Change

In order to support Suppliers through the COVID-19 pandemic, P406 seeks to set SP08a, SP08b, SP08c and SP04 Serials to £0 for all Suppliers from the March 2020 PARMS reporting period, until further notice.

Supplier Charges are to be reinstated by the BSC Panel after a period of suspension following any changes to Government guidelines and restrictions, and a three month notice period will be provided.

At its meeting on Thursday 9 April 2020, the BSC Panel requested that Ofgem treat P406 as Urgent in order that the solution (subject to subsequent approval) can capture the March 2020 Supplier Charges period, the first period impacted by COVID-19.

This Modification will change the Balancing and Settlement Code (BSC) to align with the existing Grid Code Trans European Replacement Reserves Exchange (TERRE) market suspension arrangements and support National Grid Electricity System Operator’s (NGESO) Market Suspension Rules proposal; mandated by the European regulations ‘Network Code on Electricity Emergency and Restoration’ (NCER) and ‘Establishing a guideline on electricity transmission system operation (SOGL). P403 will provide Market Participants clarity on how the BSC arrangements will operate in the event that the TERRE Market arrangements are suspended

P404 aims to move Balancing and Settlement Code Procedure BSCP537 Appendices 1 ‘Self Assessment Document’, 2 ‘Testing Requirements’ and 3 ‘Guidance Notes on completing the SAD’ to a new Category 3 BSC Configurable Item.

This will facilitate quicker change to the Self Assessment Document (SAD) and its supporting documentation, with the new Category 3 BSC Configurable Item being owned and managed by the Performance Assurance Board (PAB).

This Modification will ensure the process and responsibilities for amending BSC provisions constituting EBGL Article 18 terms and conditions reflect delegations made by NGESO in favor of the BSCCo and BSC Panel, to ensure a unified market change process. These changes are necessary to ensure the EBGL change process is followed as part of the existing BSC Change process, for all future BSC Modifications that impact the EBGL Article 18 terms and conditions found in the BSC.

This consultation is in regards to allowing the BSC Panel to make decisions on Modifications Business via tele/video conference.

Currently, paragraph 4.4.7 of BSC Section B explicitly prevents the Panel from conducting Modification Business by tele/video conference except in the case of Urgent Modification Proposals. This is overly restrictive and could, in the event that a quorum of Panel Members or their Alternates cannot physically attend a Panel meeting, could delay or halt the progression of BSC Change.

This consultation allows you to have your say regarding the proposed changes.

P401 looks to clarify the governance arrangements for BSC Panel Alternates in respect of their contribution to quoracy and voting at BSC Panel meetings. This will help to address ambiguity within the existing arrangements.

This consultation allows you to have your say regarding the proposed changes.

The BSC restricts the activities of Elexon and in the absence of a specific Modification any additional activities cannot be pursued by Elexon (even when those activities would be of benefit to BSC Parties, industry generally and/or the consumer). 

In the past specific Modifications have been necessary which have enabled Elexon to provide the Warm Homes Discount Reconciliation service, EMR settlement, and to participate in gas performance assurance framework and REC manager appointment processes.

Such individual Modifications to extend Elexon’s vires are time consuming and can be an unnecessary distraction for industry. They can also result in Elexon being unable to pursue an opportunity within a required timeframe.

P390 seeks to introduce a framework into the BSC that allows the Elexon Board to determine whether Elexon can undertake additional activities provided certain conditions are met.

All of the conditions introduced in previous Modifications to Elexon’s vires, P330 ‘Allowing Elexon to tender for the Uniform Network Code Gas Performance Assurance Framework Administrator (PAFA) role’ and P365 ‘Enabling Elexon to tender for the Retail Energy Code (REC)’ are included, plus some additional conditions to safeguard the interests of BSC Parties.

P396 seeks to exclude Interconnector Balancing Mechanism (BM) Units from the Main Funding Share and Supplier Volume Allocation (SVA) (Production) Funding Share Balancing and Settlement Code (BSC) Charges, in order to better facilitate the EU Third Package.

P385 proposes to amend BSC Section H in such a manner as to introduce new Events of Default and simplify and reduce the periods after which an Event of Default is triggered.

P394 proposes to remove text relating to unused or expired provisions from the BSC. 

We are requesting data on balancing services provided by assets. We will use this data to conduct analysis into the suitability of some known baseline methodologies, used in other markets, to demonstrate that the solution can produce accurate figures that will not pose a risk to the integrity of Settlement.

Without this data, the P376 Workgroup will be unable to assess the suitability of baselines using GB specific data. It will be used by P375 to help demonstrate the independence of assets.

Data provided under this Request for Information will be anonymised to protect confidentiality.

This Modification proposes to amend the BSC to expand the scope of the TAM technique to allow for Desktop Audits to act as a supplement to existing on-site Inspection Visits.

By amending the BSC and BSC Systems (namely the TAAMT) to facilitate Desktop Audits, Elexon can provide a flexible, pragmatic and cost-effective addition to onsite Inspection Visits. To facilitate the solution, Section L and BSCP27 will be amended to describe the high-level obligations and process detail for the undertaking of Desktop Audits respectively, while definitions of a Desktop Audit and On-Site Inspection will be introduced to Annex X-1.

Listen to our podcast to find out more about the Desktop Audit modification.

This Modification is intended to enable the aggregation of specific Metering Systems’ metered data for network charging purposes, i.e. to support the operation of CUSC Modification Proposals CMP280 and CMP281. This Modification will  introduce processes explaining how Suppliers, Half Hourly Data Aggregators (HHDAs) and the Supplier Volume Allocation Agent (SVAA) participate in the aggregation and reporting of storage facilities’ Metering Systems’ metered data and enable the BSC Panel and BSCCo to perform assurance activities in relation to the aggregation of this data.

P374 seeks to ensure that the BSC is aligned with the European Electricity Balancing Guideline (EBGL – Regulation 2017/2195) derogation and change process by ensuring that:

• BSC Modifications are not implemented until the EBGL change process has completed; and
• BSC Derogations cannot be granted for provisions that constitute relevant legal requirements (Alternative Modification, which aligns to existing BSC wording) or that meet the EBGL balancing terms and conditions (Proposed Modification).

Specifically, P374 aims to reflect changes to the Code Governance arising from the application of the terms and conditions related to balancing from Articles 4, 5, 6, 10 and 18 of the EBGL

There is a conflict between the rules in the Balance and Settlement Code (BSC) and the Capacity Market (CM) rules regarding how Balancing Mechanism (BM) Units are registered. Removing this conflict from the BSC will clarify the arrangements and ensure BSC Parties remain compliant with both the BSC and CM rules.

This Modification proposes to amend BSC Section H in such a manner as to introduce new Events of Default and reduce the periods after which certain Events of Default are triggered.

The parameters for certain Events of Default will be removed from Section H, while retaining existing high-level obligations and necessary process detail. Instead, the Panel will decide on changes to these parameters, consult with the industry to ascertain impacts and lead times, and publish the parameters on the BSC Website.

The Workgroup will review the responses and provide their final views, before submitting the Assessment Report to the Panel on 12 September 2019.

A number of opportunities to simplify and align the P344 ‘Project TERRE’ and P354 ‘Use of ABSVD for non-BM Balancing Services at the metered (MPAN) level’ legal text have been identified. The process for allocating MSID Pair Delivered Volumes to composite MSIDs will be updated to account for both Virtual Lead Party and NETSO inputs. The P344 and P354 processes surrounding the Supplier Volume Allocation Metering System Balancing Services Register will be aligned and simplified.

The Report Phase Consultation closed on 30 July 2019. Two respondents raised concerns that P388 does not take into account balancing actions being provided for regional DNO services, such as voltage support.

This Modification is intended to enable the aggregation of specific Metering Systems’ metered data for network charging purposes, i.e. to support the operation of CUSC Modification Proposals CMP280 and CMP281. This Modification will introduce processes explaining how Suppliers, Half Hourly Data Aggregators (HHDAs) and the Supplier Volume Allocation Agent (SVAA) participate in the aggregation and reporting of storage facilities’ Metering Systems’ metered data and enable the BSC Panel and BSCCo to perform assurance activities in relation to the aggregation of this data.

The Workgroup will review the responses and provide their final views, before submitting the Assessment Report to the Panel on 8 August 2019.

This Modification is concerned with providing clarity in regards to BSC compliance with European Balancing Guideline (EBGL) Article 18 terms and conditions related to balancing, with a specific view of the EBGL Amendment process and Article 62 (Derogations).

The Proposed Modification would make clear that any BSC Modification seeking to amend any BSC provisions that constitute the Article 18 terms and conditions related to balancing, once approved by the Authority (i.e. Ofgem) cannot be progressed as Self-Governance. This is due to the EBGL requirement that any amendment to the Article 18 terms and conditions related to balancing must undergo a separate EBGL Amendment process (detailed in Articles 4, 5, 6 and 10) and be given approval by the Authority.

The Proposed Modification would also specifically preclude any BSC provisions constituting EBGL Article 18 terms and conditions related to balancing from being granted a BSC derogation via the BSC Sandbox process. 

The P374 Workgroup agreed to raise an Alternative Modification that is identical to the Proposed, except in that it will not specifically preclude BSC provisions that constitute Article 18 terms and conditions related to balancing from a BSC derogation. Instead the current process would remain, allowing each application to be assessed on a case-by-case basis.

The Proposer contends that there is no reason for a different treatment of Reserve products and Non BM Fast Reserve should have been captured already in the calculation of the Imbalance Price via the BSAD and via the Reserve Scarcity Price (RSP) methodology.  This Modification is about Non BM Fast Reserve, however, the implementation of this Modification will remove any potential ambiguity and make it clear to the Electricity System Operator, when developing future Balancing Services and associated systems that all Actions should flow through into the Imbalance Price calculation.

P371 seeks to include the price of Non-Balancing Mechanism (BM) Fast Reserve actions into the calculation of the Imbalance Price. The aim is to correct the calculation of the Imbalance Price; guarantee fair and harmonised treatment of all services which cost should be included; provide greater transparency and, ultimately, ensure National Grid’s compliance with the Balancing Services Adjustment Data Methodology Statement (BSAD).

The Balancing Mechanism Reporting Service (BMRS) is the primary channel for providing operational data relating to Great Britain’s (GB) Electricity Balancing and Settlement arrangements, as well as REMIT and European Transparency Regulation data. 

This Modification proposes to move a selection of Balancing Mechanism Reporting Service (BMRS) reporting items, currently set out in BSC Section V ‘Reporting’, to a new Code Subsidiary Document (CSD). This will remove the need to progress a Modification for future amendments while retaining obligations to provide or report required data remain within the BSC.

BMRS changes, which meet newly established criteria designed to speed up the progression of ‘De-Minimis BMRS Changes’ will not be subject to the normal Change Proposal (CP) consultation and will instead be progressed straight for decision. A 15 Working Day objection window will allow market participants to challenge the application of the criteria.

P384 will ensure balancing information required by the European Electricity Balancing Guideline (EB GL) and the European Transparency Regulation (ETR) is available to Market Participants. It will also ensure the Balancing and Settlement Code Company (BSCCo) and National Electricity Transmission System Operator (NETSO) remains compliant with this European legislation.

P366 will amend how Supplier Charge SP08a is applied to Non Half Hourly non-domestic Meters that are hard-to-read (HTR). It is believed that applying Supplier Charge SP08a to HTR Metering Systems is anti-competitive and limits consumer choice. 

P364 will clarify the requirements for configuring and registering Plant and Apparatus in Balancing Mechanism (BM) Units. Specifically where Parties seek to share responsibility for Imports and Export from the same Plant and Apparatus or via the same Boundary Point.

It will also clarify the circumstances and requirements for maintaining BM Unit registration details and seeking to re-register BM Units when the configuration of Plant and Apparatus change

The P363+4 combined Assessment Report was presented to the Panel on 14 MArch 2019. the Panel agreed to amalgamate P363 into P364 and allow P364 to move into the Report Phase. Following amalgamation of P363 and P364, only the P364 page will be updated. The P363 page will not be updated.

The Balancing and Settlement Code (BSC) contains multiple references to European Union (EU) legislation and bodies. Additionally, it also contains text introduced as a result of implementing various EU legislation. Retaining these references and text following the United Kingdom’s (UK’s) withdrawal from the EU without a deal (‘no-deal Brexit’) will mean that the BSC is no longer technically accurate but will remain operable because of the European Union Withdrawal Act 2018.

The requirement to raise a Modification to make additions or changes to the data reported via the Balancing Mechanism Reporting Service (BMRS), is contributing to extended timescales for implementing these updates.

P372 aims to simplify the governance arrangements and reduce the timescales for the publication of data on the Balancing Mechanism Reporting Service (BMRS). 

The BSC is constructed in a way that means the burden of governance can be reduced while maintaining appropriate oversight, by taking BMRS changes out of the Modification process and putting them under formal control of the Change Proposal (CP) process.

P381 proposes to remove Section C3.9.1 of the BSC in respect of ‘quarterly reports’. Currently, the quarterly reports are not viewed by market participants, as the information is made readily available in a more timely and accessible manner elsewhere on the BSC Website. Therefore, the current quarterly reports process utilises Elexon resource that could be better used adding greater value for our customers.

We have issued Urgent Modification Proposal P378 ‘ Introduction of a CM Supplier Interim Charge’ for industry consultation, with responses invited by 5pm on Tuersday 29 January 2019.

P378 seeks to use the BSC to introduce a CM Supplier Interim Charge for Suppliers. This will act as a contingency fund to protect the industry, and customers, from a price shock in the event that the CM standstill is lifted and back payments are required to be made. The Modification solution is based on the recommendations of Issue 76.

We have issued P370 ‘Allow the Panel to designate non-BSC Parties to raise Modifications’ for Report Phase Consultation,  interested parties were invited to respond by Friday 25 January 2019. P370 seeks to allow the BSC Panel, instead of Ofgem, to designate interested third parties to raise Modification Proposals and for Ofgem to become the appeals body. P370 also opens up the Issues process to non-BSC Parties. 

BSC Section T 1.5.3(b)(iii) defines ‘short term’ in relation to Market Index Data as a time period in reference to Gate Closure. Following BSC Modification P342 implemented in November 2017, the deadline for contracts for delivery in a Settlement Period has moved from Gate Closure to the Submission Deadline. P342 did not change the Market Index Definition Statement (MIDS) to reflect this. The 2018 MIDS Review is proposing to amend references of Gate Closure to the Submission Deadline to include trades taken in the hour prior to a Settlement Period in Market Index Data which will impact Market Index Data Providers. This change to the MIDS will need BSC Panel approval in November and approval from the Authority.

We have issued P370 ‘Allow the Panel to designate non-BSC Parties to raise Modifications’ for Assessment Procedure Consultation, which you are invited to respond to by Monday, 12 November 2018. P370 seeks to allow the BSC Panel, instead of Ofgem, to designate interested third parties to raise Modification Proposals and for Ofgem to become the appeals body. P370 also opens up the Issues process to non-BSC Parties.

P369 proposes to modify the Balancing Settlement Code (BSC) to reflect the creation of a new National Grid Electricity System Operator (NGESO) that is legally separate from National Grid Electricity Transmission Limited (NGET). Further information can be found on the P369 webpage.

This is the P369 Report Phase Consultation, whereby industry views are requested in respect of the BSC Panel’s initial recommendations on the Modification.

P361 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.

P362 seeks to enable BSC Parties to be derogated against specific BSC obligations in order to trial pre-competitive and innovative products and services.

P368 shall amend provisions in the timing and revision of the Performance Assurance Framework  (PAF) Procedure documents in order to support the objectives of the PAF Review in delivering a more efficient and effective PAF.  Further information can be found on the P368 webpage.

This is the P368 Report Phase Consultation, whereby industry views are requested in respect of the BSC Panel’s initial recommendations on the Modification.

P367 proposes to remove all obsolete Supplemental Balancing Reserve (SBR) and Demand Side Balancing Reservice (DSBR) requirements, definitions, and references from the BSC and subsidiary documents. Further information can be found on the P367 webpage.

This is the P367 Report Phase Consultation, whereby industry views are requested in respect of the BSC Panel’s initial recommendations on the Modification.

P359 seeks to introduce a new mechanised process for Generation Capacity (GC) and Demand Capacity (DC) re-declarations following a ‘GC/DC breach’. More details on the P359 page.

At its meeting on 23 April 2018, the Workgroup, in response to the first Assessment Consultation responses, decided to raise an Alternative Modification. This requires second Assessment Procedure Consultation. The Proposed Solution is identical to the Proposed Modification, except that the Alternative allows the Transmission Company (TC) to apply for, and be granted, BSC Derogations.

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

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.