The Panel is seeking to enable change that will deliver a successful market for the benefit of business customers. This page brings into one place the review findings and actions being taken to address its recommendations.

Panel Effectiveness Review

Robust, efficient, and effective governance is an essential component of a well-functioning market.  Four years on from market opening, now is an appropriate time to review whether current governance arrangements are fit to deliver stakeholder expectations of the market. As outlined in MOSL’s 2020/21 Business Plan, we having been working with the Panel to undertake a review of the market governance arrangements and Panel effectiveness.  This page includes the findings from the Panel Effectiveness Review, led by Satori Board Review, and the next steps in implementing the recommendations of its report.

 

Latest news

The Panel approved the Governance sub-group Terms of Reference on 30 March 2021. The new group will be responsible for developing code changes arising from the Panel's new strategic roadmap (see below). Trading parties and Panel members are invited to nominate members for this group before 6pm on 16 April 2021.  The Panel will appoint sub-group members at its meeting on 27 April 2021. 

Potential nominees should note that the Panel is expected to assign change proposals to the sub-group at the same meeting. The sub-group meetings will follow a sprint format and members will need to be available for meetings on 4, 10, 13 and 14 May and 14 June.

Background

In 2020, the Panel established a Governance Steering Group to manage the delivery of the Market Governance Review.  The Steering Group commissioned independent consultant Satori Board Review to review Panel effectiveness. Satori’s work covered Panel stakeholders, purpose, strategy, structure, operations, meetings, decision making, and development. As part of the review, Satori surveyed wholesalers and retailers and conducted detailed interviews with Panel members and key stakeholders. Satori presented their Final Report to the Panel in February 2021.

Satori noted Panel members commitment and aspiration for progress, in addition to their day jobs. However, they also observed differences of opinion, both within the Panel and across the industry, on the role and purpose of the Panel.  These differences appear to drive different assessments of Panel performance. 

Satori’s report includes several recommendations which were accepted by the Panel at its February meeting.  The recommendations have been split into two workstreams - a strategic roadmap and a service roadmap - to support the implementation of tactical 'quick wins'  and longer-term strategic changes.

Strategic Roadmap

To measure Panel effectiveness, the purpose and role of the Panel need to be known and clearly understood. When the market opened in 2017 the Panel’s responsibilities, principles and objectives to guide its decision making were set out in the market codes.  Some stakeholders now believe the Panel should have a more strategic role than the largely transactional responsibilities set out in the market codes. They also believe the Panel should facilitate innovation and customer benefit, neither of which are currently included in the code principles.

The first step of the Strategic Roadmap will be to confirm the purpose and role of the Panel.  This will be achieved through further consultation with the Panel, trading parties and senior stakeholders such as Ofwat and Defra. 

Once the purpose has been defined, the Panel will look at the skills and knowledge required to deliver against it and, where required, the Panel’s structure and composition will be redesigned.  The term of the current Panel has been extended to 30 September 2021 to allow any changes in Panel composition to be implemented before the next Panel elections are held.

A clear purpose will inform the objectives and the principles that underlie the Panel's decision making. These will be used to develop strategies and specific action plans which will inform MOSL's business planning.  The chart below shows how  the Panel's purpose feeds into objectives, strategies and plans.

image

Service Roadmap

Satori identified a range of quick wins and working practice adjustments to improve Panel performance and the code change delivery service.  These include improving transparency and communication, enhanced meeting protocols, and improvements to the consideration and prioritisation of code changes.  For more information please refer to Satori’s Final Report. The Panel intends to implement these 'quick wins' alongside the development and delivery of the Strategic Roadmap. 

Governance Review Groups

Group Role Members Terms of Reference
 Panel

Programme sponsor and client

Panel Overview Panel ToR

 Governance Steering Group

Programme management

Trisha McAuley (Panel Chair)

Pamela Taylor (Independent)

Martin Mavin (Wholesaler)

Nicola Smith (Retailer)

Dan Mason (Ofwat)

Adam Richardson (MOSL)

Panel Meeting 44_03 Workstream Update

Governance sub-group  Delivery of change proposals  

Chair

Secretary

Five industry experts

Consumer Council for Water

Change Proposers

Ofwat
Sub-group ToR
Strategic Stakeholder Group Consultation body

Dan Mason (Ofwat)

Mike Keil (Consumer Council for Water)

Sarah McMath (MOSL)

Trish McAuley (Panel)

Defra
N/a

Change Proposals

CPM021: Panel Membership and Voting Rights

This change seeks to increase engagement, enable effective change and improve representation at the Panel. 

More change proposals will appear here when raised.

Governance Review Documents

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