Training Videos on the BSC Change Process

Hi I’m Chris Arnold and I’m a senior change analyst here at Elexon and in this session I want to give you a brief introduction to the BSC change processes. The Objectives of this session are to:

• understand what BSC Change is
• understand the basic structure of the BSC; and
• to understand the key features of all BSC Change Processes

So considering the first Objective, what is the BSC Change Process? Well the BSC Change process is summed up by the statement here on the slide. The BSC Change Process is used to progress changes to the Balancing and Settlement Code arrangements in response to any concerns, problems or defects that Parties may identify in the current processes.

This can directly impact the Balancing and Settlement Code itself, it’s Code Subsidiary Documents and BSC systems. It is also worth highlighting that Market participant systems and processes can be impacted as well as a consequence of these direct changes.

I now want to talk about the basic structure of the BSC. At the top of this slide you have the BSC documents themselves and these are the high level governance and rules for the balancing mechanism and imbalance settlement processes for electricity in Great Britain. The BSC Defines party roles and bodies as well as detailing rules in relation to areas such as Metering, BSC Change Modification Procedures and Balancing Service Activities as well as many other different areas. If we now look under the BSC on the left we have what are called the Code Subsidiary Documents or CSDs, these contain more detailed information than the BSCs and are broken down into categories such as:

• the BSCPs which are the BSC Procedures that give procedural details for various processes under the BSC e.g. CVA metering system registration, Trading Disputes processes and BM Unit registration.
• The Codes of practice – Which give Technical Requirements for metering systems
• You have the IDDs which are the Interface Definition Documents that list specifications and requirements for electronic interfaces and the
• Service descriptions – which describe the various services that are provided by BSC agents.

All of these BSC Documents and CSDs can be found on the Elexon website. Now if we look at the right hand side and I won’t go into the details of all of the systems here but the change process can require changes to supporting systems such as:

• The SVAA which is the Supplier Volume Allocation Agent that Calculates various Energy Volumes
• The BMRS which is the Balancing Mechanism Reporting Service which produces various market charts and graphics and also these others systems so the
• CDCA – Central Data Collection Agent
• CRA – Central Registration Agent; and
• ECVAA – The Energy Contract Volume Aggregation Agent.

I think it’s important to note that the above lists aren’t exhaustive so there are more CSDs than what are on here and more systems. If you want to see the full list of bsc documents they are available under the BSC Baseline Statement on the Elexon website. So moving on to the change process itself. I think it’s worth highlighting that there are two key documents that detail how BSC changes are progressed which are:

• BSC Section F Modification Procedures; and
• BSCP40 Change Management.

Something that I’ll explore in a later session will be the different types of BSC Change but regardless of the type of change there is a basic methodology detailed in this diagram of:

• Assess – Where either Elexon or Parties go away and do some work to develop changes or answer key questions associated with the change or wider industry groups are formed to consider a particular change
• Consult – Where interested parties are given an opportunity to give feedback on any BSC Changes that are being considered these are and
• Approval – Where a designated body or parties gives approval to make the specified change e.g. Ofgem the Panel or Panel Subcommittees.

And that is the end of this short session thank you.

Hi I’m Chris Arnold and I’m a senior change analyst here at Elexon and in this session I want to give you a brief introduction to the BSC change processes. The Objectives of this session are to:

• Understand the 3 different types of BSC Change
• Understand the key features of each BSC Change process and
• To Understand how to get involved in the BSC Change process.

So if you think you have a change the first thing to do is to work out what type of BSC Change it is. If we consider the top table here you should be able to see that there are 3 types of Change which are Issues, Modifications and Change Proposals or CPs. So what are each of these?

• You have an Issue – If you have identified something that is wrong in the current processes but you don’t have a clear solution.
• You have a Modification – If you have identified a clear solution you problem and your solution impacts any of the BSC Sections A through X; and lastly
• You have a CP – If you have identified a clear solution and your solution does not impact the BSC but does impact any CSDs.

An important point to note here is that if a Modification impacts the BSC and a CSD which will sometimes happen, if the changes to the CSD are required only to give effect to the BSC changes than only a Modification needs to be raised otherwise a separate CP has to be raised.

Now let’s consider what to do if you have a Modification so you know you solution impacts the BSC. Now the key test as to whether a particular solution should be implemented or not is whether or not the solution better facilitates the Applicable BSC Objectives. So these objectives are things like:

Better facilitating the efficient discharge by the Transmission Company of the obligations imposed upon it by the Transmission Licence

Better facilitating the efficient, economic and co-ordinated operation of the National Electricity Transmission System

Promoting effective competition in the generation and supply of electricity and (so far as consistent therewith) promoting such competition in the sale and purchase of electricity

Promoting efficiency in the implementation of the balancing and settlement arrangements

Amongst a few others. The full list of Applicable BSC Objectives are detailed in the Transmission Licence as well as on most Elexon Modification papers that we publish on the Elexon website. Now the full details of the Modification process can be found mainly in Section F of the BSC but also BSCP40 ‘Change Management’ and I’ve highlighted some of the key process steps of the Modification process below.

So Modifications can require Workgroups to help develop solutions and to answer key questions relating to a Modification raised. Workgroups consist of industry representatives with expertise relevant to a Modification and they will hold a series of meetings, usually about 3 or 4 but can sometimes be more, where they will:

• Develop the solution further;
• Answer any key questions as directed by the Panel; and
• Make recommendations to the Panel to consider.

Another key process point is that all Modifications are consulted one either once for 10 to 12 WDs if there is no Workgroup or twice if a Workgroup is required.

There are a lot of different variants of Modifications and these include:

• Self-Governance – Where Ofgem the Authority isn’t required to give approval before the Modification is implemented.
• Fast Track Self-Governance – An accelerated self-governance process for very minor BSC Changes
• EBGL Impacting – Where a month long report phase consultation is required

Finally a key thing to highlight here is that BSC Panel and require Ofgem approval. Moving on to CPs the key differences from the Modification are highlighted at the top here.