P397 Assessing the costs and benefits of adjusting Parties’ Imbalances following a demand disconnection

P397 seeks to introduce a mechanism through which the Balancing and Settlement Code Company (BSCCo) determines whether certain Parties should carry out the Settlement Adjustment Processes following a DCE.

Current Status

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

Summary

Settlement Adjustment Processes (also known as the ‘bottom-up’ processes) introduced into the Balancing and Settlement Code (BSC) under P305 ‘Electricity Balancing Significant Code Review Developments’ in November 2015 may not be efficient to run in all circumstances, for example, when considering a Demand Control Event (DCE) that has minimal material impact on Settlement. This possibility was highlighted following the DCE which occurred on 9 August 2019.

P397 seeks to introduce a mechanism through which the Balancing and Settlement Code Company (BSCCo) determines whether Licensed Distribution System Operators (LDSOs), the National Electricicty Transmission System Operator (NETSO), certain Party Agents and BSC Agents, and BSCCo should carry out the Settlement Adjustment Processes following a DCE. BSCCo would determine the nature of the DCE and, where necessary, determine and compare the costs and value of the DCE in order to determine whether the value of carrying out the Settlement Adjustment Processes outweigh the costs.

Progression

P397 was raised by the BSC Panel at its meeting on 12 December 2019. The Modification was submitted for a 10WD industry consultation on 16 December 2019 and the responses were presented at the January 2020 Panel meeting. After due consideration, Ofgem decided to Send Back the P397 Final Modification Report with a request for further evidence to be gathered. Elexon then presented the P397 Send Back Process to the Panel at its meeting on 12 March 2020, where it explained it expects to present the amended DMR to the Panel at its meeting on 9 July 2020 after gathering the necessary information via Issue 89.

Following  a consultation on the amended solution, the Panel unanimously recommended approval of P397 at its meeting on 13 August 2020. The Final Modification Report was sent to Ofgem on 14 August 2020.

Next Events

P397 is with the Authority for decision. If it is approved it will be implemented within 5WD of that decision being communicated.

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