Investigations into potential Settlement errors in two GSP Groups
Elexon is investigating potential errors in Settlement related to the South Eastern GSP (Grid Supply Point) Group (Group _J) and the London GSP Group (Group _C). This follows our continued monitoring of the Annual Demand Ratio (ADR).
How this may impact you
Parties that are active in these two GSP Groups may receive sums or they may need to pay if our investigations confirm that Settlement reconciliations are needed to correct the potential errors.
Identifying the cause of the errors
Maintaining Settlement accuracy is of upmost importance to us, and we continually review performance against the ADR for all 14 GSP Groups.
We believe that we have identified the root cause for the error indicated in GSP Group _J, as being a metering fault which has since been corrected. A Trading Dispute ( DA1121) is currently being processed to correct the error.
We estimate the impact of the error in GSP Group _J at approximately £16.3m. We will be contacting Parties that will see the greatest impact of this error.
We believe that we have found a similar type of error (although not necessarily of the same scale) in GSP Group_C. A site visit has been undertaken to confirm the cause of the error.
As soon as we are able to more accurately estimate the materiality of this error we will provide an update. Similarly for GSP Group _J, we will directly contact the Parties that will see the greatest impact.
Responsibilities of Registrants to measure meters accurately
We are reminding Registrants that they must ensure that their meters record accurate and complete data. They must also notify us and other market participants if they notice potential errors. BSC section L, sub-section 2 explains these responsibilities.
We will continue to review the controls on metering and the performance of Meter Operators. Where there is evidence of poor performance or non-compliance we will report this to the BSC Performance Assurance Board to consider appropriate actions.
Enhanced tracking of GSP consumption data
We have enhanced our monitoring by introducing automated and artificial intelligence tools which track and report step changes in GSP level consumption data.
We are also working with National Grid Electricity Transmission to improve information sharing in respect of potential Metering errors. This will help us to identify and trace potential errors more quickly in future.
How the errors will be corrected
The Trading Dispute for the GSP Group _J error will require corrections to Settlement.
In line with Settlement principles some Parties will receive sums as a result of the reconciliation and others will need to pay, reflecting historic over or under charging based on the previously incorrect data.
Corrective action may also be needed as a result of Trading Disputes for GSP Group _C, as it would be with any other GSP Group we identify in the future.