An unplanned settlement run is the recalculation of primary charges for an invoice period outside of the planned schedule of reconciliations. It can be carried out when an incorrect data item has affected the calculation of primary charges reported in a planned settlement run.
Unplanned settlement runs will either be carried out by agreement of the impacted trading parties (corrective settlement runs and post RF settlement runs) or following the resolution of a dispute (dispute settlement run).
These recalculated values can be used by the affected parties to determine charges due by the retailer to the wholesaler.
An unplanned settlement run must be raised within the timeframe for each run type, as such:
- Reconciliation (R1-4) runs must be raised within 10 business days of publication;
- Preliminary (P1) runs must be raised within two business days of publication;
- Post RF runs must be raised within 20 business days of publication; and
- Dispute runs should be raised in a timely manner following rectification of the issue.
In the event in which an application is raised or notice has been provided to MOSL prior to publication of the relevant settlement report, the application will not be processed until said reports have been published to the wider market, as per the dates outlined within the MOSL calendar and along the guidelines stipulated within the Code Subsidiary Documents (CSDs).
Unplanned settlement runs must meet a materiality requirement. Where this is not met, trading parties will need to wait until the next planned settlement run.
The costs of an unplanned settlement run can be found on the additional services webpage and will be based on the number of wholesale-retail pairings required. However, no charge will apply for pairings where the included retailer is indirectly affected by the actions of other retailers. For example, where a new retailer has provided an inaccurate meter reading within CMOS, but the effects of the meter reading have also affected charges for the previous retailer. The new retailer’s pairing will be chargeable, but the previous retailer’s pairing will be corrected without charge.
The costs are to be covered by the impacted trading parties – for voluntary re-runs, costs can be assigned as agreed by the affected parties. Costs accrued through the dispute settlement run will be determined and allocated by the Trading Disputes Committee (TDC), the arbiter or the expert as applicable.
Materiality thresholds are:
For corrective settlement runs, the larger of -
- 1.0% of the value of the primary charges due to the contracting wholesaler, from the contracting retailer, for the relevant area in that invoice period; and
For dispute settlement runs, the larger of -
- 1.0% of the sum of the aggregate value of the primary charges due to the contracting wholesaler, from the contracting retailer, for the relevant area over all of the relevant invoice periods; and
- £10,000.00 x the number of runs proposed to be carried out
For post RF settlement runs, the larger of -
- 0.1% of the sum of the aggregate value of the primary charges due to the contracting wholesaler from the contracting retailer for the relevant area for each of the relevant consecutive invoice periods affected; and
- £3,000.00 x the number of runs to be carried out
Trading parties are able to initiate an unplanned settlement run request via Kissflow. As the initiator of the application for an unplanned settlement run, you will be required to ensure the below points have been actioned appropriately:
- Ensure that the Supporting Unplanned Settlement Information document has been filled out correctly, including:
a. The current figure of the incorrect settlement run (or incorrect element);
b. The projected figure following correction and how this has been determined; and
c. Demonstrating that the correction will meet the minimum 1% of primary charges and threshold requirement dependent on the type of unplanned settlement run you seek.
- That you have correctly provided information concerning the issue, including the reasons for why you believe an unplanned settlement run is required;
- Detail sufficient information of each wholesale-retail pairing requiring recalculation;
- Determining contributing costs of the unplanned settlement run; and
- Finally, that all parties (including indirectly affected organisations) are in agreement of the unplanned settlement run occurring (and any assigned costs), with attachments provided evidencing their approval.
You will first receive your settlement run – this will be published following the unplanned settlement run completing successfully. Following this, MOSL will provide a comparison of the planned settlement report, against the settlement recalculation, in the format of the unexpected results reports. This report will be uploaded to the legacy website forums.
Please be aware that future unexpected results of planned settlement runs will not consider any corrective rerun data. Any analysis undertaken by the initiating trading party should consider variances which may occur between said corrective runs and the unexpected results comparisons.
Other trading parties may receive disaggregated reports for meter networks (D3) and/or user exceptions (D4) reports upon the recalculations of a separate wholesale-retail pairing. Please note, this is generated by CMOS but should not affect settlement calculations. If any issues do occur, please contact Operations, who are available to provide guidance if there are any queries.