P390 ‘Allowing extensions to ELEXON’s business and activities, subject to additional conditions’

Formal title: Allowing extensions to ELEXON’s business and activities, subject to additional conditions

Current Status

Submission
Initial Written Assessment
Assessment Procedure
Report Phase
With Authority
Awaiting Implementation
Implemented

Summary

The BSC restricts the activities of ELEXON and in the absence of a specific Modification any additional activities cannot be pursued by ELEXON (even when those activities would be of benefit to BSC Parties, industry generally and/or the consumer). 

In the past specific Modifications have been necessary which have enabled ELEXON to provide the Warm Homes Discount Reconciliation service, EMR settlement, and to participate in gas performance assurance framework and REC manager appointment processes.

Such individual Modifications to extend ELEXON’s vires are time consuming and can be an unnecessary distraction for industry. They can also result in ELEXON being unable to pursue an opportunity within a required timeframe.

P390 seeks to introduce a framework into the BSC that allows the ELEXON Board to determine whether ELEXON can undertake additional activities provided certain conditions are met.

All of the conditions introduced in previous Modifications to ELEXON’s vires, P330 ‘Allowing ELEXON to tender for the Uniform Network Code Gas Performance Assurance Framework Administrator (PAFA) role’ and P365 ‘Enabling ELEXON to tender for the Retail Energy Code (REC)’ are included, plus some additional conditions to safeguard the interests of BSC Parties.

Podcast

Listen to the complete Allowing extensions to ELEXON’s business and activities, subject to additional conditions’ podcast:

If you would like a transcript for the P390 podcast then please email bsc.change@elexon.co.uk.

Progression

P390 was raised by E.ON on 12 August 2019. The BSC Panel considered the Initial Written Assessment at its meeting on 12 September 2019, where it agreed to progress P390 into the Assessment Phase.

The first Workgroup for P390 took place 18 November 2019. Discussions focused on finding the appropriate balance between enabling the ELEXON Board to bid for appropriate opportunities of interest while ensuring that appropriate oversight and transparency remain for BSC Parties.

The second Workgroup for P390 took place on 18 December 2020 where the remaining areas of the solution were agreed. ELEXON will draft the remaining business requirements and legal text before circulating them to the Workgroup for review, before an additional meeting in late January 2020.

The third meeting of the P390 group took place on 23 Jan 2020 where the Workgroup reviewed the Legal Text and considered outcomes of engagement with Ofgem regarding their interpretation of the Transmission Licence Standard Conditions.

Next Events

We have issued P390 for Assessment Procedure Consultation, holding a 4th Workgroup in early-to-mid March 2020 to consider responses and provide final views on the P390 solution.

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