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.
Section H: General
Section H sets out arrangements for the initial establishment of Code Subsidiary Documents; the relationship of the BSC with other documents; arrangements that applied to the commencement of trading under the BSC; arrangements covering Default under the BSC; the ownership, use and disclosure of data; audit provisions in the BSC; the limitation of liability of Parties under the BSC; arrangements for the resolution of disputes; and the legal and contractual relationship between Parties.
Section I: Transitional Arrangements for the Implementation of BETTA
The extension of the England & Wales BSC provisions to electricity trading in Scotland is affected by the British Electricity Trading and Transmission Arrangements (BETTA) programme. Although the scope of the BSC was extended to Scotland from the BETTA Go Active date, aspects of the BSC including imbalance settlement are not fully active in respect of Scotland until the BETTA Effective Date. During the Transition Period between these two dates certain transitional changes are needed to the enduring BSC in respect of Scotland. Section I contains these transitional BSC provisions.
Section J: Party Agents and Qualification under the Code
Section J deals with Party Agents and how BSC Parties, Party Agents and CVA Meter Operator Agents (MOAs) Qualify to participate in the Supplier Volume Allocation (SVA) arrangements of the BSC. Unlike Suppliers and Licensed Distribution System Operators (BSC Parties), Party Agents don't sign up (Accede) to the full BSC. The main areas covered in this section are the activities undertaken under the BSC through the use of Party Agents; the responsibility of Parties to ensure that Party Agents perform in accordance with relevant performance levels; the Qualification Requirements which must be met by BSC Parties and Party Agents; and the requirement for BSC Parties to register Party Agents.
Section K: Classification and Registration of Metering Systems and BM Units
Section K of the BSC deals with the classification and registration of Metering Systems, BM Units and Trading Units. The main issues covered include: identifying the Parties that are responsible for Imports and/or Exports of energy at Boundary Points; registering the Metering Systems that measure Imports and Exports of energy in the names of the Parties responsible for them; registering BM Units and assigning BM Units to Trading Units; registering the Metering Systems at Systems Connection Points in the names of the Parties responsible for them; the approval of Line Loss Factors by the Panel; and the process to be followed in the event that a Supplier Fails.
Section L: Metering
Section L of the BSC covers the requirements for Metering Equipment; the requirements to install, commission, operate and maintain Metering Equipment for measuring Active Energy and Reactive Energy; and the role of the Technical Assurance Agent (TAA) in relation to Metering Equipment.
Section M: Credit Cover and Credit Default
Section M covers the provision of Credit Cover by each Trading Party and the consequences in the event that this Credit Cover is insufficient. These consequences are primarily the refusal and rejection of Energy Contract Volume Notifications (ECVNs) and Metered Volume Reallocation Notifications (MVRNs) as provided for in Section P. Consequences of persistent Credit Default are also outlined in Section H.
Section N: Clearing, Invoicing & Payment
Section N of the BSC details payments to and from ELEXON Clear and Payment Parties for Trading Charges and Reconciliation Charges; arrangements for the Funds Administration Agent (FAA) to determine and notify Payment Parties of Trading Charges and Reconciliation Charges; payment procedures for the FAA and Payment Parties to follow; the obligations of ELEXON Clear and Payment Parties to make payments for Trading Charges and Reconciliation Charges and the consequences of non-payment; and the basis on which monies and Credit Cover are held by ELEXON Clear.
Section O: Communications Under the Code
Section O of the BSC primarily addresses data communications and sets out an outline of the arrangements for Communications under the BSC; requirements to be complied with by Parties and Party Agents to be able to send certain Communications to BSC Agents and ensure that certain Communications are received; requirements for the form of certain Communications between Parties or Party Agents and BSC Agents; and the basis upon which certain Communications will be treated as received by a Party or a BSC Agent for the purposes of the BSC.
Section P: Energy Contract Volumes and Metered Volume Reallocations
Section P sets out how Contract Trading Parties (Trading Parties and National Grid), may notify contract volumes to settlements, specifically to the Energy Contract Volume Aggregation Agent (ECVAA). Two types of notifications, Energy Contract Volume Notifications (ECVNs) and Metered Volume Reallocation Notifications (MVRNs), are allowed and these can only be submitted on behalf of Contract Trading Parties by agents, appointed by the Parties specifically for this purpose, and known as Energy Contract Volume Notification Agents (ECVNAs) and Metered Volume Reallocation Notification Agents (MVRNAs) respectively.
Section Q: Balancing Mechanism Activities
Section Q deals with the submission of data items in respect of relevant BM Units in accordance with the Grid Code; the submission of Physical Notifications in accordance with the Grid Code, to enable Final Physical Notification Data to be submitted by the Transmission Company; arrangements for the submission by Lead Parties of Bid-Offer Pairs for relevant BM Units and for the acceptance of Bids and Offers by National Grid; the submission by National Grid of Acceptance Data for the purposes of Section T and Section V; the submission by National Grid of Balancing Services Adjustment Data; the submission by National Grid to the Balancing Mechanism Reporting Agent (BMRA) of other operational data items for the purposes of Section V.