Workplan Review Group (WRG)
22 November 2016
Today’s agenda
Item
1.
2.
3.
4.
5.
6.
7.
Description
Tea and coffee
Welcome and actions from previous meetings
Who
All
Tom Notman
Time
09:30-10:00
10:00-10:10
Open Water programme update
Adam Cooper
10:10-10:30
• Accession
Defra programme update
Market Design
Jess Keedy
Martin Silcock
10:30-11:00
11:00-11:45
 ICP update
 Working towards the enduring panel
Break
Market Operation
All
Martin Silcock
11:45-12:00
12:00-12:45




Settlement reports via FTP
Monthly performance reports
Day 1 switching/Pre-registration
MOSL plan for operational terms readiness
Zainab
Mohammed
Today’s agenda
Item
8.
9.
10.
11.
Description
Lunch
MOSL programme update and transition planning
Who
All
Steve Lyon
Time
12:45-13:15
13:15-13:40
Market and Company Readiness feedback
Lauren
Mulholland
Samir Rahim
Boyai
Pukhrambam
Mike Robertson
Tom Notman
Tom Notman
13:40-13:50
CIO Forum updates
Lessons learned workshop
12.


13.
Close
Data Visualisation
Data lessons
13:50-14:50
14:50-15:50
15:50-16:00
Welcome and introduction
• Welcome to the November WRG! – The first WRG since Andy
Murray became World No 1!
• Housekeeping
• Today’s objectives
Actions from previous meeting
Tom Notman
Actions from previous meeting
Actions
Update
MPs have requested that MOSL works to its commitment to
publish a weekly defect list defect list showing those
resolved/added etc.
MOSL can not commit to updating the defect list on
a weekly basis however work to publish updates on
a timely basis
Next WRG Defra should include a section on the third letter of Covered in today’s agenda
assurance in their update, including a walk-through of the proforma.
MPs have been invited to email Defra with their reasoning and Thank you to the several participants emailed us
preference for either 1 or 3 of April as a date for market open. with their preference. Feedback will be covered in
today’s agenda
Add ‘next- step in bilaterals’ back onto the CIO forum.
Next step in bilaterals’ will be added to a future CIO
forum call agenda
Actions from previous meeting
Actions
Update
MPs have requested a note describing how often the Portal
content is updated and specifically when FAQs will be added.
Tom Notman to update
MOSL to initiate a surgery based approach to settlement
Completed
allowing different attendees to talk to MOSL. MOSL to publish
detail of how this will be done.
MPs have requested information on the process for non-code A process has been finalised. Information around
affecting code change requests. Once established, this might be this will be distributed to participants shortly once it
used by participants to request access through the portal to
has been signed off internally
information (e.g. meter reads) currently available via the MDS
report.
MOSL to ask retailers to provide information in confidence
about expected numbers of day 1 switches. MOSL to
investigate system capacity constraints for Day 1 processes.
Covered in today’s agenda
Programme update
Information for WRG members
22 November 2016
Key tasks delivered
Task
Monitoring Stakeholder workshop
Statutory consultation on wholesale retail code and
consultation on market arrangements code
Date
11 October
Published 7 November
Transition Information Note
21 November
Panel Election notices
21 November
Key tasks to be delivered next month
Task
Date
Transfer Scheme Information Note
28 November
Derogations response document and Guidance
9 December
Monitoring consultation
January 2017
Transition Statutory consultation
Early December
WRC and MAC consultation response document
Late December
Timeline of readiness information
WSSL application
deadline for market
opening (for simple,
complete, selfcertification MEAC only)
Company
assurance
Partner
assurance
Pre go
live
comms
Service desk and
shadow operations
running
Settlement run
Issue Retail
exit code
Exit decision
due
Settlement run
Nov
Defra
assurance
Settlement run
Dec
Issue Interim
Supply Code
GSS regs in
force
Settlement run
Jan
Feb
Mar
APR
07 14 21 28 05 12 19 26 02 09 16 23 30 06 13 20 27 06 13 20 27 03
Settlement run
Consult on
WRC and
MAC
Consult on
appeals
regs
Market
opening
decision
SoS decision
on WRC and
MAC
Key
Transfer
scheme
submitted
WRC and MAC to be ready for signing
GSS regs
HoP
Company readiness
MOSL readiness
Transfer
schemes
approved
Ofwat readiness
Defra readiness
Integrated Market Opening Plan – October 2016
KEY
TP = trading party
Critical
milestone
Milestone
HoP = Houses of Parliament
All
trading
parties
MOSL
and all
TPs
Trial
trading
parties
Design and build
Governance
Oct 15
Nov 15
Codes
baselin
ed
Dec 15
System
requireme
nts sign-off
MOSL
Feb 16
Mar 16
Apr 16
May 16
Jun 16
Repeat
activity
Open Water
Defra
Test
Jan 16
Shadow
Jul 16
Aug 16
Assurance letter – planning
MCR published
Sep 16
Oct 16
Market entrant
readiness
complete
Independent
review
Charging guidance to
Ofwat in HoP
Ofwat
Nov 16
Dec 16
Go live
Jan 17
Feb 17
Commencement
work for Retail
complete
Assurance
letter –
interim
Mar 17
Apr 17
Assurance letter – final
SoS decision
Go Live
Publication of charging
guidance
Checkpoint on progress
to baseline
Retail Exits allowed
Shadow market opens
MO
info. for HMT
Readiness self
assessment
Market report to
Ofwat / Defra
Market report to
Ofwat / Defra
Market report to
Ofwat / Defra
MCR
Planning
Readiness
assessment
Readiness
assessment
Market report to
Ofwat / Defra
Readiness
assessment
Readiness
assessment
Market readiness
Collaboration
tool training
TP engagement survey
TP engagement survey
TP engagement survey
Shadow market
workshop
TP engagement survey
Market entry business solution
assessment
Formal market entry
assurance testing
If fail
TP training needs
analysis
Sector test
system cycle 2
Test
environments
Sector test
system cycle
1
TP engagement survey
Data load 1
Data load 2
Remedial data load and assurance
Training
delivery –
Phase 2
Run full
service desk
operation
Run initial service desk operation
Live service desk operation
Security penetration testing
System build – Phase 1, TP functionality
System integration
test, phase 1 build
System design – Phase 2, MOSL
functionality
Feb 16
Shadow market operations
System integration test, phase 2 build
Review │ Refine │ Implement market opening plan
System build – Phase 2, MOSL functionality
Upda
te
syste
m1
MOSL system
sign-off
Design phase 2
Upda
te
syste
m3
UAT 2.0
Build
phase 2
Apr 16
Release planning
Upda
te
syste
m2
UAT 1
Build
phase 1
Mar 16
TP market entry assurance
certification
issued to all TPs
Data load 3
Training delivery – Phase 1
Jan 16
TP market entry assurance
certification
confirmed & complete
Data test environment
TP data for
phase 1
build
Design phase 1
If fail
Market scenario testing
System design –
Phase 1, TP
functionality
System design, build and test
Final data
load
New entrant
comms event
Dec 15
Pre go-live comms
Shadow market
comms event
Website finalised
Nov 15
Market entry
reassurance
testing
Readiness
assessment
UAT reports on
MOSL website
TP engagement survey
Oct 15
Market report to
Ofwat / Defra
May 16
User acceptance
testing 1
Jun 16
Jul 16
UAT 2.1
Service acceptance
testing
User acceptance
testing 2
Aug 16
Sep 16
Oct 16
Nov 16
Dec 16
Jan 17
Feb 17
Mar 17
Apr 17
Integrated Market Opening Plan – December 2016
TP = trading party
Milestone
HoP = Houses of Parliament
All
trading
parties
Critical
milestone
MOSL
and all
TPs
Trial
trading
parties
MOSL
Ofwat
Shadow
Governance
Oct 16
Nov 16
Assuranc
e letter –
interim
Dec 16
Feb 17
Commencement
work for Retail
complete
Repeat
activity
Mar 17
Apr 17
May
June
Assurance letter –
final
SoS decision
Go Live
Retail Exits allowed
Shadow market opens
Market report
to Ofwat /
Defra
Readiness
assessment
Market readiness
Open Water
Defra
Go live
Jan 17
Market report
to Ofwat /
Defra
Formal market
entry
assurance
testing
If fail
Market entry
reassurance
testing
Readiness
assessment
UAT reports
on MOSL
website
TP engagement survey
Pre go-live comms
TP market entry
assurance certification
confirmed & complete
If fail
TP market entry
assurance certification
issued to all TPs
Remedial data load and
assurance
Test
environments
Final data
load
System design, build and test
KEY
Run full
service
desk
operation
Live service desk operation
Shadow market operations
Review │ Refine │ Implement market opening plan
Release planning
Oct 16
Nov 16
Dec 16
Jan 17
Feb 17
Mar 17
Apr 17
Oct 15
Nov 15
Dec 15
Jan 16
Feb 16
Draft provisions for transition from old to
new WSL arrangements
Approval of new WSSL and priority
changes to WSL and IoA
Apr 16
Finalised WSSL licence
May 16
Jun 16
Jul 16
Aug 16
Sep 16
WSSL
handover
to Defra
Ofwat
finalise
WSSL
Deadline for WSSL applications to
meet opening of Defra exit process
WSSL application opens
Ofwat consult on application
process and hold industry
workshops
Ofwat develop application
details
Licensing
Mar 16
Commence Retail
Sections 1 & 4 and Schedules 2 & 4
Ofwat open application
process and handle
applications
Oct 16
Dec 16
Jan 17
WSSL application deadline for
market opening (for non simple
applications eg enhanced
MEAC)
Feb 17
Mar 17
Apr 17
WSSL application deadline for
market opening (for simple,
complete, self-certification
MEAC only)
Run application process
Publish WSSL licence
Consult on draft
WSSL licence
Prepare SoS WSSL
authorisation to Ofwat &
consult Welsh Ministers
Procedure for granting WSSL licences
(s.25)
Cross-border regulations in HoP
SoS WSSL
authorisation to
Ofwat
Changes to Instrument of Appointment
Retail Exit application deadline
for exit at market opening
(standard MEAC)
Retail exits
Engage Stakeholders & Parliamentarians’
Interim
Supply
Consult on
ISC policy
Develop draft Interim Supply
Code
Consult on
draft retail
exit code
SoS
decision on
retail exit
applications
Run Retail Exit application process
Publish retail exit code
Consult on
ISC legal text
Issue Retail Exits Code
Issue Interim
Supply Code
Publish Interim Supply Code
GSS
recommend
to Defra and
Welsh govt.
Consult on
deemed
contracts
GSS consultation
responses
Retail Exit appl
deadline for exit
at market opening
(remedial MEAC)
Retail Exit
application
process
opens
Parliamentary process
Retail exit regulations in HoP
Develop draft Retail Exits Code
Customer
Protection
Nov 16
GSS regs in
force
GSS regulations in HoP
Consultation responses
Deemed contracts and ISC
Publish CP code
of practice
Consult on draft
code of practice
& customer
protection
licence condition
Consult on wider
customer
protection policy
issues
Consult on appeals
regs
Statutory
Codes
Draft appeals regime for the codes
Stat con on MAC and
WRC
Appeals regulations in HoP
SoS 28 day
veto period
Appeals system in
place
SoS decision
on MAC and
WRC
Election of enduring
Code Panel
Oct 15
Nov 15
Dec 15
Jan 16
Feb 16
Mar 16
Apr 16
May 16
Design and build
KEY
Jul 16
Aug 16
Sep 16
Oct 16
Nov 16
Dec 16
Test
TP = trading party
Milestone
HoP = Houses of Parliament
Jun 16
Critical
milestone
All
trading
parties
MOSL
and all
TPs
Jan 17
Feb 17
Shadow
Trial
trading
parties
MOSL
Ofwat
Defra
Open Water
Mar 17
Apr 17
Go live
Repeat
activity
Oct 16
Nov 16
Dec 16
Jan 17
Feb 17
Mar 17
Apr 17
May
June
WSSL application deadline for
market opening (for simple,
complete, self-certification
MEAC only)
Licensing
Run application process
Retail exits
Retail Exit application deadline
for exit at market opening
(standard MEAC)
SoS
decision on
retail exit
applications
Retail Exit
application
process
opens
Run Retail Exit application process
Interim
Supply
Issue Retail Exits Code
Issue Interim
Supply Code
GSS regs in
force
Customer
Protection
GSS regulations in HoP
Consult on appeals
regs
Statutory
Codes
Stat con on MAC and
WRC
Appeals regulations in HoP
SoS 28 day
veto period
Appeals system in
place
SoS decision
on MAC and
WRC
Election of enduring
Code Panel
Oct 16
Nov 16
Dec 16
Jan 17
Feb 17
Shadow
KEY
TP = trading party
Milestone
HoP = Houses of Parliament
Critical
milestone
All
trading
parties
MOSL
and all
TPs
Mar 17
Apr 17
Go
live
Trial
trading
parties
MOSL
Ofwat
Defra
Open Water
Repeat
activity
Defra update
Jess Keedy
Work-plan Review Group
22 November 2016
Recent progress in the Defra
programme
 Exits applications received by 1 Nov deadline - on track for
decisions in December
 Consultation on code appeals for the water supply and
sewerage licensing regime – published 15 Nov, runs ‘til 13 Dec
 Outcome note of phase two of the assurance framework
published 17 Nov
 Informal ‘consultation’ on market opening date – majority of
views put forward expressed a preference for a 1 April opening
17
Assurance phase 2 – the headlines
•
This phase has given us confidence that work is on track for market
opening in April
•
Progress made against plans across the board, including by smaller
companies
•
Appropriate plans are in place to deliver against remaining milestones,
with mitigating measures underway for the risks identified
•
External assurance group have not noted any issues that would act as a
barrier to market opening
•
Significant progress made on the implementation of central IT systems;
nonetheless, important functionality is still to be included and tested
•
There is still work to do… and very limited contingency time for any
unexpected delays.
18
Assurance phase 3 – recap
Letter 3 is all about readiness for market opening. Remember this has been a
framework of continuous assurance there shouldn’t be any surprises by this
stage.
Key dates
MP letter:
MOSL letter:
Ofwat letter:
Defra letter:
3 Feb
10 Feb
10 Feb
17 Feb
Requires confirmation that
work plans are materially
completed (or will be
completed) for market
opening
New entrant retailers and
associate licensees (i.e.
market participants who will
be operating under a WSSL)
are required to submit a letter
at phase 3
19
Letter of assurance 3 – a brief
walk-through
• Same 5 sections as previously: 1 – company readiness statement; 2 –
components of the assurance framework; 3 – sources of assurance
/evidence table; 4 – risks /issues / associated plans; 5 – authorisation.
• Section 2 is the most different – at phase 3, the components of the
framework that apply to market participants are:
 Component 2: programme assurance & risk management
 Component 4: company readiness
See summary on next slide.
• Section 4 will, as in phase 2, be split into market participant specific
risks and programme wide risks.
• There will be a new pro forma.
20
Summary of components
Component
Component name
What’s this about?
Statements*
2
Programme
Assurance & Risk
Management
Completion of
programmes
a, b, c, d – for all
market participants
4
Company
readiness
Regulation, Licences
and Compliance
a, b (i – iii), c – for all
market participants
d - for incumbent
retailers and new
entrant retailers
Systems, Processes,
Data & Security
a – h - for wholesalers
and incumbent
retailers
Market Entry
a, b, c, d – for all
market participants
*NB there are some differences in who needs to complete each section. The template letter
highlights these.
21
Concerns you have flagged
Part of the letter/ concern
Concern
Our view / proposed change
1
In the assurance statement: “[market
participant] has completed its programme…”
Feb 2017 (or Jan, when your
Boards see your letters) was too
early to be able to say you’ve
completed your programme.
Agree – and we amended our advice
ahead of phase 2 to reflect this. We will
amend the statement with wording e.g.
“on track to materially complete… all the
interim milestones… either have been
achieved; or are on track to be achieved
when the market opens.”
2
In company readiness, regulation, licences
and compliance: “[MP] has entered into a
Wholesale Contract(s) in relation to the
Area(s) in which it intends to trade.”
According to the plan, wholesale
contracts are signed in March
Partners are discussing when the signing
will take place. If it’s not possible to
bring forward, we’ll amend the wording
to e.g. “has entered into, or confirms it
has a plan in place to enter into…”
3
In company readiness, market entry: “ [MP]
has entered into an Accession Agreement to
be admitted as a party to the Market
Arrangements Code.”
Same as 2 – ability to sign this off
depends on when the signing day
is
As above
4
In company readiness, systems, processes,
data and security: “[MP] data held on MOSL
systems is of a high quality”
How to define ‘high quality’?
Completeness can be checked,
‘quality’ is a bit different
Understand the concerns here, partners
to review
5
In company readiness, market entry: “[MP]
has become a member of MOSL”
Some company structures make
this difficult; is this a code
requirement?
To check with MOSL
6
Some inconsistencies spotted between
statements between sections 2 and 3 in the
template letter previously published
Will these be corrected in proforma?
Yes! - apologies
22
Next steps and contacts
Next steps
 Pro-forma to finalise and publish
 Amended advice & FAQ to publish
 Another chance to discuss at WRG?
As always, if you have any queries, please get in touch:
Jess Keedy
020 802 63350
[email protected]
Sam Jackson
020 802 64009
[email protected]
23
Market design
Martin Silcock
Interim Codes Panel and the Panel
Martin Silcock
Update on November ICP
There were five change proposals recommended for approval by Ofwat at the 8 November ICP
meeting. These were:
•
•
•
•
•
WRC051 - CSD 0002 updates;
WRC053 - SPID Pairing;
WRC055 - Fixed Trade Effluent Volume frequencies & Adjustment to SVAM;
WRC059 – Settlement Updates; and
WRC062 – Error Codes Update.
We have also arranged working group meetings (21 November) for the following change proposals
which are in the “assessment” stage:
• WRC039 – Self Supply - review the proposed drafting;
• WRC058 – Meter Serial Number - to obtain other wholesalers’ views and any other possible
options;
• WRC061 – Emergency Contacts – to obtain retailer views on the change and likely impacts
December ICP
• Ongoing consideration of change proposals
• Dealing with in flight code change proposals
• Alternative code governance arrangements
• Release Plan
• Working with Enduring Panel
Market Codes and the Ofwat Consultations
Ofwat consultations are now open for the Wholesale-Retail Code (WRC) and the
Market Arrangements Code (MAC), due to close on 16 December 2016.
• How/when will changes from November ICP approvals be updated in the Market
Codes?
• Ofwat will confirm the timing of implementation in the approval letters for the 5 changes from November ICP.
• How will Ofwat deal with any changes required as a result of the consultation?
• Ofwat will consider whether changes are critical for market opening and if so, make them. Changes not critical for
market opening will be proposed to the Panel
• What is remit of the ICP beyond the conclusion of the statutory consultation?
• ICP will continue considering changes until the Panel operating effectively
• How will “inflight” changes be dealt with?
Dealing with “in-flight” changes
In flight changes
WRC
MAC
Expected
3
Assessment/Deferred
10
Recommended
5
2
• For any changes to be implemented in the code documents before go-live to take effect on Day 1,
they would need to meet specified criteria
•
•
•
•
Is it legal?
Is it material/desirable - i.e. it must be important enough
Is it achievable?
Is it non-controversial? – its likely to be agreed in the short period before go-live?
• Ofwat would judge whether such criteria are met and if so would instruct that such market
opening critical changes will be made to the market codes ahead of go live. RMOMG would be
informed of such changes as appropriate
• Changes not meeting these criteria may continue to be considered by the ICP up to go live – or
may be deferred for consideration by the Panel.
• Following any ICP recommendation, Ofwat would consider them on a minded-to basis ahead of
market opening. It may ask that the Panel also looks at the change
Interim Codes Panel vs the Panel
Interim Codes Panel (ICP)
The ICP
• was established by Ofwat to enable industry
governance of code changes during the period of
implementation
• it has no formal remit or legal status
• has been operating since July 2015
• has considered 59 WRC and 13 MAC changes
The ICP does not carry out all of the functions of the
enduring Codes Panel but conducts its business as far
as possible in line with the relevant MAC provisions
The core remit is to make recommendations to either
accept or reject all proposed changes to the
Wholesale Retail Code and the MAC. Ofwat decides
whether or not proposed code changes are to be
implemented
The Panel
•
•
•
•
•
•
•
•
•
Keep the contents of the Wholesale-Retail Code and the
MAC under review;
Work with the Market Operator (MO) to develop the
scope and audit plan for each market audit; and review
/comment on Market Audit Reports;
Provide advice, recommendations and support to the MO
on request to assist a Trading Party (TP) in carrying out
and completing Market Entry Assurance or the Market
Re-assurance processes;
Comment or provide advice to MO on request on Market
Entry Assurance Plan or Re-assurance Plan;
Consider and comment on the draft MO Budget and
Charges,
Receive and consider Reports from the MO on
performance by TP’s;
Establish a Trading Disputes Committee to investigate
and resolve Trading Disputes;
Establish a Market Performance Committee on a
standing basis
Establish the Market Incident Management Plan
Committee
Key milestones for the Panel from December 16
14 Dec 16 - Panel
14 Feb 17 – Panel
Nominations meeting
& ICP meetings
held, Panel Members
held
confirmed
Panel member induction
DEC
JAN
FEB
24 Jan 16 - Initial Panel meeting
held - agree ToR, meeting
schedule, ways of working etc.
MAR
Apr 17 – Go live.
Possible Day 1 Panel
Meeting
APR
MAY
14 Mar 17 - Panel &
ICP meetings held
Beg Mar 17 - Establish
•
•
Trading Disputes Committee Market
Performance Committee
Market Incident Management Plan Committee
Break (15 mins)
Market operation
Martin Silcock
Day 1 switching
Martin Silcock
Day 1 switching - Background
•
•
A number of options were discussed for dealing with large numbers of switches
which may be initiated at market opening. Three options were then proposed to
Market Participants, as below:
Option 1
Only allowing for Transfer Registration Applications to commence from day 1
Option 2
Transfer Registration Applications to commence between 6 and 20 days ahead of day 1,
enabling the Registration Start Date of the transfer to be day 1
Option 3
Allowing for Transfer Registration Applications to commence even further ahead of day 1
MOSL asked:
•
•
Retailers to provide information on the expected number of day 1 switches by 7
November; and
All Market Participants to express any views in relation to the three options.
Day 1 switching - responses
•
7 responses were received. Preferences were mixed
•
•
•
•
Two incumbent retailers preferred Option 1
Two new entrant retailers preferred Option 2
One new entrant retailer preferred Option 3, with Option 2 also acceptable
Two respondents didn’t express a preference
•
3 retailers provided expected numbers of Day 1 switches (~15,000 SPIDs)
•
A performance test is currently being designed to help evaluate system capacity
Day 1 switching – comments from respondents
Potential advantages
-
Market will develop naturally from Day 1 onwards.
Potential disadvantages
-
Option 1
-
Option 2
Option 3
-
Logistically sensible and operationally practical;
Supported bu customers - a retailer has said that 5
major customers preferred Option 2
-
No ability to spread the volume of transaction – will have
high impact on system capacity;
Poor customer experience;
Anti-competitive – delayed market opening for new entrant
Retailers;
Could cause significant delays and confusion.
New switching processes / thresholds will essentially be
“live” before market opening;
Competition will start before market opening.
Transparency issues and anti-competitive behaviour;
High risk for market participants;
New switching processes / thresholds will essentially be
“live” before market opening;
Competition will start before market opening;
Data maintenance work will be required in CMOS.
Other considerations
•
•
•
•
•
•
•
•
Discussions with Programme Partners indicate no in principle or legal impediment to
making transfers effective on Day 1 of the market
Enabling switching to take effect on Day 1 appears in line with customer expectations and
strongly in line with new entrant preferences
Competition has already started
Enabling Day 1 switching can create a more compelling market story if activity is immediate
Concerns over the level of legal protection (for customers and participants) ahead of go-live
are recognised and have been discussed by programme partners. Expected that
participants will behave as if codes were live and that existing regulatory oversight
measures sufficient
Option 3 would require arrangements to be in place between incumbent and new retailers
in relation to maintaining data. This is being achieved for retail exits but that is in the
context of a controlled exit transaction
Option 2 does spread and bring forward processing load. If necessary that activity could be
scheduled
There are some potentially complex interdependencies with the retail exit process which
MOSL will resolve
Option 2 is preferred
•
•
The Open Water Programme partners consider Option 2 as the preferred option
Transfer Registration Applications will be processed to enable Registration Start Date on Day 1 (i.e. 1 April 2017)
Transfer applications up to 2 days before
Day 1 due to customer choice in an area
which is subject to Retail Exit will be
transferred with the RSD of the Retail Exit ie
Day 1 (to avoid double switching)
Transfer registration
applications not
allowed
Time interval allowed for Day 1 switching
06/03/2017
• 20BDs before Registration
Start Date (RSD)
• First day to submit
transfer applications for
Day 1 RSD
23/03/2017
• 6BDs before RSD
• Last day to submit
transfer applications for
Day 1 RSD
30/03/2017
01/04/2017
Deadline to
exercise customer
choice as part of
Retail Exit
Day 1
Retail Exit
RSD
Lunch (30 mins)
Transition planning
Steve Lyon
Market Operator year one (FY2017/18)
proposed budget
Principles
•
•
•
•
•
•
•
Builds on 2015/16 plan and 2016/17 principles
Enduring market operator
New responsibilities
Transitional first (and second) year
Unknown unknowns
De-risk market for all
MOSL Board
Reminders
• Membership-based
• Not for profit
• Track record of success against:
• Fixed budget 
• Fixed scope

• Fixed timescale 
• Open and transparent
• Going above and beyond
• Duty to all
‘Year one’ cost estimate of
market operator in 2015/16
business estimate came with a
clear health warning!
Feedback to business plan consultation
• Strong support for principles
• Widespread recognition of what’s been achieved
• Keen to understand:
•
•
•
•
•
Reconciliation to 2015/16 business plan view
Organisational structure and resourcing
Cost of the panel
Market audit
Change and contingency
• Wholesalers
• Retailers
– PR funding
– Treatment of commissioning costs
2015/16 to 2017/18 reconciliation
• 2015/16 plan estimated year one cost range of £7.6 - £9.2m
•
•
•
50-60 people @£70k per head
£0.5m difference in overhead costs
£200k efficiency saving on £1.8m CGI service costs
• 2017/18 business plan draft: £11m
•
•
•
•
•
•
•
Similar headcount to high end @£70k/head for employed staff
Employee mix changed to retain IT contract staff
Additional director due to splitting Market Services into two
directorates, i.e. Market Design and Market Performance
Additional MOSL test and data environment
Un-forecasted code panel costs
Y2 employee costs (incl. CPD, Salary Uplifts, Performance)
Total (delta between 2015/16 and 2017/18 base):
£260k
£160k
£500k
£380k
£500k
£1,800k
2017/18 budget (post MOSL Board challenge)
Consultation
Base budget adjustments:
Post-board
Change
£11.0m
• Additional environment
(£0.5m)
• Employee efficiencies
(£0.2m)
• Reduction in panel costs
(£0.1m)
Base budget
£11.0m
£10.2m
↓ £0.8m
Contingency
£2.0m
£2.0m
-
Change*
£2.0m
£0.0m
↓ £2.0m
Market Audit cap
£2.5m
£1.5m
↓ £1.0m
£17.5m
£13.7m
↓ £3.8m
Total
* To be funded ‘pay as you go’ on similar basis to now (i.e funded from
contingency until agreed threshold is reached, then topped up)
Organisation and resourcing
CEO
Corporate
Communications
Employee numbers
FTEs
CEO
1
Directors
4
Corporate Communications
5
Market Design
9
Market Performance
23
IT
12
Finance
7
HR
2
TOTAL
63
Market
Design
Director
Market
Performance
Director
IT
Director
Finance
Director
Market
Design
Market
Operations
Service
Operations
Finance
Water
Operations
Market
Performance
Architecture
Legal
Regulatory
Portfolio
Management
PMO
Commercial
Data
HR
Panel costs (overview)
• MOSL will fund the Panel and sub panels:
• The Panel (incl. 3 independent non-execs)
• Performance sub panel (incl. 1 non-exec)
• Disputes sub panel (incl. 1 non-exec)
• IT sub panel (incl. 1 non-exec)
• Market Incident Management Plan (incl. 1 non-exec)
• Up to 13 members per meeting
• Additional costs include preparation time and attendance for
independent members, travel and sustenance for all members
and meeting room costs
Market audit
•
•
•
•
•
•
£1.5m cap (reduction of £1.0m)
Market warm up
Competitive tender (multiple)
2017/18 scope – to be agreed with Panel
Y1 to include ‘deep dive’ into Ops Terms reporting
Budget adjusted downwards to reflect actuals
Change and contingency
• Market Opening (Current)
•
•
•
£2m contingency
Change funded from contingency (until threshold reached)
MOSL has absorbed the cost of change with no recourse to members
• 2017/18 contingency
•
•
•
•
First year accompanied with higher level of uncertainty and risk
No trading record on which to build a debt financing facility
Board considers £2m an appropriate contingency
Contingency subject to tight Board governance (unused funds returned to members)
• 2017/18 change
•
•
•
•
Level of change is unknown and IT change comes at a cost
Changes are impact assessed by CGI, prior to approval by Panel
MOSL proposes PAYG mechanism, until Panel advises requirement
As today, MOSL will seek to absorb and fund change from contingency
Three-year forecast outlook: reducing profile (£k)
16,000
14,000
2,000
12,000
1,500
1,500
1,000
1,000
10,000
1,000
8,000
6,000
10,200
9,630
8,990
4,000
2,000
0
17/18 Budget
18/19 Budget
Base
Market Audit
19/20 Budget
Contingency
Questions
Inherent risk score
Risk
Impact Details
Incomplete data may create substantial
Market dataset incomplete with
dissatisfaction amongst customers, market
companies only focusing on identifying
participants and observers that the market
these eligible premises and meters
does not service the interests of customers or
within their systems that they are
segments of the customer base. Despite
currently billing. The incentives for
MOSL having no formal role in policing
companies to address this risk appear
eligibility or readiness this would likely create
weak.
adverse perception of MOSL by association.
CGI are unable to build sufficient
confidence in the operation and
• Reputational damage
performance of the system; or build the
• Operational Impact on both industry and
necessary confidence in their ability to
MOSL
develop and evolve the system in
• Increased costs due to number of manual
response to the demands of the
workarounds
market, undermining confidence and
• Increased cost of MOSL resources
trust in MOSL and constraining the
managing service delivery
development of the market going
forwards.
Loss of confidence in CMOS due to
misuse by users lack of system and
Potential to delay market opening if
code knowledge, leading to a high
escalates.
volume of perceived settlement errors
or customer complaints.
Inaccurate settlement results in the
wrong amounts being
charged/collected from the wrong
parties, undermining confidence in the
market.
• Market opening delayed
• High level market operator disputes
• Companies qualified audit report impacting
investor confidence in the new market
Current risk score
Inherent
Score
12
12
9
12
Mitigation action plan
• Raise with Defra and Ofwat
• Assess market impact and
implement on going
reporting
• Monitoring completeness
of data uploads against prior
expectation provided by
companies
• NRO process (4 processes)
• Reputational damage
• Operational Impact on both
industry and MOSL
• Increased costs due to
number of manual
workarounds
• Increased cost of MOSL
resources managing service
delivery
Potential to delay market
opening if escalates.
• Market opening delayed
• High level market operator
disputes
• Companies qualified audit
report impacting investor
confidence in the new
market
Target
resolution
date
Probab
ility
Score
prev.
Score
now
Apr -17
3
3
9
Jan-17
3
4
12
Ongoing
3
3
9
Mar-17
2
4
8
Tre
nd
Progress
•
NRO process (YVE,
RTS, RV, SPID)
•
Increase LVI CPU
memory
Published release
plan up to 3.0
•
•
•
Weekly surgeries
Settlement checker
output shared
•
•
Weekly surgeries
Settlement checker
output shared
Lessons learnt
shared
•
Assuring Operational Processes
Zainab Mohammed
Assuring Operational Processes
Water Quality
Incidents
Scenario
s
Material
s
Trade Effluent
Planned\
Unplanned
Measuring
performance
Workshop
Questions
Workshop
WRG
WG
Accredited
Entity Scheme
Workshop
November
Workshop
Questions
December
TBC
TBC
TBC
TBC
January
February
Market and Company Readiness report
Lauren Mulholland
Recap on MCR Graphics
• Graphs display scores from July and from October.
• Faded colours represent earlier scores, darker colours represent recent scores
• All scores are non-weighted average scores, with the exception of the level 1 graph
which is weighted by market share
• The lowest possible score in all categories is 25%
Level 1
•
•
•
•
Level 1: A ‘heat map’ of readiness for each market participant type and MOSL
Level 2: A ‘heat map’ of readiness of individual companies
Level 3: Comparison of readiness for each element (e.g. planning)
Level 4: Comparison of readiness for each evidence criteria (e.g. robust plan)
Level 1
Level 2
•
•
•
•
Level 1: A ‘heat map’ of readiness for each market participant type and MOSL
Level 2: A ‘heat map’ of readiness of individual companies
Level 3: Comparison of readiness for each element (e.g. planning)
Level 4: Comparison of readiness for each evidence criteria (e.g. robust plan)
Wholesaler market readiness
Retailer market readiness
Level 3
•
•
•
•
Level 1: A ‘heat map’ of readiness for each market participant type and MOSL
Level 2: A ‘heat map’ of readiness of individual companies
Level 3: Comparison of readiness for each element (e.g. planning)
Level 4: Comparison of readiness for each evidence criteria (e.g. robust plan)
Element Scores
Key Trends
• Wholesalers are scoring themselves slightly higher than Retailers
• 93% of the wholesale market is reporting confidence in all elements (Scores are 3 or 4)
• 77% of the retail market is reporting confidence in all elements (Scores are 3 or 4)
• The lowest scoring companies represent a small percentage of the market
• Major progress has been reported in Company Readiness
Feedback on programmes and risks
Market Participants:
•
•
•
•
Have mostly defined their Strategies and TOMs
Understand resource demands and some have completed recruitment
Report full engagement of their respective boards
Have started communicating Market Reform initiatives to staff
Feedback on readiness
Market Participants:
•
•
•
•
Have completed or are close to completing system delivery
Are continuing internal testing, including testing of new CMOS releases
Have mapped and documented processes
Completed the data load to CMOS and are working on improving outstanding
discrepancies
• Are at various stages of completing their Security and Continuity arrangements
• Are in various stages of training
• Have completed Market Entry Assurance
CIO Forum update
Samir Rahim
Key Topics from CIO Forum
• Will Hewish is now Chair of CIO Forum
• Release Plan to enable Go-Live
• Meter Read Rejections - Industry Group to recommend options
• Inclusion of Retailers to support a representative view
• Test Environment Framework moving forward
• Release Planning & Strategy for Live + 18 months
Executive Summary
MOSL has listened to the feedback underpinning Market Participant need for reliable releases
given most participants are running a live service. As we move out of programme ways of
working into service we have the same aspiration and requirement. Having debated and
discussed the options for release management to enable market opening MOSL has taken a
position on releases that we believe supports the whole market requirement.
To give certainty and predictability the following two slides set out the high level scope and dates
for Releases 2.26 and 2.3. The publication date of release notes is also shown.
The test window availability shows the date range when the releases will be available in MPS for
market participant testing. This is subject to discussion and feedback following Participant
review of the R2.3 XSD and Guidance document.
MPS will be upgraded and performance tuned by end of 2016 to enable Market Participant
Testing for R2.26 and R2.23. The testing performance is also predicated on a representative test
dataset being used for testing of no more than 20,000 SPIDS per participant. This has been
agreed at ORWG.
CMOS Release 2.26
R2.26
Into MPS
Monday, 12 December
High Level Scope of R2.26
•
•
•
•
75 Defect Fixes
16 Workarounds
2 Critical Tariff Maintenance Fixes (that enable MPs to make Tariff Changes via LVI)
Tariff Annual Price Change Upload Capability
•
•
•
•
•
Initial Release Note Published: Friday, 25 November
Final Release Note Published: Friday 9 December
Availability in MPS for MP Testing: 12 December - 5pm, 6 January 2017
Expected Deployment Weekend (into Production): 7 / 8 January 2017
Live in Production: Monday 9 January
CMOS Release 2.3
R2.3
Into MPS
Monday 9 January 2017
High Level Scope of R2.3
•
•
•
•
•
•
•
•
17 WRCs
TBC through Defect & Workaround Log on 22
TBC through Defect & Workaround Log on 22
Initial Release Note Published: Friday, 2 December
Final Release Note Published: Friday 6 January 2017
Availability in MPS for MP Testing: 9 January 2017 - 5pm 27 January 2017 (Issue)
Expected Deployment Weekend (into Production): 28 / 29 January 2017
Live in Production: Monday 30 January 2017
There is no intention to publish any further revisions to the already published R2.3 XSD,
subject to any major changes identified post participant review
Defect Resolution Methodology & Future Releases
In order to maintain a known baseline for participants; MOSL only plans to deploy fixes to
defects identified in either R2.26 or R2.3 that are proven to be business operation or market
opening critical.
In response to your feedback on a R2.4 deployment immediately prior to market opening I can
confirm that the only other releases beyond R2.3 will be to fix market critical defects or changes
that are mandated by OFWAT before Market Opening.
We will continue to discuss with you the scope and timing for Release 2.4 and would welcome
your input and suggestions ahead of us publishing a full release schedule for 2017 before
Christmas. This will include details of the minor release in July (currently planned as R2.5) and
the first major release in the live market (currently planned as R3.0).
Alongside this plan we are looking at ways to provide you real-time access to our live release
schedule and associated documentation. This will mean you will have the same access to
information as we do at any given time.
Lessons learned workshop
Tom Notman
Boyai Pukhrambam
Mike Robertson
Lessons learned workshop
• New regular part of WRG
• Sharing lessons learned from both a MOSL perspective and a Market participant
perspective
• Everyone is invited to present their learnings at future WRG meetings
Any other business
Tom Notman
AOB
• Coming up:
• Open Water Update Call (24 November)
• CIO Forum (2 December)
• Open Water Update Call (8 December)
• CIO Forum (9 December)
• Operations and Release Working Group (13 December)
• ICP meeting (13 December)
• Business Plan review (15 December)
• CIO Forum (16 December)
• December WRG (21 December)
• Wrap up and close
Thank you…
Safe journey home!