Breach and Default

This page explains that Breach and Default is an incentive technique in Elexon’s Performance Assurance Framework and the process of defining, recording and managing the Breach and Default.

How it relates to you

Formal notification may be provided to a BSC Party of persistent or material breach of the BSC. A failure to address this breach in all material respects with all reasonable diligence and so far as reasonably practicable may constitute a ‘Default’.

The Panel may apply specific provisions to Defaulting Parties including (but not limited to):The Panel may apply specific provisions to Defaulting Parties including (but not limited to):

• Notifying each other Party of such Default
• Suspending the right of the Party to submit
  • Energy Contract Volume Notifications
  • Metered Volume Reallocation Notifications
  • Bid-Offer Pairs
• With the prior approval of the Authority, the right to register further Metering Systems and BM Units
• Expelling the Party from the BSC in accordance with Section A5

Types of breach

Persistent breach of any provision of the BSC

This is where a breach has persisted for six months a notice will be served to the BSC Party. If the breach persists for a further three months, the BSC Party will trigger an Event of Default and be reported to the BSC Panel.

Breach of any material provision of the BSC that is not capable of remedy

The BSC Party will be notified that it is in breach of the BSC. Where the event has occurred twice within 12 months, the BSC Party will trigger an Event of Default and be reported to the BSC Panel.

Breach of any material provision of the BSC that is capable of remedy

The BSC Party will be notified that it is in breach of BSC. After 14 days, if the BSC Party has failed to remedy the breach or submit a plan for remedy, the BSC Party will trigger an Event of Default and be reported to the BSC Panel. The BSC Panel can then apply the above provisions.

Support and guidance

Each case of Breach and Default is often specific to the BSC Party and the event. This is due to the Breach and Default process covering the whole of the BSC. Elexon will provide support and guidance relevant to the Event of Default.

About the Performance Assurance process

Breach and Default is an incentive technique in Elexon’s Performance Assurance Framework. The Elexon customer service team will work with companies to ensure that any breach is resolved as soon as possible to avoid escalation.

BSC obligations

Section Z of the BSC establishes PAB’s responsibilities with regard to the PAB Escalation Cycle detailed in BSCP534 ‘PARMS Techniques’ which may lead to escalation to the Panel.