Disputes

As the disputing party, you must ensure that you adhere to any SLAs which have been set for you. These are code-obligated SLAs which will help to ensure that all disputes are completed within a justified timeframe. Furthermore, it is important that, as the disputing party, you submit only accurate and correct data, when requested by MOSL.

MOSL, as market operator, retains an overall responsibility to provide independent case management capabilities for disputes in the market. Where MOSL is also a disputing party, we will ensure that we maintain separation when dealing with the dispute in our capacity as Case Manager. We will also ensure that no one making decisions regarding the resolution is involved in the overall management of the dispute. In all cases, MOSL will operate to a Code of Conduct to ensure appropriate behaviour and neutrality.

The 'expert' is appointed through mutual consent by participating disputing parties, to aid the resolution of a dispute. Experts can be nominated by any party or through a list of recommended 'subject matter experts' from the Academy of Experts.

The role of the expert is to act as an independent decision maker, who will deliver an overall judgement, oversee the creation of a remediation plan and disperse the total expenses and fees incurred through the MO Dispute process.

The expert will provide the MO disputing parties with a breakdown of fees and any reasonable expenses incurred. The disputing parties are required to share the fees and expenses equally, unless directed otherwise by the expert. The expert has the authority to direct one party to pay a larger sum (which includes, but is not limited to, fees and expenses).

Both MAC and Non-Trading Disputes are raised and managed through Kissflow. You will need to complete all necessary fields as part of your submission and submit any attachments you believe strengthen the cause for raising a dispute.
Prior to raising a MAC or Non-Trading Dispute, you should first raise a Statuatory Query wih MOSL to confirm any differences of interpretation. If you believe another trading party is not acting in alignment with the market codes, you should attempt to resolve the issue directly with the associated party prior to raising the dispute.

Once your dispute is accepted, you will need to work with MOSL to attempt to resolve your issue successfully. This can be done by:

• Working efficiently to make sure that all code obligated deadlines related to the dispute process are met
• Ensuring that you provide accurate data throughout the processing of your dispute
• Making sure you set up and honour the dates of any scheduled meetings and that the appropriate individual attend all meetings
• Maintaining appropriate contact with MOSL, especially where MOSL is not a disputing party and is acting instead as a Case Manager. (Where MOSL is acting as a Case Manager, we will operate to a Code of Conduct to ensure complete neutrality.)
• Entering the dispute process in good faith and with an openness to reach a resolution.

Further details on the MAC Dispute Resolution process can be found in Sections 17.2 to 17.9 of the MAC. Additional Information concerning a Non-Trading Dispute can be found within Section 17 of the Business Terms.

The outcome of either the MAC or Non-Trading Dispute will depend on its nature, and the levels of escalation required through the MAC and Non-Trading Dispute resolution process. The overall decision will be determined either between the disputing parties or by arbitration, if a resolution is not possible. Outcomes can include, but are not limited to:

• Code change. If both parties agree that the section of code which has led to the dispute is ambiguous, a code change proposal may be submitted to the Panel who will consider the change
• Change in process. This may be a change to how MOSL or the trading party operates
• Rectification of previous errors. This may include revisions to previous determinations made by MOSL.

There are no fees associated with raising a dispute, however fees will be incurred if the dispute gets referred to arbitration. All parties involved will be jointly liable for paying costs, the total amount of which will be determined by the LCIA Court as its Schedule of Costs. The arbitration tribunal will determine the proportion of the total costs payable by each involved party. The tribunal may also recover expenses in connection with arbitration and further costs may be incurred as a result of rectification activities, which may arise as part of a dispute's resolution.

If your dispute is rejected it will be closed in Kissflow and no further actions are required, unless you wish to raise another dispute. MOSL will provide a rationale for the rejection, which can be found on your submission.

Please click here to download an outline of the MO Disputes process. This outline map clearly shows key stages of the process, including resolution and the steps disputing parties need to take.

An MO Dispute is the end product of when a trading party believes an error or omission regarding the production of the Settlement Report has occurred by the Market Operator (MOSL).
An MO Dispute may only be initiated upon attempting a resolution through either mediation/informal meetings - as an attempt to resolve the issue or query with associated disputing parties or by raising a Statutory Query. If a resolution has not been found via the Statutory Query Process, the initiating party will be required to initiate an MO Dispute.

Prior to raising an MO Dispute, trading parties must have attempted to resolve their issues through the Statutory Query process. If this does not achieve a suitable resolution, they will then be required to attempt a mediation step with MOSL. Only when both the Statutory Query process and mediation fail to provide a resolution, will the trading party be able to initiate the MO Dispute Process.

MO Disputes should be raised through Kissflow, where the initiator of the dispute will be required to provide a completed MO Disputes Form which will be submitted also through Kissflow. In order for the dispute to qualify, the initiator will be required to ensure the dispute meets all criteria listed within the form prior to submission. The application form may be rejected if the dispute request fails to meet the criteria outlined.

The initiator will be required to ensure all forms and supplementary documentation have been submitted within the allotted period and that the form has been completed accurately and submitted by the relevant Contract Manager.

Upon receipt of the application, MOSL will provide acknowledgement of the dispute within a suitable period of time. Kissflow will also generate an MO Dispute Number for your application, which will be associated with your dispute logged with MOSL.

Upon submission of the Dispute Application via Kissflow, a Case Manager will be assigned to the application. The Case Manager will determine if the dispute meets the criteria and if so, progress it through Kissflow. This includes tracking decisions made by an appropriate expert, where required. Upon a decision being made, remediating actions will be taken within Kissflow as needed.

Where the dispute is successful, remediation measures will be taken to rectify the issue, including re-running settlement and/or the formation of a remediation plan. Other affected parties and/or broader audiences will be notified of the dispute findings; MOSL will publish any findings on its website.

If you are raising an MO Dispute it must meet any of the following criteria in order for it to be considered valid:

1. MOSL produced an inaccurate settlement, that is not caused by any data item of the trading party raising the dispute, or another trading party
2. MOSL failed to provide a rectification plan within two months
3. MOSL failed to implement its rectification plan in a timely manner
4. MOSL provided a rectification plan that is unclear, incomplete or materially incorrect.

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 dispute, however it will follow these four key stages:

1. Raise Trading Dispute
2. Hold resolution meeting with disputies parties
3. Raise to Disputes Committee for decision
4. Refer to arbitration.

The objective of arbitration is to obtain a fair resolution of disputes by an impartial tribunal, without unnecessary delay or expense. If it has not been possible to resolve the dispute at three previous meetings, either disputing party can refer the dispute further to arbitration. This is done by submitting a written request to the The London Court of International Arbitration (LCIA). The disputing parties will have the opportunity to agree and nominate a sole arbitrator, who will review the dispute and come to an impartial decision. If the disputing parties are unable to agree on a nominated sole arbitrator, a request can be submitted to the Panel Chairman who will instead nominate a proposed sole arbitrator to the LCIA. In the event that neither party nominates a sole arbitrator to the LCIA within 20 business days of the filing of the response, the LCIA will nominate a sole arbitrator in accordance with the LCIA rules.

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 decision of the sole arbitrator will be final and binding for all the disputing parties. In referring a dispute to arbitration, the disputing parties waive any right to challenge or appeal any outcome of the arbitration tribunal to the full extent permitted by law.

The 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 Dispute Committee has remit.

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.

If you are unhappy with the decision proposed by the Dispute Committee, you can refer the Trading Dispute to arbitration. You will have 20 business days from the Dispute Committee decision to refer the dispute to arbitration. If a Trading Dispute is not referred to arbitration within that time, then the decision of the Disputes Committee will be final and binding for all trading parties, and each must comply with the decision made.

Prior to escalating a Trading Dispute to the Disputes Committee, trading parties must first have:

• Notified the other disputing party(ies) in writing of the existence and subject matter of the dispute
• 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 trhe dispute to arbitration
• Undertake a Dispute Settlement Run, which will be determined by the Disputes Committee. It is decided by looking at the period to the next Planned Settlement Run, alongside the severity of the Trading Dispute
• 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 Disputes Committee.