ORD006: Electricity Market Reform – Energy Intensive Industries

Formal title: Electricity Market Reform - Energy Intensive Industries

As part of the Electricity Market Reform (EMR) program the Government has introduced two new mechanisms: Contracts for Difference (CFD); and the Capacity Market (CM).

CFDs are designed as an incentive for investment in new low-carbon electricity generation. The CM is designed to ensure sufficient and reliable capacity when there is not enough electricity available on the Transmission System.

Changes to the BSC and CSDs

Further to the changes directed to the BSC as part of ORD005, consequential changes are needed to the BSC and a Code Subsidiary Document (CSD) to support the Government’s Energy Intensive Industry (EII) arrangements.

The changes to the BSC allow for Half Hourly (HH) metered data for individual Metering Systems to be provided from Half Hourly Data Aggregators (HHDAs) to the CfD Settlement Service Provider. This data will be used in CFD settlement to exempt Suppliers from a proportion of the costs of the CFD payments.

The BSC and CSD changes were laid before Parliament in January 2015, and as directed by the Secretary of State in March 2015, will become effective as part of the June 2015 Release on 25 June 2015.

BSC changes have been made to:

  • Section F – Modification Procedures
  • Section K – Classification and Registration of Metering Systems and BM Units
  • Section S – Supplier Volume Allocation
  • Section X – Annex X-1 – General Glossary

CSD changes have been made to:

  • BSCP503: Half Hourly Data Aggregation for SVA Metering Systems Registered in SMRS

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