Trading Disputes occur when two Trading Parties disagree on whether a data item has been accurately maintained, which has had an effect on Primary Charges. Under the Market Arrangements Code (MAC), parties have an obligation to ensure that data is maintained accurately. In the event of inaccuracy, raising a Trading Dispute effectively escalates the dispute to ensure rectification. Prior to raising a Trading Dispute, however, a Trading Party must make all reasonable steps to resolve the discrepancy with the parties involved.
Trading Disputes are assessed against key criteria which must be met in order for the Trading Dispute to be heard by the Trading Dispute Committee, which decides the outcome of the dispute. Please note, Trading Disputes details are confidential, although summaries will be published on the portal.
Where Trading Disputes result in an unplanned settlement run to correct primary charges resulting from data errors, Trading Parties will be required to demonstrate the disputed amount meets the materiality threshold of 1% of total primary charges for the pairing, or £10,000. Please note Trading Parties are only required to meet this materiality threshold to run a dispute settlement run; it does not restrict Trading Parties from raising Trading Disputes that do not meet the threshold.
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 not to assign liability to any parties involved.
In order for a Trading Dispute to be valid, it must meet the following criteria;
• Trading Parties are disputing a data item
• The disputing party has notified the other disputing party(ies) in writing of the dispute and held a meeting to attempt resolution
• The Trading Dispute is not in respect of Non-Primary Charges, which are outside of MOSL’s remit
• The same data item/error has not been previously investigated.
Trading Disputes should be raised and managed through Kissflow. Any additional information which you believe would strengthen the case for raising a dispute can also be attached to the application. MOSL will acknowledge the application within five business days.
The activities involved depend on the specific Trading Dispute, but key stages can be seen in the diagram below:
Prior to escalating a Trading Dispute to the Trading Disputes Committee, Trading Parties must first have:
• Notified the other Disputing Party(ies) in writing of the existence and subject matter of the dispute and;
• Held a meeting involving all disputing parties to try and resolve the dispute.
To support the Trading Dispute, MOSL will accept additional relevant information from impacted parties.
One of the following steps may be taken to rectify the issue:
• Undertake the next Planned Settlement Run after the 20 business days the parties have to refer the dispute to arbitration;
• Where there is no further Planned Settlement Run, undertake a Dispute Settlement Run;
• Where the period to the next Planned Settlement Run, considered together with the severity of the Trading Dispute, is such that the Trading Disputes Committee believes that a Dispute Settlement Run is justified, undertake a Dispute Settlement Run; or
• Where a Trading Dispute is not decided until after the relevant final Settlement Run, undertake a Post-RF Settlement Run.
Fees for any such rectification will be distributed across the disputing parties as decided upon by the Trading Dispute Committee.
If you are unhappy with the decision proposed by the Trading Dispute Committee, you can refer the Trading Dispute to arbitration. You will have 20 business days from the Trading Dispute Committee decision date to refer the dispute to arbitration. If a Trading Dispute is not referred to arbitration within 20 business days, then the decision of the Trading Disputes Committee will be final and binding for all Trading Parties, and each Trading Party must comply with the decision made.
MOSL do not play an active role beyond monitoring the arbitration process once the dispute has been escalated. Responsibility remains solely on a Trading Party to organise, communicate to MOSL, and undergo the arbitration process, which must be raised under London Court of International Arbitration (LCIA) rules.
For more information on the a Trading Party’s obligations during the arbitration process, please refer to Section 19 of the Business Terms.
The Trading Disputes Committee has responsibility to resolve disputes relating to primary charges, therefore disputes cannot be raised for invoice periods prior to April 2017. However, in certain circumstances historical data (e.g. meter reads) that relate to periods prior to April 2017 may be considered included within the scope of a Trading Dispute, should that data impact an invoice period over which the Trading Dispute Committee has remit.