COVID-19: Strategy for Suppliers regarding EFR and managing performance issues
The Performance Assurance Board (PAB) has agreed an approach to manage performance standard issues and the application of Error and Failure Resolution (EFR).
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The committee agreed the approach after Error and Failure Resolution (EFR) being paused for a limited time during the first COVID-19 lockdown and following discussions about the challenges, the industry is facing obtaining the Half Hourly (HH) and Non-Half Hourly (NHH) Settlement performance standards during the pandemic.
Here are details agreed by PAB regarding the approach.
There will be an ongoing quarterly review approach taken to managing performance standards and the application of EFR as a response to these issues. Therefore all of the points below will be regularly reassessed on that quarterly basis and any changes of approach confirmed to the industry.
Elexon and the PAB’s efforts will be predominantly focused on Suppliers with the largest volume of non-compliant estimation (referred to here as the ‘focus Suppliers’).
Focus Suppliers are Suppliers with a monthly volume of non-compliant estimation above 4,000MWh. This approach will be applied individually to the:
- HH Measurement Class (MC) C
- HH Sub 100 kWh (MCs E, F and G)
- NHH markets
This will be reviewed quarterly, with the next review taking place in August when the PAB has indicated the threshold are likely to be reduced, potentially to as low as 2,000MWh.
It is the intention that this threshold will continue to reduce as the industry performance improves.
Suppliers who enter EFR
Suppliers with non-compliant energy levels above the threshold at the time of the quarterly reviews will be likely placed in Error and Failure Resolution (EFR) in accordance with BSCP538 EFR so that the issue can be monitored.
However, due to the current level of restrictions and the level of challenge Suppliers are experiencing the approach to EFR will be different and a “light-touch” now compared to that prior to the pandemic:
Whilst Suppliers will be expected to provide root cause analysis, to set out the actions being taken against the areas of concern and to provide regular progress updates, detailed forecasts of Settlement performance uplifts will not be mandatory at this time. The PAB has indicated that quarterly forecasts are likely to be required from Suppliers with EFR applied from August 2021 ; and
If Suppliers are able to provide performance forecasts to facilitate discussion and set out expectations to Elexon, failure to achieve the performance increases within these will not result in escalation steps being taken at the current time.
The EFR exit threshold for Suppliers re-entering EFR at this point will be to have a volume of less than 1,000MWh of non-compliant estimation a month but the PAB will also reassess this on a quarterly basis.
A message from the PAB
The PAB understands the difficult time that Suppliers are going through due to COVID-19. However, the Board are concerned about the current level of estimation, which could lead to significant issues for all BSC Parties. The concerns, and potential outcomes of an increase in estimations is documented in the PAB’s update.
Latest COVID-19 updates
See the latest updates regarding how COVID-19 is impacting Elexon and the BSC