JUNE 2012

Legal Focus

59

Going on to discuss efficiency and expedition, John explained: “At the outset of a procedure the attention of parties and arbitrators is drawn to the desirability of conducting efficient procedures. The Association appoints arbitrators and other dispute solvers promptly. Timetables are specific requirements in the rules. Another feature is the voluntary acceptance of a limitation on the recovery of costs from losing parties.”

Referring to confidentiality, consolidation and publication, John continued: “Unlike many other arbitration rules, the EAA Rules expressly impose a duty of confidentiality on the parties. Parties may consider this of value when disputes involve information which is sensitive for members of an industry group.

“In limited circumstances the President may order the consolidation of arbitrations where there are similar issues in more than one arbitration. Again, confidentiality will be an important matter.

“In order that the industry may benefit from decisions, the President may also ask the parties to an arbitration to allow publication of an award but without identifying the parties, of any award so that the industry may benefit from decisions.”

Explaining the procedure for the appointment of a Neutral adviser, John said: “The parties to a dispute may prefer a mediation-type procedure or ADR (Alternative Dispute Resolution) to formal arbitration. If required the President will make an appointment.

“The rules for the conduct of a Neutral Adviser procedure (in the EAA rules called a Model Procedure for Extra-arbitral Dispute Resolution) follow much the same content as might be expected in any other institutional ADR process.

“They provide specifically for:

• a detailed timetable to be settled by the parties with supervision and direction by the Neutral Adviser;

• a meeting chaired by the Neutral Adviser in the presence of senior managers who have authority to negotiate a settlement and;

• a clear termination; www.lawyer-monthly.com

“But otherwise leave the parties and Neutral Adviser freedom to agree procedures.”

Referring to the Constitution of the Association, John explained: “The constitution provides for membership to comprise six groups and provides for the introduction of others. The initial six were:

• The licensed generators; National Power plc; PowerGen plc and Nuclear Electric plc

• All other generators

• The descendants of the 12 original regional electricity companies of England and Wales

• Other independent distributors

• Holders of a Transmission Licence (currently the National Grid)

• Commercial, industrial and agricultural customers who buy substantial quantities of electricity.

“Each of these member groups may nominate a representative to sit on the EAA Standing Committee which is chaired by the President of the Association. The membership of the Association and its Standing Committee can be extended to other participants in the industry so as to reflect its composition.” LM

contact details: J.R. Merrett Esq,

deputy President and Secretary, the Electricity arbitration association, 30 chepstow Road, London, W2 5BE.

telephone 0207 792 8579 Facsimile: 0207 229 8639