Menu


MOSL

Business Plan

previous

Market Assurance

Next

Our 2021/22 budget
financial summary

Financial overview

‍

Our business plan for 2021-2024 aims to deliver high quality, reliable and consistent core services alongside a longer-term plan that drives the market forward and unlocks value for customers through a number of improvement programmes.

‍

It is a highly cost-conscious plan - recognising the challenging economic environment – with a focus on reducing cost to serve and delivering a well prioritised, phased programme of improvements that will drive benefits and add value.  

‍

Our plan has been developed in two parts:

‍

Core service delivery – 2021/22 – our detailed budget and plan to support the delivery of ‘business as usual’ core services, in line with both our code obligations and wider member expectations.

‍

Improvement programme – three-year plan to 2023/24 – our longer-term delivery roadmap that sets out how we will advance the market through our strategic priorities.

‍

Taken together, these provide our members with clarity on:

Year one (2021/22) - Proposed total cost budget and service delivery plan (core services and improvement programmes), together with related proposed Market Operator (MO) charges. This part of our business plan will be subject to member approval at the General Meeting on 25 February 2021.
‍
Years two and three (2022/23 and 2023/24) – Proposed longer-term improvement programme, including scope of work, benefits and cost. Providing a clear line of sight (and cost trajectory) of our integrated programme whilst retaining flexibility to respond to changing priorities and the economic climate, as our three year plan rolls forward each year. This element of our plan is indicative – the phasing of the plan reflects feedback we received from our members through the consultation, but we will not be seeking formal approval for activities outlined in years two and three at the General Meeting.
Core service delivery - 2021/22
‍
Our core services plan delivers more, with higher quality and consistency, at a lower cost to members.
Market Operator (MO) charges reducing by 1.1 per cent on the budgeted level for 2020/21
Core service delivery cost is 2.6 per cent (£250k) below the 2020/21 budget equivalent – enabling the reduction in MO charges
Delivering more scope within core services than in 2020/21 – including increased cybersecurity capability and providing wider support to market bodies such as the Retailer Wholesaler Group (RWG) to benefit the market
Capacity and capability of team improved in line with the 2020/21 Business Plan - larger, more stable team delivering increased quality and retaining skills and knowledge in the business.
Improvement programmes to 2023/24
‍
Our improvement programmes set out our longer-term roadmap to drive market improvement, including what we will deliver, the benefits this will bring, and how much it will cost.
Integrated delivery plan for our four strategic priorities through improvement programmes – providing visibility over a longer-term
Clear and transparent prioritisation – we have set out how we have balanced early delivery of benefits with the need to carefully phase the cost impact for members
Average annual cost of delivery across the three years is lower than the 2021/22 budget equivalent.

Funding of our plan – 2021/22
‍

The total cost of our plan in 2021/22 is £215k higher than the budget for 2020/21. Whilst the budget for our core services is lower, reflecting more efficient delivery, the costs of our improvement programmes are higher, as this is when the majority of our Bilateral Transactions Programme will be delivered
We will fund the higher short-term costs of our improvement programme in 2021/22 through reserves from our expected underspend in 2020/21, rather than increasing MO charges
Our reserves are built up when we spend less than we collect in MO charges. We expect to spend less than budget in 2021/22, through increased efficiency and some one-off savings. These savings will allow us to fund the short-term increase in the cost of our improvement programmes
MO charges will reduce by 1.1 per cent (£125k) in our 2021/22 plan - reflecting more efficient delivery of core services versus the 2020/21 budgeted level.

Funding of plan – 2022/23 and 2023/24
‍

MO charges will be set each year as part of our annual business plan approval process – in the same way as charges for 2021/22 are subject to member approval
Our aim is to continue to drive improved efficiency in our core service delivery, helping to keep MO charges as low as possible
We will continue to phase the delivery of our improvement programmes so that the costs can be spread evenly, avoiding volatility in MO charges
Our improvement programmes enable greater efficiency and cost savings in the longer term – both for MOSL and the wider market – helping to deliver better customer outcomes.

previous

Market Assurance

Next

Our 2021/22 budget
Consultation form

Contents

Introduction
View from our Chair
1
View from the Panel Chair
2
Introduction from our CEO
3
Our approach to business planning
4
improvement programmes
Bilateral Transactions Programme
5
Strategic Metering Review
6
Modernisation of Market Facing Systems
7
Channel Management
8
Cost to Serve Efficiency
9
Data Insight
10
Market Code Simplification
11
Market Governance
12
Market Assurance
13
Financial summary
Financial overview
14
Our 2021/22 budget
15
Improvement programmes
16
Deep dive one - Core service delivery costs
17
Deep dive two - Panel Plan integration, delivery and costs
18


MOSL

Consultation