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Claims & Disputes

Trading Disputes

Trading Disputes provide a mechanism for correcting identified Settlement Errors. It allows for energy that was incorrectly calculated to be re-calculated, and the corrected Trading Charges distributed accordingly.

When should I raise a Trading Dispute?

A Trading Dispute can arise when errors in the data, processes and/or rules used for the purposes of Settlement affect Trading Charges paid to or from Parties. Trading Disputes can also arise as a result of errors in the determination of whether a Party is in Credit Default.

How do I raise one?

Any BSC Party can raise a Trading Dispute. If you have Category O authorisation (see BSCP38 ‘Authorisations’) you can raise a Trading Dispute by completing a form in BSCP11 ‘Trading Disputes’ and sending it to us with supporting information, e.g. Data Flows, Bid Offer Acceptances or consumption information.

What does ELEXON do?

We manage the process, and investigate the Trading Dispute in consultation with any relevant Parties, Agents and/or experts. The results are sent to you (the ‘Raising Party’) and any other affected Party. If we believe the Trading Dispute is invalid and you as Raising Party are happy with the findings then we will close the Trading Dispute.

If you disagree with us finding the Trading Dispute invalid, or if the Trading Dispute is valid, we will take it to the TDC for consideration.

What does the Trading Disputes Committee (TDC) do?

The TDC determines whether a Trading Dispute is valid based on three criteria:

  • Timeliness (was the Dispute raised within the timescales set out in BSCP11?)
  • Settlement Error (was there an error in the data and/or processes used for Settlement arising from a failure to follow the provisions of the BSC such that the error affected Trading Charges?)
  • Materiality (was the effect on Trading Charges greater than £3000?)

We notify the Raising Party and affected Parties of the TDC’s decisions after the meeting. If the TDC doesn’t reach a majority decision or a Party disagrees with the TDC decision, the TDC or the Party can refer the matter to the BSC Panel, see the Panel Referral Process.

Performance Assurance Framework

Trading Disputes is a remedial technique in ELEXON’s Performance Assurance Framework.

Manifest Errors

The TDC also makes determinations on Manifest Errors (see BSC Section Q7). Manifest Errors can be claimed by a generator or National Grid where a Bid or Offer was accepted in error. Manifest Errors are processed in accordance with BSCP14 ‘Processing of Manifest Error Claims’.

Q8 Claims

The same members who sit on the TDC also consititute the Q8 Committee to hear Q8 Claims (see BSC Section Q8).

Q8 Claims relate to unplanned outages by National Grid and is a mechanism to claim for unavoidable and material losses incurred as a consequence of not being able to communicate Physical Notifications to National Grid during the outage period.