Supplier Charges are liquidated damages that Suppliers incur if they fail to meet certain performance levels. They compensate Parties disadvantaged by those who aren’t meeting defined Standards. We consider them to be a remedial technique in our Performance Assurance Framework.
How it relates to you
Each month, the Performance Assurance Board (PAB) authorises Supplier Charges. The Supplier Charges are then distributed among Trading Parties.
90% of funds collected from a GSP Group are re-distributed to the Non Half Hourly (NHH) Suppliers operating in the GSP Group, based on their share of NHH energy traded in the GSP Group
10% are re-distributed to all Trading Parties based on their Main Funding Share
Latest charges – May 2020
Please note that Supplier Charges will remain as £0.00 following approval of Modification P406, until the reinstating of Supplier Charges by the BSC Panel.
How are Supplier Charges calculated?
The Performance Assurance Reporting and Monitoring System (PARMS) software calculates the Supplier Charges due each calendar month.
These charges are capped for each Supplier to limit each Party’s liability in any one reporting period. A GSP Group monthly liability cap is calculated based on its annual take for the previous financial year.
A Supplier’s monthly liability cap is calculated based on its total active import energy in the reporting period.
This video discusses supplier charges and what you can do to avoid them.
Please note: the supplier charges mentioned in this video may not be current.
What are the Serials used to calculate them?
Supplier Charges are incurred for underperformance against six PARMS ‘Serials’. These are described in the table below. Supplier Charges are applied based on underperformance by Supplier ID, reporting period (Calendar Month) and GSP Group.
|SP01||Delivery of Routine Performance Monitoring Reports||Zero Working Days that a full set of PARMS Reports has not been submitted into PARMS|
|SP02||Delivery of Routine Performance Monitoring Logs||Zero Working Days that Drill Down or Ad-Hoc data has not been submitted to the Performance Assurance Administrator (PAA)|
|SP04||Installation of Half Hourly (HH) Metering||Zero Calendar Days where a mandatory HH Meter has not been installed|
|SP08a||Percentage of Non-Half Hourly (NHH) Energy Settled on Annual Advances||R3 – 80%
RF – 97%
|SP08b||Percentage of HH Energy Settled on Actual Readings||SF – 99%
R1 – 99%
|SP08c||Percentage of non-mandatory HH
Energy Settled on Actual Readings
|RF – 99%|
Performance Assurance Framework
Supplier Charges are a remedial technique in Elexon’s Performance Assurance Framework.