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Performance Assurance Processes

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.

To do this, 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 PAP. A PAP is a Supplier, Meter Operator Agent, Data Collector, Data Aggregator, Meter Administrator, Licensed Distribution System Operator and/ or a Registrant.

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)
  • Risk Evaluation Register (RER)
  • Risk Operating Plan (ROP)
  • Annual Performance Assurance Report (APAR)
  • Annual Performance Assurance Timetable

    The Annual Performance Assurance Timetable (APAT) is approved by the PAB and sets out the timeline for the creation of the documents above for the relevant Performance Assurance Operating Period (PAOP).

    APAT – PAOP10 (1 April 2017 to 31 March 2018)

    APAT (1 April 2018 – 31 March 2019)

  • 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 2018/19
    Effective date:  1 April 2016 Status: Pending

    Risk Evaluation Methodology 2017/18 (PAOP10)
    Effective date:  1 April 2017 Status:In Use

  • Risk Evaluation Register (RER)

    The RER sets out the Settlement Risks that have been identified and evaluated by reference to classes of Performance Assurance Party (PAP) rather than to a particular PAP. Settlement Risks relating to Supplier Volume Allocation, Central Volume Allocation and Central Systems processes fall under the scope of the RER.

    The RER explains the annual process of review whereby existing risks are amended and/or new risks included.

    The RER ledger  sets out the risks, and the significance of each risk on Settlement in relation to a specific Performance Assurance Operating Period (PAOP).

    The RER is reviewed and approved annually by the Performance Assurance Board (PAB) following consultation with industry.

    Risk Evaluation Register 2017/18 (PAOP10)
    Effective date: 1 April 2017 Status: In use

    RER 2017/18 Ledger (PAOP10)
    Effective date: 1 April 2017 Status: In use

    The Settlement Risk Evaluation guidance notes sets out the principles that the PAB uses when assessing the probability, impact and strength of controls relating to Settlement Risks. This document should be read in conjunction with the Risk Evaluation Methodology  and the Risk Evaluation Register .

  • 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.

    The key principles of the techniques and how they are applied are detailed in the PAT Guiding Principles document.

    Risk Operating Plan 2017/18

    Effective date: 1 April 2017 Status: In use

    Risk Operating Plan 2017/18  Ledger

    Effective date: 1 April 2017 Status: In use

  • Annual Performance Assurance Report (APAR)

    The APAR provides the results of the risk evaluation and risk assurance procedures for a particular Performance Assurance Operating Period (PAOP), in particular how well the techniques mitigated the Settlement Risks.

    The report also:

    • Sets out the actual costs of ELEXON implementing the techniques
    • Recommends changes to existing techniques or recommends creating new techniques
    • Explains the benefits of changing the Performance Assurance Techniques