Use of ABSVD for non-BM Balancing Services at the metered (MPAN) level
The Proposer identified a defect in the current arrangements for notifying Applicable Balancing Services Volume Data (ABSVD).
The System Operator 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 System Operator from non-BM participants, an instruction is issued by the System Operator 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 System Operator.
P354 proposes to allow the System Operator to provide ABSVD at the MSID level to the Settlement Administration Agent (SAA) which will allocate this to the appropriate Supplier BM Unit. This solution will avoid that non-BM Participants will receive 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. The Workgroup agreed a solution to be progressed. However, this solution relied on the ability of the System Operator to provide ABSVD at MSID level and the System Operator confirmed that this was not feasible.
Therefore, the solution has been updated at the second meeting, which was held on Wednesday 26 April 2017. At this stage, the Workgroup is considering an updated solution option that will allow the Transmission Company to provide to the Supplier Volume Allocation Agent (SVAA) delivered volumes at the STOR sub-site level. The SVAA will allocate non-BM ABSVD to MSID and pass ABSVD (aggregated to Supplier Id level) to the SAA for use in Settlement.
The Central System Impact Assessment (IA) will be sent out by the end of May and the third meeting will be held on Friday 23 June 2017 to discuss the outcome of the IA.