204/01 ELEXON Report ELEXON Report Meeting Name BSC Panel Meeting Date 11 October 2012 Purpose of...
Transcript of 204/01 ELEXON Report ELEXON Report Meeting Name BSC Panel Meeting Date 11 October 2012 Purpose of...
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ELEXON Report Meeting Name BSC Panel
Meeting Date 11 October 2012
Purpose of paper For Information
Summary The paper provides a summary of recent issues and developments in the period 14
September 2012 to 5th October 2012
1. Overview
1.1 This paper is provided for the information of the Panel. It presents an overview of activities and
developments within ELEXON and the balancing and settlement arrangements and summarises the business
of the Panel meeting. Detailed information on operational matters will be provided in other reports,
particularly the Trading Operations Report.
2. ELEXON News
Consultation responses
2.1 All ELEXON’s consultation responses are available on the Industry Insights page of the ELEXON website.
2.2 Since the last Panel meeting, we have responded to National Grid’s open letter consultation on the
participation in the Balancing Mechanism of large licence exemptible power stations which have “BELLA”
type contracts with National Grid. We noted that any restriction on them doing so would create an
anomalous situation. Our response can be found on the Industry Insights section of ELEXON website.
2.3 We also made a single comment in response to ENTSO-E’s consultation on the draft European Demand
Connection Code. We noted that the scope of “Demand Side Response” in the definitions was unclear.
Technical Assurance
2.4 We are continuing to work on the TAA (Technical Assurance Agent) Service Review. An ITT for the TAA re-
procurement was issued on 30 August. The Panel Observer, working on behalf of the Panel, was happy with
the number of responses to the PQQ and ELEXON’s procurement approach so far.
European Developments
2.5 On 18 September and after a public consultation, ACER has formally adopted the final version of the
Balancing Framework Guidelines. (The Balancing Framework Guideline is the scoping document for the
eventual Balancing Network Code, which will cover imbalance settlement as well as balancing. It is
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therefore of key interest for its potential impact on the BSC.) ENTSO-E drafting of the Balancing Network
Code is on track to commence in Quarter 4 this year.
2.6 The Balancing Framework Guidelines require that “The Network Code on Electricity Balancing shall define
harmonised principles for calculating imbalances” and that “The Network Code on Electricity Balancing shall
impose that the main features of the imbalance settlement are harmonised no later than three years after
the entry into force of the Network Code on Electricity Balancing.” Thus the specific changes that may be
required to the BSC are unclear, but changes driven by this Network Code are likely.
2.7 There are also likely to be impacts on the Balancing Mechanism, in particular “ The Network Code on
Electricity Balancing shall require the harmonisation of the pricing method for balancing energy products”
[Bid Offer Acceptances in BSC terminology ]”…..The Network Code on Electricity Balancing shall provide that
the initial proposal for the pricing method shall be submitted…no later than one year after the entry into
force of the Network Code on Electricity Balancing and shall be based on marginal pricing (pay-as-cleared),
unless TSOs provide all NRAs with a detailed analysis demonstrating that a different pricing method is more
efficient for EU-wide implementation…”
Board Headline Reports
2.8 ELEXON Board Meetings are held monthly. Board headline reports are available on the ELEXON website:
Board Headline Reports.
3. Industry News
Fuel Poverty
3.1 In recognition of the increasing costs of energy prices and the current economic environment DECC is
consulting1 upon a new framework for measuring Fuel Poverty. This review may lead to a revision to the
‘Warm Homes and Energy Conservation Act 2000’, which established a target to ensure, that as far as
reasonably practicable, no person lives in fuel poverty by 2016. Any revision to the Warm Homes Energy
Conservation Act is unlikely to impact the Warm Homes Discount Scheme administered by ELEXON.2
1 http://www.decc.gov.uk/en/content/cms/consultations/fuel_poverty/fuel_poverty.aspx 2 http://www.decc.gov.uk/en/content/cms/consultations/fuel_poverty/fuel_poverty.aspx
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4. Operational News
Profiling and Settlement
4.1 This month ELEXON held two Profiling and Settlement Review Group (PSRG) meetings: one on ‘blue sky
thinking’ and another on the future of dynamic switching/obtaining smart meter data. The output of the
blue sky thinking will feed into the longer term Settlement reform work requested by Ofgem. We have also
completed the benefits consultation for P272 (Mandatory Half Hourly Settlement for Profile Classes 5-8).
Ofgem has rated this work highly, and it will help support future assessment of market developments.
CDCA issue
4.2 A communication failure occurred at a power station on 26 July, leaving the Central Data Collection Agent
(CDCA) unable to dial the metered data. The affected power station then started to send its estimated
volumes to the CDCA manually, and all the missing data was expected to be corrected by the Initial
Settlement (SF) Run using the estimates. However, in the data sent to the CDCA on 3 August, volumes for
four Settlement Periods were missing and this was only identified after the SF Run. Therefore, the
transmission loss data was still incorrect at SF (resulting in incorrect Transmission Loss Multipliers). The
communication line has now finally been fixed, and the CDCA has managed to back-load the missing data.
The incorrect SF transmission loss data is therefore expected to be corrected in the First Reconciliation (R1)
Run. This issue has attracted some Helpdesk calls from the industry, as there was a resulting minor impact
on Parties’ Trading Charges at SF and the incorrect TLMs caused some Parties’ systems to issue warning
messages.
5. Summaries of Panel Business – Tabled
Report from the Imbalance Settlement Group (ISG)
5.1 At its meeting on Tuesday 25 September the ISG considered 10 decision papers. Key decisions included
considering seven metering dispensations, approving the CVA Configurable Items for the November 2012
Release and considering the revised ETLMO values.
5.2 Panel paper 204/01a contains a full report of the ISG meeting.
Report from the Supplier Volume Allocation Group (SVG)
5.3 At its meeting on Tuesday 2nd October 2012, the SVG considered 5 decision papers. Key decisions included
three metering dispensations and two CPs.
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5.4 Further information can be found in the SVG Panel report 204/01b.
Report from the Performance Assurance Board (PAB)
5.5 At its meeting on 27 September 2012, the PAB considered 12 decision papers. In addition to its usual
business, it considered Consequential BSC Changes and a Settlement risk Report.
5.6 Further information can be found in the PAB Panel report 204/01c.
Report from the Trading Disputes Committee (TDC)
5.6 The table below summarises the TDC’s decision on PFSRs for the stated settlement Days, indicating whether
PFSRs were authorised or not.
GSP Group July 2010
Eastern Authorised
East Midlands Authorised
London Authorised
Merseyside & North
Wales
Authorised
Midlands Authorised
Northern Authorised
North Western Authorised
Southern Not in process
South Eastern Authorised
South Wales Authorised
South Western Authorised
Yorkshire Authorised
South Scotland Not in process
North Scotland Not in process
5.7 Panel paper 204/01d contains a full report of the TDC meeting.
Report from the Joint European Standing Group (JESG)
5.8 Panel paper 204/01e contains a full report of the JESG meeting.
6. Information Relating to Other Industry Codes
Cross-Codes Electricity Forum
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6.1 The last Cross-Codes forum took place on Friday 21 September, with a packed agenda across various
electricity industry codes. We had a range of presenters, from DECC, Ofgem, National Grid, Electralink and
ELEXON. Topics included:
Energy Supply Company Administration scheme
European Network Codes
Update on CUSC & Grid Code modifications
Significant Code Review
Update on DCUSA Change Proposals
SPAA update
Update on BSC Modifications
6.2 For the next Forum, we’ve had requests for updates on Green Deal code impacts, Electricity Market Reform
(EMR) and an overview on changes to the Master Registration Agreement (MRA). We would encourage all
interested parties to attend these events – please visit the Cross-Codes Electricity Forum webpage for more
details and copies of past presentations. If you have any suggestions for topics, please contact Victoria
Moxham on 020 7380 4166. The next Cross Codes Forum is on Friday 16 November
Industry Codes Update (CUSC, DCUSA, Grid Code, STC and MRA)
Since the last ELEXON Report, the following electricity code panels have met:
Table 1 – Code panel meetings since last report
Panel/committee Meeting date
DCUSA3 Panel 19 September
CUSC4 Modifications Panel 28 September
STC5 Committee 26 September
We’re continuing our involvement in various workgroups under the DCUSA, MRA, CUSC and Grid Code, and
we’ll continue to update you on the key decisions and impacts.
3 Distribution Connection and Use of System Agreement. 4 Connection and Use of System Code. 5 System Operator-Transmission Owner Code.
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Table 2 – Code panel meetings during the next month
Panel/committee Meeting date
GCRP6 17 October
DCUSA Panel 26 October
STC Committee 24 October
CUSC Modifications Panel 21 November
6.5 This month’s areas of interest across other industry codes are:
CUSC
The last Panel meeting was on 28 September, and of note:
CMP207 – the Panel accepted the Working Group Report to limit increases to TNUS tariffs to 20% in any one
year. VMP207 will now proceed to Code Administrator Consultation for a period of three weeks
CMP201 – the Panel voted by majority that CMP201 should be implemented. This seeks to align GB
arrangements with other EU Member States by removing BSUoS charges from GB Generators
The next Panel meeting is on 26 October.
Grid Code
The last Grid Code Review Panel took place on 19 September, with the next to follow on 21 November.
Of notable interest are the workgroups currently active in the following areas:
Frequency changes during large system disturbances
Frequency response
Harmonics
BMU configuration of power park modules
Information on small embedded generators
Power available
6 Grid Code Review Panel.
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High wind speed shutdown
Electricity Balancing System Group
The Electricity Balancing System Group is discussing potential Grid Code changes arising from the
implementation of National Grid’s new Electricity Balancing System in 2013. Topics under discussion include
enhancements to the Dynamic Data submitted by generators (and published on the BSC’s Balancing
Mechanism Reporting Service), and more flexible treatment of Combined Cycle Gas Turbines and Cascade
Hydro within the Balancing Mechanism.
DCUSA
1. There are currently two CPs going through the DCUSA Change Process to bring in the following
methodologies:
EDCM (export) – 01 April 2013
Common Connection Charging Methodology – 01 October 2012
As the methodologies will be common among all DNOs, this brings about many improvements, such as:
More transparency
The complexities of the methodologies has been agreed, and dialogue among all Parties have to be taken
into account
When there is a change brought about by any Party, all DNOs must implement it and model the changes.
2. DCP 153 – Service Level Agreement for resolving network operational issues
With the mass roll out of smart metering it is expected that there will be an increase in the number of
network operational issues identified
This CP seeks to introduce Service Level Agreements on DNOs for the resolution of these network issues
A consultation on this CP will be issued in October.
Peter Haigh
ELEXON Chief Executive
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List of Appendices:
Appendix 1 – Smart Update Appendix 2 – ELEXON Monthly KPIs
List of Attachments:
Attachment A – 204/01a: Report from ISG Attachment B – 204/01b: Report from SVG
Attachment C – 204/01c: Report from PAB Attachment D – 204/01d: Report from TDC
Attachment E – 204/01e: Report from JESG
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Appendix 1 – Smart Update
1. Smart Metering Implementation Programme
Closed SMIP Consultations
1.1 SMETS2 - The consultation7 on version 2 of the Smart Metering Equipment Technical Specifications
(SMETS) closed on 8 October (the Monday before this Panel meeting). It sought views on the Home Area Networking (HAN) solution, the communications hub requirements and responsibilities, and equipment
assurance.
1.2 We have contained our responses to those areas where we have relevant experience which could help in
developing the Smart Energy Code solution, or where the proposed changes could impact the BSC. Our
answers therefore centre on the management of the metering requirements and the benefits of a centralised industry assurance regime. A copy of our response will be posted on the Smart pages of the ELEXON
website8.
Pending SMIP Consultations
1.3 Two major consultations are expected to be published during the Autumn. These are:
Smart Energy Code (SEC) – Stage 1 – initial legal drafting including the enduring governance arrangements and process for establishing the SEC Panel and SEC Administrator.
DCC Licence – a final draft produced following the April 2012 consultation that will address DCC revenue
restrictions and price controls, the regulation of value added services, how the DCC balances public policy interests in procurement, and the charging arrangements during roll out.
Consequential BSC Changes
1.4 We presented a paper to the SVG9 outlining the probable consequential changes that the smart arrangements and the SEC will trigger in the BSC and its subsidiary documents. This paper was well received
and we are now undertaking further work to identify and draft the BSC changes.
1.5 As part of this further work we have issued a consultation seeking feedback on a set of proposed changes to
the BSC and Code Subsidiary Documents covering the maintenance and distribution of Smart Meter
Technical Details and associated change of Supplier meters readings. The consultation closes on 26 October and the documents can be accessed via the consultation page on our website10.
1.6 The proposals reflect that the responsibility for the maintenance and distribution of meter configuration details will pass to the Supplier under the smart arrangements. Thus whilst the responsibility for maintaining
7 http://www.decc.gov.uk/assets/decc/11/consultation/smart-metering-equipment-technical-specifications-2/6129-
consultation-second-version-smets.pdf 8 http://www.elexon.co.uk/reference/smart-metering/ 9 http://www.elexon.co.uk/wp-content/uploads/2012/06/SVG139_13_Consq_Amendments_v1.0.pdf 10 http://www.elexon.co.uk/about/insights-consultations-cpcs/consultations/
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meter asset details and passing these to the Supplier will remain with the MOA, the wider circulation of
meter asset details (i.e. to the NHHDC and LDSO) will become the responsibility of the Supplier.
1.7 The consultation also considers Supplier requests to install, replace or remove smart metering equipment
and potential amendments to the Change of Supplier process in relation to the responsibilities for providing Meter Technical Details and Change of Supplier meter readings.
1.8 The objective of the consultation is to obtain feedback on various options for change, before progressing any changes formally as a Modification Proposal / Change Proposal.
The DCC Licence Award Process
1.9 On 28 September DECC published the Governments response to the Consultation on the draft DCC Licence Application Regulations11.
1.10 The response concludes that:
A BAFO stage is likely to be applied for the initial award and is optional thereafter;
Evaluation criteria will be discussed with industry stakeholders, but for commercial reasons the industry
will not be directly involved in the evaluation of licence applications;
The Regulations will not provide for a fast-track appointment process for a temporary DCC in the event
that the incumbent DCC has its DCC Licence revoked;
The list of events that could permit cancellation of the competitive application process will be expanded
to include the situation when only one applicant remains in the process; and
The Application Regulations will be amended in future to allow for the costs of running a procurement
exercise to be recovered from applicants for future procurements (this mirrors Ofgem’s approach to
Offshore Transmission Licences).
1.11 The Regulations were laid in Parliament on 21 September and are subject to the negative resolution
procedure. It is intended that they will come into force 21 days after laying (i.e. 12 October), after which point the tender process will formally commence. This would be a 2 day delay to the earlier plan date.
Profiling and Settlement Review Group
1.1 The Profiling and Settlement Review is undergoing a re-planning exercise to refocus work on the short to medium changes needed for smart. The next meeting of the PSRG is being scheduled for the end of
October. This meeting will review the activities of the group and their prioritisation. The activities currently
include:
11 http://www.decc.gov.uk/assets/decc/11/consultation/smart-metering-imp-prog/6505-smart-meters-government-
response-to-the-consultati.pdf
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the analysis of available smart metering data;
the future of dynamic switching; and
a review of the Small Scale Third Party Generating Plant Limit (as requested by the SVG).
2. Smarter Markets
2.1 In September the BSC Panel has approved ELEXON’s proposed approach to delivering a report to Ofgem by the end of 2012 that sets out how a review of Settlement in a smart world could be undertaken and the
areas that it should address. The advisory group first met on 17 September (to discuss the approach) and will meet again on 8 October (to discuss the consultation document).
2.2 The consultation will be issued to industry in October and ELEXON proposes to host a complementary
seminar to explain the proposed approach. Once consultation responses have been considered by the Advisory group a final report will be provided to the Panel for their approval in December.
2.3 An update will be provided at the October Panel meeting.
3. Smart Grids
3.1 We continue to provide support to discussions on future Smart Grid arrangements.
3.2 David Green, CEO of the Ecoisland community interest company, provided ELEXON staff with a stimulating presentation of his vision of how the Isle of Wight could achieve a fully sustainable future. Backed by the
island’s council, the proposed model employs intelligent solutions to integrate domestic and industrial demand and generation and is intended to make the island energy independent. The initiative is being
supported by a wide range of international companies (as it provides a wide scale trial of the technologies
and community engagement) and SSE is the energy partner.
3.3 If successful the model will largely reduce the role of transmission system to providing back up
interconnections and thus the model is sometime characterised as reverting back to the localised supply model of the 1930s. Ecoilsland is keen to explore how the Isle of White community could trade with the GB
market: exporting power or providing rapid demand reduction, both of which would have impacts on the
BSC arrangements. The model has gained interest from other UK regional councils and the European Union. Acknowledging our pre-eminence in the GB balancing arrangements, they have requested our involvement
in the helping understanding how the model could interact with the BSC arrangements.
3.4 This type of request has been replicated by several regional initiatives. Interest in these initiatives has also
been voiced by the DECC Secretary of State, ED Davey, who in his speech to the Liberal Democrat conference on 23 September praised the “Cornwall Together” initiative which encourages collective energy
buying by Cornish People – a “collective switch”. He backed this by announcing a £5m competition open to
local authorities and community groups across England. Interest in these types of initiatives is therefore likely to grow.
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4. Smart Budget
Released Funds Spend year to date Forecast
(to end of 2012-13)
Smart Metering £ 172k £ 72k £ 208k
Smarter Markets & Smart Grids £ 128k £ 61k £ 170k
4.1 We initially planned our smart support activities for the 6 months from April to September 2012 and £300k
was released for that period. We have continued the approach practiced during 2011- 12 of using internal
resources where possible to limit our external spend and have employed established controls and processes to authorise and monitor all expenditure.
4.2 During September 2012 we incurred expenditure for:
Back fill for the operational resources who are supporting the SMIP and addressing how we evolve the
settlement arrangements; and
Membership of smart grid groups and attendance at conferences and external meetings.
4.3 The significant underspend against the half year budget (April – September) arises primarily as a result of
two external events:
the analysis of smart metered data being deferred pending access to the data being granted; and
the rescheduling of the SMIP activities.
4.4 We have now planned our activities and expenditure through to the end of the year and have forecast
accordingly. Given the underspend in the first half of the year, we will not be requesting a further release of funds at this time, but will review the situation at the end of December, based on our forecast at that time.
ELEXON Key Performance Indicators August 2012
Service Quality/Processes
BSC Systems Availability
During August 2012 there were no service breaches affecting the BSC
system availability.
BSC Systems Performance
During August 2012 there were no service breaches affecting the BSC
Systems performance.
95.00%
96.00%
97.00%
98.00%
99.00%
100.00%
BSC Systems Availability 2011/12
Real Time Systems Non Real Time
95.00%
96.00%
97.00%
98.00%
99.00%
100.00%
BSC Systems Performance 2011/12
Real Time Non Real Time
ELEXON Key Performance Indicators July 2012
Service Quality/Processes
Supplier Distibutor Generator ELEXON Trading Party(General)
Trading Party(Non
Physical)
TransmissionCompany
0
10
20
30
40
50
60
70
80
Disputes by Raising Party Sep11 - Aug12
Trading Disputes
Trading Disputes can be raised by any BSC Party, including ELEXON, and
are assessed by the Trading Disputes Committee (TDC).
Five new disputes were opened and 9 were closed in August.
Disputes by Raising Party Type
This KPI shows all Disputes raised over the last 12 months by the type of
participant who raised the Dispute.
0
10
20
30
40
50
60Se
p-1
1
Oct
-11
No
v-1
1
De
c-1
1
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Au
g-1
2
Trading Disputes 2011/12
Open Disputes Disputes Raised Disputes Closed ELEXON Implicated
ELEXON Key Performance Indicators July 2012
Service Quality/Processes
Cost of Processing Disputes
Within the Metering and Disputes team there are two dedicated resources
dealing with Trading Disputes with, going forward, some flexibility for
others to help out.
The costs for August 2012 represent 37 man days of dedicated resource.
There is an additional 2 man days covering the administration around the
monthly TDC meeting. A total of 39 man days expended for August. Using
a day rate of £500 gives a monthly cost of £19,500.
The cumulate cost KPI has been replaced (going forward from March 2012)
with the cumulative annual cost.
Panel & Panel Committee Decisions
For the month of August 82 of the 84 decisions submitted
to the Panel and its committees were made.
£0
£50
£100
£150
£200
£250
£0
£10,000
£20,000
£30,000
£40,000
Cu
mu
lati
ve A
nn
ual
Co
st '0
00
s
Mo
nth
ly C
ost
Cost of Disputes 2011/12
Monthly Cost of Disputes Cumulative Annual Cost of Disputes
0
20
40
60
80
100
120
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
No
. Dec
isio
ns
Panel & Panel Committee Decisions
Decisions Made Decisions Deferred %age decisions made
ELEXON Key Performance Indicators August 2012
Service Quality/Processes
ELEXON Customer Survey
This graph has been updated to include the 2011 Customer
Survey. ELEXON’s scores for 2011 are overall 7.8
(unchanged), average service satisfaction 7.8 (+0.1), and
keeping costs down 6.5 (-0.2)
Current Year Spend against Budget vs 2011/12
The budget under spend for the financial year at the end of August is
1.9%. The operational under-spend is 0.9% and contracted costs are
1.0% below budget.
4.0
5.0
6.0
7.0
8.0
9.0
2003 2004 2005 2006 2007 2008 2009 2010 2011
ELEXON Customer Survey
Keeping Costs Down Average Service Satisfaction Overall Customer Rating
-20.00%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Percentage (Under)/Over Spend vs Budget
2012/13 2011/12
ELEXON Key Performance Indicators August 2012
Service Quality/Processes
0.00
2.00
4.00
6.00
8.00
05
101520253035
Sep
-11
Oct
-11
No
v-1
1
De
c-1
1
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Au
g-1
2
Pe
rce
nta
ge
MW
h (
mill
ion
s)Total Demand and Imbalance %age
Total Demand (MWh) Imb Vol as % of Total Demand
Value of Imbalance Settlement
These graphs are for information only to put ELEXON’s role in context. The graph
below is also reported in the Trading Operations Report.
£0
£10,000
£20,000£30,000£40,000
£50,000
£60,000£70,000£80,000
0.00
0.50
1.00
1.50
2.00
Sep
-11
Oct
-11
No
v-1
1
De
c-1
1
Jan
-12
Feb
-12
Mar
-12
Ap
r-1
2
May
-12
Jun
-12
Jul-
12
Au
g-1
2
£ '0
00
s
MW
h (
mill
ion
s)
Imbalance Volume and Cashflow
Imb Vol (MWh) Total Imbalance Cashflow (£)