In a letter sent to wholesalers and retailers on 19 March, CEO of MOSL, Sarah McMath, announced urgent actions that will be taken by Ofwat and MOSL to support market participants and their customers as the Coronavirus pandemic continues to escalate. The below actions have been proposed by MOSL and discussed with Defra and Ofwat in meetings held on 18 March 2020.

These include taking steps to:

• Waive performance charges with effect from 1 March 2020.
• Ensure all the performance charges collected during 2019/20 are available for re-distribution to trading parties (rather than used for market improvement projects).
• Enable retailers to offset 2020/21 Market Operator (MO) charges against prior year performance charges (based on the specific amount that would otherwise be redistributed to them in September 2021) with effect from April 2020.
• Improve settlement estimation to reflect reduced water consumption from April 2020.
• Develop potential changes to provide relief on late payment of settlement charges to be progressed over the next two to three weeks.

Working with Ofwat, we are developing a package of initiatives to take forward to address these issues, including Ofwat raised Authority Timetabled code changes. We will look to expedite these changes through an extraordinary Panel meeting being held today, 20 March, at 4.30pm.

Further information on these changes and actions being taken is available in the letter from Sarah, and the joint letter also issued yesterday, by Senior Director of Ofwat, Emma Kelso.

If you have any questions regarding the information set out in the letters, please contact

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