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.
You can view the standard trading dispute process below:
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:
- Raise Trading Dispute
- Hold resolution meeting with disputies parties
- Raise to Disputes Committee for decision
- 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.