Ofwat has launched a consultation flagging up the anticipated confirmation of Market Operator Services Ltd (MOSL) as the official Market Operator when the retail market opens for competition in April 2017.
MOSL was originally set up with a view to it becoming the first Market Operator. In December 2016, Members of MOSL approved its business plan and budget for 2017/18, together with updated Articles of Association, on the basis that it would be appointed as the Market Operator from April 2017 onwards.
The new Market Arrangements Code MAC condition will take effect at Market Opening, and requires all market participants to be a party to, and comply with, the MAC. Among other things, the MAC condition requires market participants to make sure that the MAC itself includes provisions for the establishment, and funding at all times, of a body to perform the role of Market Operator.
In order for Ofwat to be satisfied that all wholesalers and retailers will be compliant with their legal obligations once the MAC condition and MAC take effect at Market Opening, the regulator has now written to each wholesaler and retailer asking them to confirm that they have appointed a Market Operator.
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