BSC Operations Headline Reports
The report provides commentary on BSC market operation, identifying key events and reporting on important data that may impact BSC Parties. It is produced on a monthly basis and covers the data from the two previous months and is based on a combination of latest and best available data.
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- Feature on Supplier of Last Resort
- Feature on Indebtedness Error and Exposure
- Regular article on System Prices for the month
- Regular article on Trading Charges
- Regular article on Energy Balancing Volumes
- Feature on Transmission Loss Multipliers at R2
Supplier of Last Resort
On 25 January 2018, Future Energy Utilities Limited (Party ID SIROCCO) ceased trading. The regional supplier, with 11,000 customers, confirmed to ELEXON they had “suspended payment of its debts due to its inability to pay amounts as they fall due”, and so entered BSC Section H default.
Their Chief Operating Officer, David Stroud, said the company had been “unable to convert sufficient customers to enable us to forward purchase energy at the most competitive rates”.
Ofgem confirmed on 30 January 2018 that Hudson Energy Supply Limited (Party ID AMPERE), under the Green Star Energy brand, had been chosen as the Supplier of Last Resort (SoLR) for Future Energy’s customers. This is the first SoLR event since GB Energy Supply stopped trading in November 2016.
Following this confirmation, ELEXON arranged for the transfer of the MPID, to which those 11,000 customers are attached, to Hudson Energy Supply Limited effective from 00:01 on 31 January 2018. For further information, please refer to circulars EL02753 and EL02754.
Increasing Indebtedness Error and Exposure
The Credit Cover calculation uses a combination of Calculated Energy Indebtedness and Actual Energy Indebtedness to form a level of Indebtedness that Parties must cover with collateral.
Actual Energy Indebtedness uses Interim Information Run data, whilst Calculated Energy Indebtedness relies on parameters declared by Parties. Indebtedness Error is the difference between the Calculated Energy Indebtedness and Actual Energy Indebtedness.
Graph showing Indebtedness Error and Exposure
Since October 2017, there has been a gradual increase in the Indebtedness Error, which has also led to an increase in Indebtedness Exposure. The Indebtedness Exposure is credit exposure not covered by Credit Cover or the Credit Cover calculation.
The Indebtedness Error can be decreased by Parties declaring accurate Generation Capacity (GC) and Demand Capacity (DC) values. BSC Modifications P357, P358 and P359 focus on the methods by which GC and DC values are declared.
Transmission Loss Multipliers at R2
An issue with the metered volume of a large generation BM Unit is impacting the Transmission Loss Multipliers (TLMs) at the R2 Settlement Run. Metered volume from the site is causing higher Delivering and lower Offtaking TLMs in Settlement between 2 October and 8 October 2017 at Settlement Run R2. TLMs allocate Transmission Losses to BSC Parties Credited Energy Volumes.
Graph showing Transmission Loss Multiplers (TLMs)
Traditionally, TLMs are greater than 1 for Offtaking Trading Units, and less than 1 for Delivering Trading Units. Note, however, this may no longer be the case following the implementation of BSC Modification P350 on 1 April 2018, which introduces seasonal zonal Transmission Loss Factors.
In Settlement Periods 35 to 37 and 40 to 42 on 6 October 2017 Delivering TLMs were above 1 and Offtaking TLMs were below 1. The issue first occurred at the R2 Settlement Run, with TLMs looking normal at the previous R1 Run.
ELEXON has investigated the issue, identified the root cause, and is working with the Central Data Collection Agent (CDCA) to ensure the metered volumes for this BM Unit are correct in future Settlement Runs.
Full list of reports
The BSC Operations Headline Report is produced on a monthly basis for the BSC Panel meetings, and is circulated to the Imbalance Settlement Group (ISG) as well as being published on the ELEXON website.
Please note that the reporting months are the two prior to the current month, based on a combination of latest and best available data.