In a CEPANI arbitration, the parties pay an advance on arbitration costs at the beginning of the proceedings and before the appointment of the Arbitral Tribunal. This advance is determined in accordance with the amount in dispute and on the basis of the scale of costs for arbitration which is part of the CEPANI Rules.
The amount so determined is designed to pay the fees and costs of the members of the Arbitral Tribunal. This amount is increased by 10% to cover the administrative costs of the CEPANI Secretariat. The whole constitutes the advance on arbitration costs.
At the end of the arbitral proceedings, the CEPANI Secretariat asks each arbitrator for a statement of their costs and expenses in relation to the arbitration, along with an estimate of the time spent on the arbitration. This last request is needed in order to verify that the tasks have been equitably distributed between the members of the Arbitral Tribunal.
After receiving these statements, the Secretariat deducts the costs and expenses of the arbitrator(s) from the amount it has at its disposal. Except under exceptional circumstances or if the arbitrators agree otherwise, the remaining balance is generally allocated in the following way in order to cover the arbitrators’ fees: 40% for the Chair of the Arbitral Tribunal and 30% for each of the co-arbitrators. When a sole Arbitrator is appointed, in principle he/she receives the whole of the amount as his/her fee.
The Secretariat then communicates to the Arbitral Tribunal the summary of the costs and fees of each member and asks the arbitrators to submit an account for the amount granted. After it has received the said accounts, CEPANI proceeds to payment.