P395 ‘Aligning BSC Reporting with EMR Regulations – an enduring solution’

Formal title: Aligning BSC Reporting with EMR Regulations - an enduring solution

Current Status

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

Summary

Currently the BM Unit Gross Demand Report attributes to Suppliers electricity they have provided to generators (including storage facilities) operated by Generation Licensees, which falls outside the definition of ‘supply’ in the Electricity Act 1989.

P395 proposes to amend BSC systems and processes so that the SAA-I042 ‘BM Unit Gross Demand Report’ only includes electricity ‘supplied’ to premises by licensed Suppliers, and therefore excludes electricity imported by Generators operated by a licensee for generation activities (i.e. those activities authorised by their generation licence to carry on).

Podcast

Listen to podcast from Lead Analyst, Ivar Macsween, which explains the modification.

Podcast published: February 2022
Podcast length: 5 min, 12 sec
Read the podcast transcript 

Progression

Centrica raised P395 on 7 November 2019. The Panel considered the IWA on 14 November 2019 and agreed to advance the Modification to the Assessment Procedure. The first meeting of the P395 Workgroup was held on 19 February 2020, with the Workgroup and Proposer agreeing with Elexon’s interpretation of ToR A) ‘Which imports should be chargeable?’ The Workgroup noted that answering the P395 problem satisfactorily will involve consideration of scalability, practicality and cost to ensure that the solution is truly enduring, consistent with regulations and scalable to domestic level. 

The first meeting of the P395 Workgroup was held on 19 February 2020, with the Workgroup and Proposer agreeing with Elexon’s interpretation of ToR A) ‘Which imports should be chargeable?’ The Workgroup noted that answering the P395 problem satisfactorily will involve consideration of scalability, practicality and cost to ensure that the solution is truly enduring, consistent with regulations and scalable to domestic level.

The second P395 Workgroup was held on 4 December 2020, where the Workgroup considered draft Business Requirements and a potential new merit order approach to allocation of electricity flows.

The third meeting was held on 25 February 2021, where the group discussed comments raised on the Business Requirements and considered a solution expansion to address risk identified by EMRS.

The fourth meeting was held on 24 May 2021 where the group continued to finalise the solution and consider updated business requirements needed to deliver the P395 solution.

The fifth meeting was held on 1 October 2021, where the group agreed to align the P395 declarations process with that of P419.

The sixth meeting was held on 25 February 2022, where the Workgroup agreed the solution for consultation and agreed that P395 is stronger against BSC Objective (f) and should be approved.

The P395 Assessment Consultation was issued on 2 March 2022 and closed on 22 March 2022.

The P395 Assessment Report was presented to the BSC Panel on 14 April 2022, the Panel agreed an initial view that P395 should be approved and noted impact on the EBGL objectives.

The P395 Report Phase Consultation was issued for one calendar month, due to EBGL impacts, from 19 April 2022 to 19 May 2022.

The P395 Draft Modification Report was presented to the Panel at its meeting on 9 June 2022. The Panel voted unanimously to approve P395.

The P395 Final Modification Report was submitted to the Authority for decision on 13 June 2022.

Next Events

P395 is with the Authority to determine whether it should be approved.

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