MOSL today published its 2021-24 Business Plan, following approval from its members at a General Meeting on 25 February.
The business plan sets out MOSL’s priority improvement programmes for 2021/22 and beyond as part of its first rolling, three-year plan – providing its members and the market with greater clarity on its future plans and their associated costs.
In the lead up to today’s General Meeting, MOSL consulted closely with its members and key stakeholders, including the Panel and MOSL Board. Broad support was received for the level of MO charges and the focus areas and phasing of its improvement programmes.
MOSL’s 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.
Its budget for 2021/22 totals £11,415k across the two components – core service delivery and its improvement programmes. The headline messages for its 2021/22 budget:
- The costs of its core service delivery is lower due to continued improvements in efficiency
- The costs of its improvement programmes is higher due to the short-term peak in the Bilateral Transactions Programme costs
- The overall budget is slightly higher – but the short term increase in the cost of improvement programmes will be funded from its reserves, using savings realised in 2020/21
- Its Market Operator (MO) charges will reduce by 1.1 per cent, reflecting the improved level of efficiency
Following feedback from its members, and as a result of ongoing business planning activity, in 2021/22 it will introduce a new ‘gated’ investment approval process which will monitor and track benefits. This will cover all work under its improvement programmes, as well as other projects funded as part of its core service delivery, where these projects involve a material level of change, spend or cross-business impact.
Following its approval by members, MOSL CEO, Sarah McMath, said:
“This year business planning was undertaken amidst the backdrop of COVID-19, as we collectively rallied to build resilience and secure stability for the non-household market. I recognise this has been a challenging period for all parties operating in the market – which we have been very mindful of when building our first three-year plan.
I also know that during this period, trading parties have had to shift their priorities and manage their resources in response to the pandemic and so I am even more appreciative of the level to which they have engaged with us during the consultation process.
This year, perhaps as a consequence of the pandemic, I have seen trust in the market grow as we have collaborated on addressing the most immediate challenges. Our 2021-24 seeks to continue addressing those immediate ‘pain points’ with a clear focus on the long-term strategic changes that are also required. Our improvement programmes will drive significant improvements to the market, but will require ongoing input and collaboration from trading parties. I look forward to delivering the plan, as we move beyond COVID-19 and look forwards future years.”