P068 – Modification to the BSC Relating to the Setting of Supplier Caps for use in the

Formal title: Modification to the BSC Relating to the Setting of Supplier Caps for use in the

Summary

The manner in which the Supplier Volume Allocation Agent (SVAA) can lead to a Supplier having negative ‘Deemed Take’. ‘Deemed Take’ is used for the purpose of setting Supplier Grid Supply Point (GSP) Group caps for calculating Supplier Charges (Liquidated Damages). A negative ‘Deemed Take’ leads to a negative GSP Group Cap that would, mathematically, reward a Supplier for under-performance. This is the direct opposite of the principle behind LDs. The objective of the proposed Modification is to formulate an appropriate means of apportioning the GSP Group Cap across Suppliers in accordance with their size.