COVID-19: Estimation derogations to continue into 2021
Suppliers can continue to provide updated estimates of consumption that reflect changes in usage during periods of lockdown in Settlement for the foreseeable future.
The decision to suspend the ending of estimation derogations was made by the Performance Assurance Board (PAB) after the Prime Minister announced England would be going into lockdown for four weeks.
The derogations were due to end on 31 December 2020. Although a new date for ending the derogations hasn’t been agreed, the PAB will consider the right approach to resuming the usual estimation procedures at future meetings.
Suppliers can ignore the three month notice that was issued by Elexon on 1 October regarding ending the derogations.
Non Half Hourly estimation
Non Half Hourly (NHH) Suppliers now have the opportunity to reapply the derogated process in order to request that their Data Collector (DC) (where appropriate and where evidence has been obtained):
- applies derogated Estimates of Annual Consumption (EACs) to sites that previously exited the derogated process
- applies derogated EACs to sites that had not previously had a derogated EAC requested by the Supplier
- adjust derogated EACs that are still in effect if further evidence has been obtained that indicates a different value would more accurately reflect consumption during the lockdown period.
Half Hourly estimation
The derogation to allow adjustments to Half Hourly (HH) estimations has also been restored.
Site Inspection Visits and Long Term Vacant sites
Derogations for Site Inspection Visits and the approach to Long Term Vacant (LTV) sites will still end on 31 December 2020.
- Guidance Note: Non Half Hourly Long Term Vacant during COVID-19
- Guidance Note: Site Inspection Visits during COVID-19
This approach will be re-assessed at the beginning of December. Elexon and the PAB will also review any guidance following any announcements or decisions from the Governments of Great Britain.
Reasons for continuing estimation derogations
The PAB cited the following reasons for continuing derogations:
- the new lockdown is for an extensive amount of time and involves substantial business closures
- the lockdown has the potential to be extended
- Suppliers have asked us to re-apply the derogations
- DCs have asked if derogated Non Half Hourly NHH EACs received from Suppliers for the new lockdown can be processed
- business to business Suppliers have indicated they would experience a significant cash flow issue if they could not apply estimation adjustments to NHH sites
History of estimation derogations
As a response to the COVID-19 lockdown in March, we asked our customers what we could do to help, by temporarily easing the burden of compliance with the BSC. We worked with the PAB to put in place a set of supporting measures:
- derogations allowing Suppliers to instruct their agents to provide estimated consumptions for use in Settlement that reflect the realities of the lockdown
- suspending Error and Failure Resolution (EFR) targets
- suspending the charges Suppliers would normally face if they do miss certain Settlement performance targets
Latest COVID-19 updates
See the latest updates regarding how COVID-19 is impacting Elexon and the BSC.