How Change Works
Change and Implementation
Section F of the Balancing and Settlement Code (BSC) defines the requirements for developing, assessing and implementing proposals to amend the BSC arrangements.
How does the Balancing and Settlement Code get altered?
A Modification Proposal must be raised to alter the BSC.
Modification Proposals can be raised by any BSC Party (except ELEXON), Ofgem, and the National Consumer Council. In limited circumstances, the BSC Panel may also raise one.
Modification Workgroups are set up to evaluate and define Modification Proposals. The Workgroups consist of industry experts, a member appointed by the party proposing the Modification Proposal, a National Grid employee and ELEXON employees. Modification Proposals follow a defined set of procedures and the Workgroups are responsible for providing the necessary reports that the BSC Panel needs in order to make its recommendations.
All Modification Proposals are consulted upon by the industry. Responses to these consultations are factored into the relevant reports, as these views are critical in assisting the BSC Panel and Ofgem in reaching recommendations and decisions. The BSC Panel assesses the recommendation put forward by the Modification Workgroup and decides whether to uphold it or not.
The BSC Panel then makes its recommendation to Ofgem who takes the final decision on whether or not the Modification should be made.
In addition to the Modifications Process, changes to the BSC can be discussed, but not implemented, using the Issues Process. This enables BSC Parties to suggest topics for assessment without going through the formal Modification Proposal process. Issues can be raised, assessed and closed at any time.
How quickly can Modification Proposals be progressed?
Modification Proposals can be progressed as ‘urgent’ with prior approval from Ofgem. Urgent Modification Proposals can be progressed within one day under specific circumstances.
How do the Code Subsidiary Documents (CSDs) and BSC Systems get altered?
The procedure for amending the CSDs and BSC Systems is the Change Process.
What happens after a change is approved?
Once a Modification Proposal or a Change Proposal is approved, it is implemented as part of a series of planned releases. BSC Systems Releases occur three times a year in February, June and November. Releases may include changes to CVA and SVA software, associated documentation and processes. Read more about the Release and Implementation Process here.
Performance Assurance Framework
The BSC change mechanisms also act as a key remedial technique as part of ELEXON’s Performance Assurance Framework