Issue 69

Formal title: Performance Assurance Framework Review

The current Performance Assurance Framework (PAF) provides for a flexible, integrated approach to the deployment of techniques. ELEXON and the Performance Assurance Board (PAB) have become aware of opportunities to further enhance the application of the risk-based PAF envisaged in P207 ‘Introduction of a new governance regime to allow a risk based Performance Assurance Framework (PAF)’ to be utilised and reinforce the effectiveness of the current PAF’, to address the challenges of a changing industry. Subsequently, a review of the PAF was agreed as an element of the 2016/17 Panel Strategic Work Programme.

At its March 2017 meeting, the BSC Panel approved the scope and delivery approach of the PAF review (264/07) , which 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 to specify requirements.



Current Workstreams

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.

The first of working group for this workstream took place on 3 October 2018, with subsequent working groups scheduled for roughly every quarter. If you are interested in joining the data provision workstream, please email


Review of the PATs

This workstream aims to catalogue the current performance assurance techniques (PATs), identify limitations or areas for improvement (based on stakeholder feedback and further discussion with technique owners), and integrate those improvements into a set of new PATs.

The first working group for this workstream took place on 30 November 2018. The working group discussed the key ideas for change to the audit techniques, and identified some additional potential improvements. If you would like to attend any subsequent PAT Review working groups, please email


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

We are inviting participants to join the Issue 69 working group for the Data Provision workstream. We are seeking participants who have expertise in Settlement Risks, data retrieval, data processing, auditing, and performance reporting, along with any other interested parties. If you are interested in joining this workstream, please get in touch.

We will soon be able to confirm plans for the Issue 69 working group for the Performance Assurance Technique (PAT) Review workstream, and invite interested persons to register to be part of the review.


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