Issue 77

Formal title: Review of fixed charges under the BSC

Current Status

Submission
Assessment
Closed

The BSC Panel have requested that Issue 77 review those BSC Costs that have a fixed charge that are not cost-reflective. These are known as Specified Charges without cost drivers.

In 2018, BSSCo charges recovered a total of £37.2 million of Elexon’s costs. Of the £37.2 million, £2.9 million (8%) were collected via Specified Charges without cost drivers. The remaining 92% of Elexon’s costs are recovered according to a Parties market share through Funding Shares.

The BSC Panel believes it is important to review the appropriateness of these fixed charges without drivers and at its 31 January 2019 meeting (286B/01) recommended the formation of an Issue group to consider Specified Charges without cost drivers.

It is proposed that the following fixed charges are assessed by an Issue group:

  • Base Monthly Charges;
  • CVA Metering System Monthly Charge;
  • CVA BM Units Monthly Charges;
  • Base BM Unit Monthly Charges;
  • Additional BM Unit Monthly Charge; and
  • Base Replacement Supplier BM Unit.

Further information can be found in the Proposal Form.

Progression

Issue 77 was raised by Elexon on 29 March 2019. Elexon are holding the first Issue 77  group meeting on 15 May 2019. Elexon  tabled the Issue 77 report for comment at the 13 June 2019 BSC Panel meeting, the Issue is now closed.

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