Streamlining the Balancing and Settlement Code
ELEXON is consulting on removing around 50 pages of legal text from the Balancing and Settlement Code (BSC) to streamline it for both existing and new market participants.
Which sections of the BSC will be removed?
P394 ‘Removal of Unused BSC Provisions’ proposes to remove redundant aspects that have either expired, or have never been used by market participants.
The expired provisions include a section of the BSC containing transitional arrangements for the implementation of the British Electricity Trading and Transmission Arrangements (BETTA) in 2005.
The unused provisions include ‘dual notifications’, where two Parties engaged in trading a volume of electricity over one or more Settlement periods could both submit a copy of the transaction via different Energy Contract Volume Notification Agents. However, no Parties have used this provision since its introduction in November 2004.
Stakeholders have until 22 November 2019 to respond to the consultation on the Panel’s initial views. The Panel will make its final decision on whether to implement the reforms at its meeting on 12 December 2019, meaning ELEXON could implement the changes by 27 February 2020.
ELEXON’s CEO comments on the proposals
ELEXON Chief Executive, Mark Bygraves, said: “ELEXON continues to promote efficiency in the GB Balancing and Settlement arrangements, striving to make our framework more accessible for both new and existing market participants. This work helps to fulfil a commitment we made to the BSC Panel to find ways to simplify the Code. Removing expired or unused sections of the Code is the latest phase in this work.”
Podcasts to help you understand BSC changes
You can find out further detail on P394, by recorded by Lead Analyst Callum Chalmers:
Last week we also published podcasts on three other BSC changes, so BSC Parties and interested third parties can get a quick summary, directly from the Lead Analysts:
- P393 ‘Disapplication of Supplier Charge SP01’
- P385 ‘Improving the efficacy and efficiency of the Section H Default provisions’
- Change Proposal (CP)1521 ‘BSCP70 Amendments for Interconnector Administrator and Interconnector Error Administrator’
What is BETTA?
The British Electricity Trading and Transmission Arrangements (BETTA) created a British-wide market for the trading of wholesale electricity. It involved extending the New Electricity Trading Arrangements (NETA) for England and Wales so that they also covered Scotland.