Formal title: Cessation of Compensatory Adjustments
Energy volumes that have undergone a Final Reconciliation run may not be changed. However, the BSC permits Suppliers to use Gross Volume Correction (GVC) to compensate for errors relating to periods that have been subject to RF by adjusting energy volumes in periods not yet subject to RF. This ensures that the total gross volume of energy is correct, albeit allocated to the wrong Settlement Period.
P274 contends that in extreme cases this can result in large volumes of energy being moved around which means that Settlement is no longer reflective of the energy flows that took place in the relevant period. The Proposer contends this can have a number of adverse implications under the Code which inhibits efficiency and effective competition.
P274 was raised by Electricity North West on 29 September 2011. The Panel agreed to issue it for an Assessment Procedure by a Workgroup, during which P274 underwent an Information Request, an Industry Impact Assessment and the Workgroup’s Assessment Consultation. The Workgroup recommended that the P274 Alternative Modification should be approved, and its Assessment Report was presented to the Panel at its meeting on 11 October 2012.
The Panel initially recommended that the P274 Proposed Modification should be approved, and issued P274 for its Report Phase Consultation. The Panel made its final recommendation that P274 should be rejected at its meeting on 13 December 2012. P274 was rejected by Ofgem on 29 January 2013.
There are no further Workgroup meetings scheduled.