P475 Allowing All Storage Sites to set and fix their own Production/Consumption Flags
Formal title: Allowing All Storage Sites to set and fix their own Production/Consumption Flags
The purpose of this Modification is to address the issue of storage BM Units flipping between Production (P) and Consumption (C) statuses. This flipping leads to significant financial challenges for parties managing large storage units. The proposal seeks to allow storage BM Units to fix their P/C status, thereby mitigating these challenges.
Under the BSC, each Balancing Mechanism (BM) Unit has either a Production (P) or Consumption (C) status. This setup was originally intended to allocate demand to Consumption accounts and generation to Production accounts, preventing integrated energy companies from leveraging vertical integration. Storage assets, due to their ability to switch between importing (consumption) and exporting (production), sometimes flip between P and C statuses. This flipping leads to imbalances in energy accounts which can result in significant financial issues.
P475 seeks to amend the BSC to allow all storage BM Units to fix their P/C status, thereby preventing dynamic recalculations and flipping. By treating storage BM Units similarly to Export Exempt BM Units, this proposal enables them to choose and fix their P/C flag. The proposed solution includes implementing changes to Section K ‘Classification and Registration of Metering Systems and BM Units’ of the BSC and updating Balancing and Settlement Code Procedure 15 (BSCP) ‘BM Unit Registration’ and any associated processes to reflect this fixed status.