DR 1156 – Cancellation Reason Code OS on 111A MM

Where an existing Supplier believes they are losing a site due to an erroneous transfer, the losing Supplier may object to the CoS using the 012 MM. Unless a cancellation is received within 10 working days the Market System withdraws the objection (112W MM) and the CoS completes. The objection period is therefore limited to 10 days (start marked by 012MM and end by 112W MM if objection period lapses). Cancellation reason code OS is the code used in the cancellation message (011 MM) by the Gaining Supplier when responding to an objection raised by the losing Supplier during the objection period. The cancellation reason code OS denotes that the gaining Supplier is cancelling in response to an objection.


Some Gaining Suppliers do not respond (by sending 011 MM) during the 10 day objection period but do so subsequently – up to 65 days after the initial CoS. They consider the cancellation still associated with the original Losing Supplier Objection (even though the objection period has timed out) and continue to use cancellation reason code OS when sending in the 011 MM. When a cancellation is submitted (011 MM) after a CoS has completed / objection period ended a 111A MM is sent to the Losing Supplier requesting agreement for the cancellation to go ahead. Please note, if the cancellation (011 MM) was submitted within the 10 day objection period then agreement from the losing Supplier using the 111A MM is not required. The Central Market system automatically populates the 111A MM cancellation reason with the cancellation reason that was contained in the 011 MM (in the case where there are issues this is cancellation reason code OS).


Cancellation reason code OS is a valid reason code for the 011 MM during the objection period. It is not a valid reason on the 011 MM after the objection period or once the CoS has completed [this detail is not highlighted in the Market Design]. Cancellation reason code OS is also not a valid cancellation reason code on the 111A MM [this is indicated in Market Design by indicating the allowable cancellation reason codes].


The business logic behind this design is as follows:

It is assumed that once the objection period lapses with no cancellation from the Gaining Supplier, the CoS completes and the objection is deemed withdrawn. It is therefore not appropriate for the Gaining Supplier to respond outside the objection period with cancellation reason code OS (which is only applicable within the objection period).


Once the CoS completes the customer becomes registered to the Gaining Supplier and it would not be possible for the Losing Supplier to issue a further objection (012 MM) for this customer. All cancellations or dealing with the customer must go through the Gaining Supplier.


This highlights that the issue that a Supplier brought to the attention of MRSO, and initiated this discussion, is due to non-compliance with the market rules around Objections. That is, the only way that a 111A MM with cancellation reason code OS will be generated is when the Gaining Supplier responds outside the cancellation period of 10 days to the 012 MM originally sent at the start of the cancellation period by the Losing Supplier. The primary cause of this issue is that the Gaining Supplier is not responding to the original Objection message (011 MM) in the allotted time.


The 111A MM does not fail in TIBCO as it is a non-enumerated code and therefore no validation exists for it. If Suppliers have their own validation on allowable codes on the 111A MM, and if cancellation reason code OS is sent, it fails on the Supplier side.


Scale of Issue.

It is important to quantify the scale of the issue in order to understand the overall market impact. Currently one Market Participant is known to have validation on the 111A MM whereby it fails on the Supplier side if cancellation reason code OS is used. Approximately 2,900 111A MM were sent in the period March to October 2014, 10 of these messages had reason code ‘OS’, 6 messages were sent to 3 suppliers none of which failed on their systems, 4 messages were sent to one supplier which did fail and resulted in the Losing Supplier being unable to take the customer back after the gaining Supplier had cancelled.


This DR is raised to address the situation.


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