Advanced Search

BSCP301: Clearing Invoicing and Payment

v 19.0
Download Forms
Download

Balancing and Settlement Code

BSC PROCEDURE

CLEARING, INVOICING AND PAYMENT

BSCP301

Version 19.0

Date: 16 June 2020

BSCP301 relating to CLEARING, INVOICING AND PAYMENT

1. Reference is made to the Balancing and Settlement Code and, in particular, to the definition of “BSC Procedure” in Section X, Annex X-1 thereof.

2. This is BSC Procedure 301, Version 19.0 relating to Clearing, Invoicing and Payment.

3. This BSC Procedure is effective from 16 June 2020.

4. This BSC Procedure has been approved by the Panel.

Intellectual Property Rights, Copyright and Disclaimer

The copyright and other intellectual property rights in this document are vested in ELEXON or appear with the consent of the copyright owner. These materials are made available for you for the purposes of your participation in the electricity industry. If you have an interest in the electricity industry, you may view, download, copy, distribute, modify, transmit, publish, sell or create derivative works (in whatever format) from this document or in other cases use for personal academic or other non-commercial purposes. All copyright and other proprietary notices contained in the document must be retained on any copy you make.

All other rights of the copyright owner not expressly dealt with above are reserved.

No representation, warranty or guarantee is made that the information in this document is accurate or complete. While care is taken in the collection and provision of this information, ELEXON Limited shall not be liable for any errors, omissions, misstatements or mistakes in any information or damages resulting from the use of this information or action taken in reliance on it.

AMENDMENT RECORD

Version

Date

Description of Change

Changes Included

Mods/Panel/ Committee Refs

1.0

14/08/2000

Go active version

n/a

n/a

2.0

30/11/2000

Work outstanding at Go Active, resolution of inconsistencies, inclusion of consultation comments

213,186, 244

08/009

3.0

21/08/2001

Credit Cover procedure amended for the ECVAA Interim Release

CP519 (Part 1)

4.0

12/08/2002

Modification and Change Proposals for BSC Systems Release 2

CP519 (Part 2), CP554, P39

ISG 16/166,

ISG 19/197

5.0

10/12/2002

Modification Changes for BSC System Release 2A

P61, P76

6.0

24/06/2003

Changes for CVA Programme June 03 Release

CP 750

7.0

10/3/2004

Change to CVA Programme P127 interim release

P127

ISG 37/419

8.0

30/06/2004

Change proposal for the CVA Programme June 04 release

CP986

ISG/40/003

9.0

03/11/04

Modifications and Change Proposals for the CVA Programme November 04 Release

P152, P142, CP974, CP1032

ISG/39/001 TDC/58/03

10.0

20/12/04

CVA Programme February 05 Release

CP1078, BETTA

ISG/44/001

11.0

02/11/05

CVA Programme November 05 Release

CP1128

ISG/54/002

12.0

26/06/08

June 2008 Release

CP1223

CP1176 (part)

SVG84/02, ISG84/01, TDC109/01, PAB84/11

ISG/68/02

SVG/67/02

13.0

06/11/08

November 2008 Release

P214

Panel 134/05

14.0

25/02/10

February 2010 Release

CP1313

ISG105/02

CP1321

ISG107/01

15.0

23/02/12

February 2012 Release

CP1352

ISG129/02

16.0

25/06/15

June 2015 Release

P307

ISG169/05

17.0

28/06/17

June 2017 Release

CP1486

ISG194/05

18.0

28/02/19

February 2019 Release

CP1510

ISG211/06

SVG214/02

19.0

16/06/20

June 2020 Release

P405 Self-Governance

P302/08

1 Introduction

1.1 Purpose and Scope of the Procedure

This BSCP defines the processes that the Funds Administration Agent (FAA) shall use to carry out the transfer of funds in respect of Settlement between Parties and the Code Clearer for Trading Charges, Ad Hoc Trading Charges and Reconciliation Charges under the Code, and some ancillary activities. It also defines the processes by which Parties may reduce or increase the amount of Credit Cover held by the FAA in relation to that Party.

This is achieved by detailing the FAA activities which are driven by the Settlement process and also those enabling processes which are either ad-hoc or have timescales which are independent of the Settlement process.

This BSCP focuses on the interfaces between the FAA and other agencies seen from the perspective of the FAA.

This BSCP also covers the preparation of the Payment Calendar by the FAA and of the Settlement Calendar by the Settlement Administration Agent (SAA).

1.2 Main Users of the Procedure and their Responsibilities

The main users of this Procedure include the:

a) Funds Administration Agent (FAA).

b) Settlement Administration Agent (SAA).

c) Parties.

d) Panel.

e) Code Auditor.

f) ECVAA.

g) CRA.

h) BSCCo.

By each Notification Date, the FAA has to receive from the SAA, Settlement results for the relevant Settlement Day(s), as set out in the Payment Calendar.

With information for each Settlement Day the FAA uses the Funds Transfer System (FTS) to calculate the necessary exchange of funds between each Payment Party and the Code Clearer on the Payment Date. Advice Notes1 are sent to Payment Parties and the BSCCo prior to the Payment Date. Confirmation Notices1 to Payment Parties and BSCCo are sent after the Payment Date.

Where a Party has access to the Self-Service Gateway and an equivalent online form is provided, the Party may use the online form as an alternative to the paper forms defined in this BSCP.

Where a Party has provided data using the Self-Service Gateway, BSCCo may use the service to validate and confirm the input data or to request additional data. Where this is the case, these online transactions will represent a valid equivalent to the transactions defined in this BSCP.

Please note that there will not always be a one-to-one equivalence between the data collected via the Self-Service Gateway and the paper forms defined in this BSCP. For example, data collected in one paper form, may be collected by more than one online form. Conversely, a single online form may collect data from more than one paper form.

All references to the provision of information using BSCP forms in this Procedure, should be construed as provision either by a paper form (including an electronic version of the form provided via email) or via the Self-Service Gateway. References to the CRA, including checks performed by the CRA, may include the Self-Service Gateway as applicable.

1.3 Key Milestones

There are the following key milestones:

• Production of the Payment Calendar in accordance with section N and of the Settlement Calendar in accordance with Code section U.

• Funds transfer in accordance with Code section N.

• Management and monitoring of Credit Cover in accordance with Code section M.

1.4 Balancing and Settlement Code Provision

This Procedure should be read in conjunction with the Code and in particular sections M, N and U thereof.

In the event of an inconsistency between the provisions of this BSCP and the Code, the provisions of the Code shall prevail.

1.5 Associated BSC Procedures

BSCP01 Overview of Trading Arrangements.

BSCP11 Trading Disputes

BSCP38 Authorisations

BSCP65 Registration of Parties and Exit Procedures

2 Acronyms and Definitions

A full list of defined terms and acronyms, and their definitions, can be found in Annex X-1 and X-2 of the Code. The acronyms and terms used locally in this procedure are defined as follows:

BACS

Banks’ Automated Clearing Systems

CHAPS

Clearing House Automated Payment Systems

FTS

Funds Transfer System

LC

Letter of Credit

SD

Settlement Day

Self-Service Gateway

An online portal, accessible through the BSC Website, that allows authorised users to provide and maintain registration data, including (but not limited to) the data defined in this BSCP.

WD

Working Day

3 This section is no longer in use

4 Interface and Timetable Information

4.1 Payment Calendar and Settlement Calendar

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.1.1

By 15th January in each year

Produce draft Payment Calendar for each banking day detailing Initial Notification Dates and Initial Payment Dates corresponding to Settlement Days falling during the next Code Year (1st April to 31st March inclusive), and calendar Payment Dates and Notification Dates for Timetabled Reconciliation Settlement Runs where the calendar Payment Date is between the earliest and the latest Initial Payment Dates.

FAA

Draft Payment Calendar detailing the following dates: Initial Payment Date and Initial Notification Date, for each Settlement Day of the next following Code Year, and calendar Payment Dates and Notification Dates for Timetabled Reconciliation Settlement Runs where the calendar Payment Date is between the earliest and latest Initial Payment Dates

Internal process

4.1.2

By 15th January in each year

Issue draft Payment Calendar for review.

FAA

BSCCo

Draft Payment Calendar

Manual / Electronic

4.1.3

At same time as 4.1.2

Send confirmation of the date on which Advice Notes will be sent in relation to each Quarter Date in the following BSC Year.2

FAA

BSCCo

Confirmation of date of Advice Note despatch

Manual/ Electronic

4.1.4

At same time as 4.1.2

Publish notification of the date on which Advice Notes will be sent in relation to each Quarter Date in the following BSC Year on BSC Website.

BSCCo

Date of Advice Note despatch

Internal process

4.1.5

Within 5 WD of 4.1.2

Send comments on draft Payment Calendar.

SAA

BSCCo

As above

Manual / Electronic

4.1.6

Within 10 WD of 4.1.2

Resolve any issues with SAA and FAA.

BSCCo

SAA

FAA

Any

4.1.7

Within 10 WD of 4.1.2

Authorise and send authorised Payment Calendar.

BSCCo

FAA

Authorised Payment Calendar

Manual / Electronic

4.1.8

By 31st January in each year

Distribute authorised Payment Calendar.

FAA

BSCCo

SAA

Payment Parties

Authorised Payment Calendar

Manual / Electronic

4.1.9

Within 10 WD of 4.1.7

Produce draft SAA Settlement Calendar that is consistent with the Payment Calendar.

SAA

Internal process

4.1.10

Within 10 WD of 4.1.7

Issue draft SAA Settlement Calendar for review.

SAA

BSCCo

SVAA

Draft SAA Settlement Calendar

Manual / Electronic

4.1.11

Within 5 WD of 4.1.9

Send comments on draft SAA Settlement Calendar.

SVAA

BSCCo

As above

Manual / Electronic

4.1.12

Within 10 WD of 4.1.9

Resolve any issues with SVAA and SAA.

BSCCo

SVAA

SAA

As above

Manual / Electronic

4.1.13

Within 10 WD of 4.1.9

Approve SAA Settlement Calendar.

BSCCo

SAA

Approved SAA Settlement Calendar

Manual / Electronic

4.1.14

Within 2 WD of 4.1.12

Publish approved SAA Settlement Calendar.

Note: each respective Party will create their own calendar from the Settlement Calendar and each Party’s calendar will be consistent with the Settlement Calendar and Payment Calendar.

SAA

SVAA

CDCA

Payment Parties

Approved SAA Settlement Calendar

Manual / Electronic

4.2 Calculate and Arrange Payments

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.2.1

To be received by 10:00 on Notification Date.

Send SAA Settlement Results for each relevant Settlement Day (i.e. all Settlement Days with this Notification Date as per the Payment Calendar).

SAA

FAA

Credits and Debits Report for Initial, Reconciliation and Post-Final Settlement Runs (where applicable)

For each Settlement Day and for each Trading Party:

Daily Party BM Unit Cashflow

Daily Party Non-Delivery Charge

Daily Party Energy Imbalance Cashflow

Daily Party Information Imbalance Charges

Daily Party Residual Settlement Cashflow

For each Settlement Day:

• Daily System Operator BM Cashflow

Electronic

4.2.2

If SAA Settlement Results not received by 10:00.

Send notification of non-receipt and liaise with SAA to attempt to obtain data in time to run production and despatch processes.

FAA

SAA

BSCCo

Notification of non-receipt

Tel/Email

4.2.3

If final Reconciliation postponed.

Reschedule final Reconciliation.

FAA

Internal Process

4.2.4

If SAA Settlement Results received on time.

Validate results for completeness, against Standing Data and for balance (within £10) between total debits and total credits.

FAA

Credits and Debits Report

Internal Process

4.2.5

If SAA Settlement Results are invalid (£10 difference or more) or data is missing then notify as soon as possible after receipt from SAA

Notify invalidity or missing data as soon as aware of invalidity. (If this is not done by close of business on Notification Date, SAA will assume that the data are valid).

FAA

SAA

Notification of invalidity

Tel/Email

4.2.6

Using its best endeavours

Resolve problem and send revised SAA Settlement Results.

SAA

FAA

Revised Credits and Debits Report

Electronic

4.2.7

If valid results available in time for production and despatch processes to be run

Run FTS.

FAA

Internal Process

4.2.8

No later than the Notification Date, if the Advice Note Threshold Limit has been exceeded; or

on a Quarter Date2; or

as requested by BSCCo or by a Payment Party in accordance with Section N7.1.8 of the Code; or

as determined by the Panel

Send Advice Note with combined charges3.

FAA

Each Payment Party

Advice Note showing the combined amount that is to be paid by the Party to the Code Clearer or to that Payment Party by the Code Clearer on that Payment Date. Sample in Appendix 5.1.1.

Email

4.2.9

When Trading Charges are incurred and no later than the Notification Date

Send Trading Charges backing sheets.

FAA

Each Payment Party

Backing Documentation for Trading Charges. Sample in Appendix 5.1.5.

Email

4.2.10

When Default Charges have accrued; and

either the monetary or time thresholds have been exceeded; and

no later than the Notification Date.

Send Default Charges backing sheet.

FAA

Each Payment Party

Backing Documentation for Default Charges. Sample in Appendix 5.1.5.

Email

4.2.11

When an ad-hoc charge occurs, and no later than the Notification Date

Send ad-hoc charges backing sheets.

FAA

Each Payment Party

Backing Documentation for ad-hoc charges. Sample in Appendix 5.1.5.

Email

4.2.12

If Payment Date postponed

Resume at 4.2.6 above on the next Business Day (so that the postponed Payment Date is the second Business Day after valid Settlement Results received).

4.2.13

10 WD after the FAA receives notification of ad-hoc payment, or as otherwise agreed by the Panel

Include ad-hoc payment in Advice Note for Payment Date in question.4

FAA

Payment Party

Email

Where an undeliverable return receipt is received relating to the electronic delivery of an Advice Note/Confirmation Notice/Advice Note Backing Sheet

4.2.14

If electronic delivery of an Advice Note / Confirmation Notice / backing sheet fails

Contact affected Party and either:

a) request a temporary email address to deliver the file electronically;

b) request a fax number to fax to the document to the Party;

c) advise the Party of the amount payable or receivable and post the document.

FAA

Payment Party

Telephone

4.2.15

If electronic delivery of an Advice Note / Confirmation Notice / backing sheet fails and telephone contact is not possible

Send document to Party by post until such time as the FAA can contact the Party and confirm the situation or resolve the email non-delivery problem.

FAA

Payment Party

First Class Post

4.2.16

If Payment Party suspects they should have received an Advice Note / Confirmation Notice / backing sheet

Contact FAA and advise of non-receipt of expected document.

Payment Party

FAA

Telephone, Email

4.2.17

Following 4.2.16

Investigate and advise Payment Party as necessary.

FAA

Payment Party

Internal process, telephone, email

4.3 Payment Procedure

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.3.1

Not later than the end of the Business Day on Payment Date

Send funds

Party

Collection Account

Payment initiation instructions

Manual or electronic via CHAPS / BACS / DD

In the case of expected non-payment or shortfall in payment

4.3.2

As soon as BSC Debtor becomes aware that payment will not be credited to Collection Account by the end of the Business Day on Payment Date

Advise that a payment will not be credited to the Collection Account and reasons or, that there will be a shortfall in payment.

BSC Debtor

FAA

Collection Account name, Payment Date, BSC Party, shortfall in funds, deadline for resolution

Telephone, Email

4.3.3

As soon as it becomes aware that a payment has not or will not be credited to the Collection Account by the end of the Business Day on the Payment Date

Notify and liaise with BSCCo.

FAA

BSCCo

Email

4.3.4

By 11:00 on the Business Day following Payment Date

Liaise to establish the reason and agree a resolution.

FAA

BSCCo

Telephone, Email

4.3.5

By 11:00 on the Business Day following Payment Date

Advise BSC Debtor of the amount of non-payment or the Shortfall Amount5

BSCCo

BSC Debtor

Amount of non-payment/Shortfall Amount.

Telephone, Email

In the case of excess payment

4.3.6

By 11:00 on the Business Day following the Payment Date

Use reasonable endeavours to ascertain the nature of the excess payment, calculate the entitlement and instruct the BSC Banker, by 16:00 that day, to:

• credit the relevant BSC Debtor’s account; or

• (if so requested by the BSC Debtor) the Reserve Account; or

such other account as authorised by BSCCo.

FAA

BSC Debtor

Manual or electronic via CHAPS / BACS / DD

4.3.7

By the end of the Business Day on Payment Date

Advise amounts credited to the Clearing Account.

BSC Banker

FAA

4.3.8

By the end of on the Business Day following Payment Date

If there is an excess payment, ascertain the nature of the excess payment, calculate the entitlement and instruct the BSC Banker to credit the Reserve Account with the excess amount.

FAA

BSC Banker

In the case of normal payments by BSC Debtors

4.3.9

By 11:00 on the Business Day following Payment Date

Confirm that all amounts have been credited to the Collection Account.

FAA

Party, if required

FAA to contact Parties in the event of non-payment and find out reason for non-payment.

Internal Process

4.3.10

Not later than the end of the Business Day following Payment Date

Ensure the Collection Account balance is swept into the Clearing Account and, if necessary, sweep an appropriate amount from the Borrowing Account into the Clearing Account.

BSC Banker

Internal Process

4.3.11

By 11:00 on the Business Day following Payment Date

Reconcile the actual amounts credited and remitted to the Clearing Account.

FAA

4.3.12

Within 2 WD of Payment Date

Send Confirmation Notice.

FAA

Party

Confirmation Notice for each Party who received an Advice Note for the relevant Payment Date; will detail amounts received from the Party inclusive and exclusive of VAT. See sample form in Appendix.

Email and optionally First Class Post

In the case of payments to BSC Creditors

4.3.13

At about 15:00 on Payment Date

Calculate the amounts available for payment by the BSC Clearer to BSC Creditors.

FAA

Internal Process

4.3.14

Not later than 16:00 on Payment Date

Arrange for remittance from the Clearing Account to the relevant Settlement Accounts and if required arrange for transfers from the Reserve Account or Borrowing Account to the Clearing Account or vice versa.

FAA

BSC Banker

4.3.15

Within 2 WD of Payment Date

Send Confirmation Notice with combined charges.

FAA

Party

Confirmation Notice for each Party who received an Advice Note for the relevant Payment Date; will detail amounts paid to the Party inclusive and exclusive of VAT. See sample form in Appendix 5.1.3.

Email and optionally First Class Post

4.4 Payment Default

This section has been removed; please reference Code Section N Paragraph 9.

4.5 Maintain Arrangements with Banks

4.5.1 Obtain new and changed banking details and authorisations

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.5.1.1

As required and no later than 5 WD before a change in VAT status that alters the liability of the Party to UK VAT

Send completed and authorised “Funds Accession” form or “Amendments to Funds Accession Details” form, as necessary.

Party

FAA, BSCCo

Sample forms in Appendix 5.1.4

Signatory must be authorised as per BSCP38

BSCP301/04(a) if new details

BSCP301/04(b) if details have been changed

Manual / Self-Service Gateway

4.5.1.2

Within 1 WD of 4.5.1.1 where notice of a change in VAT status that alters liability of the Party to UK VAT, has been given

Check “Amendments to Funds Accession Details.”

Where VAT declaration is complete, notify consent to change in VAT status.

Where VAT declaration is incomplete or believed to be erroneous6 contact Party and resolve.

BSCCo

BSCCo

FAA

Party

Completed

BSCP301/04 (a); or

BSCP301/04 (b).

Manual / Self-Service Gateway

4.5.1.3

No later than 3 WD before the Payment Date on which the change in VAT status takes effect, and prior to calculation of payments, where BSCCo has consented to change in VAT status

Validate Funds Accession Form or Funds Accession Details Form & update VAT details

FAA

Consent to change in VAT status from BSCCo

Internal Process

4.5.1.4

Within 4 WD of 4.5.1.1

Check Payment Party’s contact details against those received from CRA.

FAA

Internal Process

4.5.1.5

Within 10 WD of 4.5.1.1

Establish / revise transfer details.

FAA

Party Banks

Direct Debit instructions, CHAPS, BACS

Manual

4.5.1.6

Before the new Party can take part in Trading Arrangements

Set up banking communication links.

FAA

BSC Banker, Collection Account

As required

Internal Process

4.5.2 Quarterly / Ad hoc Statements (provided to Parties and Customs and Excise for VAT purposes)

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.5.2.1

At the end of each Quarter or ad-hoc as requested

Produce & Send Quarterly / Ad-hoc Statements.

FAA

Parties

Customs & Excise (Quarterly Statements only)

Settlement Run data, dispute payments/ receipts, interest from Reserve Account

Post / Email

4.5.2.2

Promptly

Review Quarterly / Ad-hoc Statements.

Parties

Internal Process

4.5.2.3

If discrepancy

Raise query.

Parties

FAA

Phone / Fax / Email

4.5.2.4

Resolve discrepancy.

FAA

Parties

Phone / Fax

4.5.2.5

If practicable within 10 WD of receipt of Quarterly Statement

Send Confirmation that statement acceptable.

Parties

FAA

Fax/ Post / Email

4.5.2.6

After 4.5.2.5

Send copy of Quarterly / Ad-hoc Statement & Confirmation.

FAA

BSCCo

BSC Auditor

Settlement Run data, dispute payments/ receipts, interest on security cover.

Post / Email

4.6 Manage Credit Cover

4.6.1 Reduction of Credit Cover by Parties not in Default

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.6.1.1

At any time

Request minimum eligible amount calculation.

Trading Party

ECVAA

ECVAA-I024: Credit Cover Minimum Eligible Amount Request (Form BSCP301/06)

Email/Fax

4.6.1.2

On same WD as 4.6.1.1

Check if Party is in Default of the Code.

If Party is not in Default go to 4.6.1.4.

If Party is in Default go to 4.6.1.3.

ECVAA

Internal process

4.6.1.3

On same WD as 4.6.1.1

Inform BSCCo and go to 4.6.2.3.

ECVAA

BSCCo

Email/Fax

4.6.1.4

On first WD after the expiry of the Waiting Period7

Calculate minimum eligible amount.

ECVAA

Internal Process

4.6.1.5

On same WD as 4.6.1.4

Notify minimum eligible amount.

ECVAA

FAA

Trading Party

BSCCo

ECVAA-I025: Credit Cover Minimum Eligible Amount Report (Form BSCP301/07)

Email

4.6.1.6

Not later than second WD after 4.6.1.5

Request reduction of Credit Cover.

Trading Party

FAA

Details of LC reduction/cash withdrawal

Letter/Fax/Email

4.6.1.7

In response to 4.6.1.6

Consent to reduction/withdrawal of Credit Cover.

FAA

Trading Party or BSC Banker

Notification of consent or instruction to transfer money or return or exchange LC

Letter/Fax/Email

4.6.2 Reduction of Credit Cover by Withdrawing Parties in Default solely by virtue of Section H3.1.1(g)

Withdrawing Parties in Default solely by virtue of Section H3.1.1(g) of the Code are entitled to request a reduction of Credit Cover, providing they have satisfied the criteria for withdrawal stipulated in Section A5.1 of the Code.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.6.2.1

To meet the timescales for withdrawal and the requirements in Sections M2.3 and A5.1.3 of the Code8

Request minimum eligible amount calculation.

Trading Party

ECVAA

ECVAA-I024: Credit Cover Minimum Eligible Amount Request (Form BSCP301/06)

Email/Fax

4.6.2.2

On same WD as 4.6.2.1, where 4.6.2.1 occurred on a WD, or on the first WD after 4.6.2.1, where 4.2.6.1 occurred on a non-WD

Request minimum eligible amount calculation rule.

ECVAA

BSCCo

ECVAA-I026: Minimum Eligible Amount Rule Request

Email/Fax

4.6.2.3

On same WD as 4.6.2.2

Check that the Party has submitted a Withdrawal Notice Form and is in Default of the Code solely by virtue of Section H3.1.1(g).

If not, go to 4.6.2.4.

If so, continue at 4.6.2.5.

BSCCo

Internal process

4.6.2.4

Following 4.6.2.3 and on same WD as 4.6.2.3

Inform Party the minimum eligible amount calculation request has been refused and provide reasons for refusal. END PROCESS.

BSCCo

ECVAA

Trading Party

Internal process

4.6.2.5

Following 4.6.2.3 and on the same WD as 4.6.2.3

Notify ECVAA of minimum eligible amount calculation rule.

BSCCo

ECVAA

Trading Party

Email/Fax

4.6.2.6

On the first WD following the expiry of the Waiting Period

Perform minimum eligible amount calculation and notify Party of minimum eligible amount arrived at.

ECVAA

FAA

Trading Party

ECVAA-I025: Credit Cover Minimum Eligible Amount Report (Form BSCP301/07)

Fax/Email

4.6.2.7

2 WD prior to the Withdrawal Date

Check that Withdrawal Date has been confirmed.

If so, inform Party and FAA and continue to 4.6.2.8

If not, inform Party and the FAA that the reduction in Credit Cover has been refused and why. END PROCESS.

BSCCo

FAA

Trading Party

Internal process

4.6.2.8

Following 4.6.2.7, to meet withdrawal timescales and Code requirements in Section M2.3

Request reduction of Credit Cover.

Trading Party

FAA

Details of LC reduction/cash withdrawal

Email/Fax

4.6.2.9

On same WD as 4.6.2.8

Consent to reduction of Credit Cover and END PROCESS.

FAA

Trading Party or BSC Banker

Notification of consent or instruction to transfer money or return or exchange LC

Letter/Fax/Email

4.6.3 Reduction of Credit Cover by Non-Supplier Trading Parties in Default solely by virtue of Section H3.1.1(g).

A Non-Supplier Trading Party in Default solely by virtue of Section H3.1.1(g) is entitled to request a reduction of Credit Cover, providing they have satisfied the criteria for withdrawing from the Code stipulated in Section A5.1.3 of the Code. Conditions for the reduction of Credit Cover under this circumstance are outlined in Section M.2.3A of the Code.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.6.3.1

At any time

Apply in writing for reduction of Credit Cover.

Trading Party

BSCCo

Application for reduction of Credit Cover as a Non-Supplier Trading Party

Letter/ Email/Fax

4.6.3.2

On receiving application

Request Withdrawals Checklist9

Request details of outstanding liabilities and Credit Cover.

BSCCo

CRA

FAA

Withdrawal Checklist Request (CRA-I044)

Request for outstanding liabilities and Credit Cover

Email

Email/Fax / Self-Service Gateway

4.6.3.3

Within 2 WD of 4.6.3.2

Send Withdrawals Checklist.

Send details of outstanding liabilities and Credit Cover.

CRA

FAA

BSCCo

Withdrawals Checklist (CRA-I047)

Statement of Outstanding Liabilities

Email/Fax / Self-Service Gateway

4.6.3.4

Within 10 WD of 4.6.3.3

Check that Party has:

a) no Supplier BM Units registered after the date of the latest RF run

b) no ECVNs or MVRNs in force after the date of the request

c) terminated all ECVNA Authorisations and MVRNA Authorisations

d) paid all Trading Charges

e) paid all BSCCo Section D charges

f) de-registered all BM Units

g) an Energy Indebtedness of zero or negative over a period of 30 days prior to the date of the notice given

If the Party fails any of the checks go to 4.6.3.5.

If the Party completes the checks continue to 4.6.3.6.

BSCCo

Withdrawals Checklist (CRA-I047)

Internal Process

4.6.3.5

Within 1 WD of completion of 4.6.3.4

Inform Party that their request for reduction in Credit Cover has been refused and why. END PROCESS

BSCCo

Trading Party

Results from 4.6.3.4

Letter/ Email/Fax

4.6.3.6

Within 1 WD of completion of 4.6.3.4

Calculate reduction in Credit Cover.

BSCCo

Withdrawals Checklist

Internal Process

4.6.3.7

At next Panel meeting

BSCCo to confirm Party has met all requirements and recommend a reduction in Credit Cover to the amount calculated in 4.6.3.6.

BSCCo

Panel

Confirmation that the Party has satisfied all criteria in 4.6.3.4 and the calculated minimum Credit Cover required

Panel Paper

4.6.3.8

At Panel meeting

Panel decide:

a) Party has satisfied the required criteria and be allowed to reduce its Credit Cover. Go to 4.6.3.11.

b) insufficient information has been provided. Go to 4.6.3.10.

c) Party should not be allowed to reduce its Credit Cover. Go to 4.6.3.9.

Panel

BSCCo

Details of checks performed and calculated minimum Credit Cover required

Meeting Minutes

4.6.3.9

Within 10 WD of 4.6.3.8

Inform Party that their request for reduction in Credit Cover has been refused and why. END PROCESS

BSCCo

Trading Party

Panel minutes

Letter/ Email/Fax

4.6.3.10

Within 10 WDs of 4.6.3.8

Party informed of prescribed steps needed to be taken by next Panel meeting to enable a decision to be made.

BSCCo

Trading Party

Prescribed steps needed to be taken to enable a decision to be made by the Panel

Letter/ Email/Fax

4.6.3.11

Within 10 WDs of 4.6.3.8

Notify minimum level of Credit Cover required.

BSCCo

Trading Party,

FAA

Minimum level of Credit Cover required

FAA-I031- Credit Policy

Email/Fax

4.6.3.12

Same WD as 4.6.3.11

Reduce Credit Cover as notified and END PROCESS.

FAA

Trading Party or BSC Banker

Notification of instruction to transfer money

Letter/ Email/Fax

4.6.4 Creation or Increase of Credit Cover

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.6.4.1

By 15:00 on any WD (if later, this will be treated as done on the next WD)

Provide cash and/or Letters of Credit.

Trading Party

FAA

Details of cash/Letter of Credit

Electronic Funds Transfer/

Letter / Email

4.6.4.2

On the same WD as 4.6.4.1

Assess whether Credit Cover is substantially in the form set out in Annex M-1 of the BSC (or another form approved by the BSC Panel).

If it does not continue to 4.6.4.3.

If it does continue to 4.6.4.4.

FAA

Internal process

4.6.4.3

On the same WD as 4.6.4.1 and following 4.6.4.2

Reject the Letter of Credit and inform Party. END PROCESS.

FAA

Trading Party

Notice of rejection of Letter of Credit

Letter/Email

4.6.4.4

On the WD specified in 4.6.4.2

Update Credit Cover10 and Energy Credit Cover.

FAA

Internal process

4.6.4.5

On the WD specified in 4.6.4.4

Notify Energy Credit Cover to ECVAA.

END PROCESS.

FAA

ECVAA

FAA-I019: Credit Limit Data

Electronic

4.7 Ad Hoc Inputs

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.7.1

On-going as applicable

Determine changes of Credit Ratings for issuers of Letters of Credit, using Credit Agency data.

FAA

Credit rating information

Internal Process

4.7.2

On-going as applicable

Send notification of Bank Base Rate changes.

BSC Banker

FAA

Details of current and historic Base Rates

Manual

4.7.3

On-going as applicable

Send notification of VAT Rate changes.

BSCCo

FAA

Details of current and historical VAT Rates

Manual

4.7.4

On-going as applicable

Send notification of Income tax Rates.

BSCCo

FAA

Details of current and historic Income Tax Rates

Manual

4.7.5

On-going as applicable

Send Information Exception Report.

ECVAA

FAA

Data exceptions

Electronic

4.7.6

On-going as applicable

Send new value of Credit Assessment Price.

BSCCo

FAA

ECVAA

Trading Parties

Credit Assessment Price and effective date

Manual/Email

4.7.7

On-going as applicable

Send notification of change of monetary Advice Note Threshold Limit, and effective date.

BSCCo

FAA

New Advice Note Threshold Limit and effective date

Email

4.8 Threshold Governance

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

4.8.1

As requested by BSCCo

Provide data for analysis of Advice Note Threshold Limit.

FAA

BSCCo

Advice Note Threshold Limit

Email

4.8.2

As appropriate

Conduct analysis of the fitness for purpose of the monetary Advice Note Threshold Limit, and present to the Panel for consideration.

BSCCo

BSC Panel

Proposed threshold

Internal Process

4.8.3

Upon receipt of proposed threshold

Review BSCCo internal analysis and issue a recommendation of proposed monetary threshold for consultation.

BSC Panel

Industry

Proposed threshold and BSCCo analysis

Email

4.8.4

Following Panel review of analysis

Return consultation responses.

Industry

BSC Panel

Proposed threshold, BSCCo analysis and Panel recommendation

Email

4.8.5

Panel meeting following receipt of industry responses

Determine a monetary Advice Note Threshold Limit.

BSC Panel

Consultation responses

4.8.6

Upon receipt of Panel decision to change the Advice Note Threshold Limit

Notify the FAA and BSC Parties of the amended value and the effective date.

BSCCo

BSC Parties

FAA

Amended threshold and effective date

Email

5. Appendices

5.1 Summary of Forms

5.1.1 Not in use. BSCP301/01a

Not in use. BSCP301/01b

5.1.2 Not in use. BSCP301/02

5.1.3 Not in use. BSCP301/03a

Not in use. BSCP301/03b

5.1.4 BSCP301/04(a) Funds Accession Form

BSCP301/04(b) Amendments to Funds Accession Details11

5.1.5 Not in use. BSCP301/05a

Not in use. BSCP301/05b

5.1.6 Not in use. BSCP301/05b

5.1.7 BSCP301/06 Minimum Eligible Amount Request Form

5.1.4 BSCP301/04(a) Funds Accession Form

To: FAA, BSCCo

Date Sent: __________

From: Participant Details

Participation Capacity: ___________________________

Party ID: _____________________________

Name of Sender: _______________________________

Sender email address: ________________________________________________

Our Ref: _______________________________

Contact Tel. No. ___________________________

Name of Authorised Signatory: ______________________________________________________

Authorised Signature12: ______________________

Password: ___________________

Party Name:

Party Address:

Company Registered Number:

Point of Contact Name13:

Point of Contact Postal Address14:

Point of Contact Telephone Number:

Point of Contact Facsimile Number:

Point of Contact email address (for general queries)15:

Payment Notice email address16

Collection Account:

Barclays Bank

Elect Method of Payment

CHAPS/BACS

Direct Debit

For the purposes of Council of the European Union Directive 2003/92/EC as regards the rules on the place of supply of gas and electricity, should the place of supply of electricity for this Party ID be considered to be in the UK or not?

UK / Non-UK (delete as applicable)

VAT Number:

If for the purposes of Council of the European Union Directive 2003/92/EC as regards the rules on the place of supply of gas and electricity, the place of supply of electricity for this Party ID is within the European Union, please supply the two-letter identifier code for the place of supply country.

Type of Credit Cover:

Settlement Bank Name:

Settlement Bank Address:

Settlement Bank Sort Code:

Settlement Account Number:

Settlement Name of Account:

Settlement Bank Contact Details

5.1.5 BSCP301/04(b) Amendments to Funds Accession Details17

To: FAA, BSCCo:

Date Sent: __________

From: Participant Details

Participation Capacity: ___________________________

Party ID: _____________________________

Name of Sender: _______________________________

Sender email address: ________________________________________________

Our Ref: _______________________________

Contact Tel. No. ___________________________

Name of Authorised Signatory: ______________________________________________________

Authorised Signature18: ______________________

Password: ___________________

Current Details

New Details

Effective Date

Party Name:

Party Address:

Company Registered Number:

Point of Contact Name13:

Point of Contact Postal Address14:

Point of Contact Telephone Number:

Point of Contact Facsimile Number:

Point of Contact e-mail (for general queries)15:

Payment Notice email address16

Collection Account:

Barclays Bank

Elect Method of Payment

CHAPS/BACS

Direct Debit

For the purposes of Council of the European Union Directive 2003/92/EC as regards the rules on the place of supply of gas and electricity, should the place of supply of electricity for this Party ID be considered to be in the UK or not?

UK / Non-UK (delete as applicable)

VAT Number:

If for the purposes of Council of the European Union Directive 2003/92/EC as regards the rules on the place of supply of gas and electricity, the place of supply of electricity for this Party ID is within the European Union, please supply the two-letter identifier code for the place of supply country.

Type of Credit Cover:

Current Details

New Details

Effective Date

Settlement Bank Name:

Settlement Bank Address:

Settlement Bank Sort Code:

Settlement Account Number:

Settlement Name of Account:

Settlement Bank Contact Details

5.1.6 BSCP301/06 Minimum Eligible Amount Request Form

From:

To:

Party ID*

Party ID*

Party Role*

Party Role*

Name of sender*

Date Sent*

Signature*

Password*

* Denote a mandatory field

5.1.7 BSCP301/07 Minimum Eligible Amount Report Form

From:

To:

Party ID*

Party ID*

Party Role*

Party Role*

Name of sender*

Date Sent*

Signature*

Password

Minimum Eligible Amount Details

BSC Party ID*

Minimum Eligible Amount Rule (75 or 80%)*

Waiting Period Start Date*

Waiting Period End Date*

Maximum Indebtedness Settlement Day*

Maximum Indebtedness Settlement Period*

Minimum Eligible Amount (MWh)*

* Denote a mandatory field

5.2 Bank Accounts Context Diagram

complex image of process

1 Whilst the BSC definition of Advice Note & Confirmation Notice does not specify BSCCo as a recipient, it is expedient to include BSCCo rather than create a duplicate interface.

2 Where a Quarter Date falls on a non-Working Day, Advice Notes will be sent on the last Working Day prior to the Quarter Date.

3 The FAA will include ad-hoc charges into the Advice Note where the Payment Date for the Advice Note matches the ad-hoc charge Payment Date.

4 An Advice Note will not be issued unless the ad-hoc payment breaches the Monetary Threshold or if the Payment Date is on a Quarter Date.

5 The non-payment amount is the total amount due on the Advice Note. The Shortfall Amount is the difference between what the BSC Debtor has paid and the total amount due on the Advice Note.

6 Examples of incomplete or erroneous VAT declarations may include (but may not be restricted to): where a Party has declared that they are not liable for UK VAT but provided an UK address (or vice versa); or has given an address within the EU but has not declared a VAT number and/or the two-letter country identifier Code for the relevant EU member state.

7 The definition of the Waiting Period is dependent on the minimum eligible amount calculation rule specified by ECVAA as per Section M 2.3 of the Code.

8 In order to meet the Code requirements and work out the appropriate date to submit a minimum eligible amount calculation request, Withdrawing Parties would typically need to count 2-4 WD back from their Withdrawal Date followed by a further 10SDs. Withdrawing Parties are advised to contact BSCCo for more detailed guidance at least three weeks prior to the Withdrawal Date.

9 The Withdrawal Checklist contains all information required to carry out the checks outlined in section M of the Code. Parties should note that they are not required to withdraw from the Code for this process.

10 Note that if the Credit Cover as calculated is negative it shall be treated as zero.

11 It is the responsibility of each Party to notify the FAA and BSCCo immediately upon any changes to its Funds Accession Details by submitting this BSCP 301/04(b) form. In the absence of such notification, and any notice or other communication given in connection with the Code or relevant BSC Procedure(s) and sent to the Funds Accession Details provided by a Party shall be treated as valid for the purposes of the Code, except where otherwise expressly provided in the Code or relevant Code Subsidiary Document.

12 Refer to BSCP38 for authorised signatory category details.

13 This must be a department name (e.g. ‘Accounts Payable’) or, if this is not possible, a job title (e.g. ‘Finance Director’).

14 If the FAA is unable to deliver Advice Notes, Confirmation Notices and/or Advice Notes Backing Sheets to the Payment Notice email address specified below, it may deliver these to this postal address in accordance with section 4.2 of this Procedure.

15 This email address will be used as the first point of contact for the FAA.

16 This email address will be used for the delivery of all Advice Notes, Confirmation Notices and Advice Note Backing Sheets, except in the event of an email delivery failure as described in section 4.2 of this Procedure. This email address must be an anonymised email address which should be accessible to more than one individual recipient e.g. bscpaymentnotice@nameofparty.co.uk

17 It is the responsibility of each Party to notify the FAA and BSCCo immediately upon any changes to its Funds Accession Details by submitting this BSCP 301/04(b) form. In the absence of such notification, and any notice or other communication given in connection with the Code or relevant BSC Procedure(s) and sent to the Funds Accession Details provided by a Party shall be treated as valid for the purposes of the Code, except where otherwise expressly provided in the Code or relevant Code Subsidiary Document.

18 Refer to BSCP38 for authorised signatory category details.