Issue 12: Timescales for Withdrawal from the BSC
Formal title: Timescales for Withdrawal from the BSC
The current BSC withdrawal process requires companies to remain as BSC Parties until following the Final Reconciliation Run (RF). To improve the efficiency of this process, and to limit the costs and risks for all parties, Uskmouth Power Company Limited is considering raising a Modification Proposal to enable Parties who have settled all of their trading debts as best they are able by the 2nd Reconciliation Run (R2) to withdraw from the Code – leaving a cash deposit with BSCCo to cover their future liabilities. This would be a voluntary ability, which could be utilised by Parties who are non-physical traders or are responsible for CVA-registered meters.
Issue 12 sets out a number of areas which would potentially be covered by such a Modification Proposal, and seeks the views of the SSMG regarding these issues prior to drafting a Proposal.
The meeting to discuss Issue 12 was held on 27 September 2004. The SSMG agreed that there appear to be inefficiencies in requiring a Party who is inactive in the market to remain contractually bound to the Code until RF – and that this could also potentially be viewed as a barrier to competition. The Group therefore agreed that there may be merit in a Modification Proposal being raised to allow a Non-Supplier Trading Party to withdraw from the Code at an earlier point in the reconciliation timetable (potentially at R2). P178 was subsequently raised by the Proposer. The full conclusions of the Group regarding Issue 12 were presented to the Panel at its October meeting (84/001(g)).