This page explains why BSC Audit is referred to as a detective technique and how that audit impacts on your organisation. It also offers background information on the scope and outcome of the audit.
The BSC Audit is now split into two distinct approaches which takes affect from the 2018/19 Audit period.
- ‘Central Systems’ and CVA Meter Operator Agents – remain within scope of the ISAE 3000 Assurance Opinion
- Suppliers and Supplier Volume Allocation agents – are now in scope of a Process Assessment engagement under Performance Assurance Framework (PAF)
Differences between CVA and SVA Audits
For both the SVA and CVA markets, the general approach to on-site audit testing will remain largely unchanged. However the audit testing work papers have been reviewed and a range of improvements implemented.
An assessment of existing audit testing work papers has also been completed in order to prioritise the undertaking of work papers which are most effective (find the most issues) and test the highest risk (based on impact/materiality) processes.
Going forward ELEXON has greater oversight over the detailed on-site work undertaken by the BSC Auditor.
The number of site visits will remain consistent with prior years with ELEXON now having greater control over the process by which Performance Assurance Parties (PAPs) are selected for audit and audit intensities are set. Steps have also been taken to allow for greater flexibility in respect of audit site work.
How it relates to you
The SVA audit involves reviewing systems and business processes at Suppliers, Supplier Agents and SMRS Agents.
The Central Volume Allocation (CVA) audit reviews the Central Settlement Systems and CVA Meter Operator Agents (CVAMOAs) in order to provide a level of assurance that the calculations and allocations that have been performed within CVA and Supplier Volume Allocation (SVA) are in accordance with the BSC and its subsidiary documents.
The peak of on–site work is February to April each year and the BSC Audit Report is published in June each year.
Your Operational Support Manager (OSM) will contact you to outline the audit work to be undertaken. We can set up a planning meeting to talk about arrangements for a site visit and any data we may request.
The BSC Auditor will also be in touch to finalise arrangements and the data and information they will need as part of your audit.
The BSC Audit Navigator online tool
The BSC Audit Navigator is an online tool which you can use it to share information with the BSC Auditor and ELEXON. You can upload, view and download information relating to the Audit.
Please note that the tool is a secure central repository for BSC Audit documentation.
Accessing the BSC Audit Navigator
If you want to use this facility please email email@example.com
Alternatively, get in touch with your contact within the BSC Auditor directly as the BSC Auditor will need to register your organisation and provide you with relevant login details.
Scope of the audit
The BSC Panel sets the scope of the BSC Audit each year. Following this, the BSC Auditor develops the BSC Audit Approach Document, which describes how it will deliver the work required to meet the scope.
Resolving any issues
Depending on the level of risk, an action plan may be requested by your OSM and the Issue will enter the Error and Failure Resolution (EFR) process.
Audit Issues can only be closed when the BSC Auditor is satisfied that all requirements have been met and non–compliances have been resolved.
It is also anticipated that organisations will work internally to resolve low rated Audit Issues and Management Letter Points (MLPs) outside of the EFR process.
After the audit
The BSC Auditor presents the Annual BSC Audit Report to the BSC Panel in June each year.
Individual and confidential Audit Issue documents will be sent to selected organisations (Audited Entities) and will describe breaches of relevant BSC obligations for any non–compliances that may have been identified.
The Auditor will give a recommendation for rectification and all material Audit Issues are given an Impact Rating of high, medium or low.
Comparing your company with others
ELEXON have introduced the Audit Issue Peer Comparison to help Audit Parties compare their performance with other organisations operating in the same role. The results of each year’s Audit Issue Peer Comparison are published below