We’re reviewing the Trading Disputes Technique
We are looking to carry out a comprehensive assessment of the current Trading Disputes processes. The review will recommend any changes and improvements that can be made to the Trading Disputes technique, both in regards to short-term and long-term changes.
The project will also consider the effect that market-wide Half Hourly Settlement will have on the Trading Disputes technique.
Why review the Trading Disputes technique?
The Trading Disputes Performance Assurance Technique was outside of the scope of the Performance Assurance Framework (PAF) review because it was found by the PAF review team to have no dependencies on other Performance Assurance techniques.
It was recognised that the Trading Disputes technique would require an independent review, so that areas requiring improvement could be identified.
The Trading Disputes technique corrects on average £7.5M (based on Trading Dispute corrections over the last three years) of error in Settlement per year, so it is important for processes to run as efficiently as possible.
The review will ensure that Trading Disputes processes are sufficient for the market-wide Half Hourly Settlement proposed changes because of the shorter Supplier Volume Allocation (SVA) Settlement timetable that is proposed.
Approach
This project aims to carry out an independent review of the Trading Disputes technique by:
- obtaining stakeholder feedback
- examining feedback
- undertaking a Trading Disputes process level review
- considering the effect of market-wide Half Hourly Settlement on Trading Disputes processes
The review will be managed in stages, with planned work on each work stream to be completed on a stage-by-stage basis.
Further information on the Trading Disputes review project approach is available in the Project Initiation Document (PID).
Identified changes
The table below shows the current status of the new additions, potential changes and improvements that have been identified so far in the review:
|
Change description |
Affected documentation |
Status |
|
Using a self-service gateway for the online management of Trading Disputes |
Guidance notes |
In progress |
|
Providing consistency around the use of exceptional circumstances |
Complete |
|
|
Introducing a Trading Dispute self-assessment to be completed by the Raising Party |
BSCP11 Guidance notes |
In progress |
|
Introducing a reduced Settlement Run timetable, post the introduction of market-wide Half Hourly Settlement |
BSCP11 Guidance notes |
In progress |
|
Creating a standardised report that should be presented to interested parties following lessons learned exercises |
New report |
In progress |
|
Creating a report where Trading Dispute details will be communicated from the Trading Disputes Committee (TDC) to the Performance Assurance Board (PAB) on a bi-monthly basis |
New report |
Complete |
Trading Disputes Expert Group
Elexon has created an Expert Group that will assist with the assessment and implementation of potential changes identified during the review of Trading Disputes processes.
The Expert Group will utilise the experience of the Treading Disputes Committee (TDC) Members in the first instance, but may need to invite additional external parties to join the Expert Group in the future if required.
Expert Group meetings will be held on a monthly basis as and when required.
Market-Wide Half Hourly considerations
The Trading Dispute Expert Group (TDEG) continues to consider staggered Trading Dispute Deadlines as well as a ratcheted materiality. Under this mechanism, the financial threshold for raising a Trading Dispute would increase with the age of the Settlement Error, encouraging an earlier resolution of errors that occur in Settlement.
Further information on the proposed Dispute Deadlines and materiality thresholds is available in the slides and minutes for each meeting.
TDEG Meeting Two
The second TDEG meeting was held in July 2020. Here are some highlights from the second meeting:
- Market Wide Half Hourly Settlement – Disputes Deadlines and Materiality Thresholds
- Stakeholder feedback
- Raising party self-assessments
View the Meeting Agenda with supporting slides: meeting two
View the Minutes from July’s meeting
TDEG Meeting One
Here are some highlights from the first meeting:
- The first TDEG meeting was held on 2 April 2020. The TDEG discussed the following points:
- Process mapping
- Market-Wide Half Hourly Settlement – Dispute Deadlines and Materiality Thresholds
- Stakeholder feedback points
- Raising Party Self-Assessment – initial discussions
View the Meeting Agenda with supporting slides: meeting one
View the Minutes from April’s meeting
TDC Workshop
Elexon held a workshop with TDC members in December 2019, where all of the changes that had been identified during Stage One were discussed.