Issue 27: Funds Administration

Formal title: Funds Administration

Current Status

Submission
Assessment
Closed

The BSC review has identified a number of Issues relating to Funds Administration. We believe the Issues and potential solutions described in section 3 of the BSC Review should be submitted to the Settlement Standing Modification Group for industry discussion. The Group can then ascertain if a Modification (or Modifications) should be raised to progress any potential solutions.The BSC Review for 2006/7 considered the funds administration aspects of the Code. This BSC review identified the following issues with the current funds arrangements:

  • Small Value Transactions;
  • Processing of Transactions;
  • Current banking practice not reflected;
  • VAT Reporting;
  • BSC Party Standing Data;
  • Recovery of Credit Cover; and
  • Lodging Funds

More information can be found on the following Panel Papers BSC Review 2006/2007 Funds Administration Report and Funds Administration : Conclusions and Recommendation

Progression

The Issue 27 Group met and agreed that a number of improvements suggested in the BSC Review could be considered as part of a modification. Elexon is discussing the content of a potential modification with one Party. The Issue report will be provided to the July Panel.

Scottish Power have raised a Modification Proposal ‘Issues Relating to Funds Administration’ on 02 July, and the Initial Written Assessment will be provided to the August Panel. The Modification Proposal will seek to amend the current provisions for the Funds Administration process by:

  • Introducing electronic delivery of Advice/Confirmation Notes;
  • Combining the amounts from Trading Charges and each Default Charge onto one daily Advice Note;
  • Introducing thresholds below which an Advice Note would not be produced; and
  • Amending the BSC to bring it in line with modern banking practices.

 

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