1 modification proposal 0199: clarification around the application of the unc dispute resolution...

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Modification Proposal 0199: Clarification around the application of the UNC Dispute Resolution Process

Alison Chamberlain

National Grid Distribution

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UNC Definition General Terms Section A – Dispute Resolution. 1.1.2 (a) a “dispute” is any dispute or difference arising between

two Parties under or in connection with the Code, the Framework Agreement, any Ancillary Agreement or any Supplemental Agreement;

Therefore it is not limited to any section of the UNC.

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Expert Determination Terms A1.2.2 states where the Code … provides (i.e. it is mandatory) or

the parties have agreed that a dispute is to be referred to or resolved by Expert Determination ….then the Expert Determination provisions apply.

So the parties may agree on Expert Determination as resolution for any dispute even when it is not mandated and indeed some references refer to "may" rather than "shall".

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References to Dispute Resolution throughout the UNC:

General Terms Section C2.5(f): where …any provision of the Transportation Principle Document ("TPD") requires a User or the Transporter to pay or reimburse to the Transporter or a User (as the case may be) any costs or expenses incurred by the Transporter or the User in undertaking any works or performing any service, then any dispute as to the amount of such costs and expenses shall be referred to Expert Determination.

TPD Section I3.4.5: Any dispute as to the days on which non-compliant gas was delivered to the System, the amount of non-compliant gas delivered to the System, or the clean-up costs incurred as a result of such non compliant gas shall be referred to Expert Determination.

TPD Section I3.7.6: Any dispute as to the quantity of gas tendered for delivery but not accepted by the National Grid NTS at NTS entry points shall be referred to Expert Determination.

TPD Section I3.11.8: Any dispute as to the quantity of gas tendered for delivery but not accepted by the LDZ operator at LDZ entry points shall be referred to Expert Determination.

TPD Section J3.4.6: Any dispute as to the days on which non-compliant gas was made available for offtake, the amount of non-compliant gas made available for offtake, or the clean-up costs incurred as a result of such non compliant gas shall be referred to Expert Determination.

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TPD Section J3.5.10: Where a Transporter has not made gas available for offtake from the System, then any dispute as to the quantity of gas which was made available for offtake at the relevant DM Supply Point Component, Connected System Exit Point or Inter-System Offtake on the relevant Day shall be referred to Expert Determination.

TPD Section M1.9.2: Any dispute as to the amount by which it is determined that the Supply Meter has over- or under-registered the volume of gas offtaken from the Total System at the relevant Supply Meter Point shall be referred to Expert Determination.

TPD Section M4.8.6: Where the User gives a rejection notice pursuant to Section M4.8.3(d), then unless the Transporter and the User agree otherwise, there shall be referred to Expert Determination the following questions:

whether the Daily Read Equipment was functioning correctly, unless the Transporter's judgement (under paragraph 4.8.3(b)(i)) it was not; and

unless the expert determines that the Daily Read Equipment was functioning correctly, what is the best available estimate (in accordance with paragraph 4.8.4 where applicable) of the metered consumption;

TPD Section V3.4.6: Where the value of the instrument of surety of security cannot be agreed between the User and the Transporter, the User may refer such dispute to Expert Determination.

OAD Section D6.1.3: Where there is a dispute as to the accuracy of any Validation Report or any corrected or estimated reading received pursuant to paragraphs 3.4, 5.2 and 5.3, and the Transporters are unable to resolve the dispute within 30 days from the date of the notice in accordance with paragraph 6.1.2, either of them shall be entitled to refer the dispute to an Expert for determination.

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In summary: NGD does not believe that there is any ambiguity in this area; It is possible that misconception exists surrounding this

section and when it would be used it (mainly because it has not been used to date).

Worthy of note: Mediation (GT A 1.3) is always an option. Any misconceptions can be usefully resolved at this stage

so…..

Any Questions?

1 modification proposal 0199: clarification around the application of the unc dispute resolution...

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