Settlement is run every month by MOSL, as per the settlement timetable, to calculate how much each retailer owes a wholesaler for that invoice period.
Settlement can also be calculated through Unplanned Settlement Run calculations if the individual wholesaler and retailer agree, or following the resolution of a dispute. Unplanned Settlement Runs can be issued to address problems with Planned Settlement Runs such as significant errors in data.
Please see the MOSL Calendar to view upcoming settlement invoice report dates.
Obligations under the codes
The timetable for settlement, the process by which MOSL runs settlement and how it produces settlement reports, is set out in more detail in CSD 0201 (Settlement timetable and reporting).
CSD 0207 (Charge calculation, allocation and aggregation) describes how MOSL, through CMOS, calculates charges using wholesaler tariffs and supply point data.
Related code documents
Related CMOS documents
It is usual for the sums on the reports to differ slightly. This is caused by rounding. For example, in the Aggregated Report all the relevant charges (from multiple Supply Points) are initially added without rounding. The totals are then rounded to four decimal places.
In the Disaggregated Reports the charges in each line are shown rounded to four decimal places. When these rounded numbers are added, there is a minor discrepancy in overall total.
No. The Tariff Report will contain tariffs from all wholesalers and will be available to all wholesalers and retailers.
The format and content of the Settlement Reports is defined in CSD0201: settlement timetable and reporting. Where defects in the deployed version of these reports have been identified, the reports will be amended to reflect CSD0201.
This is for the participant(s) to decide between them and is dependent on the requirements of both parties.
The answer to this varies depending on the organisation. Participants should carry out the appropriate checks in respect to the accuracy of the settlement calculation and of the data supplied, to suit the requirements of their organisation.
When a meter has no actual reads in the period, the Yearly Volume Estimate (YVE) is used to estimate charges.
When a Yearly Volume Estimate (YVE) of zero is supplied, zero settlement charge is calculated.
Following the distribution of the R2, R3, R4 and RF Settlement Reports and the distribution of the R1 Settlement Report, where the pre-payment option has been selected by the retailer based on the P1 report - the wholesaler will calculate the reconciliation balances and invoice the retailer in respect of these balances.
The reconciliation balances are the differences between the amounts already paid by the retailer for the invoice period, and the charges calculated by the updated Settlement Run. As such, reconciliation could result in either a refund or an additional charge being applied to the retailer.
With regards to disputes, the next Settlement Run will provide corrections to the disputed item(s). A wholesaler can then reconcile against the previous invoice with any over or under charge identified and reconciled. If this can’t be done, or the dispute meets certain conditions as detailed in Market Terms 4.13.4, then an unplanned Settlement Run can be requested.
Yes. P1 Settlement Reports will be provided to all wholesalers and retailers participating in the market.
Market participant’s systems will inevitably not be directly comparable to CMOS, which may result in this variation. For example, Participants may have various financial, billing and specialised sub-systems in place, which produce similar, but not directly comparable results. For example, is possible that a financial system may calculate monthly revenues, but the routines used to calculate consumption will not be the same as those in CMOS. A billing system is likely to produce bills from meter read to meter read, so these would not cover the same period as the CMOS settlement system. However, over a longer period, these effects will balance out.
Settlement Runs are done overnight, but will only include transactions up to the end of that business day (6pm).
The most likely cause of a user exception is when the tariff for a service component references a specific data item, which has not been provided for that supply point. An example of this could be a Surface Water Drainage (SWD) tariff which referenced Rateable Value (RV) when there was not an appropriate RV available.
Settlement is the process by which MOSL calculates the charges payable by individual retailers to their related wholesalers, for the supply of water and sewerage services. These are created for each invoice period (monthly).
Please note, MOSL takes no part in either the invoicing or funds transfer in respect to these charges. These should be dealt with directly by the wholesaler and retailer in accordance with Business Terms. For more information please the Section 4.13 of the Market Terms.
Participants may have seen a ‘system exception report’ during market testing. The objective of this report is to provide evidence to MOSL of an issue with settlement, primarily due to an internal CMOS defect.
The Central Market Operating System (CMOS) carries out detailed calculations on data maintained by market participants (MPs). The calculations of these are detailed in CSD0207: charge calculation, allocation and aggregation and make use of the tariff data maintained by the wholesalers in accordance with CSD0208: submission and validation of wholesaler tariff data. MOSL produces settlement reports, using this data, in accordance with CSD0201: settlement timetable and reporting. For upcoming settlement and report timings, please visit the MOSL calendar.
This is a report created by MOSL, in addition to those specified in the Market Terms and Code Subsiduary Documents (CSD). It flags up cases where there are ‘unexpected’ changes in settlement between different settlement runs.
P1 runs are carried out before the invoice period, whereas R1 runs are carried out immediately following the invoice period. In accordance with Section 9.2.2 of the Business Terms, a retailer can choose either a pre-payment or a post-payment option with agreement from the wholesaler, in order to pay its primary charges.
The most likely cause of incorrect settlement is incorrect or missing data. Your first action should be to carefully check the data inputted and your calculation.
If you’re still concerned the settlement is wrong, please fill out the Settlement Clarification Request Form.
R2, R3, R4 and RF settlement runs are carried out in a consecutive order every two, eight, fourteen and sixteen months after the end of the invoice period. Each run is a complete recalculation of the settlement charges and factors in new and updated data about each supply point, which has been submitted market participants into CMOS.
The next settlement run will have the corrections of the disputed item. The wholesaler can then reconcile against the previous invoice for any over/under charges. In the event that this cannot be done or where the dispute meets certain conditions, as detailed in Section 4.13.4 of the Market Terms, an unplanned settlement run may be requested.
The settlement system is working well. Settlement testing so far has produced accurate answers based on the calculations specified in CSD0207:charge calculation, allocation and aggregation. However, these answers may not be exactly the same as currently produced by participants’ own systems.
If you are the data owner, you can correct the data by sending in suitable transactions. Please note, there are some transactions which are currently unavailable. In some cases, it it is possible to use a workaround, as detailed in the workaround log, other times may be necessary to wait until a future CMOS Release to correct the data.
The Supply Point Identification (SPID) will stay the same regardless of the tariff applied for settlement, as it relates directly to the premise. If a meter is installed which moves the premise to measured then the wholesaler will need to update the market operator (MOSL) using the T104.W, with all the neccesary data to update this. Settlement charges are calculated on a daily basis and will take into account any changes to tariffs affecting data.
The Trading Dispute process is used to rectify any data item errors, resulting in incorrect Primary charges being invoiced on the Settlement Report. The sole purpose of the process is to correct errors and is not to assign liability to any parties involved.
Section 11.3 of the Business Terms confirms that a contracting wholesaler may stop the transfer of any more supply points in its area if the contracting retailer is subject to an Insolvency Event. An Insolvency Event is defined in WRC, Part 1, Objectives, Definitions and Principles.
The process by which the Credit Support Requirement is calculated is set out in the WRC, Part 1, Objectives, Definitions and Principles and the Business Terms. Please note that this requirement is calculated with reference to the value of the P1 Aggregated Settlement Report and as such, may fluctuate between invoice periods.