BSC Simple Guides
The Balancing and Settlement Code (BSC) is a lengthy legal document. The following guides provide a good starting point for understanding what each part of the BSC covers.
Acronyms and Defined terms
Words or phrases (other than headings or titles) that are capitalised in these summaries generally appear as defined terms in the BSC (either in Section X or in context in the Section to which they relate).
BSC Framework Agreement
The BSC Framework Agreement is the agreement signed by those members of the Electricity Pool of England and Wales, BSCCo, the Authority and Transmission Company (known as the Original Parties) by which the BSC was made contractually binding the Original Parties in 2000.
The Pool Supplement sets out provisions for final settlement relating to trading under the Pooling and Settlement Agreement (P&SA) up to the introduction of the new wholesale trading arrangements on 27th March 2001; provisions for the satisfaction, performance and discharge of certain other rights and obligations of Pool Members accrued under the P&SA; the arrangements under which provisions in the P&SA are treated as applying between Parties; and the Panel and ELEXON’s roles and responsibility in relation to these matters.
Section A: Parties and Participation
Section A of the BSC deals with Parties and participation. The main issues covered include the capacities that a Party may have under the BSC; the arrangements for admission of new Parties; requirements for Parties to provide information to ELEXON, and to register with the Central Registration Agent (CRA); and provisions for withdrawal and expulsion from the BSC.
Section B: The Panel
Section B covers the establishment of the Balancing and Settlement Code Panel, the appointment and duties of Panel Members, the powers and functions of the Panel, the proceedings of the Panel, Panel Committees, Annual Reports and the Annual BSC Meeting.
Section C: ELEXON and its Subsidiaries
Section C covers the constitution of ELEXON and the obligations of the shareholder of ELEXON; the powers, functions and responsibilities of ELEXON; the management of ELEXON; the relationship between ELEXON and Parties; the Business Strategy and Annual Budget for ELEXON; and Subsidiaries of ELEXON.
Section D: BSC Cost Recovery and Participation Charges
Section D outlines the recovery by ELEXON through BSCCo Charges of BSC Costs, which are the costs that ELEXON incurs in operating the trading arrangements. ELEXON’s costs and the contracted costs of BSC Agents are paid for by BSC Parties as described in Section D of the BSC. The amount each BSC Party pays (Funding Shares) depends on their market role and the volume of energy they generate, supply or trade. Funding Share data by month can be found on the ELEXON Portal.
Section E: BSC Agents
Section E sets out requirements that certain services must be provided by BSC Agents; the role of ELEXON in contracting with BSC Agents; provisions relating to the relationship between ELEXON, Parties and BSC Agents; and provisions relating to the BSC Services Manager. The BSC requires us to ensure the services specified in BSC Service Descriptions are always delivered.
Section F: Modification Procedures
Section F sets out the rules and procedures for modifying the Balancing and Settlement Code (BSC, the Code). This includes procedures for proposing, consulting on, developing, evaluating and reporting to the Authority on potential modifications. Section F also sets out rules and procedures for the creation and modification of Code Subsidiary Documents (CSDs) and provisions relating to change coordination and Information System (IS) Policies.
Section G: Contingencies
Section G of the BSC sets out what happens in certain contingency situations and cross-references Contingency Provisions set out elsewhere in the BSC. The contingencies covered are certain emergencies and unexpected or unusual events, and include: failure of the Energy Contract Volume Aggregation Agent (ECVAA) to receive contract notifications (Section P); manifest errors in the submission or acceptance of Bids and Offers (Section Q); the inability of National Grid to receive Physical Notifications (Section Q); Black Start Periods (Section G); and the exercise of certain emergency powers for civil emergencies and fuel security by the Secretary of State (Section G).