Wholesale energy market dispute resolution - Gas

Part 15C of the National Gas Rules (NGR) establishes a framework for dispute resolution. This can be used for relevant disputes as set out in that part.

There are 2 stages within the framework; Stage 1 dispute resolution process and Stage 2 adviser process and dispute resolution panel process. Within each participant organisation there is an obligation to have a contact to act as an interface and resource to assist with disputes. Changes should be promptly communicated to the WEMDRA.

Stage 1, is designed to enable participants to negotiate to resolve issues commercially. It also provides a framework for ensuring that time is measured, allowing for escalation if required. The wholesale energy market dispute resolution adviser (WEMDRA), is available to assist by facilitating meetings, arranging a facilitator or a mediator, or a non-binding expert view on the issues.

Stage 2 provides the opportunity for the issue to be decided by an expert, or panel of experts known as a dispute resolution panel (DRP). These experts are drawn from a pool maintained for that purpose. It also allows for escalation to the adviser process where the WEMDRA can assist in preparing a matter for a DRP (or in some cases arrange complete resolution).

Scheduling errors and unexpected scheduling results are compensated through a payment from the participant compensation fund. In many cases AEMO declares a scheduling error and the use of a DRP is to ensure probity and transparency for any payment from that fund. There is a fast track process for applications where there are no outstanding issues. There is also a more general guideline for compensation for a USR or scheduling error.