017 SVA Risk: exception reports not managed correctly
This page outlines the Risk that exception reports are not sufficiently managed, such that material exceptions are not addressed at all or in a timely manner.
How it relates to you
This risk can affect Suppliers in both the HH and NHH markets.
Parties Responsible for risk factors
Parties responsible for risk controls
- Non-Performance Assurance Parties
Risk 017 forms part of the data retrieval and processing process shown in the Risk Visualisation Tool.
Potential causes, or as they known in the Risk Evaluation Register: Risk Factors are the points of failure that could result in erroneous or estimated data entering Settlement.
Elexon has identified a number of typical failure points related to this risk, parties should note the list is non-exhaustive, and not all risk factors are applicable to every role type.
- It can be hard to address exceptions once there has been one or more changes across an event boundary (or multiple) such as Change of Supplier, agent or Metering Equipment
- Large volumes of non-material exceptions obscuring the material errors requiring action
Parties responsible for operating controls should take note of the information below. This identifies the BSC Sections and Procedures relating the risk.
Review the processes outlined in the following BSCPs and ensure that internal processes match the requirements:
- BSCP502: Half Hourly Data Collection for SVA Metering Systems Registered in SMRS
- BSCP503: Half Hourly Data Aggregation for SVA Metering Systems Registered in SMRS
- BSCP504: Non Half Hourly Data Collection for SVA Metering Systems Registered in SMRS
- BSCP505: Non Half Hourly Data Aggregation for SVA Metering Systems Registered in SMRS
Impact of this risk on the industry
This graph highlights the probability distribution of this risk and cost incurred to the industry when a risk manifests over the course of a year.
- Impact: £210,000
- Upper Impact: £23.8 Million
- Volatility: High
In order to calculate the impact this risk has on your Party, multiply your market share by the impact as outlined above.
Risk Evaluation Register sets out further detailed information on the noted controls.
Support and training
Operational Support Managers (OSMs) are able to help with further information or training on this risk and associated processes.
Methodology used for this risk
The following documents outline the methodology used to assess the Settlement Risk related to Agent appointments.