Have your say regarding ‘Meter Splitting’ Proposal

A Cost Benefit Analysis (CBA) consultation for P379 ‘Multiple Suppliers through Meter Splitting’ has been issued by the BSC Panel. We are asking you to get involved by completing our consultation for P379.

What are the aims of P379?

P379, which mainly impacts Suppliers, proposes to change BSC rules so that meters can account for different supplies of consumption. It could support new business models. For example, if a consumer leased an electric vehicle, the electricity to charge it could be assigned to the lease company and separated from the rest of the consumer’s household consumption. 

As P379 is a complex, fundamental change to the code, the BSC Panel requested that Elexon carry out a CBA to determine the merits of continuing with the proposal. This is important so that the costs and benefits of P379 are explored before more effort is expended on developing the solution. We commissioned consultants CEPA to produce the CBA because it is important that it is carried out independently.

What are the potential impacts of implementing P379?

P379 will address a significant barrier to competition in the market, which prohibits multiple Suppliers from competing for ‘behind the Meter’ energy volumes measured at the same Settlement Meter. However, it could also create significant costs for Suppliers and other industry businesses. This could include one-off implementation costs, as well as ongoing costs for billing and forecasting systems.

There will also be an impact on other industry Parties, in particular Data Collectors that may need to implement new calculations and data flow handling processes.

Get involved

You can get more background information, including a ‘call for evidence’ cover letter, estimates template and response form via the P379 consultation page.

More on the CBA consultation

What is the purpose?

The consultation is a call for evidence which aims to collect data on the estimated costs and benefits of Modification P379 for both primary Suppliers (the main Supplier for a household) and secondary Suppliers (which provide services such as the topping up of an EV in the example above).

CEPA is asking all Suppliers with an interest in P379 to submit their cost estimates and supporting evidence.

What will happen after it closes?

Following the closure of the consultation, Elexon and CEPA will assess the responses and present the CBA to the Panel by March 2021. The Panel will consider the CBA and the proposer of P379 (GridBeyond) will need to decide if it still wants to progress the proposal.

Why has an independent organisation been chosen?

The costs and benefits of P379 extend beyond those directly related to the BSC, so the Panel and Elexon consider it appropriate to use independent expertise. Following a competitive procurement exercise Elexon chose CEPA to carry out the CBA. The Panel wished to seek external expertise as it will provide Ofgem with objective information on which to make its decision on whether to approve the change. Externally assessing P379 ensures the information collected will consider the impact of the change on innovation and competition.

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