Issue 69: The Performance Assurance Framework Review

After 10 years of live operations and some significant industry changes such as smart metering and innovative business models, at its meeting on March 2017 the BSC Panel (264/07) approved the Performance Assurance Framework (PAF) review which ELEXON is currently undertaking. The BSC Panel also approved Issue 69 to be formed to support the PAF review. 

More about the PAF review

The review has been divided into the following four workstreams:

  • Smart Metering
  • PAF Procedures
  • Data Provision
  • Performance Assurance Techniques.

This issue group will explore the issues with PAF stakeholders, identify possible solutions and specify requirements.

Progression

Current Workstreams

Review of the PATs

This workstream aims to catalogue the current Performance Assurance Techniques (PATs), identify limitations or areas for improvement, and integrate those improvements into a set of new PATs.

We have also commenced our review of Peer Comparison and the first meeting was held on the 14 November 2019.

We have commenced a review of performance measures and standards. Please note that we do not intend to develop new performance standards as part of this review, but rather develop a methodology for setting standards and the governance required to do so, to ensure the PAB can respond to changing Settlement Risks in a proportionate and timely way.

Contact [email protected] to find out more.

Data Provision

This workstream aims to identify and test alternative methods of data provision that will place less burden on participants to provide data, and will help support more accurate risk appraisal.

Completed Workstreams

PAF Procedures workstream

The Performance Assurance Board approved the recommendations of the PAF Procedures workstream on 27 September 2018.

For this workstream, the first workgroup was held on Wednesday 17 January 2018. The attendees commented on the high-level design of the PAF that ELEXON had developed. The members were in agreement with the design and it was subsequently approved by the PAB.

The second meeting was held on 10 April 2018. This time the workgroup focused on the Risk Evaluation Methodology (REM) and the Risk Evaluation Register (RER). The workgroup discussed topics such as; how risk areas are identified within their organisation, if they agreed with ELEXON’s proposed approach to evaluating and prioritising Settlement risks and finally, how ELEXON could achieve better engagement with PAF stakeholders. The workgroup also gave their endorsement toward a draft Modification Proposal (‘Amendments to Section Z to better facilitate the production of the Risk Evaluation Methodology, Risk Evaluation Register and Risk Operating Plan’) due to be raised and initially presented at the 14 June 2018 Panel.

The third meeting for this workstream took place on 12 June 2018. The workgroup reviewed and commented on the proposed Risk Evaluation Register. A subsequent session was held on 25 July 2018, where Central Volume Allocation (CVA) experts reviewed the CVA risks.

The teleconferences were held on the 30 and 31 August 2018. Response from the workgroup was positive, and the proposed revisions of the PAF Procedures will be presented at the September PAB meeting for approval. The workgroup reviewed the proposed risk register, a draft scoring approach with some example risks, and the PAF response to issues and events. More specifically, the workgroup discussed the viability of data sources that could be used in the estimated materiality for certain risks, how this estimate could then be translated into a risk score, and how that risk score could change in the future. Response to the revised scoring approach was largely positive, however, a teleconference was organised to further discuss the possibility of also capturing the volatility associated with each risk, once the concept had been further developed internally. 

Smart Metering workstream

The first PAF Issue Group meetings that took place related to the smart Metering workstream. This workstream focused on the immediate risks to Settlement presented by the mass roll-out of Smart Meters. It investigated whether any targeted assurance work should be undertaken to assess and mitigate negative impacts on Settlement.

The first meeting, held on 25 April 2017, was run as an interactive workshop, with the objectives to create a smart Metering risk register and consider the lessons learned from SMETS1 and P272. The second meeting was held on 24 May 2017. This meeting focused on risk mitigation and PAF changes. The first interim Issue 69 report was then presented to the BSC Panel on 13 July 2017. The seven identified risks have been assigned to two “risk owners” ELEXON is considering whether any mitigating actions should be put in place.  The highest priority risk, around smart Meter Technical Details, has been the focus so far and we have developed monitoring and reporting of Supplier and MOA compliance – the report was first available as a prototype in November 2017 and launched as live in April 2018.

Next Events

There are no planned Issue 69 Workgroups. The Issue 69 report will be tabled at the July 2020 Panel meeting.

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