Common use of Third Party Billing Clause in Contracts

Third Party Billing. If the Distributor appoints a Generator or another retailer as its billing service provider, the Distributor will put all procedures in place that are necessary to ensure the Generator or the other retailer (as the case may be) does not use or pass on any Confidential Information supplied by the Retailer, except for the purposes expressly permitted by this agreement. The Retailer may appoint an independent, appropriately qualified, person to audit the procedures of the third party to ensure compliance with this clause. Such audit may not occur more than once in any 12 month period unless any audit report states that the procedures are not adequate or are not being observed in which case, without affecting any other rights of the Retailer, the Retailer may request an audit once every 3 months until the Retailer receives two audit reports confirming that the procedures are adequate and are being observed. The Distributor will ensure that the auditor is given full co- operation by the third party being audited including that the third party does not delay or restrict the audit. The costs of the audit will be met by the Retailer unless the auditor determines that the procedures are not adequate or are not being observed, in which case the cost of the audit and each successive audit until two audit reports have been received by the Retailer confirming that the procedures are adequate and are being observed, will be met by the Distributor.

Third Party Billing. If the Distributor appoints a Generator or another retailer as its billing service services provider, the Distributor will put all procedures in place that are necessary to ensure the Generator or the other retailer (as the case may be) does not use or pass on any Confidential Information supplied by the Retailer, except for the purposes expressly permitted by this agreement. The Retailer may appoint an independent, appropriately qualified, person to audit the procedures of the third party to ensure compliance with this clause. Such audit may not occur more than once in any 12 month period unless any audit report states that the procedures are not adequate or are not being observed in which case, without affecting any other rights of the Retailer, the Retailer may request an audit once every 3 months until the Retailer receives two audit reports confirming that the procedures are adequate and are being observed. The Distributor will ensure that the auditor is given full co- operation by the third party being audited including that the third party does not delay or restrict the audit. The costs of the audit will be met by the Retailer unless the auditor determines that the procedures are not adequate or are not being observed, in which case the cost of the audit and each successive audit until two audit reports have been received by the Retailer confirming that the procedures are adequate and are being observed, will be met by the Distributor.