Change

Under the EU Third Package (Article 2 of Regulation 714/2009) Interconnector flows should be treated as part of the Transmission System and not as Production or Consumption. The current BSC charging arrangements are not aligned with the EU Third Package. This Modification Proposal seeks to exclude Interconnector Balancing Mechanism (BM) Units from the Main Funding Share and SVA (Production) Funding Share BSC Charges, in order to better facilitate the EU Third Package.

The intent of the Proposed solution is that the excluded BSC Charges will be recalculated and re-billed from the implementation date back to the start of the previous financial year (1 April). The effects of this will be that any BSC Charges in the current financial year to date, will be recalculated and re-billed as one lump sum payment, subject to P361 approval.

P362 seeks to enable BSC Parties to be derogated against specific BSC obligations in order to trial pre-competitive and innovative products and services. Ofgem will act as the point of entry to co-ordinate applications across the industry. This is designed to improve the customer experience and reduce the burden for applicants, particularly where applications require derogation from more than one industry code.

Elexon will receive applications via Ofgem and prepare relevant information for the Panel’s consideration. The Panel will make a recommendation to Ofgem whether to approve or reject the derogation. Ofgem will decide whether to grant the derogation and synchronise derogations across the impacted codes and licences. Anyone can apply for derogation, but non-Parties will be required to accede to the Code and complete the relevant market entry processes before the derogation can be effective.

P365 seeks to amend the BSC such that the Elexon Board can determine whether to bid for the role of REC administrator (and perform the role if the contract is awarded to Elexon). This will be done via a separate not for profit subsidiary (RECASCo), funded by Elexon (through BSC Parties).

Elexon operates on a not for profit basis, therefore if the Elexon Board determines a bid should be submitted, the costs incurred will be borne by BSC Parties, with bid costs capped at the sum of £100k.

The proposed changes ensure that Elexon is ring-fenced from any enduring operational costs and risks associated with performing the role of REC administrator.

P356 will align the BSC with Grid Code Modification GC0099, which seeks to introduce the Interconnector Scheduled Transfer process to the Grid Code. This is in order to establish common, cross-code provisions which are compatible with both the EU single intraday market coupling processes, and GB and EU balancing processes. The P356 Assessment Report was presented to the Panel on 8 February 2018 and the Panel is now consulting on their views ahead of the Draft Modification Report being presented to the Panel on 8 March 2018.

P356 will align the BSC with Grid Code Modification GC0099, which seeks to introduce the Interconnector Scheduled Transfer process to the Grid Code. This is in order to establish common, cross-code provisions which are compatible with both the EU single intraday market coupling processes, and GB and EU balancing processes. The P356 Assessment Report was presented to the Panel on 8 February 2018 and the Panel is now consulting on their views ahead of the Draft Modification Report being presented to the Panel on 8 March 2018.

P354 seeks to allow the Transmission Company to provide Applicable Balancing Services Volume Data (ABSVD) for non-BM Balancing Services to BSC Central Systems for allocation to the appropriate Supplier BM Units to correct Suppliers’ Energy Imbalance positions.

P354 seeks to allow the Transmission Company to provide Applicable Balancing Services Volume Data (ABSVD) for non-BM Balancing Services providers to BSC Central Systems for allocation to the appropriate Supplier BM Unit to correct their Energy Imbalance position. Since the first Assessment Procedure Consultation, the proposed solution has been amended as follows:

• The BSC Systems will aggregate MSID ABSVD to Supplier BM Unit level and use this to correct the Supplier’s Energy Imbalance position
• Removal of the opt-out provision under BSC Section Q6.4.5
• Amend BSC Section Q6.4.8 with the intention that Suppliers’ positions in all reasonable endeavours be corrected by SF but no later than R1
• All MSID ABSVD will be reported to the affected Supplier.

P344 seeks to align the Balancing and Settlement Code (BSC) with the European Balancing Project TERRE (Trans European Replacement Reserves Exchange) requirements. This is in order to allow the implementation of the project at national level and be compliant with the first tranche of obligations in the European Electricity Balancing Guideline (EB GL).

P354 seeks to allow the Transmission Company to provide Applicable Balancing Services Volume Data (ABSVD) for non-BM Balancing Services providers to BSC Central Systems for allocation to the appropriate Supplier account to correct their Energy Imbalance position.