Compliance Enforcement Overview
Chapter 3 of the Market Rules provides the means by which the IESO enforces compliance with the market rules and describes the processes and authorities granted it with respect to monitoring, investigation and enforcement. Market participants who breach the market rules may be subject to sanctions if appropriate.
The IESO's powers with respect to monitoring, investigation and enforcement of the market rules are delegated to the Director, MACD in a Delegation of Compliance Enforcement letter issued by the IESO CEO. This delegation has been in place since market opening. It affords the Director, MACD, independent discretion in the application of these powers.
MACD makes independent determinations of non-compliance and issues sanctions, where appropriate. It may also resolve cases through alternative means, such as negotiating settlements with parties under investigation.
Sanctions can take a variety of forms, most commonly through financial penalties and orders to come into compliance with the market rules. Determinations and sanctions can be disputed by participants. If disputed, an extensive dispute resolution process, which includes good-faith negotiations, mediation and arbitration, is triggered. Ultimately, matters remaining in dispute can be appealed to the Ontario Energy Board.
The IESO must also comply with its own obligations under the market rules and is therefore subject to MACD's enforcement processes. MACD applies the same investigative procedures and range of sanctions to the IESO as it does to all market participants.
Persistent breaches of the market rules can lead to suspension or termination from the market and disconnection from the IESO-controlled grid.
Market participants may seek exemptions from the obligations or standards set out in the Market Rules. See Exemptions for details on the procedure and for a list of active exemption applications.