Revised treatment of RCRC for generation BM Units
CUSC Modification Proposal (CMP) 201 proposes to remove Balancing Services Use of System (BSUoS) charges/payments from generation BM Units.
The Proposer believes that the BSC’s Residual Cashflow Reallocation Cashflow (RCRC) can be considered as related to the imbalance cost element recovered within BSUoS, and currently all Parties are exposed to both. P286 therefore proposes that generation BM Units should no longer be subject to RCRC charges/payments if CMP201 is approved.
P286 was raised by National Grid on 25 May 2012. The Panel agreed to issue it for a four-month Assessment Procedure by a Workgroup, during which P286 underwent an Industry Impact Assessment and the Workgroup’s Assessment Consultation. The Workgroup recommended that P286 should be approved, and its Assessment Report was presented to the Panel at its meeting on 11 October 2012.
The Panel initially recommended that P286 should be approved, and issued P286 for its Report Phase Consultation. The Panel made its final recommendation that P286 should be approved at its meeting on 13 December 2012. P286 is currently with Ofgem for decision.
On 7 March 2014, the Authority directed the Panel to consult on a revised proposed Implementation Date for P286. The BSC Panel will consider a revised date for P286 at its meeting on 20 March 2014, and an industry consultation will be issued following this meeting.
P286 was progressed in parallel with Approved Modification P285, which also related to RCRC.