Over the past number of months, a number of critical, market impacting issues have come to the fore which have had a significant impact on market outcomes. The onset of unprecedented high prices and ongoing security of supply concerns are of particular note. It is important that we respond quickly to issues and reprioritise our work accordingly.
In Q4 2022, we published our FWP for October 2021 – September 2022 outlining the most significant projects we proposed to undertake during that period.
Much progress has already been made towards the completion of many of the identified projects with over 70% already completed or on track for completion by the end of the FWP year. This is welcome progress and we will continue to work towards the delivery of our commitments. We have also seen some of the identified projects expand beyond their original scope. Our MMU team for example are currently progressing a substantial volume of market queries and investigations to ensure the market and market participants are operating in accordance with market rules. The resource challenges identified in our published FWP also remain. This is likely to mean that some projects may not see completion within this FWP year. This includes, for example, the completion of our work on market power and liquidity and implementation of the BMPCOP.
When we published our FWP, we recognised the emerging impact of high international wholesale fuel costs and ongoing security of supply concerns. Since publication, these risks remain with further unprecedented increases in wholesale fuel prices having an even greater impact on market prices and consumer bills. We have already taken steps to address emerging issues in relation to increased prices and further steps to help address security of supply concerns as demand increases and older generation retires from the market. We recognise that we need to concentrate our resources in these areas of greatest need in order to protect consumers and the market.
We have therefore identified some additional projects that will form part of our FWP work this year. These include a review of some of the CRM policies and processes to enhance efficiency, a review of the capacity market parameters, a look at the de-ratings for some generators and a workstream looking specifically at any necessary market response to the recent volatile and unprecedented wholesale fuel prices. These projects are already well underway alongside the significant progress already made in meeting our published FWP commitments.
We welcome the ongoing engagement with industry on all areas of our work and look forward to working together to ensure our market works effectively and in the best interests of consumers.