Performance Assurance Framework Documents
Each year, the BSC Panel and the Performance Assurance Board (PAB) deploy the Performance Assurance Framework (PAF) to manage Settlement Risks. Performance Assurance Techniques are applied to Performance Assurance Parties (PAPs) based on the Settlement Risks that they pose.
How it relates to you
The BSC Panel and the PAB identify, evaluate and prioritise the risks that may occur within Settlement and the extent to which they apply to each Performance Assurance Parties (PAP). Performance Assurance Parties include:
- Meter Operator Agents
- Data Collectors
- Data Aggregators
- Meter Administrators
- Licensed Distribution System Operators
A Settlement Risk is a risk of any failure or error in a process required under the BSC that may impact (or has impacted) Settlement. These are recorded on the Risk Evaluation Register (RER).
An example of a Settlement Risk description from the RER is:
“The risk that [the NHHDC does not enter valid Meter readings by the Final
Reconciliation (RF) Settlement Run] resulting in [old/default data entering
The RER sets out the risks, and the significance of each risk on Settlement in relation to a specific Performance Assurance Operating Period (PAOP).
These Guidance Notes set out the principles that the PAB uses when assessing the probability, impact and strength of controls relating to Settlement Risks. These documents should be read in conjunction with the Risk Evaluation Methodology and the Risk Evaluation Register .
The BSC Panel and the PAB produce the following suite of documents as per the Annual Performance Assurance Timetable. This is done in consultation with industry.
- Risk Evaluation Methodology (REM) – is a reference document reviewed annually by the PAB
- Risk Evaluation Register (RER) – this sets out the risks and the significance of each risk
- Risk Operating Plan (ROP) – sets out techniques and costs that apply to each Settlement Risk in the RER
- Annual Performance Assurance Report (APAR) – provides results of the risk evaluation and risk assurance procedures
The Annual Performance Assurance Timetable (APAT) has been approved by the PAB and sets out the timeline for the yearly cycle of Performance Assurance Documentation. The APAT will remain active until it is reviewed and the PAB approves a new timetable.
- Annual Performance Assurance Timetable (APAT) – 1 April 2019 – in use
Risk Evaluation Methodology (REM)
The REM describes how the Performance Assurance Board does the following:
- Identifies Settlement Risks
- Evaluates Settlement Risks
- Assesses the materiality of Settlement Risks
The REM is a reference document which is reviewed and approved annually by the PAB following consultation with industry.
- Risk Evaluation Methodology 2019/20 – Effective date: 1 April 2019 Status: In Use
Risk Operating Plan (ROP)
The ROP sets out what Performance Assurance Techniques (PATs) can and have been applied to each Settlement Risk identified in the Risk Evaluation Register and the estimated costs of implementing the techniques.
The ROP explains the annual process of review and identifies any changes to the deployment of PATs in relation to a specific Performance Assurance Operating Period (PAOP).
The Risk Operating Plan ledger is a shorter version of the Risk Evaluation Register. It sets out the PATs as applied to each risk and identifies the impacted class of Performance Assurance Party for that risk.
The ROP is reviewed and approved annually by the PAB following consultation with industry.
- Risk Operating Plan report for 2020-2021 – Effective date: 1 April 2020 Status: In use
- Risk Operating Plan ledger for 2019-2020 – Effective date: 1 April 2019 Status: In use
PAT Guiding Principles
This contains the guiding principles for Performance Assurance framework (PAF) Techniques and how they are applied by the Performance Assurance Board (PAB).
Quarterly Performance Assurance Report (QPAR)
The QPAR provides the results of the risk evaluation and risk assurance procedures for each quarter of the Performance Assurance Operating Period (PAOP), in particular how well the techniques mitigated the Settlement Risks.