Wholesale Retail Code Change Proposal CPW134
| Date | 15 June 2022 |
1
Wholesale Retail Code Change Proposal – Ref CPW134
Modification
proposals
Wholesale Retail Code (WRC) Change Proposal – CPW134 –
Clarifications to Default Provisions
Decision
The Authority has decided to approve this Change Proposal
Publication date
15 June 2022
Implementation
date
2 August 2022
The Issue
Minor drafting errors have been identified in the Default and Termination provisions set
out in Section 10.1.4 of the Business Terms of the Wholesale Retail Code (WRC), which,
if left unaddressed, could result in:
• Trading Parties challenging their Defaulting Trading Party status, or a contract
termination
• Wholesalers being unable to, or unsure whether to, enforce their rights arising
from a Retailer being classified as a Defaulting Trading Party
• MOSL potentially issuing notifications incorrectly under section 11.5.3 of the
Business Terms by disclosing that a Retailer has been classified as a Defaulting
Trading Party, resulting in reputational damage
• Trading Parties being unsure whether they can exercise rights under the cross-
default provisions under section 10.1.15 of the Business Terms
• Ofwat potentially being unable to act on a default or termination notice issued
by a Trading Party on the basis that the notice includes an incorrect code
reference.
Proposed solution
It is proposed that clauses 10.1.4(b) and 10.1.4(c) of the WRC are amended to remove
incorrect cross references and insert new correct ones. The Change Proposal, Final
Recommendation Report and legal text to implement this solution are available on the
MOSL website.
We are approving this Change Proposal.
The Code Change Committee (CCC), acting on delegated authority from the Panel under
the Market Arrangements Code (MAC), considered this Change Proposal at its meeting
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