Disputes on the Wholesale Electricity and Capacity Market

According to clause 3 of Article 33 of the Federal Law № 35-FZ “On the Electric Power Industry” Association “NP Market Council” organizes a system of prejudicial resolution of disputes between wholesale market participants and power industry entities.

Association “NP Market Council” has established several bodies called upon to resolve such disputes.
Prejudicial dispute resolution is handled by the following bodies:
  • the Disciplinary Commission - reviews complaints on infringement of the Wholesale Market Rules and the Accession Contract by wholesale electricity and capacity market participants. The Disciplinary Commission applies sanctions, such as warnings or fines, and may also give the Partnership’s Management Board a recommendation to exclude a wholesale market participant from the wholesale market participant register and (or) to deprive a wholesale market participant of the right to trade in electricity (capacity) on the wholesale market. The activities of the Disciplinary Commission are governed by the Guidelines for Application of Sanctions on the Wholesale Electricity and Capacity Market.
  • the Conflict Commission  - reviews complaints on the omissions (commissions) of power industry entities that hinder access to the wholesale electricity market and complaints of power industry entities on the decisions of the Disciplinary Commission.  The activities of the Conflict Commission are governed by the Conflict Commission Standing Orders.
  • the Commission on Prejudicial Resolution of Disputes between Power Industry Entities  - reviews conflicts between wholesale market participants that are not within the authority of the Disciplinary or Conflict Commissions. The resolution of disputes between participants is voluntary and is carried out at the collective application of both parties to the dispute. Dispute resolution is carried out either by the Mediator appointed by the Chairman of the Commission or the Arbitration Committee, two members of which are appointed out of the candidates proposed by the parties. The activities of the Commission are governed by the Guidelines for Prejudicial Resolution of Disputes between Power Industry Entities.
An Arbitration Court has also been established at Association “NP Market Council”. The Arbitration Court is not part of the state judicial system, however its decisions are enforceable. The Association “NP Market Council” Arbitration Court resolves economic disputes arising from civil matters related to the electric power industry subject to the jurisdiction of arbitration courts, excluding managerial disputes. A case is accepted subject to there being an agreement between the parties to have it reviewed in the Arbitration Court.

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