Glossary

Autumn 2022 BSC Season Changes

As you may be aware, the Credit Assessment Price (CAP) is due to increase in the next few days. Your BM Unit CALF Values and your declared Generation Capacity (GC) and Demand Capacity (DC) values are used in the Credit Assessment Energy Indebtedness (CEI) calculation of your Credit Indebtedness.

With the recent increases in the CAP, it is important to check whether your DC and GC values are correct and that you have reviewed the Credit Assessment Load Factor (CALF) values that Elexon has calculated to ensure that they accurately represent the expected Balancing Mechanism (BM) Unit activity.

GC/DC values

Parties are required to submit their GC and DC values for every BSC Season. If you do not submit values, then the values for the current season will roll over to the next season. All parties should be vigilant regarding the values and how they affect the credit cover lodged.

If you believe that your GC or DC values are incorrect, you can re-declare these values upwards in magnitude at any point during the season. Suppliers can also re-declare their DC Values downwards in magnitude up to two times per season.

To amend your DC values mid-season, please submit form BSCP15/4.4 to the Central Registration Agent (CRA) using [email protected] or log into the Elexon Kinnect Customer Solution.

GC/DC Breach Process

Please note that the GC/DC breach process for the Autumn 2022 Season will start running weekly from mid-September 2022.

This process will automatically amend GC and DC values where it identifies that the BM Unit Metered Volumes exceeds the declared GC/DC Values.

As the GC or DC value is used as part of the Energy Indebtedness calculation any increases in magnitude could have an effect on your Indebtedness.

What can I do if I believe that the GC or DC value calculated as part of the Breach process is incorrect?

The Lead Party for any BM Units that have breached their GC/DC values as part of the GC/DC Breach process will be notified via email.

They will have the opportunity to appeal a replacement GC/DC value if they believe it is incorrect, by emailing [email protected].

Appeals must be raised within two full Working Days of receiving a breach notification.

More information on the GC/DC breach calculations and appeals process can be found in the Guidance Note.

CALF Values

The CALF values for the Autumn 2022 BSC Season are available from the Credit/Credit Alerting section under the Financial and Credit menu on the Elexon Portal. 

Parties should review these values.

CALF accuracy

Q. Why might my calculated CALF value not accurately represent the expected Balancing Mechanism (BM) Unit activity?

A. The CALF calculations for consumption BM Units take the average consumption in the reference season (Autumn 2021) and divide it by the maximum consumption in the reference season. If a consumption BM Unit (e.g. a Supplier BM Unit) contains significant amounts of embedded generation, we can recalculate the CALF values using the Embedded Generation Methodology which takes the generation into account.

Additionally, as the CALF values were calculated using reference data from Autumn 2021, if your portfolio in each BM Unit has changed significantly in the last year, the reference data may not be representative of your activity in the Autumn 2022 season.

Q. What can I do if I believe the assigned value does not accurately represent the expected BM Unit activity?

A. If you are the Lead Party of a non-Credit Qualifying BM Unit, you can appeal an assigned CALF value if you believe it does not accurately represent your expected activity. Depending on the type of appeal, there are different actions you must take which are detailed below.

Please note that the appeal deadline to request revised CALF values for implementation on 1 September has passed. However Elexon will process appeals if a Lead Party believes that their CALF values are not reflective of the activity in Autumn 2022.

Appeals

Embedded generation appeal

To raise an embedded generation appeal, please complete the CALF Appeals pro forma in Appendix 7 of the CALF Guidance Note.

Appeal for different CALF calculation data

To raise an appeal to request that different reference data is used to calculate the CALF Values, please complete the CALF Appeals pro forma in Appendix 5 of the CALF Guidance document. You need to complete at least sections 1 and 2.

If sections 3 onwards are not relevant, please detail the reference period that you would like Elexon to use to recalculate the CALF values and why that reference period would be more reflective of the activity in Autumn 2022 than the Autumn 2021 reference period.

Please note that these appeals will need to be presented to the ISG for decision.

Embedded generation appeal using alternative reference data

To raise an embedded generation appeal using alternate reference data, please complete Appendix 7 of the CALF Guidance Note.

Include the reference period that should be used, and why that reference period would be more reflective of predicted activity in Autumn 2022 than the Autumn 2021 reference period.

Please note that these appeals will need to be presented to the ISG for decision.

Further guidance

To find out more about CALF appeals, please see Section 12 of the CALF Guidance Note.

If you have any queries on the GC/DC or CALF Appeal process please contact [email protected].

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