bsc panel 224 - elexon...ebs programme . dispatch investigation the analysis of these 5 options...
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BSC Panel 264
9 March 2017
Health & Safety
Update on the Switching
Programme
9 March 2017 Arik Dondi - Ofgem
Verbal
Update on the Switching Programme
Purpose
• Background on the strategic outline case (SOC)
• Explain the three reform packages
• Review key impacts • Review Ofgem’s request for information
• Detailed Level Specification Phase
The strategic outline case
• A strategic business case using HM Treasury five case model
• Published on 19 Jan 2017 • Developed with stakeholder input • Sets out three reform packages • We are now requesting information to assess packages • Aim to consult on a preferred option in Aug 17 with
decision end 17
• To support the RFI, the SOC provides the following key elements:
• Economic Case (Chapter 3 and 4) • Reform packages (Appendix 1) • Business Process Modelling (Appendix 2) • Data architecture (Appendix 3) • Reform package spreadsheet (Appendix 4a)
DO NOTHING
No system or process changes
No improvement to
reliable switching
21 day switch
Draft reform packages
OPTIMISE EXISTING
Use existing systems
Address matching to improve reliability
Key process changes (harmonised where
possible) to deliver 3 to 7 day switch
MAJOR REFORM
New central switching service (core data)
Enduring reliability
improvement to MPxN/address data
Harmonised and
simplified next day switching process
FULL REFORM New central switching
and market intelligence services
Enduring reliability improvements, and improved access to
broader range of switching data
Harmonised and
simplified next day switching process
Potential consumer benefits
Scale of challenge
Key elements of reform packages
Optimise existing – RP1 Major Reform – RP2 Full Reform – RP3
• Objections window reduced to 1WD
• Gas confirmation window reduced to 1WD
All packages
• Supply point nomination data accessed from Xoserve via API
• Suppliers support ‘equivalent terms’ for cooling off returns
• MPxNs matched to GB address list
• MPRS modified to handle: Related MPANs; import/export; dom/non-dom
• MAP ID maintained in UKLink and MPRS (and MAPs notified at switch)
• API access to enquiry services (for RP1 and 2 this is ECOES & DES)
• MAM unbundled to MOP and MAP
• Harmonisation of advance registration and standstill periods
• As for RP1, apart from…
• New Centralised Switching Service (CSS)
• MPRS and UKLink modified to interface with CSS and to remove switching functionality
• Supplier led gas switching
• Losing suppliers respond instantly to objection requests
• MPxNs linked via GB address register
• Shipper and agent IDs recorded in CSS - (MOP, DA, DC, MAM, MCP, MAP)
• CSS notifies supplier and agents of confirmed and executed switch. Used for agent appointment
• Calendar day switching (CSS, supplier objections 24x7)
• As for RP2, plus…
• New Market Intelligence Service (MIS) – all switching, meter point, settlement and meter asset data (incl. smart) accessed via MIS
• ECOES and most of DES are withdrawn
• MPRS modified to handle MTDs
• MIS available 24x7
Reform Package 1
Reform Package 2
Reform Package 3
Variations on policy positions to be tested in the RFI
Cooling off (all) • Variation 1: No requirement for Supplier A to offer equivalent terms
Objections (RP2) • Variation 1: For RP2, CSS manages central objections database • Variation 2: Compressed window of 5 hours • Variation 3: Longer switch period for non-domestic
End of next day switching (RP2) • Variation 1: Longer objection period • Variation 2: Longer period between gate closure and switch
Calendar days vs working days (RP1) • Variation 1: Operate on calendar day basis
Enquiry service (RP3) • Variation 1: MIS developed and operated by Gemserv/Xoserve Quick wins • Variation 1: implement 1 day objections and cooling off changes in Nov 18
Request for information
• Issued to suppliers on 19 Jan alongside SOC
• Large suppliers received a mandated request. Mid-tier supplier suppliers received a request which mandated certain elements. Other suppliers received a voluntary request
• Response requested by 2 March
• RFI focuses on the following impact areas for suppliers • Contracting and preparatory work prior to switching request • Interaction with switching service • Other activity around the switch • Post switch activity • Delivery • Additional questions
Context - Programme phases
Blueprint Detailed Level Specification Enactment Design, Build
and Test
ACTIVITY
• Define new market arrangements in a Target Operating Model (TOM) including Delivery Strategy
• Consultation and Decision (with IA) on preferred outcome
ACTIVITY
• Define in detail how reforms will work
• Draft modifications to codes and licences
• Consultation and Decision (with IA) on SCR Direction and licence mods
ACTIVITY
• Changes made to codes and licences
• Central Registration Service procured
ACTIVITY
• Systems designed, built and tested.
• Transition scheme executed
PHASE 1 PHASE 2 PHASE 3 PHASE 4
ROLES
• Workgroups led by Ofgem
• Industry and consumer reps to support workgroup option analysis
• Industry to provide data for IA
ROLES
• DCC and Industry implement reforms
• DCC undertake market assurance
• DCC execute Transition Scheme
• Ofgem monitor and take go-live decision
ROLES
• Industry Code Administrators and Ofgem led workgroups
• Industry and consumer reps continue to support workgroups
• Industry to provide data for IA
ROLES
• Industry raise code mods and Ofgem approve
• Ofgem make licence modifications
• DCC procure a central registration service
Monitor and
Evaluate
PHASE 5
DLS products (for illustration only)
4 Design Baseline 4*
4.1 E2E Switching Arrangements Design
4.1.1 DLS Design Assumptions
4.1.2 Detailed Design Models
4.1.3 E2E Data Architecture & Data Governance
4.1.4 E2E Switching Arrangements NFR
4.1.5 Solution Architecture
4.1.6 Operational Choreography
4.1.7 Technology & Comms. Standards
4.1.8 Policy Detailed Design
4.1.9 E2E Switching Arrangements Service Management Design
4.1.10 Security & Privacy Design*
4.1.10.2 Security Requirements
4.1.10.3 Privacy Requirements
4.1.10.1 E2E Security Architecture
4.2 CRS Design*
4.2.1 CRS Detailed Design
4.2.2. CRS Non-Functional Requirements
4.2.3 CRS Service Management Requirements
4.2.4 CRS Delivery Plans
4.2.5 Security Section of tender pack(s)
4.3 Overall Delivery Plan*
4.3.1 Design & Build Plan
4.3.2 Integration Plan
4.3.3 Testing Plan
4.3.4 Transition Plan
4.3.5 Post-Implementation Plan
4.3.6 Data Migration Plan
4.4 Regulation Design*
4.4.1 E2E Regulation Structure & Design Standard
4.4.2 Transitional Regulation Requirements
4.4.3 REC Shell / Structure
4.4.4 Approach to REC Body Selection / Procurement
4.4.5 Specification of REC Body / Administrator
4.4.6 Approach to Legal Drafting Procurement
4.4.7 Specification for legal support / procurement
4.4.8 Programme Board paper with procurement recommendation
4.3.7 SI Procurement Specification
1. Ofgem owned, Ofgem led no substantive DCC involvement e.g. regulatory products
2. Ofgem owned, Ofgem led , substantive DCC contribution.
3. Ofgem owned, DCC led.
4. DCC owned, DCC led e.g. procurement products
* indicates a “wrapper” product for the sub-products listed
Programme governance
Technical Design
Authority
Ofgem Design and Impact Assessment Team
SRO, advised by Ofgem Programme Board
Programme Management &
PMO
Switching Programme
Steering Group
Ofgem Senior Management Team
Delegated authority and budget
Design Alignment (TDA & DIAT)
Switching Programme
Delivery Group
Major escalated issues
Commercial Continued commercial development/monitoring work (separate from DLS)
Detailed Switching Arrangements
Design Team
Switching Regulation
Design Team
CRS Design
Design Teams
Switching Delivery Design
Design Team
Report
Monitor product delivery Management & Co-ordination
Design Alignment & Approval
Report & Inform
Product specific
user fora
Product specific
user fora
Product specific
user fora
Product specific
user fora
EDAG
Blueprint only
Q&A
Welcome any questions on the SOC, RFI, DLS Phase or next steps
National Grid EBS Update
9 March 2017 Antonio Del Castillo Zas
Verbal
Place your chosen image here. The four corners must just cover the arrow tips. For covers, the three pictures should be the same size and in a straight line.
Electricity Balancing System External Update
BSC, GCRP, Ops forum March 17
EBS Programme
EBS March update
Scheduling parallel run
Dispatch investigation
EBS User Group
EBS Programme
Scheduling parallel run
Scheduling parallel run carries on in the Control Room
New processes and people are exposed daily to EBS
Shift and non-shift personnel are being authorised for new processes and tools (80% complete)
Output is analysed operationally and commercially on a daily basis
EBS Programme
Scheduling parallel run - Scheduling trials
Scheduling trials consist of:
EBS output for synch and desynch events entered manually into BM Systems 4 hours ahead of real time
Dispatching still being managed with BM Systems
Reporting and auditing still managed by BM Systems
Planned for weeks 13/03-24/03
No impact to BSC Parties on instructions or interfaces
EBS Programme
Dispatch investigation In November 2016 a full Dispatch Trial took place on the
simulator. This was the first opportunity to test the EBS system End-to-End against live production data, following delivery of critical change requests & defects
The Trial was successful from a frequency control perspective but the EBS issued 5x the number of BOAs compared with BM Systems
In response to these results, the PMB set up a Dispatch Task Force, including NG and the software supplier personnel
Following further tests, a number of key issues were identified that were shown to be adversely affecting the control cycle performance of the EBS system
We are now considering five options by which to proceed
EBS Programme
Dispatch investigation
The analysis of these 5 options includes pros, cons, costs, timeline and risks
This report was presented to NG senior management on 1st March
The Dispatch go-live, EBS go-live (i.e. BMRS cutover) and P297 implementation dates are dependant on this decision
EBS Programme
EBS User Group
Once commissioned, EBS will be a key system for the GB electricity market
The EBS User Group is intended to be National Grid’s customer liaison forum for EBS related issues with the BSC parties (including control points and the trading agents), the code administrator and the Authority
Terms of reference are distributed to the BSC panel and the GCRP for comments
Implementation of Open Governance on the Grid Code
9 March 2017 Ryan Place
Verbal
Grid Code Modification GC0086 Open Governance
March 2017
28
Grid Code Modification – GC0086
Open Governance – What does it mean?
Authority approval of modification GC0086, means change to Grid Code to introduce open governance. The changes include: enabling participants other than National Grid Electricity Transmission
(NGET) to formally propose code modifications, including alternatives;
a revised Grid Code Panel membership and election process;
the appointment of an independent Panel chair, subject to Ofgem approval;
the introduction of a Self-Governance process;
provision of a Panel recommendation (or, in the case of self-governance, a
decision) on code modifications;
a revised Significant Code Review (SCR) process to reflect recent licence
changes under CGR3
a process for urgent modifications.
29
Grid Code Modification
Key Points
• Panel Composition/Elections.
• Who can raise Mods.
• New way of working.
30
Grid Code
Who will be the Voting Grid Code Panel Members?
Role Number of Seats
Number of Alternates Elected/Appointed
National Grid Electricity Transmission (SO) 1 1 Appointed
DNO 2 2 Appointed by DNO’s - Industry Codes Technical Steering Group (ITCG)
Supplier Representative 1 1 Elected
Offshore Transmission Owner (OFTO) or Interconnector
1 1 Elected
Onshore TO 1 1 Elected
Generator 4 2 Elected
Consumer 1 1 Appointed by Citizens Advice and Citizens Advice Scotland
Other 1 1 Appointed by Chair or Authority (optional)
Total Votes 12
31
Grid Code
Who are the Non Voting Grid Code Panel Members?
Role Number of Seats Elected/Appointed
Chair 1 Casting Vote only if independent, no vote if National Grid Chair
Panel Secretary 1
Code Administrator 1
Ofgem 1
BSC Panel Representative 1
Workgroup Chair (GCDF Chair) 1
Total 6
32
Grid Code
What is the Panel Representative Election Process?
Role outline of a Panel Member to be sent out 3 March 2017
Invitation to industry to nominate candidates 3 March 2017
Closing date for nominations 17 March 2017 - 17:00hrs
Circulation of Grid Code candidates and voting papers 22 March 2017
Voting papers to be submitted to the Code Administrator By 5 April 2017 - 17:00hrs
Grid Code election results published 10 April 2017
Code Administrator to prepare and submit Election Report to the Authority 14 April 2017
33
Grid Code
Who can propose a change to Grid Code?
A proposal to modify the Grid Code may be made:
a) by any User; any Authorised Electricity Operator liable to be materially affected by such a proposal; the Citizens Advice or the Citizens Advice Scotland; or
b) by the Grid Code Panel (Under GR.25.5); or
c) by the Authority:
i. following publication of its Significant Code Review conclusions; or
ii. under GR.17; (The Authority may develop a Authority-Led Modification in respect of a Significant Code Review, in accordance with the procedures set out in this GR.17) or
iii. in order to comply with or implement the Electricity Regulation and/or any relevant legally binding decisions of the European Commission and/or the Agency.
34
Grid Code
Workgroup, a new way of working
To align approaches between the Grid Code Panel and Workgroup, and deliver in an efficient, economical and expeditious manner, all Grid Code Workgroups and the Grid Code Development Forum (GCDF) will be aligned to take place on a single day.
In order to facilitate this change all pre-reading material will be circulated for comment 5 working days prior to the meeting.
The Code Administrator will Chair and provide a Technical Secretary for the GCDF and Workgroup as back to back meetings on one day.
The expectation for all Workgroup Members will be to have completed pre-reading in order to focus discussion on industry participants queries of the Proposed Modification Solution.
The Workgroup Report content will be owned and developed by all Workgroup Members with the expectation that the Proposer will lead on developing their solution and associated legal text.
35
Grid Code
What are the Key Changes?
Proposer Ownership The proposer owns their modification and only the
proposer can change the modification All modifications shall be submitted on the Grid
Code Modification Proposal template and should include proposed Legal Text Proposers represent their modifications through
the Panel and any Workgroups
Modifications Any party can raise a modification to meet the
Grid Code Objectives (appendix 1). There are four types of modifications: Urgent,
Self-Governance, Standard and Fast Track Modifications Alternative modifications can be raised
Grid Code Panel Up to 12 Voting Members – cross energy industry
representation Up to 6 Non Voting Members Monthly meetings to account for the increase of
modifications
Workgroup Workgroups can be up to a maximum of six
months Workgroups will develop the Proposal (including
the Report) and any alternatives The expectation will be the Proposer leads on
developing both solution and legal text Workgroups and GCDF will be combined and
meet on a fixed day every month
36
Grid Code
Contact Information
A full version of the slides can be found online at http://www2.nationalgrid.com/UK/Industry-information/Electricity-codes/Grid-code/Grid-Code-Development-Forum/
If you would like further general information in relation to Open Governance, or how you may be affected please email: grid.code@nationalgrid.com
37
i. to permit the development, maintenance and operation of an efficient, coordinated and economical system for the transmission of electricity; Neutral
ii. to facilitate competition in the generation and supply of electricity (and without limiting the foregoing, to facilitate the national electricity transmission system being made available to persons authorised to supply or generate electricity on terms which neither prevent nor restrict competition in the supply or generation of electricity); Neutral
iii. subject to sub-paragraphs (i) and (ii), to promote the security and efficiency of the electricity generation, transmission and distribution systems in the national electricity transmission system operator area taken as a whole; and Neutral
iv. to efficiently discharge the obligations imposed upon the licensee by this license and to comply with the Electricity Regulation and any relevant legally binding decisions of the European Commission and/or the Agency.
v. to promote efficiency in the implementation and administration of the Grid Code arrangements.
Grid Code
Appendix 1 – Grid Code Objectives
Change Report and Progress of
Modification Proposals
9 March 2017 Douglas Alexander
264/03
BSC Modifications raised by year
61 54 40 28 15 10 13 11 17 17 15 8 9 18 14 23 1 0
10
20
30
40
50
60
70
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
BSC Modifications overview
Initial Written Assessment
Assessment Procedure P325, P332, P344, P348, P349, P354.
Report Phase
With Authority
Authority Determined P350
Self-Gov. Determined -
Fast Track Determined -
Open Issues Issue 65, Issue 66, Issue 67
BSC Modifications timelines
Mar 17
Apr 17
May 17
Jun 17
Jul 17
Aug 17
Sep 17
Oct 17
Nov 17
Dec 17
Jan 18
…
P325 AR DMR
P332 AR DMR
P344 AR DMR
P348 AR DMR
P349 AR DMR
P354 AR DMR
Modification Updates
■ P325 – Improving the accountability of BSCCo stakeholders and better aligning BSCCo governance with best practice
– Business requirements to be considered by Workgroup 10 March
■ P344 – European Replacement Reserve
– First Assessment Procedure consultation issued 23 February
■ P348/349
– Second Assessment Procedure consultation issued 20 February
■ P351
– Authority approved proposed solution – April 17 implementation
Recommendations
We invite the Panel to:
a) NOTE the contents of the Change Report.
CP1479 ‘Updates to the Defined Metering Points
in Codes of Practice 1,2,3,5 and 10’
9 March 2017 Giulia Barranu
264/11
CP1479: overview
■ ELEXON noted discrepancies between the points of measurement defined in the BSC and in CoPs 1, 2, 3, 5 and 10 and the actual physical points of connection at certain types of sites
■ On 6 February 2014, ELEXON raised Issue 54 to discuss this issue
■ ELEXON raised CP1479 to amends CoPs 1, 2, 3, 5 and 10 in order to resolve three issues on the DMP and implement the recommendations in the Issue 54 Report
ISG: view of the member who disagreed with the CP
■ One member disagreed with the CP because:
– BSC objective (c)
– BSC objective (d)
– This change should be made with broader consideration of the allocation of losses
Current working practice
G
Generating Unit: 400MW
(or Wind Farm)
Wind Farm
M
Generator (’s)
transformer
G
M
25kV (LV side)
275/400kV (HV side)
Defined Metering Point
Transmission System
Power transformer (part of
Transmission System)
33kV (LV side)
132kV (HV side)
Commercial interface
Defined Metering Point ???
England and Wales e.g. North of Scotland
Boundary Point (and commercial interface)
Boundary Point
G G G G
Recommendations
We invite the Panel to:
a) NOTE that the ISG did not make a unanimous decision on 21 February 2017, but recommended by majority (all but one ISG member) that the Panel approves CP1479;
b) NOTE that the SVG unanimously approved CP1479 on 28 February 2017;
c) APPROVE CP1479 for implementation on 2 November 2017 as part of the November 2017 BSC Release; and
d) APPROVE the proposed changes to CoPs 1, 2, 3, 5 and 10 as contained in Attachments C-G.
European Network Code Implementation Plan
9 March 2017 Jemma Williams
264/04
ENC Impacts on the BSC Codes and Guidelines Abbreviations Description Status Version BSC Impact
Connection Codes
Requirements for Generators
RfG To harmonise and update technical connection requirements for all types of generators from 800W upward.
Adopted 14 April 2016 No changes required (initial view)
Demand Connection Code DCC Connection of industrial loads and DSOs, and sets out requirements which will apply to the demand side of the power system.
Adopted 17 August 2016 No changes required (initial view)
Network Code on High-Voltage Direct Current Connections
HVDC Rules for the use of HVDC technology included between synchronous area and embedded systems.
Adopted 26 August 2016 No changes required (initial view)
Market Codes
Forward Capacity Allocation
FCA
Couples existing European electricity forward markets to create a pan-European internal market by harmonising market rules for calculating and allocating capacity in the forward market.
Adopted 26 September 2016
No changes required (initial view)
Capacity Allocation and Congestion Management
CACM
Rules for allocating capacity in day-ahead and intra-day timeframe, calculating the levels of availability cross border, allocating and recovering costs.
Adopted 24 July 2015 1 Potential Modification
Guideline on Electricity Balancing
EB GL
Rules for cross border exchange of reserves and balancing energy
Pending 24 January 2017 1 Live Modification 11 Potential Modifications
System Operator Codes
Transmission System Operation Guideline
TSOG
Setting minimum system security, operational planning and frequency management standards.
Pending 4 May 2016
No changes required (initial view)
Network Code on Emergency and Restoration
NC ER Harmonisation of system defence and restoration procedures during severe events. Also includes market suspension and restoration requirements
Pending 24 October 2016
1 Potential Modification
ENC Implementation Plan timeline
Insert: Document title 51
European harmonisation status - ON TRACK
Today
CACM came into force
P344-Project TERRE
NC ER comes into force
Potential Mod 1-Time of Interconnector Data Submission
EB GL entry into force (assumed)
Application for Exemption from 15 min Settlement (assumed)
Backstop date for Derogation from Article 55 (imbalance price)
Potential Mod 2-Imbalance Price (without derogation)
Potential Mod 3-Inclusion of Imbalance Adjustments (without derogation)
Assignment of EBGL where needed
Potential Mod 4-Align BSC with the Authority's oversight obligation
NGET proposals for suspension/restoration
Backstop date for ELEXON assigned / delegated
EB GL provisions apply (assumed)
Potential Mod 5-Amendments to Imbalance Price
Potential Mod 6-Align BSC with the TSO's Terms and Conditions
Potential Mod 7-Project TERRE 2
Potential Mod 8-Unintended exchanges of energy
Potential Mod 9-NGET proposal on specific products
Potential Mod 10-Market Suspension and Restoration Arrangement
UK leaves EU (assumed) Potential Mod 3-Inclusion of Imbalance Adjustments
(with derogation) Potential Mod 11-Harmonised Imbalance Settlement
(Includes Mod 2 with derogation)
Potential Mod 12-Project mFRR
Backstop date for RR standard products
Potential Mod 13-Project TERRE 3
Earliest decision on bidding zone change
Backstop date for harmonised Imbalance Settlement
Implementation date for any bidding zone change
Backstop date for FRR standard products
Jan-2015 Jan-2016 Jan-2017 Jan-2018 Jan-2019 Jan-2020 Jan-2021 Jan-2022
European Network Code Implementation for the BSC
BSC Modifications
Modification reference Title Dependencies Initial view of Probability
P344 Project TERRE n/a
Potential Modification 1 Time of Interconnector Data Submission National Grid Likely
Potential Modification 2 Imbalance Price National Grid Less likely
Potential Modification 3 Inclusion of Imbalance Adjustments National Grid Likely
Potential Modification 4 Align BSC with the Authority’s oversight obligations
Ofgem
Likely
Potential Modification 5 Amendment to Imbalance Price European TSOs Less likely
Potential Modification 6 Align BSC with the TSO’s Terms and Conditions National Grid Less likely
Potential Modification 7 Project TERRE 2 (clearing price) European TSOs Less likely
Potential Modification 8 Unintended exchanges of energy European TSOs Less likely
Potential Modification 9 NGET proposal of specific products National Grid Less likely
Potential Modification 10 Market Suspensions and Restoration Arrangement
National Grid Less likely
Potential Modification 11 Harmonised Imbalance Settlement National Grid Likely
Potential Modification 12 Project mFRR European TSOs Likely
Potential Modification 13 Project TERRE 3 (standard products) European TSOs Less likely
Recommendations
We invite the Panel to:
a) NOTE the content of this paper; and
b) NOTE the BSC Implementation Plan will be presented to Ofgem on 14 March 2017.
Minutes of Meetings 263 and
Actions arising
9 March 2017 Victoria Moxham
Chairman’s Report
9 March 2017 Michael Gibbons
ELEXON Report
9 March 2017 Mark Bygraves
264/01
Distribution Report
9 March 2017 David Lane
National Grid Report
9 March 2017 Chris Fox
Ofgem Report
9 March 2017 Nadir Hafeez
Reports from the ISG, SVG, PAB and
TDC
9 March 2017
264/01 c-f
Trading Operations: BSC
Operations Headline Report
9 March 2017
264/02
System Price Analysis Report
9 March 2017
ISG 191/08
Review of Specified Charges
9 March 2017
264/05
Kathy Ferrari
Recommendations
We invite the Panel to:
a) APPROVE the new SVA Specified Charge of £0.00598 /SVA MSID per month.
BSC Audit Scope 2017/18
9 March 2017
264/06
Jason Jackson
Introduction
■ The paper sets out the proposed Balancing and Settlement Code (BSC) Audit Scope for the BSC Year 1 April 2017 to 31 March 2018
■ Endorsed by PAB at its February meeting
■ The PAB will consider further potential changes to the Scope following the completion of the 2016/17 BSC Audit
■ We are proposing to remove elements from the BSC Audit scope that present low risk to Settlement
Introduction
Focus of the BSC Audit
■ The BSC Audit will continue to focus on:
– Change of Measurement Class
– Change of Supply
– Commissioning
Rotational approach
■ The BSC Audit will continue to take a rotational approach to some lower risk areas of the BSC Audit Scope
Commissioning
■ Commissioning will focus on the requirements and associated timescales set out by CP1458
Proposed Changes
New Additions
■ Implementation of Specific BSC Changes
– Audit of the implementation of up to 3 Specific BSC changes.
■ ‘Off the shelf Suppliers’
– Up to four will be targeted
■ ‘Intelligent’ approach to determining where auditing a Party for both HH and NHH might add value where the BSC Auditor is already on site
Proposed Changes
Removals
■ Unmetered Supplies
– Provision of Standard Settlement Configuration (SSC) and Profile Class (PC) details including disconnections and Energisation Status
– Creation and provision of Unmetered Supplies (UMS) Certificates
– Maintenance and provision of connection agreements
■ Change Management
– Processes and controls used to implement BSC change releases by Suppliers, Supplier Agents and Licensed Distribution System Operators (LDSOs)
Proposed Changes
Reductions
■ Proving tests in the SVA market
– CP1472 will remove the requirement for proving tests in approximately 90% of instances
■ CVA MOA (CVA Activities)
– Two small CVA MOAs due to undergo limited scope audits to be scoped out for the 2017/18 audit year on the basis that no activity has taken place to date during 2016/17
Materiality threshold
BSC Audit Materiality Thresholds for 2015/16, 2016/17 and 2017/18
Period Total Energy Consumption (TWh)
0.5% of Consumption during period (TWh)
Value rounded to 1 decimal place (TWh)
01 January 2014 – 31 December 2014 270 1.345 1.4
01 January 2015 – 31 December 2015 262 1.31 1.3
01 January 2016 – 31 December 2016 260 1.301 1.3
Average 264 1.318 1.3
Next Steps
■ ELEXON will review the scope following the completion of the 2016/17 BSC Audit
■ 2016/17 BSC Audit report scheduled for submission to the June 2017 Panel meeting
■ Amendments may subsequently be made by the Panel following the Panel’s consideration of the BSC Audit Report
Recommendations
We invite the Panel to:
a) NOTE that the PAB has endorsed the BSC Audit scope;
b) APPROVE the BSC Audit scope for 2017/18; and
c) AGREE to delegate responsibility for any future amendments to the BSC Audit scope 2017/18 to the PAB.
Performance Assurance Framework
Review scope and approach approval
9 March 2017
264/07
Max O’Connor
Approach
■ Four work streams: smart metering rollout monitoring, REM and other procedures, data provision, and Performance Assurance Techniques (PATs)
■ The smart metering work stream is planned to complete in September 2017
■ REM and other procedures and data provision will be run in parallel between March 2017 and March 2018
■ Work on PATs will only begin once the recommendations on previous work streams are approved
■ September 2018 is the projected end of the review
■ From September 2018 onward any outstanding BSC Change or system procurement resulting from the review will be progressed
PAB Endorsement and Next Steps
■ PAB has endorsed the scope and approach
■ Work will commence immediately if approved
Recommendations
We invite the Panel to:
a) APPROVE the scope and approach for the Performance Assurance Framework review;
b) AGREE that Mitch Donnelly should be appointed as Panel Sponsor for the review; and
c) AGREE that the PAB should continue to manage the review on the Panel’s behalf.
Review of Metering Dispensations and
non-standard BMUs – Final Report
9 March 2017
264/08
Nicholas Rubin
Overview
■ Panel’s Strategic Work Programme identified need for review
– Concern over number of applications for Metering Dispensations and non-standard BMUs
– 28 of 37 ISG decision papers in 2015/16
– another 44 non-standard BMUs expected by 2022
■ However, relative number of applications is low
– 29 million Metering Systems, 3200 BMUs
– Since 1990, 465 applications for Metering Dispensations…
… of which 216 specific and 21 generic Metering Dispensations are current
– Since 2001, 50 non-standard BMUs applied for and approved
■ ELEXON has made improvements in last 24 months to improve Metering Dispensation processes
What we found
■ 50% of Metering Dispensations and 60% of non-standard BMUs are due to substantive regulatory changes, e.g. NETA, BETTA, OFTO
■ Remaining:
– Metering Dispensations due, primarily, to location of metering or technical non-compliances
– Non-standard BMUs due to reconfiguration of existing or installation and use of new equipment
■ In general BSC requirements are adequate…
… though opportunity to update definitions of standard BMUs, improve overall processes and we consult and communicate future changes.
Main recommendations
Metering Dispensations
■ Clarify location of metering
■ Consider necessity for metering of low voltage assets at Offshore wind farms
■ Improve guidance documentation and consultation processes
■ Review all existing differencing arrangements to ensure they remain fit for purpose
Non-standard BMUs
■ Introduce four new, standard BM Unit configurations
■ Introduce concept of a generic non-standard BM Unit
■ Improve application and periodic review processes
■ Identify unapproved non-standard BM Units and put in place remedial action
Our next steps
■ Report reviewed by ISG and SVG
– No specific comments
■ ELEXON will prepare a detailed plan for prioritising and implementing our recommendations
– Will engage ISG and SVG where necessary
– Will return to Panel if necessary, e.g. if modifications need to be raised
■ One CP already raised to implement recommendations of Issue 54
Recommendations
We invite the Panel to:
a) NOTE the content of our Final Report;
b) NOTE that the ISG and SVG have reviewed our Final Report and recommendation;
c) NOTE that the Final Report represents the conclusion of a BSC Review and so will be sent to the Authority, included in Newscast and published on the BSC Website in accordance with Section C 3.8.6;
d) ENDORSE the recommendations summarised above and set out in our Final Report; and
e) NOTE that ELEXON will develop a plan to implement our recommendations and will return to the Panel to present our implementation plan.
P305 Post Implementation
Review
9 March 2017
264/09
Emma Tribe
EBSCR to BSC Modification P305
■ BSC Modification P305 was raised to progress the conclusions to Ofgem’s Electricity Balancing Significant Code Review (EBSCR), and implemented on 5 November 2015
■ Reform to improve efficiency in balancing and security of supply
■ EBSCR Final Policy Decision:
a) Make cash-out price ‘marginal’
b) Include a cost for disconnections
c) Improve the way reserve costs are priced
d) Move to a single cash-out price
BSC Modification P305 changes
■ Changes introduced make cash-out prices ‘more marginal’:
1. A reduction in the Price Average Reference (PAR) value to 50MWh and the Replacement PAR (RPAR) value to 1MWh upon implementation
2. A price for Short Term Operating Reserve (STOR) actions using a Reserve Scarcity Price (RSP) determined by a ‘static’ Loss of Load Probability (LoLP) function
3. A price for Demand Control actions at Value of Lost Load (currently £3,000/MWh)
4. A single imbalance price for each half-hour
■ Further changes from 1 November 2018:
1. A further reduction to the PAR value to 1MWh on 1 November 2018.
2. Increase the VoLL to £6,000/MWh
3. A ‘dynamic’ LoLP function
Trends in Market Prices
020406080
100120140160180200
Nov
-14
Jan-
15
Mar
-15
May
-15
Jul-1
5
Sep-
15
Nov
-15
Jan-
16
Mar
-16
May
-16
Jul-1
6
Sep-
16
Nov
-16
Off
er P
rice
(£
/MW
h)
Gas Coal Hydro Pumpedstorage
0
20
40
60
80
100
120
140
Nov
-14
Jan-
15
Mar
-15
May
-15
Jul-1
5
Sep-
15
Nov
-15
Jan-
16
Mar
-16
May
-16
Jul-1
6
Sep-
16
Nov
-16Ave
rage
Sys
tem
Pri
ce (
£/M
Wh
)
Short System Long System Average System
0
20
40
60
80
100
120
140
Nov
-14
Jan-
15
Mar
-15
May
-15
Jul-1
5
Sep-
15
Nov
-15
Jan-
16
Mar
-16
May
-16
Jul-1
6
Sep-
16
Nov
-16
MIP
(£
/MW
h)
Daily Average Market Index Price Monthly Average Market Index Price
Market Index Price (proxy for wholesale prices) Average Offer Price
System Prices ■ Market, Offer and
System Prices increased in Autumn
■ Spread of prices in Long vs Short System post P305
■ Lower average System Price
System Prices
01,0002,0003,0004,0005,0006,0007,0008,000
- -2
0
-20
- -1
8
-18
- -1
6
-16
- -1
4
-14
- -1
2
-12
- -1
0
-10
- -8
-8 -
-6
-6 -
-4
-4 -
-2
-2 -
0
0 -
2
2 -
4
4 -
6
6 -
8
8 -
10
10 -
12
12 -
14
14 -
16
16 -
18
18 -
20
20 +
Freq
uenc
y
System Price Changes Long Short
0
500
1000
1500
2000
2500
3000-
-20
-16
- -1
4
-10
- -8
-4 -
-2
2 -
4
8 -
10
14 -
16
20 -
22
26 -
28
32 -
34
38 -
40
44 -
46
50 -
52
56 -
58
62 -
64
68 -
70
74 -
76
80 -
82
86 -
88
92 -
94
98 -
100
Freq
uen
cy
System Prices (£/MWh)
14/15 15/16
0
500
1000
1500
2000
2500
3000
- -2
0
-16
- -1
4
-10
- -8
-4 -
-2
2 -
4
8 -
10
14 -
16
20 -
22
26 -
28
32 -
34
38 -
40
44 -
46
50 -
52
56 -
58
62 -
64
68 -
70
74 -
76
80 -
82
86 -
88
92 -
94
98 -
100
Freq
uen
cy
System Price (£/MWh)
P217 Live
System Prices - 2014/15 vs 2015/16
Differences between P217 price and live price
System Prices – P217 vs Live
■ £14/MWh difference in 2014/15 and 2015/16 distributions
■ Small differences between P217 and Live price
■ Differences over £20/MWh when market short
Balancing Behaviour
89
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
Dec Jan
Feb
Mar Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Abs
olu
te E
ner
gyIm
bala
nce
V
olu
me
(TW
h)
12/13 13/14 14/15 15/16
20%
30%
40%
50%
60%
70%
80%
90%
Dec Jan
Feb
Mar Apr
May Jun
Jul
Aug
Sep
Oct
Nov
Per
cen
tage
of
Lon
g P
erio
ds
12/13 13/14 14/15 15/16
Market Length Absolute sum of Parties' Energy Imbalance Volumes
-600
-400
-200
0
200
400
600
800
1000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47
Ener
gy I
mba
lan
ce V
olu
me
(MW
h)
14/15 - Long Volume 14/15 - Short Volume15/16 - Long Volume 15/16 - Short Volume
Average of Parties' Energy Imbalance Volumes by Settlement Period ■ More long Settlement
Periods in 2015/16
■ Greater Energy Imbalance Volumes for Parties
Production and Consumption Accounts
90
5 MWh
-3 MWh
Production Account
Consumption Account
Energy Imbalance Volumes
3 MWh
Net Energy Imbalance Volumes for a Party
2 MWh Party’s net position
‘Netted off’ Volume
■ No need to balance Production and Consumption Accounts separately
■ Still need to balance the net position
Trading Charges
-2
-1
0
1
2
3
4
-20
-10
0
10
20
30
40
Dec
-12
Feb-
13
Apr-
13
Jun-
13
Aug-
13
Oct
-13
Dec
-13
Feb-
14
Apr-
14
Jun-
14
Aug-
14
Oct
-14
Dec
-14
Feb-
15
Apr-
15
Jun-
15
Aug-
15
Oct
-15
Dec
-15
Feb-
16
Apr-
16
Jun-
16
Aug-
16
Oct
-16
Tota
l Im
bala
nce
Vol
um
e (T
Wh
)
Net
Tra
din
g C
har
ge (
£M
illiio
n)
Absolute Imbalance Volume Monthly Net Imbalance Charges
Net Energy Imbalance Charge and total absolute Energy Imbalance Volume by month
■ Net credit Energy Imbalance Charges to Parties in 2015/16;
■ Highest Account Energy Imbalance Volumes in 2015/16
Reserve Scarcity Price (RSP) Repriced STOR actions
■ 130 STOR actions repriced in September and October
0
2000
4000
6000
8000
10000
12000
07-M
ar
22-M
ar
06-A
pr
21-A
pr
06-M
ay
21-M
ay
05-J
un
20-J
un
05-J
ul
20-J
ul
04-A
ug
19-A
ug
03-S
ep
18-S
ep
03-O
ct
18-O
ct
02-N
ov
17-N
ov
De-
rate
d M
argi
n (
MW
)
Min of De-Rated Margin
Daily minimum De-rated Margin
■ Two Settlement Periods where RSP repriced actions set the System Price; under November 2018 scenario this would increase to four
■ Parties can change behaviour in anticipation of a high RSP
Summary
■ P305 raised to process EBSCR conclusions
■ Market prices have changed since the implementation of P305
■ Between December 2015 and November 2016:
– System Prices were on average lower
– More long Settlement Periods
– Greater Energy Imbalances for Parties
– Implications of a Single Imbalance Price on dual accounts
– Energy Imbalance Charge - net Credit
– RSP only used in September and October
Recommendations
We invite the Panel to:
a) NOTE the analysis in the post implementation review.
Next Meeting: 13 April 2017
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