MRA Code Governance Review May 2015 Update

The Code Review Expert Group (CREG) last met on 28th May 2015
and discussed the following:
Stage 2 Post Implementation Review (Materiality Testing):
Materiality Testing was first introduced into the MRA in June 2014.
Since the introduction, a number of observations have been raised
by Ofgem which led to two key areas being proposed to CREG:

  • Extending the scope of materiality testing when MRA Agreed
    Procedures (MAPs) may contain material obligations; and
  • Issuing rejected material changes to the Authority for decision.

At the MRA Executive Committee (MEC) on 28th April 2015, MEC
advised that materiality testing should include MAP Change
Proposals (CPs). Also, where a material CP was rejected, the decision
should also be referred to the Authority in the same manner as a
decision to accept a material CP. Gemserv sought legal advice to
develop the necessary amendments to the MRA and MAP17,
however during the process it became evident a number of
assumptions were being made and needed to be further clarified.
As a result, CREG was invited to outline their preference for MDB to
remain as a decision making or a recommendation panel. Gemserv
are awaiting Ofgem to confirm its position regarding CREG’s
recommendation that MDB should remain as a decision making
body, ahead of legal drafting being raised into the MRA change
process.
The Code Review Expert Group Closure Report
Over the past two months, Gemserv has been compiling a Closure
Report which seeks to set out how Ofgem’s Code Governance
Review objectives in addition to the CREG Terms of Reference (ToR
objectives have been met through the three stages of the project.
The Closure Report has been subject to CREG’s review and in summary,
provides an overview as to how 17 workstreams have been
successfully closed to date. CREG recommended the Closure Report
be taken to MEC for approval alongside a recommendation to close
CREG and undertake a post implementation review in 12 months’
time.
If you have any questions, please get in contact with the team at
CREG@Gemserv.com