Modification P399 implemented to support greater competition for balancing services

On 4 November Elexon implemented five changes to the Balancing and Settlement Code (BSC) as part of the November 2021 release. This comprises one Modification, P399 ‘Making the identity of Balancing Service providers visible in the Balancing Services Adjustment Data’, and four Change Proposals. Modifications amend BSC rules and Change Proposals amend BSC subsidiary documents.  

More transparency on balancing actions

The introduction of P399 will ensure that there is more transparency for market participants on actions that National Grid Electricity System Operator (NGESO) takes outside of the Balancing Mechanism (BM), to balance the system effectively.

NGESO has a range of tools to use to balance supply and demand. This includes the BM, which is a market place where NGESO can pay generators or suppliers of electricity to increase generation or take other response actions to correct electricity imbalances. NGESO reports the actions in takes in the BM into Elexon’s BSC Systems, using Bid Offer Acceptances (BOAs).

Counterparties to trades outside of the BM now identified

NGESO also acts outside of the BM, by contracting with market participants. These actions are reported to Elexon through Balancing Services Adjustment Data (BSAD). However, unlike for BOAs, BSAD data has not previously identified the companies that trade with NGESO to provide these services.

The P399 changes, which Elexon helped to develop, will identify all counterparties to trades completed by NGESO outside of the BM.

P399 supports greater competition in balancing services

Previously these counterparties remained anonymous, which gave them a competitive advantage. This is because they had information available on the type of services required, and the location where they were needed. This information was not available to the wider market. The P399 Workgroup and BSC Panel agreed that this change would support greater competition in the provision of balancing services.

Four BSC Change Proposals now implemented

The four BSC Change Proposals that were implemented on 4 November are:

CP1541 ‘Use of D0004 in BSCP502’ which updates part of BSC Procedures BSCP502 (Half Hourly Data Collection for SVA Metering Systems Registered in SMRS) by requiring Half Hourly Data Collectors to send a D0004 (Notification of Failure to Obtain Reading) flow where a site visit to obtain metering data is unsuccessful.

CP1544: ‘BSCCo Approved EFR Representative sign-off required for any EFR plan following escalation’. This change requires that if a BSC Party needs to comply with an Error and Failure Resolution (EFR) Plan to improve its Settlement performance, the plan must be signed off by a director, or partner from the BSC Party, or a person working for the Party who has prior approval from Elexon. This change ensures that EFR plans are escalated and resolved promptly.

CP1545: ‘Introducing Technical Assurance of Metering (TAM) Central Volume Allocation (CVA) Specific Sample Audits’. This change allows Elexon to conduct Specific Sample Audits at CVA sites as well as Supplier Volume Allocation sites, as part of the TAM regime. The change improves overall assurance that Settlement operates efficiently and accurately.

CP1547: Clarification on Site Specific Line Loss Factors (LLFs) Calculation Process for Embedded Licensed Distribution System Operators (LDSOs)’ which provides extra clarity for embedded LDSOs moving from generic to site-specific LLFs. LDSOs calculate LLFs to adjust metered volumes for losses from their networks. We receive LLF submissions for use in Settlement.

Changes to the SAA-I014 Settlement Report 

To support the P399 changes new versions of the SAA-I014 Settlement Report are being made available. Find out more about the changes to SAA-I014 in this BSC Release Circular.

The SAA-I014 contains Settlement information for each Settlement Run Elexon carries out.

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