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TRANSCRIPT
Beginner’s Guide to Settlement
Performance for Suppliers
6 December 2017
Laura Henshall and Sarah Ross
Public
INTRODUCTIONS
2
Laura Henshall Operational Support Manager
0207 380 4325
Sarah Ross
Market Entry Analyst
[email protected] 0207 380 4322
OVERVIEW
3
■ Introduction to ELEXON
■ What is the Supplier Hub Principle and what does that mean for me?
■ How and why does ELEXON monitor settlement performance?
■ How can I monitor my own performance?
■ What are my obligations as a Supplier?
■ What are the incentives for me to achieve this?
■ Tips for maintaining/improving performance
IMBALANCE SETTLEMENT
Developed by the market
Years in advance 1 hour 30 minutes 14 months
Forwards market
Power exchanges
Balancing Mechanism Imbalance Settlement
Gate
Clo
sure
Settlement Period
SETTLEMENT RUNS
5
Time
Settlement Day
+5WD
Interim Information
Settlement Run (II)
+16WD
Initial Settlement Run (SF)
+39WD
+84WD
+154WD
+292WD
+30 Months
1st Reconciliation
(R1)
3rd Reconciliation
(R3)
2nd Reconciliation
(R2)
Final Reconciliation
(RF)
Dispute Final (DF)
SUPPLIER HUB PRINCIPLE
6
Supplier
Meter Operator
Data Collector
Data Aggregator
PERFORMANCE ASSURANCE TECHNIQUES
7
Re - Qualificaiton Education
Material Error Monitoring
Tech Assurance of Metering Systems
Tech Assurance of Performance
Assurance Parties
BSC Audit
Performance Monitoring and
Reporting
Peer Comparison Breach and Default
Removal of 'Qualification
Supplier Charges
Error and Failure Resolution
Trading Disputes
Change Mechanisms
Bulk Change of Agent
Qualificaiton
Incentive
Remedial
Preventive
Detective
Performance Assurance Framework
Delivered by PARMS
WHAT IS PARMS?
8
Data Providers
• Suppliers
• Data Collectors
• Meter Operator Agents
Database
• Performance Assurance Reporting and Monitoring System
Reports
• Auto generated PARMS Reports
• Supplier-Agent Statistics
• Peer Comparison
• Supplier Charges
• SRR & Dashboard
• OSM Reports
MORE INFO ON PARMS
10
Supplier
ID
Average RF
Performance
Over Period
RF Month
on Month
Change
% From 97%
Target
Energy from
97% Target
Peer
Ranking
Average % MSIDs
Settling on Default
EACs at RF over Period
Month on
Month
Change
Risk Rating
MPID 96.08% -0.35% -0.92% -63 48 1.25% -0.10%
Industry 96.70% 0.01% - - - 1.99% 0.05%
AMBER
95.00%
95.50%
96.00%
96.50%
97.00%
97.50%
98.00%
98.50%
99.00%
13/0
6/2
015
13/0
7/2
015
13/0
8/2
015
13/0
9/2
015
13/1
0/2
015
13/1
1/2
015
13/1
2/2
015
13/0
1/2
016
13/0
2/2
016
13/0
3/2
016
13/0
4/2
016
13/0
5/2
016
% E
ne
rgy o
n A
ctu
al
Da
ta
Settlement Date
Percentage Energy Settled on Actual Data
MPIDAA%
MONTHLY DASHBOARD EXAMPLE
11
SR0074 CRITERIA
12
Measure RED AMBER GREEN
Energy Settled
on 97% of
Actual Energy at
RF
Settling less than
97% of energy on
Actual reads AND
more than 700MWh
of Estimated Energy
Settling less than 97%
of energy on Actual
reads AND less than
700MWh of Estimated
Energy
Settling 97% or
more on Actual
reads
AAs and EACs
13
We calculate Half-Hourly consumption for days before the last Meter read using Annualised Advances (AAs), and use
Estimated Annual Consumption (EACs) for those after the last Meter read.
SR0081 CRITERIA
14
WEEKLY REPORTS – EXAMPLE 1
15
20 August 2017
GSP Group Total MSIDs Actual MSIDs Estimated MSIDs Actual Energy Estimated Energy Default MSID's UMS MSID's Export MSID's Total Energy AA%
_A 125 100 25 6.34 0.67 2 0 0 7.01 97.00%
_B 225 200 25 4.90 0.21 1 0 0 5.11 97.02%
_C 325 300 25 6.30 0.64 0 0 0 6.94 95.63%
_D 425 400 25 0.55 0.02 0 0 0 0.57 98.30%
_E 50 40 10 2.30 0.23 1 0 0 2.53 92.35%
_F 10 9 1 2.30 0.28 0 0 0 2.58 97.25%
_G 100 95 5 1.30 0.16 0 0 0 1.46 95.99%
_H 29 25 4 2.50 0.25 0 0 0 2.75 97.33%
_J 11 10 1 2.10 0.40 1 0 0 2.50 96.66%
_K 7 6 1 0.66 0.02 0 0 0 0.68 91.66%
_L 652 600 52 3.66 0.10 0 0 0 3.76 98.66%
_M 129 100 29 0.88 0.04 0 0 0 0.92 97.66%
_N 56 50 6 0.96 0.08 1 0 0 1.04 96.77%
_P 97 90 7 0.50 0.01 0 0 0 0.51 97.66%
Total 2,241 2,025 216 35.25 3.10 6 0 0 38.35 96.42%
GSP Group Total MSIDs Actual MSIDs Estimated MSIDs Actual Energy Estimated Energy Default MSID's UMS MSID's Export MSID's Total Energy AA%
_A 680 600 80 26.33 15.66 10 0 0 41.99 87.33%
_B 740 700 40 15.33 7.44 45 0 0 22.77 81.66%
_C 460 400 60 45.66 8.96 52 0 0 54.62 78.56%
_D 963 900 63 25.78 5.66 43 0 0 31.44 85.66%
_E 1,025 1,000 25 14.77 7.65 36 0 0 22.42 79.26%
_F 125 100 25 15.98 9.96 5 0 0 25.94 80.15%
_G 260 200 60 10.77 7.50 0 0 0 18.27 79.85%
_H 225 200 25 13.58 9.56 64 0 0 23.14 85.23%
_J 69 60 9 0.99 8.36 12 0 0 9.35 74.55%
_K 1,400 1,000 400 56.66 4.69 5 0 0 61.35 80.66%
_L 560 500 60 12.66 7.23 8 0 0 19.89 86.25%
_M 696 600 96 16.89 5.21 16 0 0 22.10 90.11%
_N 120 100 20 1.25 1.68 5 0 0 2.93 75.66%
_P 110 100 10 3.69 0.66 6 0 0 4.35 80.63%
Total 7,433 6,460 973 260.34 100.22 307 0 0 360.56 81.83%
R3: 17 January 2016
RF: 03 July 2015
View your AA% and MSID Count
WEEKLY REPORTS – EXAMPLE 2
16
View your AA% and MSID Count against the industry average
WEEKLY REPORTS – EXAMPLE 3
17
View your performance by GSP Group
WEEKLY REPORTS – EXAMPLE 4
18 Comparison against Suppliers of a similar size
WEEKLY REPORTS
19
■ Don’t miss out on your reports!
–Who is currently receiving your reports?
–Are they the right person or people?
–What happens when they are away from the office? Do you have alternatives in
place?
KEY DATA FLOWS
20
26 41 63 19
31 17 4 50
10 13 47 22
12 6 38 5
81 15 41 39
74 2 28 7
For a full list of Data flows visit the Data Transfer Catalogue https://dtc.mrasco.com/ListDataFlows.aspx
KEY DATA FLOWS D0010
21
26 41 63 19
31 17 4 50
10 13 47 22
12 6 38 5
81 15 41 39
74 2 28 7
10
D0010 – Meter Readings
KEY DATA FLOWS D0019
22
26 41 63 19
31 17 4 50
10 13 47 22
12 6 38 5
81 15 41 39
74 2 28 7
10
19
D0019 - Metering System EAC/AA Data
KEY DATA FLOWS D0041
23
26 41 63 19
31 17 4 50
10 13 47 22
12 6 38 5
81 15 41 39
74 2 28 7
10
19
D0041 – Supplier Purchase Matrix Data
41
KEY DATA FLOWS D0081
24
26 41 63 19
31 17 4 50
10 13 47 22
12 6 38 5
81 15 41 39
74 2 28 7
10
19
41
D0081 – Supplier HH Demand Report
81
Why should I meet my performance obligations?
Distribution and Transmission Use of System charges (DUoS & TUoS)
Signed up to the rules and regulations in the BSC and the Code Subsidiary Documents
Compliance with the Code is also one of your Supplier License Conditions (SLC 11) with Ofgem
WHY SHOULD I MEET MY OBLIGATIONS?
26
■ Settlement impacts your business in a number of different ways…
SUPPLIER CHARGES
27
Suppliers incur liquidated damages if they fail to meet certain performance levels
ERROR AND FAILURE RESOLUTION (EFR)
28
If you incur three consecutive red BUSRRs, you will be a candidate for EFR
LAURA’s ENERGY SUPPLY LTD (SUPPLIER ID: LAUR)
29
Matl. Bus Unit MPID
Total Energy Share (HH & NHH) at RF
SR0024 SR0025 SR3019 SR0072 SR0074 SR0081 Overall BUSRR (Sig - 12) (Sig - 12) (Sig - 12) (Sig - 16) (Sig - 15) (Sig - 12)
LAUR 0.20% AMBER AMBER RED GREEN RED AMBER AMBER
96.45%
EFR PLAN
30
■ Make an Error and Failure Resolution (EFR) plan;
–What are the root causes?
–What actions will you take to fix those issues?
–What milestones will you and ELEXON use to track
performance?
Apr 2018
96.75%
Jun 2018
97.00%
ESCALATION ROUTES
31
■ Performance Assurance Board (PAB)
–1st level of escalation
–Senior Manager or Director
–PAB will continue to approve and
monitor your plan
■ BSC Panel
–2nd level of escalation
–PAB may recommend Panel
escalation if performance does not
improve or Party is uncooperative
FURTHER ESCALATION ROUTES
32
COLLABORATION of TEAMS
33
Call Centres
Sales
Settlement Team Strategy
Contract Managers
IT systems
COLLABORATION with SUPPLIER AGENTS
34
SVAA
NHHDA*
NHHDC* HHDC*
HHDA*
MOAs* HH Meters
NHH Meters
*Appointed by Supplier
Collect NHH Reading
Collect HH Reading
Profile
Coefficients
Aggregate
data
Aggregate
data
Install and
maintain
meters
Install and
maintain
meters
D0010 D0086
D0041 D0040
D0019 D0036
D0010 D0086
Report by Data Transfer Network (DTN)
REVIEW YOUR DATA SOURCES
35
What do you do with the reporting you receive?
WEEKLY REPORTS SNAPSHOT
36
What is your performance at earlier runs?
Can you catch problems earlier, before a
significant decline happens?
ROOT CAUSE ANALYSIS
37
■ Look at root causes not just symptoms of the
problem!
■ Suggestion: Use the ‘5 Whys’ technique
–The 5-whys is a question-asking technique
–Keep asking ‘why’ to move past the
symptoms
–Primary goal is to determine the root cause
of a defect or a problem
OVERVIEW
38
■ Introduction to ELEXON
■ What is the Supplier Hub Principle and what does that mean for me?
■ How and why does ELEXON monitor settlement performance?
■ How can I monitor my own performance?
■ What are my obligations as a Supplier?
■ What are the incentives for me to achieve this?
–Tips for maintaining/improving performance
FOLLOW UP
• https://www.elexon.co.uk/guidance-note/supplier-guidance-achieving-97/ • https://www.elexon.co.uk/about/other-services/training • https://www.elexon.co.uk/about/elexon-key-contacts/operational-support-managers-osms/
QUESTIONS
40
FEEDBACK FORMS
41