Becoming a Supplier
This page lists and details the step-by-step process of becoming a Supplier. You will also learn about what qualifications are needed, the relevant costs and charges and any other information you may need to know.
On this page
What is a Supplier?
Suppliers are licensed by Ofgem to supply electricity to domestic and non-domestic premises. Suppliers buy electricity to meet their customers’ demands from Generators or from other Parties trading in the market.
Suppliers are responsible for the Meters that record the amount of energy that their customers are consuming and are also responsible for the performance of their Supplier Agents which include Data collectors, Data Aggregators and Meter Operators.
Video on the Supplier Market Entry Process
This video explains the process for entering the energy market as a Supplier.
In order to qualify as a Supplier you will need to obtain the following qualifications:
The Central Volume Allocation (CVA) Qualification is needed to prove that Suppliers have the ability to send certain communications to BSC Agents and ensure that certain communications are received
The Supplier Volume Allocation (SVA) Qualification is needed to ensure that Suppliers understand the obligations and activities of the BSC and maintain a certain performance level.
Suppliers acceding to the BSC must pay a £500 accession fee which covers the administrative costs of entering the market.
Once acceded, a flat monthly fee of £250 + VAT applies. This is known as a base monthly charge.
Charges are made to Parties (or by them) as a result of any imbalance (Trading Charges) 29 days after a Settlement Day. Over this period a Parties’ Credit Cover ensures it has enough collateral to cover these payments in case of default.
We do not specify the amount of Credit Cover you must lodge; it is up to the Party to decide. Parties usually make this decision based on their trading characteristics.
CVA Metering charge – £ 50
Suppliers have to pay a charge per Registered CVA Metering System (including those at a Systems Connection Point) for which it has been the Registrant at any point in the month.
SVA Metering System Charge – £0.00757
In addition to the Main Specified Charges detailed above, Suppliers also have to pay a charge per SVA Metering System that it is the Registrant for during the month.
CVA BM Unit Charge – £0 (was £50)
A charge is made against every CVA BM Unit for which the Supplier is the Lead Party for all or part of the month. If the BM Unit is a Production BM Unit at an Export Exempt site where there are also one or more Consumption BM Units, then no charge is made.
If there are Production BM Units at an Export Exempt site, where there are no Consumption BM Units, then one charge is made for all BM Units at that site.
Notified Volume Charge – £0.0005/MWh
A charge is also payable against a Party’s Gross Contract Volume.
Base BM Unit Charge – £0 (was £100)
A Supplier must pay a charge for its Base BM Units for each Supplier ID that it uses in the month.
Additional BM Unit Charge – £60
If a Supplier has any additional BM Units to those described above for which it is the Lead Party, then it must also pay a charge for those.
Participant Test Service charges
For parties wanting to test/re-test any flows you can use the PTS service to increase the level of assurance to individual companies, and to the industry as a whole.
The service can be used before competing CVA Qualification testing and operating in the live environment, and to test any impacts as a result of changes to your business software.
The PTS service is booked in half day test slots (9am-1pm/1-5pm) and is charged at £999+VAT per test slot
Steps needed to become a Supplier
You will need to go through various steps in order to register as a Supplier. The diagram below lists all the tasks required.
Within the individual steps there are forms that need to be completed and details about financial transactions that need to take place. You can also use the Elexon Kinnect Customer Solution, where you will be directed to all the relevant steps needed to become a Supplier. Elexon Kinnect is a self-service gateway that offers a guided and streamlined market entry process.
The first thing to do is formally register your intent to become a Supplier. You can do this by completing an expression of interest form. After the form has been submitted we will arrange a meeting with you to discuss the process and go through the necessary requirements.
After the meeting you will be issued with an Elexon Kinnect login. From there you can start to go through the market entry process.