Some distributors and wholesale consumers classified as Metered Market Participants (MMP) have revenue metering installations that expired sometime before the end of 2005 or 2006. These participants received a letter from the IESO listing the expiring metering installations. Others may have metering installations expiring in upcoming years.
The IESO's Market Assessment and Compliance Division (MACD) will begin assessing whether seal expiry upgrades have been completed. Metered Market Participants can be found in breach of the market rules for failing to address four things:
1. Installation Upgrade - Metering installations registered under the Alternative Metering Installation Standard expire on the earliest seal expiry date of any device within the installation, and must be replaced with a compliant metering installation in order to be registered by the IESO.
2. Measurement Canada Approved - Instrument Transformers - Metering installations that have expired seals that have non-approved instrument transformers (IT) will also have Measurement Canada IT temporary permission expiring in the same year.
3. Measurement Canada Approved - Reseal - Metering installations that have expired seals are required to be resealed to meet the Measurement Canada reseal requirement.
4. Meter Service Provider - MMPs must have contracted with a registered Metering Service Provider (MSP) to complete the upgrade work.
For seal expiry years 2005, 2006, and 2007, there will be a grace period where MACD will not pursue non-compliance if upgrades were completed within six months after year end. There will be no grace period for seal expiry year 2008 and beyond.
MMPs that have not completed their upgrades by the end of the grace periods for upgrade years 2005 and 2006 will be under investigation by MACD and will receive a Notice of Alleged Breach. If the MMP is found in breach and the upgrade is not complete 18 months after year end, the IESO will levy a financial penalty. MMPs can limit their penalty if they self report their compliance by using the Non-compliance Event Report form available on the sanction page of the IESO web site at http://www.ieso.ca/imoweb/marketComp/compliance.asp.
MMPs that have not completed their upgrades by the end of the grace periods for upgrade year 2007 will be under investigation by MACD and will receive a Notice of Alleged Breach. If the MMP is found in breach and the upgrade is not complete 12 months after year end, the IESO will levy a financial penalty.
MMPs found in breach for failure to satisfy their market rule obligations in more than one year will face elevated penalties as high as $15,000 per breach. To limit any financial penalty that may be levied MMPs are encouraged to self report their non-compliance to MACD and complete the required upgrade as soon as possible.
Metered market participants that are unable to meet their obligations because of circumstances outside of their control must give notice to MACD within two business days of the event according to the force major provisions contained in Chapter 1, section 13.3 of the market rules.
For the details of the Compliance Programs please see the IESO web site at: http://www.ieso.ca/imoweb/marketComp/compliance.asp .
For more information, please contact Customer Relations at: