210/01 ELEXON Report€¦ · 210/01 – ELEXON Report v1.0 Page 1 of 15 210/01 ELEXON Report...

210/01 – ELEXON Report v1.0

of 15

210/01

ELEXON Report Meeting Name BSC Panel

Meeting Date 14 February 2013

Purpose of paper For Information

Summary The paper provides a summary of recent issues and developments in the period 11 January

to 7 February 2013.

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 As foreshadowed in the ELEXON Report to the January Panel meeting, we have since responded to three

consultations:

DECC’s consultation on Stage 1 of the Smart Energy Code; and

Ofgem’s consultation on Electralink’s proposed expansion regarding electricity-related activities.

DECC’s Electricity Market Reform Call for Evidence

All our responses can be found on the Industry Insights section of ELEXON website.

Board Headline Reports

2.2 ELEXON Board Meetings are held monthly. Board headline reports are available on the ELEXON website:

Board Headline Reports.

3. Industry News

European Developments

3.1 The first (partial) draft of the Electricity Balancing Network Code was published by ENTSO-E on its

website on 4 January 2013. At the Ofgem/DECC EU Stakeholder Group meeting on 28 January, it was

http://www.elexon.co.uk/about/insights-consultations-cpcs/industry-insights/

http://www.elexon.co.uk/news-events/board-headline-reports/


of 15

210/01

reported that the next version would be published in March, when there will be a 2 month consultation and

also a public workshop.

3.2 The imbalance settlement part of the draft is reported to include text on imbalance pricing, rules, imbalance

calculation and Settlement Period Duration, and roles. It was also suggested that Balancing

Mechanisms/Markets will gradually merge so that there are multiple Coordinated Balancing Areas (CBAs)

where the majority of BM products and prices are shared between neighbouring TSOs. By 2020 we may

expect one EU wide Balancing Mechanism.

3.3 It was also reported that ENTSO-E is going to publish a paper (a “Grand Design”) setting out the context of

all the European electricity Network Codes in a non-technical way together with the broader interactions with

REMIT, MiFID, Smart Grids and Transparency Regulations.

3.4 The European Transparency Regulation, which has reporting requirements similar to REMIT, but is a

separate Regulation from REMIT, is now essentially completed and is likely to enter force this summer, with

full implementation required within 18 months after that. This Regulation requires market participants (TSOs,

DSO, Interconnectors, Generators and large consumers) to provide a wide variety of data to a new central

information transparency platform (to be procured by ENTSO-E).

3.5 The Transparency Regulation potentially interacts with the BSC arrangements in a number of ways as many

of the required data items are similar to data items already collected and reported to GB parties under the

governance of the Grid Code and/or BSC and there is an existing reporting of BSC imbalance prices and Net

Imbalance Volume from BMRS to the current European reporting platform1.

3.6 We anticipate that during 2013 there will be work required (under both Grid Code and BSC governance) to

clarify the relationship between the data items in the Regulation, and those in existing GB codes. The most

efficient way to implement the Regulation in GB may be to expand the BMRS’s current role so that it

becomes a GB ‘reporting hub’, forwarding to the new platform a range of data items collected under Grid

Code and BSC governance. But of course this view would need to be assessed and tested through, for

example, a Modification process.

3.7 A Transparency Platform Expert Group has been established by ENTSO-E and John Lucas of ELEXON has

been successful in his application to join this Expert Group. John has advertised this fact to ISG and JESG

so that he can liaise with GB stakeholders (we believe he is the only GB representative on the Group). The

first meeting was held on 31 January.

4. Operational News

Technology Upgrade Project

4.1 A technology upgrade project, introducing new versions of the Oracle and Unix software on which the BSC

Central Systems software run, was successfully implemented on 21 January 2013. This means that the BSC

1 Since the implementation of CP1246 (‘A New Interface from BMRS to the ETSOVista Reporting System’) in

November 2008

http://ec.europa.eu/energy/gas_electricity/doc/el_cross-border_committee/20121220_transparency_regulation_after_comp_and_informal_committee_meeting_v6_final_voting_cleaned.pdf


of 15

210/01

Central Systems are using fully up to date technology and benefit from premium support which allows any

problems to be resolved quickly, efficiently and effectively.

Warm Homes

4.2 DECC has notified some proposed amendments to the Warm Homes Discount (Reconciliation) Regulations.

The proposed amendments mainly address minor typographical inconsistencies. However, one change

impacts the treatment and redistribution of interest calculations arising from “make-right” payments (this

issue was identified during our system testing in 2011). This particular amendment brings the Regulations

into line with our Reconciliation Systems so there is no impact on our systems and processes. The

amendments are expecting to be laid in February and come into force on the 1st April 2013.

More frequent updates of Wind Forecast data

4.3 From Thursday 28 February 2013 the forecast of wind power published on the Balancing Mechanism

Reporting Service (BMRS) will be updated four times per day (at approximately 3am, 9am, 3pm and 9pm)

rather than once a day. National Grid is providing these more frequent forecasts to help parties to balance

their positions.

4.4 If you currently use the BMRS Wind forecast data on the Electricity Data Summary Page, you will notice

more frequent updates. You will also notice that the forecast data for day D+2 will be available much earlier

in the day. If you receive wind forecast data from BMRS via TIBCO you will start to receive four messages a

day rather than one. The format and structure of the messages will not change.

February 2013 Release of BSC Systems

4.5 The February 2013 Release of BSC Systems will deliver new functionality to the Energy Contract Volume

Aggregation Agent (ECVAA) Web Service to allow Notification Agents to submit up to 50 Notifications to

ECVAA in a single file for CP1373.

4.6 An updated version of our guide on how to create and submit these “Bulk Upload” files is available on the

February 13 Release page of the ELEXON website.

4.7 There will be a Participant Testing environment for CP1373 available on 11-12 February 2013. If you would

like to take part in Participant Testing of CP1373, please email us at [email protected]. If you have

any questions on the February 2013 Release of BSC Systems, please contact Colin Berry on 020 7380 4112.

5. Summaries of Panel Business – Tabled

Report from the Imbalance Settlement Group (ISG)

5.1 At its meeting on 22 January 2013 the ISG considered two decision papers. Key decisions included

considering one Metering Dispensation and the Proposed ETLMO Values for the 2013 BSC Year.

5.2 Panel paper 210/01a contains a full report of the ISG meeting.

http://www.elexon.co.uk/release/february-2013-release/

mailto:[email protected]


of 15

210/01

Report from the Supplier Volume Allocation Group (SVG)

5.3 At its meeting on 5 February 2013, the SVG considered seven decision papers. Key decisions included one

CP, UMSUG & PEG Recommendations and Non Half Hourly Interoperability.

5.4 Further information can be found in the SVG Panel report 210/01b.

Report from the Performance Assurance Board (PAB)

5.5 At its meeting on 31 January 2013, the PAB considered seven decision papers. In addition to its usual

business, it considered two Settlement Risk Reports and Assuring Code of Practice 1, 2 and 3 Metering

Systems Paper.

5.6 Further information can be found in the PAB Panel report 210/01c.

Report from the Trading Disputes Committee (TDC)

The table below summarises the TDC’s decision on PFSRs for the stated settlement Days, indicating whether

PFSRs were authorised or not.

GSP Group November 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 210/01d contains a full report of the TDC meeting.

Report from the Joint European Standing Group (JESG)

5.8 The JESG held its meeting on 15 January 2013. Further information can be found at nationalgrid.co.uk.

http://www.nationalgrid.com/uk/Electricity/Codes/systemcode/workingstandinggroups/JointEuroSG/


of 15

210/01

5.9 Panel paper 210/01e contains a full report of the JESG meeting.

6. Information Relating to Other Industry Codes

6.1 Table 1 includes the dates of most recent previous and future meetings of electricity code panels.

Table 1 – Previous and forthcoming code panel meetings

Panel/committee Meeting date (previous

meeting)

Meeting date (forthcoming

meeting)

DCUSA (Distribution Connection and Use

of System Agreement) Panel

16 January 20 February

CUSC (Connection and Use of System

Code) Modifications Panel


STC (System Operator-Transmission

Owner Code) Committee


GCRP (Grid Code Review Panel) 16 January 20 March

MDB (Master Registration Agreement

(MRA) Development Board)


6.2 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.

Peter Haigh

ELEXON Chief Executive

List of Appendices:

Appendix 1 – Smart Update

Appendix 2 – ELEXON Monthly KPIs

List of Attachments:

Attachment A – 210/01a: Report from ISG

Attachment B – 210/01b: Report from SVG

Attachment C – 210/01c: Report from PAB

Attachment D – 210/01d: Report from TDC

Attachment E – 210/01e: Report from JESG


of 15

210/01

7. Smart Metering Implementation Programme

Active Consultations

There are currently no active smart metering consultations.

DECC Publications

7.1 DECC has issued a partial response to the second version of the Smart Metering Equipment Technical Specifications (SMETS). This version has now been notified to the European Commission. A full response is

due at the end of March.

Profiling and Settlement Review

- We are currently progressing through a series of changes to the BSC to support Smart

metering: changes to accommodate smart metering technical details will be presented to the SVG in March.

- We are investigating profile accuracy and undertaking analysis of EDRP meter data provided

by one BSC Party. We are also looking at the barriers for elective half hourly settlement, including agent issues, Code of Practice metering differences and change of Measurement

Class. The next PSRG is scheduled for early March (date tbc).

Administration of the Smart Energy Code

- Following the issue of an OJEU notice on 24 January, DECC issued a Pre-Qualification

Questionnaire for the Smart Energy Code Administrator and Secretariat Services on 4 February. DECC is undertaking this procurement on behalf of the future Smart Energy Code

Panel which will ultimately contract with the successful supplier through the Smart Energy Code Company (SECCo).

- A three stage process is to be followed, comprising:

Pre-Qualification

Invitation to Tender

Preferred Bidder

- PQQ responses need to be made by noon on Friday 8 March, with a view to making the

appointment in late July 2013. The contract length is four years with the option of two one

year extensions. The contract value is estimated to be between £6 million and £15 million.

https://www.gov.uk/government/consultations/smart-metering-equipment-technical-specifications-second-version


of 15

210/01

- The Administration role encompasses:

Configuration control of the Code and supporting documentation

Modification of the SEC at the request of Parties, government or Ofgem

Accession of Parties to the SEC

The provision of advice and support to prospective SEC Parties

Suspension, expulsion and withdrawal procedures for Parties

Dispute resolution between Parties

Entry of service users to the DCC

Reporting

- The Secretariat role encompasses:

Acting as clerk to the SEC Panel

Scheduling SEC Panel meetings and sub-committee, working group and other meetings

Arranging meeting facilities

Recording Panel decisions

Administering the election of Panel members

The DCC Licence Award Process

- Responses to the DCC Invitation to Apply were submitted by 21 January. DECC are currently

evaluating these with the intention of entering Dialogue and Negotiation in mid-February. The overall timetable for appointing the DCC remains on target.

8. Smarter Markets

8.1 ELEXON submitted the Panel’s Settlement Reform report to Ofgem’s Smarter Markets team at the end of December. We await Ofgem’s conclusions which are expected in March. In anticipation of being asked to

review the settlement aspects we will shortly commence preparatory work on the Terms of Reference for a Settlement Reform Review Group, and identifying backfill needs for ELEXON staff.

8.2 Ofgem invited ELEXON to send representation to the Smarter Markets Co-ordination Group (SMCG). The

group met briefly at the end of January. The SMCG is comprised of representatives of energy Suppliers, Ofgem, DECC, gas and electricity network operators, consumer groups and industry central bodies. The

SMCG will meet three or four times a year to discuss the progress of the Smarter Markets work and provide


of 15

210/01

input into Ofgem. Attendees at the meeting confirmed their commitment to the Smarter Markets work. Ofgem thanked the BSC Panel and ELEXON for their work to date in supporting the Settlement Reform

workstream.

8.3 Ofgem confirmed the next steps in relation to the four Smarter Markets workstreams are as follows:

Electricity Settlement Reform – a decisions in March regarding to who will progress the work (BSC

Panel or Ofgem);

Demand Side Response – a consultation in March examining which policy questions need to be

addressed;

Change of Supplier – a series of industry workshops from May to October prior to a consultation in

early 2014;

Consumer Protection – a stakeholder workshop was held on 31 January. Ofgem will be consulting on

a proposed 3-5 year programme to evaluate whether consumer protections need amending alongside the rollout of smart.

- DECC confirmed that the Smarter Markets work should take responsibility for overseeing the transition of the meter registration responsibilities from existing participants to the DCC later

this decade.

9. Smart Grids

- We continue to provide support to discussions on future Smart Grid arrangements.

- We have scoped a short piece of research targeted on understanding the potential for local balancing and how the BSC might need to evolve. As part of our research we intend to explore

how demand for these services may grow and are in discussions with various external bodies

that could support this aspect and thereby complement our knowledge of settlement and markets.

10. Smart Budget

Released Funds Spend year to date Forecast

(to end of 2012-13)

Smart Metering £ 172k £ 103k £ 144k

Smarter Markets & Smart Grids £ 128k £ 93k £ 186k

- During December 2012 we incurred expenditure for:

Back fill for the operational resources who are supporting the SMIP and addressing how we evolve the


of 15

210/01

settlement arrangements; and

Membership of smart grid groups.

We have continued the approach practiced during 2011- 12 of using internal resources to limit our external

spend and have employed established controls and processes to authorise and monitor all expenditure.

- We have carried out a full review of forecast expenditure and have revised the full year

forecast downwards to £330k (from £365k last month). This forecast includes back fill for operational resources, membership of Smart Grid groups, attendance at conferences and

external meetings and budget for the Local Balancing Community Energy project described

above.

- We continue to monitor spend against the £300k that was released for the period April to

September and therefore no additional funds have been requested. We will continue to re-forecast our expenditure monthly and review against released funds.

ELEXON Key Performance Indicators December 2012

Service Quality/Processes

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

Dec-

11

Jan-1

2

Feb-1

2

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Jul-12

Aug-1

2

Sep-1

2

Oct

-12

Nov-1

2

£ '0

00

s

MW

h (

mil

lio

ns)

Imbalance Volume and Cashflow

Imb Vol (MWh) Total Imbalance Cashflow (£)

0.00

2.00

4.00

6.00

8.00

05

101520253035

De

c-1

1

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

Pe

rce

nta

ge

MW

h (

mill

ion

s)

Total Demand and Imbalance Percentage

Total Demand (MWh) Imb Vol as % of Total Demand



BSC Systems Availability

During December 2012 there were no service breaches affecting the

BSC system availability.

BSC Systems Performance

During December 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



Trading Disputes

Trading Disputes can be raised by any BSC Party, including ELEXON, and

are assessed by the Trading Disputes Committee (TDC).

Eleven new disputes were opened and 12 were closed in December.

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

60

70

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

De

c-1

2

Trading Disputes 2011/12

Open Disputes Disputes Raised Disputes Closed ELEXON Implicated

Supplier Distibutor Generator ELEXON Trading Party(General)

Trading Party(Non

Physical)

TransmissionCompany

0

10

20

30

40

50

60

70

80

90

100

Disputes by Raising Party Jan12 - Dec12



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 December 2012 represent 27 man days of dedicated

resource. There is an additional 2 man days covering the administration

around the monthly TDC meeting. A total of 29 man days expended for

December. Using a day rate of £500 gives a monthly cost of £14,500.

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 December all 104 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

. De

cisi

on

s

Panel & Panel Committee Decisions

Decisions Made Decisions Deferred %age decisions made


Staff Capability & Financial

ELEXON Customer Survey

This graph has been updated to include the 2012 Customer

Survey. ELEXON’s scores for 2012 are overall 7.8

(unchanged), average service satisfaction 7.7 (-0.1), and

keeping costs down 6.6 (+0.1).

Current Year Spend against Budget compared with

2011/12

The budget under spend for the financial year at the end of

December is 11.1%. The operational under-spend is 7.8%,

demand led underspend is 40.5%, and contracted costs are

7.3% below budget. Market Development is 25.0% and

Governance & Vires costs is 33.3% below budget.

Note: Underspend is now reported as a percentage of the

types of spend rather than as a percentage against total

budget.

4.5

5.5

6.5

7.5

8.5

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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 Operational 2012/13 Operational 2011/12


Service Quality /Processes

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

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

De

c-1

2

£ '0

00

s

MW

h (

mill

ion

s)

Imbalance Volume and Cashflow

Imb Vol (MWh) Total Imbalance Cashflow (£)

0.00

2.00

4.00

6.00

8.00

05

101520253035

Jan

-12

Feb

-12

Mar

-12

Ap

r-1

2

May

-12

Jun

-12

Jul-

12

Au

g-1

2

Sep

-12

Oct

-12

No

v-1

2

De

c-1

2

Pe

rce

nta

ge

MW

h (

mill

ion

s)Total Demand and Imbalance Percentage

Total Demand (MWh) Imb Vol as % of Total Demand

210/01 ELEXON Report€¦ · 210/01 – ELEXON Report v1.0 Page 1 of 15 210/01 ELEXON Report...

Documents

Transcript of 210/01 ELEXON Report€¦ · 210/01 – ELEXON Report v1.0 Page 1 of 15 210/01 ELEXON Report...