P360

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

Current Status

Submission
Initial Written Assessment
Assessment Procedure
Report Phase
With Authority
Withdrawn

Summary

The European Electricity Balancing Guideline (EB GL) become law on 18 December 2017. There is a risk that 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 on 18 December 2018. This Modification proposes changes to the BSC to ensure that compliance is achieved.

Progression

Following Ofgem’s formal rejection of the derogation request for Article 55, the Proposer formally withdrew Modification P360 on 11 May 2018.

As Ofgem have been unable to determine a non-compliance with Article 55, then notwithstanding ELEXON’s original interpretation, it is not in consumers’ interest to pursue P360 to the point where Ofgem would be required to determine whether or not there is a defect in the current BSC that could be remedied by P360.

As per BSC Section F ‘Change Management’, Section 2.1.12B, a Modification is subject to a period where the withdrawn Modification Proposal shall remain open to be adopted for a period commencing at 12:00 hours on the first Business Day after the date of the notice to withdraw the Modification. This period will lapse at 12:00 hours on the fifth Business Day after. Once this period has concluded, the Modification will be officially closed.

As no notices were received to adopt the Proposal, Modification P360 was officially closed at 12.00 on 21 May 2018.

Background

P360 was raised by National Grid (NGET) on 7 September 2017 to determine and implement as necessary the BSC’s compliance position with Article 55. 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 was provided at the October 2017 Panel meeting. The second Workgroup meeting was held on 2 November 2017.

The January BSC Panel agreed a three month extension for P360. This extension was requested to allow NGET more time to provide the Balancing Services Adjustment Actions (BSAA) data that ELEXON required 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 was able to run a range of pricing scenarios for consideration by the P360 Workgroup.

Next Events

Modification P360 was officially closed at 12.00 on 21 May 2018.

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