Formal title: Introducing BSC arrangements to facilitate an electricity market sandbox
Appropriate provisions do not exist to enable pre-competitive or proof of concept testing for innovative products/business models in the live BSC Settlement environment. This Modification Proposal seeks to enable the Panel to grant derogation of certain BSC obligations to participants of ELEXON’s BSC sandbox.
P362 is a document only change and is expected to impact only ELEXON as part of implementation. However, we have indicated on this page that P362 will impact BSC Parties and Party Agents, as well as BSC Central Systems. This is because P362 may impact anyone wishing to participate in the sandbox and may impact BSC systems and processes. These impacts will need to be considered on a case by case basis as part of the sandbox application process.
The P362 Final Modification Report was submitted to the Authority for decision on 18 July 2018. The BSC Panel made its unanimous final recommendation to approve the Alternative Modification on 12 July 2018.
The Panel, at its meeting on 14 June 2018, initially recommended approval of the P362 Alternative Modification. We have consulted on all of the Panel’s initial views in the Report Phase Consultation. This was issued on 19 June 2018, with responses due by 3 July 2018.
At the latest Workgroup meeting on 23 April, the Workgroup reviewed the responses to the first Assessment Consultation. At this meeting, the Workgroup raised an Alternative Modification Proposal, which is identical to the Proposed Modification, except that the Transmission Company can apply for, and be granted BSC Derogation. As this is a material change to the solution a second Assessment Procedure Consultation was issued on 3 May 2018 for 12 Working Days. The P362 Assessment Report was presented to the Panel on 14 June 2018.
The first Assessment Procedure Consultation was issued on 20 March 2018, with responses due by 12 April 2018. The fourth Workgroup meeting was held on 7 March 2018, where the solution was finalised for Assessment Procedure Consultation. The third Workgroup meeting was held on 26 February 2018, to review the legal text and Assessment Procedure Consultation questions. At the second Workgroup meeting on 24 January 2018, the Workgroup reviewed the solution following confirmation that Ofgem would coordinate sandbox applications. At its first meeting on 13 December 2017, the Workgroup started the process of assessing the proposed P362 solution.
ELEXON recommended to the Panel, at its meeting on 9 November 2017, that a Modification should be raised to introduce an electricity market sandbox into the BSC arrangements. The Panel agreed to raise the Modification Proposal in accordance with Section F2.1.1(d)(I).
Ofgem have confirmed that they will coordinate a common sandbox process across all Code Administrators who would like to participate. Ofgem have highlighted how ELEXON is taking the lead by initiating its own regulatory sandbox with P362.
The Final Modification Report was issued to the Authority for decision on 18th July 2018.