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MRA Code Governance Review July 2015 Update

CREG last met on the 30th July 2015. The Group were joined by both MRASCo legal advisers and Ofgem to discuss legal drafting  amendments to the MRA and MAP17 to reflect changes to  materiality testing following CREG’s review and input over the past months.

CREG agreed the proposed legal drafting and recommended for two Change Proposals to be raised into the MRA change process with a February 2016 implementation date. The changes will see the MRA Development Board (MDB) acting as a recommendations body for material changes.

The CREG Closure Report will be presented to MRASCo Board on 25th August 2015.

If you have any questions, please get in contact with the team at CREG@gemserv.com

 

MRA Code Governance Review June 2015 Update

Stage 3 of the CREG project is now coming to a close, with a final meeting scheduled on 30th July 2015 to conclude discussions of the Stage 2 Post Implementation Review, namely a review on the
concept of Materiality under the MRA.

 

As there was no CREG meeting held in June 2015, the following
update will provide an overview of the July meeting:

 

Stage 2 Post Implementation Review

 

CREG will review the legal drafting amendments to the MRA and MAP17 to reflect the following changes:

 

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

 

The Expert Group will be invited to consider any implications of the illustrative drafting following Ofgem’s confirmed position, which
outlines that for the purposes of changes subject to self-governance, MDB should act as a decision making body. For material changes, MDB should act as a recommendation making body to enable the Authority to undertake the decision making role.

 

It is anticipated that Ofgem will also present its rationale behind MDB powers for material changes, following MEC recommendation,
during the July meeting.

 

The Code Review Expert Group Closure Report

 

Over the past two months, Gemserv has been compiling a Closure Report to ensure that both Ofgem Code Governance Review
objectives and the CREG Terms of Reference (ToR) objectives have been met. The Closure Report has been approved by CREG and will be updated following discussions July. The completed report will then be brought back to the August MEC meeting for MEC’s
consideration and approval.

If you have any questions, please get in contact with the team at CREG@gemserv.com

 

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

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