Use of ABSVD for non-BM Balancing Services at the metered (MPAN) level
The Proposer has identified a defect in the current arrangements for notifying Applicable Balancing Services Volume Data (ABSVD).
The System Operator (SO) is required to allocate the ABSVD to a Balancing Mechanism (BM) Unit. In some cases they may be unable to do this, particularly where the Balancing Service is provided by a ‘non-BM’ participant. When Balancing Services are used by the SO from non-BM participants, an instruction is issued by the SO and results in the delivery of energy. The non-BM participant is paid at the agreed utilisation price, but the Energy Account of the electricity Supplier responsible for the Energy Imbalances they cause does not have the associated energy removed. The additional imbalance energy created results in an additional payment to the Supplier. This subsequently leads to inefficient procurement and also inefficient despatch decisions by the SO.
P354 proposes to allow the SO to provide ABSVD at the MSID level to the Settlement Administration Agent (SAA) who will allocate this to the appropriate Supplier BM Unit. This solution would avoid non-BM participants receiving a second income stream (imbalance revenue).
The Initial Written Assessment (IWA) was presented to the BSC Panel at its meeting on 9 February 2017. The first Workgroup meeting was held on 22 February 2017, where the Workgroup agreed a solution to be progressed. This solution relied on the ability of the SO to provide ABSVD at MSID level, however, the SO confirmed that this was not feasible. Therefore, at the second Workgroup meeting on 26 April 2017, the Workgroup considered an updated solution option. Subsequently, the BSC Panel approved a three-month extension to the P354 Assessment Procedure at its meeting on 8 June 2017.
The fourth P354 Workgroup meeting was held by teleconference on 20 July 2017 to discuss the potential changes to the ABSVD Methodology. The Workgroup agreed by majority that the P354 Assessment Procedure Consultation should be issued at the same time as the C16 informal consultation in October 2017. This option allows industry and BSC Panel to have a view on what National Grid intends to implement and should not cause any significant delay to the P354 progression. At its meeting on 13 August 2017, the BSC Panel approved a three-month extension to the Assessment Procedure, meaning the Assessment Report will be presented in February 2018.