Formal title: Enable the cost recovery of the Radio Teleswitch Service (RTS) arrangements extension
Industry discussions identified that the full range of smart meter variants cannot currently support the replacement of Load Switching devices, which are used primarily by Suppliers to switch between registers on Meters. As a result, the RTS arrangements are still required for a time period beyond the current March 2020 end date for the RTS service.
A contract extension between the Energy Networks Association (ENA) and BBC has been agreed, enabling the continuation of the RTS service, that will apply from 1 April 2020 to 31 March 2021.
Energy UK has held discussions with the Supplier community regarding how RTS costs could be recovered for the extended contract (and potentially any further extensions), and the BSC was identified as the appropriate Code to include such cost recovery arrangements.
Issue 84 Group considered:
Solution 1 – Utilising the existing RTS Contract between the ENA and Elexon that is already in place, to facilitate the RTS cost recovery. Solution 1 could be delivered under:
- Option a) allowing for RTS costs to be delivered by total market share across all BSC Trading Parties.
Solution 2 – Raising a BSC Modification to introduce a requirement for the BSCCo to recover additional RTS costs from Suppliers under BSC recovery mechanisms. Solution 2 could be delivered through one of the below options:
- Option b) calculating costs proportionately across all Suppliers or;
- Option c) calculating costs by RTS User market share basis
Agreed contract arrangements
As recommended by Issue 84 group, Elexon and the ENA have agreed the necessary contract amendments with the Energy Networks Association (ENA) to facilitate the operational cost recovery for the Radio Teleswitch Service (RTS) within the Balancing and Settlement Code (BSC) charging arrangements from 1 April 2020 onwards.
Future of RTS
Issue 84 was Raised by SSE Electricity Limited on 10 July 2019. The Issue 84 meeting was held on 31 July 2019. The Workgroup agreed the following:
- Solution 1 – Option a) should be implemented and a Modification could be raised to progress Solution 2 Option b) or c) if a BSC Party wishes to do so. Solution 1 option a) will result in a change to the existing RTS contract between the ENA and Elexon.
- Elexon is to engage with the ENA to discuss the details of the contract change. Industry will be notified of the contract change outcome and implementation timelines.
- The industry will be notified of the WG decision and Parties can raise a Modification should they wish to progress with Solution 2.
At its meeting on 12 September 2019, the BSC Panel unanimously supported the Issue 84 group’s recommendation that Elexon should amend its existing contract (for the provision of data) with the ENA, to facilitate the recovery of operational RTS costs under the BSC, across all Trading Parties from April 2020 onwards. This avoids the need to create new or separate arrangements by using existing BSC systems and processes.
Issue 84 has now closed.