Market Arrangements Code Proposal– Ref CPM059 – MAC & MOSL Articles Duplication
| Date | 29 October 2024 |
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Market Arrangements Code Proposal – Ref CPM059
Modification
proposal
Market Arrangements Code Proposal– Ref CPM059 – MAC & MOSL
Articles Duplication
Decision
The Authority has decided to approve this Change Proposal
Publication date
29 October 2024
Implementation
date
6 December 2024
We are approving this Change Proposal.
CPM059 will remove duplication in the Market Arrangements Code (MAC) and
MOSL's Articles of Association (AOA) related to the appointment of MOSL's
industry directors. This will mean that where MOSL members vote to make a
change to their AOA in this area, as is their right, an accompanying MAC code
change will not be required. This will enable the CCC and Ofwat to focus on code
changes that can drive more substantial benefit for customers and the market.
CPM059 will also remove a distinction in the MAC between Associated and
Unassociated Retailers, so that this distinction is not made for the purposes of
MOSL's board. This will better reflect the current landscape of the market
where the number of Associated Retailers is small compared to Unassociated
Retailers, limiting the rationale for Associated Retailers to have substantial,
reserved representation on MOSL's board.
Although a code change will no longer be required to align elements of the AOA
and MAC, we are not concerned that this change will result in a reduction of
Ofwat's influence or powers. We consider changes to MOSL's governance
arrangements a matter for its members, and note that Ofwat will still be able to
propose code changes to the MAC if deemed necessary for the interest of customers,
which could include requirements for the AOA to be aligned with any such
amendments to the MAC.
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