Align the BSC with changes to the SCR requirements
The proposal is to align Section F of the BSC with the changes to Transmission Licence, Standard Licence Condition C3 ‘Balancing and Settlement Code (BSC)’ being proposed by Ofgem. The Standard Licence Condition changes propose three routes under Significant Code Review (SCR) for a Modification to be progressed, with potential allowance to move between the processes.
1. Ofgem directs licensee(s) to raise Modification Proposal(s). At the end of the SCR process Ofgem would issue a direction to the relevant licensee(s). This direction may set out high level principles (with the detail to be developed by industry) or more specific, detailed conclusions to be given effect through code change(s). The Modification(s) would follow the standard industry code Modification processes.
2. Ofgem raises Modification Proposal(s). At the end of the SCR process Ofgem would raise a Modification(s) under the relevant code(s), and the Modification(s) would follow the standard industry code Modification processes.
3. Ofgem leads an end-to-end process to develop code Modification(s). The standard industry process would not apply; Ofgem would lead consultation and engagement needed to develop the appropriate code change(s). Ofgem would expect close involvement of the industry; for example, it may establish and lead Workgroups similar to the approach under the standard code Modification processes (but led by Ofgem).
On 1 March 2017 Ofgem issued a decision letter approving the P351 Proposed solution for Implementation on 1 April 2017 and rejecting the Alternative solution.