Wholesale Retail Code and Market Arrangements Code Change Proposal – CPW098 and CPM027 - Decision document
| Date | 29 May 2020 |
1
Wholesale Retail Code and Market Arrangements Code Change Proposal
– Ref CPW098 and CPM027
Modification
proposal
Wholesale Retail Code and Market Arrangements Code Change Proposal –
CPW098 and CPM027: Extension of Suspension of Market and Operational
Performance Standard Charges
Decision
The Authority has decided to approve this Change Proposal
Publication date
28 May 2020
Implementation date
1 June 2020
Background
Ofwat has continued to work closely with MOSL during the Covid-19 pandemic and
together we have identified a number of measures to minimise the disruption on the
market, some of which were urgently progressed through Authority Timetabled
Change Proposals to the codes. One of these urgent changes was CPM023 /
CPW090 which was implemented on 23 March 2020. CPM023 / CPW090 was
implemented as it was not considered reasonable for Trading Parties to incur
penalties for failing to meet performance standards due to factors beyond their
control during the Covid-19 pandemic. Implementation of CPM023 / CPW090
resulted in the suspension of the levy and collection of charges for Market
Performance Standards (“MPS”) and Operational Performance Standards (“OPS”) for
a period of three months, from March 2020.
The initial MPS and OPS suspension timeframe is due to expire on 31 May 2020. As
the Covid-19 pandemic is still ongoing, with many businesses continuing to be
impacted, this Change Proposal has been developed to extend the timeframe that
MPS and OPS charges are suspended so that Trading Parties are not unfairly
penalised by incurring MPS and OPS charges because of factors beyond their
control due to Covid-19.
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