Issue 08: Apparent inconsistency between requirements for rectifying NHH meter reading his

Formal title: Apparent inconsistency between requirements for rectifying NHH meter reading his

Current Status

Submission
Assessment
Closed

The issue was first presented to the Supplier Volume Allocation Group on 1 June 2004 in paper SVG/40/006. The SVG paper identified an inconsistency between methods currently being used for deeming Meter readings and the provisions of the Balancing and Settlement Code (the Code), Annex S2. The issue was also raised by the BSC Auditor in the BSC Audit Report, statement of significant matters ‘Deemed reads calculated in incorrect circumstances’.

Progression

Issue 8 was considered by the Volume Allocation Standing Modification Group (VASMG) on 29 June 2004. The VASMG agreed that an inconsistency does exist between the Code and methods currently being used for the deeming of Meter readings, however believed that Issue 8 falls into two distinct sections: (a) the deeming of Meter readings where the process of deeming and the calculation of forward looking Annualised Advances (AAs) is clear; and (b) the deeming of Meter readings as part of Gross Volume Correction (where the process of deeming and calculation of forward looking AAs is not clear).

The VASMG agreed that for 8(a), that the inconsistency was sufficiently well defined for a Modification Proposal to be drafted and raised by a BSC Party. Elexon agreed to report back to a future SVG meeting the VASMG’s views on this aspect of Issue 8.

The VASMG agreed that 8(b) required further discussion and understanding before any decision on a way forward could be reached. There will be a further meeting of the VASMG to discuss this aspect of Issue 8 and any decision reached in respect of 8(b) are likely to be progressed separately to the decisions reached in
respect of 8(a).A second VASMG meeting was therefore held on 26 July 2004 to discuss GVC. This addendum to the Issue 8 Report details the discussions and conclusions reached by the VASMG at that meeting in respect of Issue 8(b).

It was agreed that the potential modification discussed at the first Issue 8 meeting to remove the inconsistency between the Code and Code Subsidiary Documents (CSDs) in relation to the deeming of Meter Advances should introduce the methodology for GVC into the Code and introduce the circumstances in which GVC should be used into the CSD. The Modification Group assessing this change would need to discuss whether the use of GVC should be mandatory. A report from both the first and second issue 8 meetings was given to the SVG through paper SVG/042/006 and the Panel will be updated on 12/8/04 through the Elexon report.

It has been indicated that a Modification will be submitted in time for the September Panel.

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