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Performance Assurance Techniques

What’s a Settlement Risk?

It’s anything that could pose a risk to accurate Settlement: it could be a failure in a process or an error in data. Settlement Risks are identified in the PDF Risk Evaluation Register (96Kb) .

The Performance Assurance Framework (PAF) is a complementary set of ‘preventive’, ‘detective’, ‘incentive’ and ‘remedial’ assurance techniques. These techniques are used flexibly to address Settlement Risks.

The techniques must address both risks to Settlement and the impact of actual failures or errors in Settlement.

The Performance Assurance Board (PAB) produces a PDF Risk Operating Plans (133Kb) each year which sets out the techniques it intends to use to address Settlement Risks.

The Performance Assurance Techniques used in the PAF are shown in the diagram below. Click on the relevant links in the diagram below for more information on each technique.

PAF Framework Techniques diagram Link to SVA Qualification Link to SVA Re-Qualification Link to Bulk Change of NHH Agent Link to Education Link to Removal of Qualification Link to Performance Monitoring and Reporting Link to Peer Comparison Link to Trading Disputes Link to Technical Assurance of Performance Assurance Parties Link to Error and Failure Resolution Link to Technical Assurance of Metering Systems Link to Change Mechanisms Link to Material Error Monitoring Link to BSC Audit Link to Supplier Charges

The PAF techniques are often described as, preventive, detective, remedial and incentive, reflecting the manner in which they address risks and issues. These techniques are summarised in the following table.

Preventative TechniquesPREVENTIVE TECHNIQUES Detective TechniquesDETECTIVE TECHNIQUES Remedial TechniquesREMEDIAL TECHNIQUES Incentive TechniquesINCENTIVE TECHNIQUES
Limit the possibility of an undesirable outcome Identify occasions of undesirable outcome that have occurred Correct undesirable outcomes that have occurred Motivate action in order to avoid undesirable outcomes
Bulk Change of Non Half Hourly Agent Material Error Monitoring Change Mechanisms Removal of Qualification
SVA Qualification Technical Assurance of Metering Systems Trading Disputes Peer Comparison
SVA Re-Qualification Technical Assurance of Performance Assurance Parties Error and Failure Resolution
Education BSC Audit Supplier Charges  
  Performance Monitoring and Reporting    
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