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Compliance Enforcement FAQ

  1. What should I do if I may have breached a market rule?
  2. How do I report or self-report instances of non-compliance?
  3. Where can I find the market rules relating to enforcement procedures?
  4. What sanctions may be applied against me if I breach the market rules?
  5. Do I have the opportunity to state my case during the investigation phase?
  6. What recourse do I have if I disagree with an imposed sanction?
  7. What happens if the IESO is in breach of the market rules?
  8. What do I do if I feel that a particular market rule needs to be changed or requires clarification?

 

  1. What should I do if I may have breached a market rule?
    If a market participant believes they may have breached a market rule, it is to their benefit to report the breach to MACD and to consider initiating any available remedial or mitigating actions. Whether a participant self-reports is an important factor in cases where a sanction may be applied. If MACD confirms the breach, the market participant will be notified and allowed an opportunity to be heard before any further enforcement steps are taken.

  2. How do I report or self-report instances of non-compliance?
    Groups or individuals who suspect that a market participant or the IESO is not compliant with the market rules, or market participants who wish to self-report their own possible non-compliance, can report such instances, on a confidential basis, by submitting a Non-Compliance Event Report (NCER) to the Market Assessment and Compliance Division (MACD). Parties that submit an NCER may receive a request from MACD to provide additional information about their submission.
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  4. Where can I find the market rules relating to enforcement procedures?
    The rules relating to enforcement procedures, including investigative steps, as well as breach and sanction determination processes, are contained in Chapter 3, Section 6 of the market rules.
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  6. What sanctions may be applied against me if I breach the market rules?
    Sanctions cover a number of possible actions ranging from issuing a non-compliance letter, instructing you to undertake the necessary steps to comply with the market rules, undertaking more stringent record-keeping, or directing you to cease the activity or practice constituting the breach. Financial penalties can also be applied, depending on the nature of the breach. Sanctions for breaches of obligations are described in Chapter 3, Section 6 of the market rules.

  7. Do I have the opportunity to state my case during the investigation phase?
    When MACD believes a market participant or the IESO may have breached a rule, it is required to provide notice to the other party. This notice must provide details of the allegations and the evidence, as well as possible sanctions which may be imposed. These notices also must contain assurances that market participants will be given the opportunity to make representations to MACD, either in written form or by calling for a meeting with MACD.

  8. What recourse do I have if I disagree with an imposed sanction?
    During the compliance investigation process, market participants will be given the opportunity to make representations to the IESO. The IESO will use this information in its investigation. Once formal notification of a sanction is issued, the recourse for resolving disagreements is outlined within the dispute resolution process. Market participants may also appeal financial penalties that exceed $10,000 to the Ontario Energy Board (OEB).

  9. What happens if the IESO is in breach of the market rules?
    If a possible breach of the market rules by the IESO is detected, an NCER should be completed and submitted to the Market Assessment and Compliance Division (MACD). While the Electricity Act does not authorize the imposition of sanctions against the IESO for non-compliance with the market rules, the IESO has voluntarily accepted that it should be treated as if it were a market participant with the result that it may be, and has been, subject to non-compliance letters and financial penalties. The treatment of IESO non-compliance and the delegation of compliance enforcement are described in a letter from the IESO CEO to the Director of MACD.

  10. What do I do if I feel that a particular market rule needs to be changed or requires clarification?
    The market rules have been developed with significant input from all classes of market participants and key stakeholders. If a market participant feels that a particular market rule should be changed or requires clarification, they can refer to the Rule Amendments process. Market participants may also contact their Technical Panel representatives who are charged with reviewing and proposing amendments to the market rules. In addition, if a market participant is unable to comply with a particular market rule, they may also apply for an exemption relating to market rule obligations or standards.