Market Arrangements Code and Wholesale Retail Code Change Proposal – Ref CPM058a and CPW149a
| Date | 23 May 2024 |
1
Market Arrangements Code and Wholesale Retail Code
Change Proposal – Ref CPM058a and CPW149a
Modification
proposal
Market Arrangements Code and Wholesale Retail Code Change
Proposal – Ref CPM058a and CPW149a – Market Performance
Framework Reform (Governance)
Decision
The Authority has decided to approve this change proposal
Publication date
23 May 2024
Amended on 16 July 2024 to clarify implementation dates
Implementation
date
26 June 2024 - for Schedule 18 of the Markets Arrangements Code –
Performance Assurance Committee Governance Transitional
Arrangements (attachment 4 to the FRR).
Upon notification by the Strategic Panel that the newly formed PAC
is active – for all other changes.
We are approving this Change Proposal.
This change is the first in a series of planned changes that are designed to reform the
Market Performance Framework (MPF), the mechanisms designed to monitor, govern,
and incentivise Trading Parties to deliver their obligations. CPM058a & CPW149a
establishes new governance arrangements for the MPF, including the creation of a new
Performance Assurance Committee (PAC) to replace the existing Market Performance
Committee (MPC), a more flexible approach to reviewing the MPF, and clarification
around MOSL being subject to external audits.
We are fully supportive of MPF reform and think that, designed appropriately, a
reformed MPF could result in more effective incentives being placed on Trading Parties
to drive improved market performance and better customer outcomes. We therefore
welcome that this change establishes a framework to facilitate MPF reform. We think
the governance arrangements proposed in this change are balanced and encourage a
focus on the customer interest in MPF decision-making, particularly because of the
composition of the PAC (which includes a significant independent/customer
representative membership) and its quoracy and voting rules. We think a more agile
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