This week MOSL and the Market Performance Committee (MPC) sent a joint letter to trading parties outlining the steps being taken to provide insight on trading party performance and monitoring during COVID-19.
The letter outlines the work being undertaken to monitor and report how the pandemic has affected performance, in order to support the market in the immediate, and the period of recovery in which market operations return to 'normal'.
MOSL has committed to undertaking a light-touch monitoring of Market Performance Standards and Operational Performance Standards to inform a central view of market trends. This data will be used to inform the timing of, and approach to, ‘restarting’ normal market activities rather than for the purposes of peer performance publications.
As a result, MOSL and the MPC have agreed the following:-
- MOSL will use new and existing reporting tools to support parties and in doing so, will provide clear and regular COVID-19 performance updates to Ofwat, Panel, MPC and the wider market
- Throughout the COVID-19 pandemic, it will be vital to track the operational impact on trading parties, therefore, and without adding undue burden on parties, MOSL will seek updates on any material changes to their operational capabilities. This will serve to provide vital context and insight for the enhanced performance and data reporting
- Where areas of concern are flagged regarding issues such as erroneous changes to key market data which require further engagement, MOSL will use the appropriate channels including Portfolio Managers and our Market Performance team, with a view to escalating concerns to the MPC or Ofwat as necessary
- Any intervention deemed appropriate would need to carefully consider the impact on essential operational services delivered by parties
- We will not be looking to trigger new Initial Performance Rectification Plans (IPRPs) or escalate existing IPRPs/ (Performance Rectification Plans (PRPs) where any possible rectification actions are legitimately inhibited by COVID-19
- Where parties are currently subject to IPRPs, PRPs and Performance Improvement Plans (PIPs) we will seek insight on the impact of COVID-19 and will rescope any reporting requirements during this exceptional period, confirming where improvements are still able to be delivered.
If you have any questions on the above, please email firstname.lastname@example.org.