholesalers), at conclusion of their six-month plan:
User Forum April 2019

59. Trend Analysis of Batch 1 IPRPs
User Forum April 2019

60. Trend Analysis of Batch 2 IPRPs
User Forum April 2019

61. IPRP Performance Triggers: Market average versus Threshold
Where overall market performance levels are low there may be scope for moving towards higher benchmark levels
For example, market performance on MPS 7 (initial and final meter reads) is around 70-80%. Can it be higher?

62. Performance Resolution: Escalation Policy

63. Escalation Policy
Developed by Market Performance Committee (MPC) and MOSL
Feedback from Ofwat
Endorsed by Panel
Defines basis for MPC / Panel activity when performance issues escalated by MOSL.
User Forum April 2019

64. Overview of Performance Resolution Process
MOSL Performance Monitoring
MOSL Performance Resolution Policy
MAC Escalation Policy
User Forum April 2019

65. Overview of Performance Resolution Process
MOSL Performance Monitoring
I. MOSL has preliminary discussions with Trading Party
MOSL Performance Resolution Policy
II. MOSL agrees IPRP with Trading Party
III. MOSL escalates to MPC
IV. MPC performance resolution actions
MAC Escalation Policy
V. MOSL / MPC escalates to Panel
VI. Panel performance resolution actions
VII. MOSL escalates to Ofwat
User Forum April 2019

66. Flexibility of Timelines
User Forum April 2019

67. Design Features
Clear narrative and evidencing: reporting and recording in casefile
Flexible timeframes and decision points
Most issues to be dealt with by MOSL: escalation to MPC should be rare, and escalation to Panel/Ofwat should be exceptional
Role of Panel: last chance for trading parties to resolve performance issue; and formal review of the Performance Resolution Process
Ofwat can initiate meetings with any at-risk trading parties at any point in the process at their own discretion.
User Forum April 2019

68. Criteria for Escalation
Performance issues may be escalated when:
The trading party does not meaningfully engage with the process
The trading party fails to meet milestones set out in an IPRP or PRP
Significant and unjustifiable poor performance
The performance issue is having a detrimental effect on customers and/or other trading parties.
User Forum April 2019

69. Market Performance Framework
Workshop
Document title here

70. AOB Wrap Up & Close

71. Thank You!