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Modification: P360

Making the BSC’s imbalance price compliant with the European Balancing Guideline

Proposer: National Grid

Current Phase: Assessment Procedure

Lead Analyst: Jemma Williams

Category: Pricing

Implementation Date: 1 November 2018 (November 2018 Release)

Summary

The European Electricity Balancing Guideline (EB GL) is expected to become law in 2017. The current BSC imbalance price calculations will not be compliant with Article 55 of the Guideline.  It will be necessary for the BSC imbalance price calculations to be compliant within one year of the Guideline becoming law. This Modification proposes changes to the BSC to ensure that compliance is achieved.

Progression

P360 was raised by National Grid (NGET) on 7 September 2017. The IWA was presented to the BSC Panel at its meeting on 14 September 2017. At the BSC Panel meeting, the BSC Panel asked that the first Workgroup meeting focus on Article 55 Derogation, specifically in relation to the cost profile and implementation timetable.

The first Workgroup meeting was held on 5 October 2017. A verbal update on the outcome of the meeting discussioned was  provided at the October Panel meeting. The seocnd Workgroup meeting was held on 2 November 2017.

The January BSC Panel agreed a three month extension for P360. The P360 Assessment Report is now due to be presented to the Panel in May 2018. This extension was requested to allow NGET more time to provide the Balancing Services Adjustment Actions (BSAA) data that ELEXON requires to complete analysis for the next workgroup meeting.

On 9 February 2018, in place of the required data, NGET provided ELEXON with their current view on the composition of the data. Based on this interpretation, ELEXON are conducting analysis into what this means for the imbalance price calculation ahead of reconvening the next Workgroup meeting.

Progress with Article 55 derogation

On 18 December, the EB GL came into force, and ELEXON received the formal assignment letter from BEIS. As such, ELEXON is now directly responsible for Article 55(3), (4), (5) and (6). On receipt of the formal assignment, ELEXON has requested from Ofgem, a two year derogation from Article 55(3), (4), (5) and (6).

Ofgem requested further derogation information from ELEXON on 18 January 2018, which was provided on 23 January 2018. Ofgem has yet to make a formal decision on the derogation request. This decision may also impact the progression timetable for P360.

Should a derogation be granted a P360 solution will not be required until November 2020. However should Ofgem determine not to grant a derogation we need to develop a solution by November 2018 or be non- compliant with Article 55.

Documents

P360 - Proposal Form  [435.8 Kb]
Document Date: 7 September 2017