Interim Code Panel
ICP22 – 27 September 2016
Minutes of the meeting of the Interim Code Panel
Held at Ofwat, Bloomsbury on 27 September 2016 at 10:30am
Status of the Minutes: DRAFT
MEMBERS PRESENT
Tim Davis / (TD) / Chairman / Trevor Nelson / (TN)Mark Holloway / (JT) / Mike Brindle / (MB)
Howard Smith / (HS) / Elsa Wye - by phone / (EW) / Independent
David Siddall (alternate for Nicola Smith – by phone / (DS) / Martin Silcock / (MS) / ICP Secretary (non-voting)
John Vinson / (JV) / Tim Griffiths / (TG) / Ofwat
Nigel Sisman / (NSi) / Independent
IN ATTENDENCE
Kulwinder Johal / (KJ) / MOSL / Martin Mavin / (MM) / WRC044Dan Mason / (DM) / WRC040/WRC043 / Alex Whitmarsh / (AW) / WRC010
John Kennedy / (JK) / WRC050 / Patti Quintana / (PQ) / WRC057
Stephen Beddoes / (SB) / WRC060 / Harvey Gill / (HG) / WRC058
Ruth Gibson / (RG) / MAC007 / Licensing / Don Maher / (DM) / Emergency Contacts
APOLOGIES
Ben Jeffs / (BJ) / MOSL / Steve Hobbs / (SH) / CC WaterAmanda Rooney / (AR) / Ofwat / Nicola Smith / (NSm)
Action: ICP_A0xxx
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14/14 / Minutes of Previous Meetings/Actions arising
The Minutes from 18 August 2016 were accepted.
The Minutes from 13 September 2016 were accepted.
The Action Log was reviewed and all actions closed except:
· ICP_A0122,127,128, 130 – all actions are underway and due back from October.
· ICP_A0131 – Action is underway, to be completed by October.
· ICP_A0132 – Action is deferred to October for completion.
ICP/WRC010 – Alignment with Charging Scheme Guidance (A Whitmarsh)
Decision: Recommended
This change proposal is to align the Codes with Ofwat’s Charging Scheme guidance. In November 2015 the Charging Rules were finalised. This change proposes to introduce a Surface Water Drainage factor (SWDF). Following submission at 13 September ICP meeting, the drafting and Change Proposal have been updated following feedback.
The key points discussed by Members were:
· Explain the need for the factor to be above 100%;
· Is there a requirement to add an upper limit on the factor above 100%;
· The change proposal seems overly complex for the minor change required. It was explained that this proposal was originally submitted in September 2015 and the Proposer chose to retain a large proportion of this;
· The proposal states a discount but this is not what is proposed;
· The comments made should be logged for future review;
· There are other options if Market Participants choose to use them.
Members voted unanimously to recommend the Change Proposal be implemented on the basis of improving the principle of Efficiency by allowing charges to be set as intended.
ICP/WRC040 - Guaranteed Service Standards (GSS) (D Mason)
Decision: Deferred to October ICP meeting
This proposal was submitted at the 13 September ICP meeting where Members agreed a review of the legal drafting should be undertaken.
Key points raised by Members:
· Drafting for the definition still not clear;
· Further definition is required for the GSS Regulations;
· Issues could be resolved by feedback if supported by an ICP Member;
· The intent of the change proposal is good but not sufficiently clear.
Members voted unanimously to defer consideration of the Change Proposal to the October ICP meeting.
ICP/WRC043 - Credit and Payment Terms (D Mason)
Decision: Deferred to October ICP meeting
The proposal seeks to clarify acceptable credit and payment terms options available to Trading Parties. The policy statement was published on the Ofwat website on 12 September. Following a one-week consultation, a large number of comments were received on both the change proposal and policy. These have been captured and comments made in a spreadsheet which has been published. As the change proposal and drafting changes were only published on 26 September, Members have not been able to fully consider these so the Proposer suggested a further teleconference next week to clarify any issues ahead of a recommendation vote at the October ICP meeting.
The key discussion points were:
· Drafting issues
o Bank rate definition, Eligible support – options used, Eligible Credit not defined, Letter of Credit – should this being a minimum be stated explicitly;
· It was agreed a legal walk through by the lawyers with Market Participants would be useful, explaining how the text delivers the intent of the change proposal. The text and change proposal could be revised in light of any feedback during that walk through. (Arranged for Friday 30 September, including a WebEx facility.)
Members voted unanimously to defer consideration of the Change Proposal to the October ICP meeting.
ICP/WRC044 – Ops Terms Alterations (M Mavin)
Decision: Recommended
The proposal was previously submitted to the July ICP meeting and was sent for Assessment to complete further work on confirming the proposed data items. A teleconference was held to discuss the proposal. The questions were posed and no feedback was received to oppose the change.
The key discussion points were:
· One Market Participant raised an issue about the cost impact for companies;
· There was no feedback on the issue of Retailers having to use a number of different solutions;
· Single set of forms would be more efficient;
· Work was completed by Bilaterals Working Group;
· MO impact assessment is Low (<£10K)
Members voted unanimously to recommend the Change Proposal be implemented on the basis of supporting Efficiency and Transparency.
ICP/WRC048 – Tariff Table update (KJ)
Decision: Recommended
This change proposal seeks to update CSD 0302 to reflect the Tariff Table upload format, which reflects the design already in CMOS.
The key discussion points were:
· MO impact assessment is Low (<£10K);
· Changes were made to the proposal after publication, due to design updates not being fully reflected in the proposal and drafting.
Members voted unanimously to recommend the Change Proposal be implemented on the basis of improving the principle of Efficiency.
ICP/WRC050 - Direction to Supply (J Kennedy)
Decision: Deferred to October ICP meeting
The Direction to Supply Regulations are intended to ensure that NHH Customers always have a supplier. Whilst it is expected that most Customers will choose their Retailers in the market, there will be some instances where this is not the case. In these situations, Ofwat will be required to allocate a Retailer to the Customer. The Ofwat consultation has completed, with broad agreement of the policy from Companies.
The key discussion points were:
· Why are two definitions contained in the Codes;
· Direction to Supply Allocation – not defined in Market Terms;
· Gap sites will exist, should this be recognised in the Codes;
· Correct drafting issues in CSD 0005.
Members voted unanimously to defer consideration of the Change Proposal to the October ICP meeting.
ICP/WRC057 – Trade Effluent Updates – Form H01 (P Quintana)
Decision: Recommended
Form H01 is used for allowances. There is a concern that the multiple DPIDs on a SPID are not identified as there is currently no field available on the form.
Key points raised
· Clarification on the impact to Trading Parties and their systems – the Proposer stated there was no impact;
· Clarification that there would need to be one form per DPID.
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· Members voted unanimously to recommend the Change Proposal be implemented on the basis of improving the principles of Transparency, Simplicity and improved Customer Contact.
ICP/WRC058 – Meter Serial Number (H Gill)
Decision: Sent for Assessment
This change proposal seeks to add a space into the Meter Serial Number field. The current format does not allow for this.
The key discussion points were:
· MO impact assessment received – Low/Medium – could cost up to £100K;
· Is there any impact on Market Participant systems;
· Is this a large issue in the market – older meters have this issue (19K NHH meters in Affinity);
· Currently adding data with underscores rather than spaces. Could propose a standard in the Codes for underscores rather than spaces. Need to find out from Market Participants as to how they have dealt with it;
· May be inaccuracies and effort required to update the data as it has already been loaded;
· Currently issues with inconsistencies with legacy systems and CMOS for Affinity;
· Not sure if there is a wider impact for all Wholesalers – if the change is implemented will there be an impact if systems have been built to current specification;
· Is there a wider impact on Third Parties and Retailer systems;
· This has previously been discussed in the Data SIG with some acknowledgement that others had the same issue;
· What is the solution to rectify the data from now.
Members voted unanimously to send the Change Proposal for Assessment, and return to ICP by November.
ICP/WRC060 – Data Sharing (S Beddoes)
Decision: Recommended
This change proposal seeks to allow the MO to release data requested by the Authority in furtherance of its statutory functions.
Key points raised:
· MO impact assessment – Low (no cost impact);
· Should the proposal state ‘reasonable’ data requests;
· Reduces and stops delays by including statutory functions as a reason for data release.
Members voted unanimously to recommend the proposal the basis of improving the principle of Efficiency, Proportionality and Simplicity.
MAC007 - Transitional Charging period (R Gibson / C Daly)
Decision: Recommended
The proposal is to remove all references to the transitional charging period from the MAC and to make any consequential changes necessary as a result of the removal.
Members voted unanimously to recommend the Change Proposal be implemented on the basis of improving the principles of Efficiency, Proportionality and Transparency.
Forward Planning
The plan was reviewed and there are still a number of Change Proposals to be submitted in the coming months. Some of these proposals are following Assessment from a previous ICP meeting and some new and being raised by Market Participants.
AOB
· DROUGHT PAYMENTS – R Gibson
The proposed changes were outlined in a paper / presentation with proposed drafting for Business Terms - Schedule 3.
Key discussion points were:
· Retailer is expected to manage the relationship with the Customer so it needs to be in the Codes, as with GSS;
· Customer bill from preceding year is used as the cap for payments, but is not known to Wholesalers;
· How will payments be made, lump sum or individual £50 payments;
· Possible impact on resources as both Household and Non Household Customers are paid and may be in the same premises so responsibility for payments is split between Parties;
· Propose to extend the Leakage Allowance Working Group to discuss this further.
· CODE CHANGE PROCESS – R Gibson
The proposed changes were outlined in a paper / presentation with proposed drafting. The Wholesale-Retail Code (WRC) is established by legislation but the MAC is not. Therefore, a robust code change process is required for the MAC.
Key discussion points were:
· May not best serve Ofwat if there is a strict timetable for CP progression;
· Current issue, if the Panel does not make a recommendation, Ofwat have no powers to take any action or make any decisions – this can cause delays or inaction;
· Concerns that there is no due process;
· Ofwat always sits on the Panel meetings so has the information first hand;
· The provision would allow for questions after recommendation by the Panel;
· Use the word “invite” rather than direct. Be clear on drafting of the Parties responsibilities and actions required;
· Proposing to bring a Change Proposal to the Oct ICP meeting, any feedback would be useful to allow update of this proposal by Friday.
· EMERGENCY CONTACT DETAILS – Martin Silcock
The proposed changes were outlined briefly and the key discussion points were:
· Wholesalers have been discussing this proposal and it has been submitted to the Secretariat this week;
· This is alerting the ICP ahead of the October ICP meeting;
· Data Protection issues need to be considered;
· Liability considerations may be an issue;
· Change Proposal to be published.
The next ICP meeting is scheduled for 11 October 2016, 10:30am, at Ofwat, 21 Bloomsbury Street, London. / KJ (133)
KJ (134)
KJ (135)
KJ (136)
KJ (137)
KJ (138)
KJ (139)
KJ (140)
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