Consolidated BSc Operational 2 - Elexon BSC

V1.1 Designated 21st March 2001

The

Balancing

and

Settlement

Code

© ELEXON Limited 2001

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1 of 7 Effective Date: 24 June 2021

BSC INDEX

SECTION A: PARTIES AND PARTICIPATION

1. General

2. Accession

3. Party Details and Provision of Information to BSCCo

4. Party Registration

5. Exit

Annex A-1 Form of Accession Agreement

SECTION B: THE PANEL

1. Establishment of Panel

2. Appointment of Panel Members

3. Powers and Functions of Panel, etc.

4. Proceedings of Panel

5. Panel Committees

6. Annual Reports and Annual BSC Meeting

Annex B-1 Not Used

Annex B-2 Election of Industry Panel Members

1. General

2. Candidates

3. Voting

4. Vacancies

SECTION C: BSCCo AND ITS SUBSIDIARIES

1. General

2. Constitution of BSCCo and Obligations of the NETSO as BSCCo Shareholder

3. Powers and Functions of BSCCo

4. Governance of BSCCo

5. Relationship Between Parties and BSCCo

6. Business Strategy and Annual Budget

7. BSC Companies

8. BSCCo Involvement in BETTA

9. Provision of Profile Administration Services by BSCCo

10. Permissible Activities Undertaken by Permitted Affiliates

11. Provision of Support to EMR Settlement Services Providers

12. Market-Wide Half Hourly Settlement Implementation Management

Annex C-1 Permissible Activities

Annex C-2 Voting Procedures For Binding Resolutions, Non-Binding Resolutions And

Appointment Resolutions

SECTION D: BSC COST RECOVERY AND PARTICIPATION CHARGES

1. General

2. BSC Costs

3. Specified BSC Charges

4. Recovery of Net Annual Costs

5. Not used

6. Payment of BSCCo Charges and Party Charges

7. EMR Settlement Services Provider Costs

8. MHHS Programme Costs

Annex D-1 Funding Shares

Part 1 Main Funding Shares

Part 2 Not Used

Part 3 SVA (Production) Funding Shares

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Part 4 General Funding Shares

Part 5 Determination of Funding Shares

Annex D-2 SVA Costs

Annex D-3 Specified BSC Charges

1. General

2. Not used

3. Main Specified Charges

4. SVA Specified Charges

5. Provision of Information to BSCCo

6. Further Charges

Annex D-4 Determination of Monthly BSCCo Charges

1. Invoicing Within Year

2. Reconciliation

Annex D-5 Not used

SECTION E: BSC AGENTS

1. General

2. Role of BSCCo

3. Relationship Between Parties, BSCCo and BSC Agents

4. BSC Services Manager

SECTION F: MODIFICATION PROCEDURES

1. Modification of the Code

2. Code Modification Procedures

3. Creation and Modification of Code Subsidiary Documents

4. IS Policies

5. Significant Code Review

6. Self-Governance

7. Fast Track Self-Governance

8. Authority Raised or Directed Modification Proposals

Annex F-1 Contents of reports

Annex F-2 EBGL Article 18 Terms and Conditions

SECTION G: CONTINGENCIES

1. General

2. Avoidable Costs

3. Black Start

4. Civil Emergencies and Fuel Security Periods

5. Recovery of exceptional costs by Generators

SECTION H: GENERAL

1. Structure

2. Commencement and Term

3. Default

4. Confidentiality and Other Intellectual Property Rights

5. Audit

6. Liability and Related Issues

7. Dispute Resolution

8. References to the Authority

9. General

10. BSC Sandbox

11. Open Data

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SECTION I: Not used

SECTION J: PARTY AGENTS AND QUALIFICATION UNDER THE CODE

1. General

2. Qualification Requirements

3. Qualification Process

4. Appointment and Replacement of Party Agents

5. Party Responsibilities

6. Registration

7. Performance Assurance and Qualified Persons

SECTION K: CLASSIFICATION AND REGISTRATION OF METERING SYSTEMS AND

BM UNITS

1. General

2. Registration of Metering Systems

3. Configuration and Registration of Primary BM Units

4. Trading Units

5. Interconnectors

6. Registration

7. Failing Supplier Process

8. Configuration and Registration of Secondary BM Units

Annex K-1 Master Registration Agreement

1. MRA BSC Agent

2. Suppliers' Obligations

3. Qualification Requirements

4. BSC Requirements for the MRA

Appendix to Annex K-1 BSC Requirements for the MRA

Annex K-2 Trading Unit Applications

1. Configuration of Trading Units

SECTION L: METERING

1. Introduction

2. Metering Equipment – Basic Requirements

3. Metering Equipment – Detailed Requirements

4. Disputes

5. Metering Data

6. Access to Property

7. Technical Assurance of Metering Systems

SECTION M: CREDIT COVER AND CREDIT DEFAULT

1. General

2. Credit Cover and Energy Credit Cover

3. Credit Default Status

4. Credit Cover Errors and Compensation

Annex M-1 Form of Letter of Credit (UCP 500)

Annex M-2 Form of Letter of Credit (UCP 600)

Annex M-3 Form of Letter of Credit (ISP98)

Annex M-4 Requirements Of An Approved Insurance Product

SECTION N: CLEARING, INVOICING AND PAYMENT

1. Introduction

2. Clearing Arrangements

3. Payment Calendar

4. Banking Arrangements

5. Taxation

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6. Calculation of Payments

7. Advice Notes

8. Payment Procedure

9. Payment Default

10. Confirmation Notices in Respect of a Payment Date

11. Payment Errors

12. Enforcement of Claims

13. Ledger Accounts

SECTION O: COMMUNICATIONS UNDER THE CODE

1. General

2. Scope and Interpretation

3. Parties' Obligations

4. Rules as to Communications

SECTION P: ENERGY CONTRACT VOLUMES AND METERED VOLUME

REALLOCATIONS

1. General

2. Energy Contract Volumes

3. Metered Volume Reallocations

4. Aggregation

4A Nullification of Volume Notifications

5. Failures of the ECVAA System

SECTION Q: BALANCING SERVICES ACTIVITIES

1. Introduction

2. Data Submission by Lead Party

3. Final Physical Notification Data Submission

4. Balancing Services Bid-offer Submission

5. Balancing Mechanism Bid-offer Acceptance

6. Submission of Data by the NETSO

7. Manifest Errors

8. Compensation for Outages

9. Not Used

10. Not Used

11. Submission of Inside Information Data

SECTION R: COLLECTION AND AGGREGATION OF METER DATA FROM CVA

METERING SYSTEMS

1. Introduction

2. Registration and Technical Details

3. Aggregation Rules

4. Line Loss Factors

5. Collection, Validation, Estimation and Aggregation of Metered Data

6. Further Functions of CDCA

7. Interconnector BM Unit Metered Volumes

8. Demand Disconnection Events

SECTION S: SUPPLIER VOLUME ALLOCATION

1. General

2. Responsibilities of Suppliers and Supplier Agents

3. Performance

4. Functions of BSC Agents in relation to Supplier Volume Allocation

5. Functions of Other Agents in relation to Supplier Volume Allocation

6. Supplier BM Units

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7. Supplier Volume Allocation Rules

8. Unmetered Supplies

9. Demand Disconnection Events

10. SVA Metering System Register

11. MSID Pair Delivered Volumes

ANNEX S-1 PERFORMANCE LEVELS AND SUPPLIER CHARGES

1. General

2. Performance Levels

3. Charges

4. Collection and Payment of Supplier Charges

ANNEX S-2 SUPPLIER VOLUME ALLOCATION RULES

1. General

2. The Supplier Meter Registration Services

3. Half Hourly Data Collection and Aggregation

4. Non Half Hourly Data Collection and Aggregation

5. Supplier Volume Allocation Data Input

6. Profile Coefficients

7. Half Hourly Metering System Consumption

8. Non Half Hourly Metering System Consumption

9. GSP Group Correction

9A Determination of the Supplier Quarterly Volume Report

10. Volume Allocation Runs

11. Trading Disputes

12. Delays and Failures

13. Determination of Period BM Unit Gross Storage Demand for SVA Storage Facilities

SECTION T: SETTLEMENT AND TRADING CHARGES

1. General

2. Allocation of Transmission Losses

3. Settlement of Balancing Mechanism actions

4. Settlement Calculations

5. Settlement

6. Additional Calculations

7 Submission of Replacement Reserve Data to the SVAA

Annex T-1 Final Ranked Set of System Actions

Part 1 – Derivation of Final Ranked Set of System Actions

1. Introduction

2. Ranked Sets

3. CADL Flagging

4. SO Flagging

5. Emergency Instructions

6. De Minimis Tagging

7. Arbitrage Tagging

8. Classification

9. NIV Tagging

10. Replacement Pricing of Second Stage Flagged System Actions

11. PAR Tagging

Part 2 - Detailed Provisions

12. CADL Flagging

13. Arbitrage Tagging

14. NIV Tagging

15. Replacement Price

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16. PAR Tagging

Part 3 – Terms for Reporting

17. Table of terms

Annex T-2: Transmission Loss Factors

1. Introduction

2. LFM Specification

3. Load Flow Model

4. Zones, Nodes and Mapping

5. Transmission Network Data and HVDC Boundary Data

6. Distribution Network Data

7. Sample Settlement Periods

8. Determination of TLFs

9. Determination of the Transmission Loss Factor Adjustment (TLFAs)

10. Role and powers of the NETSO

SECTION U: PROVISIONS RELATING TO SETTLEMENT

1. General

2. Settlement

SECTION V: REPORTING

1. General

2. BMRS

3. Reporting by Other BSC Agents

4. Reporting by BSCCo

5. EMR Settlement Data Requirements

6. Submission of Transparency Regulation Data and EBGL Local Data by the BMRA

7. Submission of Settlement Exchange Rates to the BMRA

Annex V-1 Tables of Reports

Table 1 Not Used

Table 1A Not Used

Table 1B Not Used

Table 1C Not Used

Table 1D Not Used

Table 1E Not Used

Table 2 SAA Reporting

Table 3 ECVAA Reporting

Table 4 CRA Reporting

Table 5 CDCA Reporting

Table 6 FAA Reporting

Table 7 SVAA Reporting

Table 8 Intentionally left blank

Table 9 Transmission Loss Factor Data

Table 10 Line Loss Factors

SECTION W: TRADING DISPUTES

1. General

2. The Trading Disputes Committee

3. The Trading Disputes Process

4. Adjustments Following Resolution of a Trading Dispute

5. Further Provisions

SECTION X: DEFINITIONS AND INTERPRETATION

1. Definitions

2. Interpretation

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3. Technical Interpretation

ANNEX X-1 GENERAL GLOSSARY

ANNEX X-2 TECHNICAL GLOSSARY

1. General

2. Technical Terms and Interpretation Applying Except in Relation to Section S

3. Technical Terms and Interpretation Applying in Relation to Section S

4. Timing Conventions

Table X-1 Use of subscripts and superscripts applying except in relation to Section S

Table X-2 Terms and expressions applying except in relation to Section S

Table X-3 Glossary of acronyms applying except in relation to Section S

Table X-4 Use of subscripts and superscripts applying to Section S

Table X-5 Use of summations applying to Section S

Table X-6 Definitions applying to Section S

Table X-7 List of acronyms applicable to Section S

Table X-8 List of valid consumption component classes

Table X-9 List of Supplier Volume Reporting Groups

SECTION Z: PERFORMANCE ASSURANCE

1. Introduction

2. Proceedings of the Performance Assurance Board

3. Performance Assurance Administrator

4. Liability of Performance Assurance Board and Performance Assurance Administrator

5. Performance Assurance Procedures

6. Risk Management Determination Queries and Risk Management Determination

Appeals

7. Performance Assurance Techniques

8. Further Functions and Duties

BALANCING AND SETTLEMENT CODE POOL SUPPLEMENT Not used

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A – 1 of 18 Effective Date: 25 February 2021

SECTION A: PARTIES AND PARTICIPATION

1. GENERAL

1.1 Introduction

1.1.1 This Section A sets out:

(a) the capacities which a Party may have under the Code;

(b) the arrangements for admission of new Parties to the Code;

(c) the requirement to provide Party Details to BSCCo and to update Party Details from time to time;

(d) the requirement to register as a Party with the CRA;

(e) the provisions as to withdrawal, expulsion or transfer of a Party from the Code.

1.2 Parties

1.2.1 A Party is a person who is for the time being bound by the Code by virtue of being a party to the Framework Agreement.

1.2.2 Parties include:

(a) BSCCo and the BSC Clearer;

(b) the NETSO;

(c) persons holding Licences (such persons being obliged by conditions in their Licences to become Parties) and persons obliged to become Parties by a condition (if any) in an Exemption applicable to such persons;

(d) other persons who choose to become Parties.

1.2.3 Except in paragraphs 1.2.1, 1.2.2, 2 (other than 2.6) and 5.3, references to Parties in this Section A do not include BSCCo or the BSC Clearer.

1.3 Participation capacities

1.3.1 A Party may or will have one or more of the following capacities ("participation capacities") under the Code:

(a) the NETSO (being the Party which is the holder for the time being of the Transmission Licence);

(b) a Distribution System Operator (being a Party which distributes electricity through a Distribution System);

(c) a Trading Party (being a Party, other than the NETSO, which holds Energy Accounts pursuant to paragraph 1.4);

(d) an Interconnector Error Administrator (being a Party which, in accordance with Section K5.4, is for the time being appointed in respect of an Interconnector by the Interconnected System Operator, and has agreed to act as such, or a Party which is otherwise required to act as such);

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(e) an Interconnector Administrator (being a Party which, in accordance with Section K5.4, is for the time being appointed in respect of an Interconnector by the Interconnected System Operator, and has agreed to act as such);

(f) a Supplier (being a Party which holds a Supply Licence and is responsible for Exports and/or Imports in respect of which one or more SVA Metering Systems are required to be registered pursuant to Section K);

(g) a Virtual Lead Party (being a Party which, in accordance with Section K8, may register Secondary BM Units)

and, for the avoidance of doubt, the words in paragraphs (a) to (g) in parentheses, following each term, are by way of explanation and are not intended to affect or alter the definition of such terms set out in Annex X-1.

1.3.2 The participation capacities listed in paragraph 1.3.1 are not limiting of any other capacity of a Party which may be provided for or referred to in the Code.

1.4 Energy Accounts

1.4.1 Each of the following Parties shall hold a Production Energy Account and a Consumption Energy Account for the purposes of the Code:

(a) a Party which is or is to be responsible (as defined in Section K) for Imports and/or Exports of electricity at one or more Boundary Points;

(b) a Party which is or is to be appointed and agrees to act as an Interconnector Error Administrator in relation to an Interconnector;

(c) any other Party which wishes to and applies in accordance with the Code to hold Energy Accounts.

1.4.2 Subject to paragraph 1.4.3, no Party shall hold more than one Production Energy Account and more than one Consumption Energy Account and, accordingly, a Party which falls within more than one of the descriptions in paragraph 1.4.1(a), (b) or (c) shall hold one Production Energy Account and one Consumption Energy Account for all such activities.

1.4.3 If at any time the NETSO is appointed (other than pursuant to Section K5.4.5) as Interconnector Error Administrator in relation to an Interconnector, then the NETSO shall hold a Production Energy Account and a Consumption Energy Account in its capacity as Interconnector Error Administrator (and where it is so appointed in relation to more than one Interconnector, it shall hold separate such accounts in relation to each), in addition to and separately from Energy Accounts which it may hold pursuant to paragraph 1.4.1(c).

1.4A Virtual Balancing Accounts

1.4A.1 A Party that registers solely as a Virtual Lead Party shall hold a Virtual Balancing Account unless it has applied to hold Energy Accounts in accordance with paragraph 1.4.1(c). A Party may at any point in time only hold either a Virtual Balancing Account or Energy Accounts.

1.4A.2 No Party shall hold more than one Virtual Balancing Account.

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2. ACCESSION

2.1 Admission of new Parties

2.1.1 Subject to paragraphs 2.1.2 and 2.2.5, any person shall be entitled to be admitted as a party to the Framework Agreement subject to and in accordance with the provisions of this paragraph 2.

2.1.2 A person which is for the time being a BSC Agent shall not be entitled to be a Party.

2.2 Accession Procedure

2.2.1 A person wishing to accede to the Framework Agreement (a "Party Applicant") shall submit to BSCCo:

(a) a duly completed application form in such form as BSCCo may from time to time prescribe giving its Party Details as at the time of its application;

(b) an undertaking from the Party Applicant (in the form prescribed in the application form) that the Party Details of such Party Applicant are complete and accurate in all material respects; and

(c) the Application Fee.

2.2.2 Upon receipt of the items referred to in paragraph 2.2.1, BSCCo shall as soon as reasonably practicable:

(a) check that the application form has been duly completed by the Party Applicant and the relevant supporting documentation and Application Fee have been provided;

(b) notify:

(i) each Panel Member;

(ii) each Party; and

(iii) the Authority

of the name of the Party Applicant, and the participation capacities (if any) notified by the Party Applicant in its Party Details; and

(c) prepare an Accession Agreement for the Party Applicant and send it to such Party Applicant for execution.

2.2.3 Upon receipt by BSCCo of an Accession Agreement duly executed by a Party Applicant, BSCCo shall promptly:

(a) execute and deliver such Accession Agreement on behalf of all Parties;

(b) send a certified copy of such Accession Agreement, duly executed by the Party Applicant and BSCCo, to the Party Applicant;

(c) give notice of the accession of such Party Applicant to:

(i) the Party Applicant;

(ii) each Panel Member;

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(iii) each Party;

(iv) the Authority;

(v) each BSC Agent.

2.2.4 Subject to and in accordance with the provisions of this paragraph 2.2, each Party hereby irrevocably and unconditionally authorises BSCCo to execute and deliver on behalf of such Party any Accession Agreement duly executed by a Party Applicant, and to admit the Party Applicant as a Party.

2.2.5 No person shall enter into or accede to the Framework Agreement, unless that person has first:

(a) obtained from BSCCo, after giving an undertaking of confidentiality in the form required by and in compliance with the other requirements specified by BSCCo, a copy of the "IPR Litigation Requirements" document; and

(b) complied with the applicable requirements set out in that document.

2.2.6 For the purposes of paragraph 2.2.5:

(a) the "IPR Litigation Requirements" document is the document of that title prepared by BSCCo dated the Code Effective Date;

(b) BSCCo may amend and update such document from time to time as necessary provided that any such amendment shall not seek to impose obligations or restrictions on Party Applicants which are materially more onerous than those which applied prior to such amendment.

2.2.7 The requirements contained in paragraph 2.2.5 and all related requirements in the Code shall not apply to any person acceding to the Framework Agreement after 7 April 2003.

2.3 Disputes as to admission

2.3.1 If:

(a) there is any dispute as to whether a Party Applicant has fulfilled the requirements in paragraph 2.2 (including paragraph 2.2.5) and is entitled to be admitted as a party to the Framework Agreement; and

(b) the Authority determines, as provided by the Transmission Licence, that such Party Applicant has fulfilled such requirements and is entitled to be so admitted,

subject to paragraph 2.2.5, such Party Applicant shall be admitted as a party to the Framework Agreement and BSCCo shall forthwith execute and deliver an Accession Agreement, duly executed by the Party Applicant, in order to effect such admission (and shall comply with the other provisions of paragraph 2.2.3).

2.3.2 If BSCCo fails to comply with paragraph 2.3.1 and the Authority directs the NETSO to admit the Party Applicant as a party to the Framework Agreement pursuant to the Transmission Licence:

(a) subject to paragraph 2.2.5, the NETSO shall prepare an Accession Agreement to admit such Party Applicant and shall, on behalf of all Parties, execute and deliver such Accession Agreement, duly executed by the Party Applicant, and provide a copy to BSCCo (to enable it to comply with paragraphs 2.2.3(b) and (c));

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(b) the NETSO shall be entitled to be reimbursed by BSCCo for its reasonable costs incurred in so doing.

2.3.3 Where the Authority directs the NETSO to admit a Party Applicant as a party to the Framework Agreement pursuant to the Transmission Licence, each Party hereby irrevocably and unconditionally authorises the NETSO to execute and deliver on behalf of such Party an Accession Agreement, duly executed by such Party Applicant, to admit such Party Applicant.

2.4 Accession

2.4.1 The accession of a Party Applicant to the Framework Agreement shall be effective on and from the date of the Accession Agreement.

2.4.2 The admission of any person as a party to the Framework Agreement and/or the registration or absence of registration of a Party for any purposes of the Code shall not affect or limit in any way the responsibility of each Party to ensure that it complies with each of the requirements of the Code applicable to such Party and with any applicable Legal Requirements, or the rights and obligations of Parties if a Party fails so to comply.

2.5 Application fee

2.5.1 The Panel shall from time to time set the application fee payable by Party Applicants in connection with an application for admission as a party to the Framework Agreement.

2.5.2 The Application Fee shall not exceed the amount which in the Panel's opinion (at the time of setting such fee) represents the reasonable average costs of BSCCo in processing an application for admission as a party to the Framework Agreement.

2.5.3 The Application Fee paid by a Party Applicant shall not be refunded to such Party Applicant for any reason.

2.6 Withdrawal of a Party which does not commence trading

2.6.1 Subject to the further provisions of this paragraph 2.6 and unless the Panel otherwise agrees, if, by the expiry of a period of 6 months (or any extended period under paragraph 2.6.2) after the effective date of accession of a Party to the Framework Agreement, none of the steps specified in paragraph 2.6.3 has been taken by or in relation to such Party, then:

(a) BSCCo shall give notice to that effect to such Party;

(b) such Party shall automatically cease to be a Party (and cease to be a party to the Framework Agreement) with effect one month after the date on which BSCCo gives such notice (and such Party shall be treated as being a Discontinuing Party and as having withdrawn from the Code for the purposes of paragraph 5.3.1(a)).

2.6.1A Where a Party has acceded to the Framework Agreement as a result of the extension of the Code’s application to Scotland and that accession takes place before the BETTA Effective Date then the period of six months referred to in paragraph 2.6.1 shall not commence until the BETTA Effective Date.

2.6.2 The Panel may upon the application of the Party extend (on one or more occasions) the period of 6 months referred to in paragraph 2.6.1, and (where it has extended such period) may determine that a prior notice given by BSCCo to the Party under paragraph 2.6.1(a) shall be of no effect.

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2.6.3 The steps are:

(a) the application to register a Metering System;

(b) the application to register a BM Unit;

(c) the submission of any Energy Contract Volume Notification or Metered Volume Reallocation Notification;

(d) the appointment of such Party as Interconnector Administrator or Interconnector Error Administrator in relation to one or more Interconnectors.

2.6.4 Paragraph 2.6.1 shall not apply:

(a) to a Party which is the holder of a Licence or subject to a condition in an Exemption by virtue of which it is required to be a Party or to comply with the Code;

(b) for a period of 14 months after the Go-live Date (or such longer period as the Panel may determine), to a Party which was a Pool Member as at the Go-live Date.

2.7 Novation Procedure

2.7.1 A person wishing to be admitted as a party to the Framework Agreement by novation (a "Novation Applicant") shall submit to BSCCo:

(a) a duly completed application form in such form as BSCCo may from time to time prescribe, signed by an Authorised Person, giving its Party Details as at the time of its application and enclosing a Novation Agreement signed by the Novation Applicant and the Party wishing to transfer its rights and obligations under an Accession Agreement ("Transferring Party");

(b) an undertaking from the Novation Applicant (in the form prescribed in the application form) that the Party Details of such Novation Applicant are complete and accurate in all material respects; and

(c) the Novation Fee.

2.7.2 Upon receipt of the items referred to in paragraph 2.7.1, BSCCo shall as soon as reasonably practicable:

(a) check that the application form has been duly completed by the Novation Applicant and the documentation required by paragraph 2.7.1 and the Novation Fee have been duly provided;

(b) notify:

(i) each Panel Member;

(ii) each Party; and

(iii) the Authority

of the name of the Novation Applicant and the Transferring Party, and the participation capacities (if any) notified by the Party Applicant in its Party Details; and

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(c) attend a Panel meeting held in accordance with paragraph 2.7.3.

2.7.3 If:

(a) a Novation Applicant has fulfilled the requirements in paragraph 2.7.1; and

(b) at a meeting of the Panel the Panel determines, in its absolute discretion, that a novation request under paragraph 2.7.1 should be granted,

then such Novation Applicant shall be admitted as a party to the Framework Agreement and BSCCo shall forthwith date, execute and deliver a Novation Agreement, duly executed by the Novation Applicant, in order to effect such admission and give notice of the admission of such Novation Applicant as a Party, and the replacement of the Transferring Party, to:

(i) the Novation Applicant;


(iii) each Party;

(iv) the Authority; and

(v) each BSC Agent.

2.7.4 A decision of the Panel pursuant to paragraph 2.7.3 shall be final and binding on the Novation Applicant and the Novation Applicant shall have no right of appeal. The Panel may at a hearing held under paragraph 2.7.3 request further information be provided by a Novation Applicant. In such an event the Novation Applicant shall provide such information and a further hearing or hearings shall be then held prior to the Panel making its decision under paragraph 2.7.3.

2.7.5 Subject to and in accordance with the provisions of this paragraph 2.7, each Party hereby irrevocably and unconditionally authorises BSCCo to date, execute and deliver on behalf of such Party any Novation Agreement duly executed by a Novation Applicant and a Transferring Party, to admit any Novation Applicant as a Party as of the date of its Novation Agreement ("Novation Date"), to transfer the BSC Party ID and any authorisations and qualifications obtained under the Code from the Transferring Party to the new Party, and to release any Transferring Party under the provisions of paragraph 5.3.

2.7.6 The Panel shall from time to time set the fee payable by Novation Applicants in connection with an application by novation as a party to the Framework Agreement ("Novation Fee"). The Novation Fee shall not exceed the amount which in the Panel's opinion (at the time of setting such fee) represents the reasonable average costs of BSCCo in processing an application by novation as a party to the Framework Agreement. The Novation Fee paid by a Party Applicant shall not be refunded to such Party Applicant for any reason.

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3. PARTY DETAILS AND PROVISION OF INFORMATION TO BSCCo

3.1 Party Details

3.1.1 For the purposes of the Code, the "Party Details" of a Party (which shall include for the purposes of paragraph 2 a Party Applicant) are the following details and documentation of the Party:

(a) its full name and contact details;

(b) the name, postal address, facsimile number and electronic mail (e-mail) address of the person for whose attention notices or communications issued in accordance with Section H9.2 should be marked;

(c) details for service of process, where the Party is required to provide such details pursuant to Section H9.9.3;

(d) whether the Party is (or intends to be) the holder of a Licence and/or benefits (or intends to benefit) from an Exemption, and (if so) details of such Licence or Exemption (including whether the Party is required by a condition in the Exemption to be Party or to comply with the Code) and the circumstances requiring the Party to hold or benefit from the same;

(e) the participation capacities (if any) which the Party has or (at the time at which such details are notified to BSCCo) intends or expects to have, and the date from which it has or intends or expects to have each such capacity;

(f) such supporting documentation as BSCCo may reasonably require in order to validate that the Party has or will have such participation capacities;

(g) whether the Party was a party to the Pooling and Settlement Agreement at the date of or at any time after the date of execution of the Framework Agreement and, if so, in what capacity(ies);

(h) the identity of any other Party which is an Affiliate of the Party; and

(i) whether the Party is registered for VAT purposes and if so the Party’s VAT registration number.

3.2 Provision of Party Details to BSCCo

3.2.1 Each Party shall:

(a) provide its Party Details to BSCCo; and

(b) ensure that its Party Details for the time being provided to BSCCo remain accurate and complete in all material respects.

3.2.2 Without prejudice to the generality of paragraph 3.2.1, if at any time:

(a) a Party wishes to change any of its contact details forming part of such Party Details; or

(b) there is or will be any change in the participation capacities of a Party; or

(c) there is any change in the circumstances of a Party referred to in paragraph 3.1(d); or

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(d) the Party Details of a Party otherwise cease for whatever reason to be accurate and complete in all material respects;

such Party shall notify BSCCo as soon as reasonably practicable and, wherever possible, in advance of such change and shall provide such further information and supporting documentation as BSCCo may reasonably require to evidence such change.

3.2.3 Without prejudice to paragraph 3.1.1(b), any additional e-mail address(es) submitted by a Party for the purpose of receiving notices or communications in relation to matters contemplated by the Code or Code Subsidiary Documents in accordance with Section H9.2 shall form part of the Party Details of that Party.

3.3 Role of BSCCo

3.3.1 Without prejudice to paragraphs 2.2.1(b), 2.4.2 and 3.2, BSCCo shall be responsible for validating as far as reasonably practicable that a Party has or will have the participation capacities from time to time notified by it in its Party Details; provided that, subject to requesting relevant information from the Authority, the NETSO, the Distribution System Operators and the Interconnector Administrators and to requesting appropriate supporting documentation from such Party, BSCCo shall not be required to undertake any further external validation of such matters.

3.3.2 The NETSO and each Distribution System Operator and each Interconnector Administrator shall provide BSCCo with such information (of a kind which they hold) as BSCCo may reasonably request for the purposes of paragraph 3.3.1; and each Party hereby consents to the disclosure by the NETSO and the Distribution System Operators and each Interconnector Administrator of any such information for that purpose.

3.3.3 If a Party considers that BSCCo has made an error in validating or failing to validate under paragraph 3.3.1 that such Party or another Party holds a particular participation capacity, the Party may refer the matter to the Panel for determination (and BSCCo shall ensure that any confirmation under paragraph 3.3.4 and the list maintained under paragraph 3.3.5 reflect the Panel's determination).

3.3.4 BSCCo shall provide the CRA on request with confirmation as to the matters referred to in paragraph 3.3.1.

3.3.5 BSCCo shall establish and maintain a list of the names, addresses and participation capacities of each Party and shall:

(a) send a copy of such list (as revised and updated from time to time) to the CRA; and

(b) ensure that the current version of such list is available on the BSC Website.

4. PARTY REGISTRATION

4.1 Registration requirements

4.1.1 Each Party shall register and ensure that it remains registered in the CRS in accordance with this paragraph 4.

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4.1.2 A Party is required to be registered, with any participation capacity it may have, in the CRS, before in that capacity:

(a) it registers any Metering System or BM Unit;

(b) it registers any Party Agent;

(c) it takes any other step or action under the Code for which the registration of a Metering System or BM Unit or the appointment of a Party Agent is a pre-requisite.

4.1.3 Without prejudice to paragraph 4.1.1, but subject to paragraph 4.1.4, a Party shall apply for registration in the CRS promptly upon executing or acceding to the Framework Agreement; and it shall be the responsibility of each Party to secure that it is registered in CRS in sufficient time to enable it to comply with any requirements (applying to it) under the Code to do any of the things in paragraph 4.1.2.

4.1.4 A Party Applicant who has applied (in accordance with paragraph 2) to accede to the Framework Agreement may apply for registration in CRS, provided that such registration shall not be effective before the Party Applicant becomes a Party.

4.1.5 The registration of a Party shall not become effective until such Party has complied with the requirements in Sections O3.1 and O3.2.

4.2 Party Registration Data

For the purposes of the Code, the "Party Registration Data" of a Party is:

(a) its full name and contact details;

(b) the participation capacities (if any) which (at the time of its registration in CRS or a revision thereof) it has or intends or expects to have, and the date with effect from which it has or intends or expects to have each such participation capacity;

(c) whether it holds, or wishes or is required (pursuant to paragraph 1.4) to hold, Energy Accounts;

(d) the identity of any Interconnector in relation to which the Party is or is to be Interconnector Administrator or Interconnector Error Administrator;

(e) whether it holds, or wishes or is required (pursuant to paragraph 1.4A) to hold a Virtual Balancing Account.

4.3 Initial registration in CRS

4.3.1 A Party shall apply for registration in CRS by submitting to the CRA in accordance with BSCP65 its Party Registration Data and the date from which it wishes its registration to be effective.

4.3.2 Upon receiving a Party's application for registration in CRS, the CRA shall seek confirmation from BSCCo that such Party is a party to the Framework Agreement, that its application pursuant to paragraph 4.3.1 is consistent with the Party Details held by BSCCo in respect of such Party and that it has complied with the requirements referred to in paragraph 4.1.5.

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4.3.3 Subject to receiving confirmation from BSCCo as to the matters in paragraph 4.3.2, the CRA shall in accordance with BSCP65:

(a) enter and maintain the Party Registration Data in CRS;

(b) allocate a registration identity to such Party;

(c) where the Party wishes or (by virtue of paragraph 1.4) is required to hold Energy Accounts, allocate a Production Energy Account and a Consumption Energy Account to such Party; and

(d) where the Party is registering to hold the Virtual Lead Party participation capacity, is not required to hold Energy Accounts (by virtue of paragraph 1.4), and does not hold Energy Accounts, allocate a Virtual Balancing Account to such Party.

4.4 Changes to the Party Registration Data

4.4.1 If at any time:

(a) there is any change in the participation capacities of a Party;

(b) the Party Registration Data of a Party otherwise ceases for whatever reason to be accurate and complete in all material respects;

(c) a Party wishes to become a Trading Party, or (not being required to be a Trading Party by virtue of paragraph 1.4) wishes to cease to be a Trading Party;

(d) a Virtual Lead Party wishes or (by virtue of paragraph 1.4) is required to become a Trading Party;

(e) a Virtual Lead Party (not being required to be a Trading Party by virtue of paragraph 1.4) wishes to cease to be a Trading Party and to hold a Virtual Balancing Account; or

(f) a Virtual Lead Party that is not a Trading Party wishes to cease to be a Virtual Lead Party and to cease holding a Virtual Balancing Account,

such Party shall apply to the CRA in accordance with BSCP65 to revise its registration in order to reflect such change, specifying the date from which such change is to be effective.

4.4.2 Upon receipt of an application pursuant to paragraph 4.4.1 and subject to confirmation from BSCCo that the information contained in such application is consistent with the Party Details held by BSCCo in respect of such Party, the CRA shall:

(a) subject to paragraph 4.4.3, revise the Party Registration Data maintained in CRS to take account of any changes set out in such application;

(b) where the Party wishes or (by virtue of paragraph 1.4) is required to become a Trading Party, allocate a Production Energy Account and a Consumption Energy Account to such Party;

(c) where the Party wishes to cease to be a Trading Party and is not required (by virtue of paragraph 1.4) to be a Trading Party, subject to paragraph 4.4.3, close the Party’s Production Energy Account and Consumption Energy Account;

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(d) where the Virtual Lead Party wishes or (by virtue of paragraph 1.4) is required to become a Trading Party, close the Virtual Lead Party’s Virtual Balancing Account;

(e) where the Virtual Lead Party (not being required to be a Trading Party by virtue of paragraph 1.4) wishes to cease to be a Trading Party pursuant to paragraph 4.4.2 (c), subject to paragraph 4.4.3, allocate a Virtual Balancing Account to such Virtual Lead Party; and

(f) where the Virtual Lead Party that is not a Trading Party wishes to cease to be a Virtual Lead Party, close the Virtual Lead Party’s Virtual Balancing Account.

4.4.3 For the purposes of this paragraph 4.4:

(a) a Party may only cease to be a Trading Party if, and from no earlier than the date when, the following conditions have been met:

(i) there are no Energy Contract Volume Notifications or Metered Volume Reallocation Notifications in force, in respect of which the Party is a Contract Trading Party, relating to Settlement Periods after that date and containing Energy Contract Volume Data or Metered Volume Reallocation Data with non-zero values; and

(ii) the Party has terminated all ECVNA Authorisations and MVRNA Authorisations made under its authority; and

(b) where a Party ceases to be a Trading Party, it shall remain liable for any obligations and entitled to any benefits accrued or accruing to it as a Trading Party under the Code in respect of any Settlement Period or other period prior to the date referred to in paragraph (a) (including in respect of Reconciliation Charges) and, accordingly, from that date, references to a Trading Party under the Code shall include such Party only for those purposes;

(c) where a Virtual Lead Party that holds a Virtual Balancing Account ceases to be a Virtual Lead Party, it shall remain liable for any obligations and entitled to any benefits accrued or accruing to it as a Virtual Lead Party under the Code in respect of any Settlement Period or other period prior to the date referred to in paragraph (a) (including in respect of Reconciliation Charges) and, accordingly, from that date, references to a Virtual Lead Party under the Code shall include such Party only for those purposes.

4.5 General provisions

4.5.1 Any initial registration in CRS pursuant to paragraph 4.3.1, and any revision of a registration in CRS pursuant to paragraph 4.4.1, shall not be effective until the later of the date specified in the application made under paragraph 4.3.1 or 4.4.1 (as the case may be) and the date when BSCCo provides the confirmation to the CRA required pursuant to paragraph 4.3.2 or 4.4.2.

4.5.2 Following entry or revision of any Party's Party Registration Data in CRS pursuant to paragraph 4.3.3 or 4.4.2, the CRA shall notify:

(a) such Party;

(b) BSCCo;

(c) each BSC Agent

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of the Party’s registration identity and Energy Account details or Virtual Balancing Account details in accordance with BSCP65.

4.5.3 For the avoidance of doubt, in addition to registration under this paragraph 4, a Party must satisfy further requirements set out or referred to in the Code (including where applicable requirements in Sections J, K, L, N, O, R and S) before it may exercise certain rights (of Parties in relevant participation capacities) under the Code.

5. EXIT

5.1 Withdrawal

5.1.1 Subject to paragraph 5.1.3, each Party (the "Withdrawing Party") shall be entitled to withdraw from the Code (and cease to be a party to the Framework Agreement) by giving notice in writing (a "Withdrawal Notice") to BSCCo.

5.1.2 The Withdrawal Notice shall specify the time and date (the "Withdrawal Date"), being not less than 28 days after the date of the Withdrawal Notice, with effect from which the Withdrawing Party wishes to withdraw from the Code and cease to be a party to the Framework Agreement.

5.1.3 A Party may not withdraw from the Code or cease to be a party to the Framework Agreement (and any Withdrawal Notice shall be of no effect) if, as at 1700 hours on the day which is 2 Business Days prior to the Withdrawal Date:

(a) subject to paragraph 5.1.5, any sums accrued and payable under the Code by such Party (whether or not due for payment and whether or not the subject of a dispute) remain, in whole or in part, to be paid by such Party; or

(b) the Final Reconciliation Settlement Run has not been carried out in relation to the last Settlement Day, or the corresponding Payment Date is not yet past; or

(c) the final determination (pursuant to Section D4.4) has not been carried out in respect of BSCCo Charges for the BSC Year in which the last Settlement Day fell, or the due date for payment of amounts payable pursuant to such determination is not yet past; or

(d) such Party continues to be registered under the Code (and/or the MRA) in respect of any Metering Systems or BM Units (except for Base BM Units); or

(e) subject to paragraph 5.1.5 there is any outstanding Default by such Party (of which notice has been given to the Party) which is capable of remedy and has not been remedied; or

(f) such Party is subject to any Licence condition and/or Exemption condition by virtue of which it is required to be a Party and/or to comply with the Code or which would otherwise be infringed if such Party withdrew from the Code; or

(g) where such Party is an Interconnector Administrator or an Interconnector Error Administrator, no replacement Interconnector Administrator or Interconnector Error Administrator (as the case may) has been appointed and has agreed to act in its place.

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5.1.4 For the purposes of this paragraph 5, in relation to a Discontinuing Party, the "last" Settlement Day is the final Settlement Day in respect of which any amounts by way of Trading Charges may be payable by or to a Discontinuing Party.

5.1.5 In respect of a Withdrawing Party who is in Default solely by virtue of Section H 3.1.1(g):

(i) the Panel may, in its discretion, determine that paragraph 5.1.3(a), shall not apply in respect of any amount payable by way of the Base Monthly Charge or the Base Virtual Lead Party Monthly Charge accruing after the date of the Withdrawal Notice; and

(ii) paragraph 5.1.3(e) shall not apply.

5.1.6 A Withdrawing Party may satisfy the requirements set out in paragraphs 5.1.3 (a) to (c) by transferring, in accordance with paragraph 5.1.7, to another Party (the "transferee Party"):

(a) its BSC Party ID (the "Transferring BSC Party ID");

(b) all of its outstanding obligations and liabilities (whether actual, contingent, accrued or otherwise) referred to in paragraphs 5.1.3 (a) to (c); and

(c) to the extent applicable, any rights and liabilities (whether actual, contingent, accrued or otherwise) in respect of any Credit Cover deposited in cash by the Withdrawing Party with the BSC Clearer pursuant to Section M.

5.1.7 A Withdrawing Party may request such a transfer in accordance with BSCP65 and, subject to the transferee Party confirming its consent to the transfer, the Panel shall determine, in its absolute discretion, whether such request should be granted. In respect of such determination:

(a) the Panel may request such further information from the Withdrawing Party or the transferee Party as it considers necessary;

(b) a decision of the Panel pursuant to this paragraph 5.1.7 shall be final and binding and there shall be no right of appeal.

5.1.8 In respect of a transfer request approved by the Panel pursuant to paragraph 5.1.7:

(a) such transfer shall take effect from 00:00 on the Withdrawal Date;

(b) the transferee Party hereby irrevocably consents to assume, with effect from the Withdrawal Date of the Withdrawing Party, the BSC Party ID, rights, obligations and liabilities set out in paragraph 5.1.6;

(c) BSCCo and the transferee Party shall promptly take such steps as may be necessary (including any steps required by BSCP65) to ensure that the Transferring BSC Party ID is withdrawn.

5.2 Expulsion

5.2.1 Where a Party may be expelled from the Code pursuant to any provision of the Code, the Panel shall decide (in its absolute discretion) whether or not to expel such Party, subject to the further provisions of this paragraph 5.2.

5.2.2 The Panel shall notify the Authority and each other Party of its intention to expel a Party, at least 28 days before giving an Expulsion Notice to that Party, and shall have regard to any representations made to it by the Authority and/or any other Party in respect thereof.

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5.2.3 Where a Party is subject to a condition of any Licence or Exemption by virtue of which it is required to be a Party and/or to comply with the Code or which would otherwise be infringed if such Party were expelled from the Code, the Panel shall not be entitled to expel such Party without the prior approval of the Authority.

5.2.4 Where the Panel decides (and is entitled in accordance with this paragraph 5.2) to expel a Party, such expulsion shall take effect (and the Party shall cease to be a party to the Framework Agreement) at the time and on the date specified by the Panel in a notice (the "Expulsion Notice") to such Party provided that such date (the "Expulsion Date") shall not be earlier than 28 days after the date of such notice.


5.3.1 Where a Party (the "Discontinuing Party"):

(a) withdraws from the Code and ceases to be a party to the Framework Agreement pursuant to paragraph 5.1;

(b) is expelled from the Code and ceases to be a party to the Framework Agreement pursuant to paragraph 5.2; or

(c) transfers its Accession Agreement and ceases to be a party to the Framework Agreement pursuant to paragraph 2.7

the provisions of this paragraph 5.3 shall apply.

5.3.2 With effect from the Withdrawal Date, Expulsion Date or Novation Date (as the case may be) (the "Discontinuance Date"):

(a) the Discontinuing Party shall, subject to the provisions of paragraph 5.3.3, be automatically released and discharged from all its obligations and liabilities under the Code (including the Code Subsidiary Documents) and the Framework Agreement;

(b) each other Party shall, subject to the provisions of paragraph 5.3.3, be automatically released and discharged from all its obligations and liabilities to the Discontinuing Party under the Code (including the Code Subsidiary Documents) and the Framework Agreement; and

(c) (without prejudice to paragraph 5.1.3(d)) any registrations and authorisations made by the Discontinuing Party under the Code (other than those transferred by a Transferring Party under a Novation Agreement) shall cease to be effective.

5.3.3 Any release and discharge referred to in paragraph 5.3.2 (other than a release and discharge of a Transferring Party or a release and discharge of a Discontinuing Party to the extent that such Discontinuing Party has novated obligations and liabilities to a transferee Party pursuant to paragraph 5.1.6) shall not extend to:

(a) the rights and liabilities (whether actual, contingent, accrued or otherwise) of a Party as at the Discontinuance Date (including, in the case of the expulsion of a Party, any accrued rights of each other Party in respect of the circumstances giving rise to such expulsion);

(b) any rights and liabilities (whether actual, contingent, accrued or otherwise) of a Party which may accrue pursuant to any Reconciliation Settlement Run or Extra Settlement Determination relating to any Settlement Day up to and including the last Settlement Day;

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(c) the obligations of the Discontinuing Party under Section H4.2.

5.3.4 Save as provided in paragraph 5.3.2, the Framework Agreement and Code shall, upon the withdrawal, expulsion or exit by transfer (as the case may be) of any Party, remain in full force and effect and binding on each of the other Parties.

5.3.5 BSCCo shall, where possible before and in any event promptly upon the withdrawal, expulsion or exit by transfer of such Party, notify the same to:

(a) each other Party;

(b) each Panel Member;

(c) the Authority; and

(d) each BSC Agent.

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ANNEX A-1

Form of Accession Agreement

THIS ACCESSION AGREEMENT is made on [ ] between:

(1) [Insert name of person authorised under the BSC to sign the Accession Agreement on behalf of Parties] on its own behalf and on behalf of all the other parties to the BSC Framework Agreement (the "Authorised Person"); and

(2) [Insert name of person wishing to be admitted to the BSC] (the "Party Applicant") whose principal office is at [ ]

WHEREAS:

(A) By the BSC Framework Agreement dated [ ] made between the Original Parties named therein and as now in force between the Parties by virtue of any Accession Agreement entered into by any New Party before the date of this Accession Agreement (the "Framework Agreement"), the Parties agreed to give effect to and be bound by the BSC.

(B) The Party Applicant has complied with the requirements of the BSC as to accession and wishes to be admitted as a Party.

IT IS HEREBY AGREED as follows:

1. In this Accession Agreement, words and expression defined in or for the purposes of the Framework Agreement and not otherwise defined herein shall have the meanings ascribed thereto under the Framework Agreement.

2. The Authorised Person (acting on its own behalf and on behalf of each of the other Parties) hereby admits the Party Applicant as an additional Party under the Framework Agreement with effect from the date of this Accession Agreement on the terms and conditions hereof.

3. The Party Applicant hereby accepts its admission as a Party and undertakes with the Authorised Person (acting on its own behalf and on behalf of each of the other Parties) to perform and to be bound by the Framework Agreement as a Party as from the date hereof.

4. For all purposes in connection with the Framework Agreement the Party Applicant shall as from the date hereof be treated as if it has been a signatory of the Framework Agreement from the date hereof, and as if this Accession Agreement were part of the Framework Agreement from the date hereof, and the rights and obligations of the Parties shall be construed accordingly.

5. This Accession Agreement and the Framework Agreement shall be read and construed as one document and references (in or pursuant to the Framework Agreement) to the Framework Agreement (howsoever expressed) should be read and construed as reference to the Framework Agreement and this Accession Agreement.

6. If any provision of this Accession Agreement is or becomes invalid, unenforceable or illegal or is declared to be invalid, unenforceable or illegal by any court of competent jurisdiction or by any other Competent Authority (as defined in the BSC), such invalidity, unenforceability or illegality shall not prejudice or affect the remaining provisions of this Accession Agreement, which shall continue in full force and effect notwithstanding the same.

7. This Accession Agreement may be executed in counterparts.

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8. This Accession Agreement shall be governed by and construed in accordance with the laws of England and Wales and the parties hereby submit to the jurisdiction of the courts of England and Wales and the courts of Scotland only.

9. If the Party Applicant is not a company incorporated under the Companies Act 1985, as amended, it shall provide to the Authorised Person an address in Great Britain for service of process on its behalf in any proceedings; provided that if the Party Applicant fails at any time to provide such address, the Party Applicant shall be deemed to have appointed BSCCo (as defined in the BSC) as its agent to accept service of process on its behalf until and unless it provides to BSCCo an alternative address in Great Britain for these purposes.

AS WITNESS the hands of the duly authorised representatives of the parties hereto the day and year first above written.

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B – 1 of 29 Effective Date: 24 June 2021

SECTION B: THE PANEL

1. ESTABLISHMENT OF PANEL

1.1 Establishment and composition

1.1.1 There is hereby established a panel which shall be constituted in accordance with the

further provisions of this Section B.

1.1.2 The Panel shall comprise the following members:

(a) the person appointed as chairman of the Panel in accordance with paragraph

2.1;

(b) not more than five persons appointed by Trading Parties in accordance with

paragraph 2.2;

(c) not more than two persons appointed by Citizens Advice or Citizens Advice

Scotland in accordance with paragraph 2.3;

(d) the person appointed by the NETSO in accordance with paragraph 2.4;

(e) not more than two persons appointed by the Panel Chairman in accordance with

paragraph 2.5; and

(f) the person appointed (if the Panel Chairman so decides) by the Panel Chairman

in accordance with paragraph 2.6.

1.1.3 There shall be a secretary to the Panel who shall be a person nominated and provided by

BSCCo and approved by the Panel in accordance with Section C3.2.

1.1.4 In this Section B:

(a) references to a person shall, unless the context otherwise requires, be construed

as references to an individual; and

(b) references to appointing a person as a Panel Member include replacing or

(subject to paragraph 2.7.6) reappointing such person upon his ceasing to hold

office in accordance with paragraph 2.7.4.

1.2 Panel objectives

1.2.1 The Panel shall conduct its business under the Code with a view to achieving the following

objectives:

(a) that the Code is given effect fully and promptly and in accordance with its

terms;

(b) that the Code is given effect in such manner as will facilitate achievement of the

objectives (so far as applicable to the manner in which the Code is given effect)

set out in Condition C3(3)(a) to (c) of the Transmission Licence, namely:

(i) the efficient discharge by the NETSO of the obligations imposed

under the Transmission Licence;

(ii) the efficient, economic and co-ordinated operation by the NETSO of

the Transmission System, and

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(iii) promoting effective competition in the generation and supply of

electricity, and (so far as consistent therewith) promoting such

competition in the sale and purchase (as defined in the Transmission

Licence) of electricity;

(c) that the Code is given effect without undue discrimination between Parties or

classes of Party;

(d) consistent with the full and proper discharge of the functions and

responsibilities of the Panel and BSCCo, that the Code is given effect as

economically and efficiently as is reasonably practicable; and

(e) subject to the express provisions of the Code (including provisions as to

confidentiality and including paragraph 1.2.2) and to any other duties of

confidence owed to third parties, that there is transparency and openness in the

conduct of the business of the Panel and BSCCo.

1.2.2 The objective set out in paragraph 1.2.1(e) applies save to the extent that to apply such

objective would, in the Panel’s opinion, substantially prejudice the interests of all Parties

collectively or of a class of Parties collectively.

1.2.3 Insofar as the Panel Chairman or other individual Panel Members or the Panel Secretary

have functions under the Code which they may or must carry out individually, the

provisions of this paragraph 1.2 shall apply to the Panel Chairman, other individual Panel

Member or Panel Secretary (as the case may be), as if references to the Panel in this

paragraph 1.2 were references to such person, to the extent those provisions are applicable

to such function.

1.2.4 When the Panel is exercising its powers and carrying out its functions and responsibilities

referred to in paragraphs 3.1.2 (i) and (l):

(a) paragraph 1.2 shall not apply; and

(b) in the context of Supplier Volume Allocation, the Panel shall have regard to the

matters set out in Section Z5.1.4.

2. APPOINTMENT OF PANEL MEMBERS

2.1 Appointment of Panel Chairman

2.1.1 The Panel Chairman shall be a person nominated, in consultation with the Board, by the

Panel (which may follow such procedures as it shall determine for the selection of the

person so nominated) and approved by the Authority.

2.1.2 Subject to paragraph 2.1.3, a person shall be appointed as Panel Chairman where the

Authority has given notice to the Panel Secretary of its approval, with effect from the later

of the date specified in such notice and the date on which such notice is given.

2.1.3 A person shall not be appointed as Panel Chairman until and unless that person has entered

into an agreement in writing with BSCCo setting out terms as to his remuneration and

benefits (determined in accordance with paragraph 2.11.3) and any related matters.

2.1.4 A person shall be removed from and shall cease to hold the office of Panel Chairman:

(a) subject to paragraph 2.1.6 and 2.1.7, upon expiry of his term of office; or

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(b) in the circumstances in paragraph 2.7.4(b) or 2.7.4(d).

2.1.5 The Panel Secretary shall send a copy of any notice under paragraph 2.1.2 to all Panel

Members and all Parties promptly upon receiving such notice.

2.1.6 The term of office of the Panel Chairman shall be three years from the date of his

appointment, provided that this shall not prevent a person holding that office from re-

appointment to that office.

2.1.7 If, at the expiry of the term of office or upon the resignation of a person appointed as Panel

Chairman, no other person has been appointed to that office, that person shall (if willing to

do so) continue in office as Panel Chairman until such time as another person is so

appointed.

2.2 Appointment of Panel Members by Trading Parties

2.2.1 Trading Parties may appoint up to five persons as Panel Members by election in

accordance with Annex B-2.

2.3 Appointment of Panel Members by Citizens Advice or Citizens Advice Scotland

2.3.1 Citizens Advice and Citizens Advice Scotland may appoint two persons as Panel Members

(to be determined as between themselves), by giving notice of each such appointment to

the Panel Secretary.

2.4 Appointment of a Panel Member by the NETSO

2.4.1 The NETSO shall appoint a person as a Panel Member, by giving notice of such

appointment to the Panel Secretary.

2.5 Appointment of Panel Members by the Panel Chairman

2.5.1 Subject to the further provisions of this paragraph 2.5, the Panel Chairman shall appoint

two persons as Panel Members, by giving notice of each such appointment to the Panel

Secretary.

2.5.2 A person shall not be appointed as Panel Member under paragraph 2.5.1 unless he satisfies

the requirements as to independence in paragraph 2.5.3, and shall be removed from such

office (by notice given by the Panel Secretary) if at any time the Panel Chairman

determines (after consultation with other Panel Members) that he has ceased to satisfy

those requirements.

2.5.3 The requirements are that:

(a) such person is not, and no Related Person (in relation to such person) is, nor has

such person or any such Related Person been at any time in the period of 1 year

before the proposed appointment:

(i) a Party, or a person which was party to the Pooling and Settlement

Agreement; and/or

(ii) a person who participates in the transmission of electricity,

generates, supplies or distributes electricity in any part of the United

Kingdom under licence or exemption; and/or

(iii) a BSC Agent or a Market Index Data Provider; and

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(b) in the opinion of the Panel Chairman, such person has no other interests which

would conflict with his independence as a Panel Member.

2.5.4 The Panel Chairman will consult with the Panel before appointing any person as Panel

Member pursuant to paragraph 2.5.1.

2.6 Appointment of further industry member

2.6.1 If, at any time at which no person is appointed as Panel Member pursuant to this paragraph

2.6, in the opinion of the Panel Chairman:

(a) there is any class or category (by type of Plant or Apparatus or otherwise) of

person generating or supplying electricity in Great Britain and/or Offshore,

whose members (as such a class or category):

(i) are exempt from the requirement to hold a Licence; and

(ii) have interests in respect of the Code; and

(b) those interests:

(i) are not reflected in the composition of Panel Members for the time

being appointed, but

(ii) would be so reflected if a particular person were appointed as an

additional Panel Member

then the Panel Chairman may appoint that person as a Panel Member by giving notice of

such appointment to the Panel Secretary.


(a) the Panel Chairman has decided not to appoint an additional Panel Member

pursuant to paragraph 2.6.1, but

(b) in his opinion, there are Trading Parties of a particular class and/or participation

capacity, whose interests are not reflected in the composition of Panel Members

for the time being appointed, but would be so reflected if a particular person

were appointed as an additional Panel Member

then the Panel Chairman may appoint that person as a Panel Member by giving notice of

such appointment to the Panel Secretary.

2.6.3 Nothing in paragraphs 2.6.1 and 2.6.2 shall require the Panel Chairman to exercise his

power to appoint another Panel Member, nor constrain or limit his discretion in doing so if

in his opinion there is more than one class or category of person satisfying the conditions in

paragraph 2.6.1.

2.6.4 The Panel Chairman may consult as he sees fit before appointing a person as a Panel

Member pursuant to this paragraph 2.6.

2.6.5 A person appointed as a Panel Member pursuant to this paragraph 2.6 shall remain so

appointed, subject to paragraph 2.7, notwithstanding that the conditions (in paragraph 2.6.1

or 2.6.2) by virtue of which he was appointed may cease to be satisfied.

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2.7 Term of office, and removal from office, of Panel Members

2.7.1 Subject to paragraph 2.8.2, a person appointed or re-appointed by a notice under paragraph

2.3, 2.4, 2.5 or 2.6 shall be appointed as a Panel Member with effect from:

(i) the day following the next retirement day (as defined in paragraph 2.7.3), or

(ii) if earlier, the date with effect from which an existing relevant Panel Member

ceases to hold office pursuant to paragraph 2.7.4(b), (c) or (d), or

(iii) where at the time at which the notice is given the office of a relevant Panel

Member is vacant, the later of the date specified in the notice and the date when

the notice is given;

for the purposes of which a "relevant" Panel Member is a Panel Member appointed under

paragraph 2.3, 2.4, 2.5 or 2.6 respectively.

2.7.2 A person elected pursuant to Annex B-2 shall be appointed as a Panel Member with effect

from:

(a) in a case in paragraph 1.1.2(a) of that Annex, 1st October in the election year;

(b) in a case in paragraph 1.1.2(b) of that Annex, the date of BSCCo’s

announcement under paragraph 4 thereof.

2.7.3 The term of office of a Panel Member (other than the Panel Chairman) shall be a period

expiring on the next retirement day (a "retirement day" being 30th September in every

second year following the year 2000) following his appointment; provided that a Panel

Member whose term of office has expired or is to expire shall be eligible for re-

appointment.

2.7.4 A person shall cease to hold office as a Panel Member:

(a) upon expiry of his term of office, unless he is re-appointed;

(b) if:

(i) he resigns his office by notice delivered to the Panel Secretary;

(ii) he becomes bankrupt or makes any arrangement or composition with

his creditors generally;

(iii) he is or may be suffering from mental disorder and either he is

admitted to hospital in pursuance of an application under the Mental

Health Act 1983 or an order is made by a court having jurisdiction in

matters concerning mental disorder for his detention or for the

appointment of a receiver, curator bonis or other person with respect

to his property or affairs;

(iv) he becomes prohibited by law from being a director of a company

under the Companies Act 2006;

(v) he dies;

(vi) he is convicted of an indictable offence;

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(c) if he is removed from office in accordance with any provision of this paragraph

2; or

(d) if the Panel resolves (and the Authority does not veto such resolution by notice

in writing to the Panel Secretary) that he should cease to hold office on grounds

of his serious misconduct.

2.7.5 A Panel resolution under paragraph 2.7.4(d) shall, notwithstanding paragraphs 4.3.2 and

4.4.3, require the vote in favour of at least all Panel Members (other than the Panel

Member who is the subject of such resolution) less one Panel Member and, for these

purposes, an abstention shall count as a vote cast in favour of the resolution.

2.7.6 A person shall not qualify for appointment as a Panel Member if at the time of the

proposed appointment he would be required by paragraph 2.7.4(b) to cease to hold that

office.

2.7.7 The Panel Secretary shall give prompt notice to all Panel Members, all Parties and the

Authority of the appointment or re-appointment of any Panel Member or of any Panel

Member ceasing to hold office.

2.8 Duties of Panel Members

2.8.1 A person appointed as Panel Member, when acting in that capacity:

(a) shall act impartially and in accordance with paragraph 1.2.1; and

(b) shall not be representative of, and shall act without undue regard to the

particular interests of:

(i) the body or person or persons by whom he was appointed as Panel

Member; and

(ii) any Related Person from time to time.

2.8.2 A person shall not be appointed as a Panel Member unless he shall have first:

(a) confirmed in writing to BSCCo for the benefit of all Parties that he agrees to act

as a Panel Member in accordance with the Code and acknowledges the

requirements of paragraphs 2.8.1 and 2.8.3; and

(b) where that person is employed, provided to the Panel Secretary a letter from his

employer agreeing that he may act as Panel Member, and that the requirement

in paragraph 2.8.1(b) shall prevail over his duties as an employee.

2.8.3 A Panel Member shall, at the time of appointment and upon any change in such interests,

disclose (in writing) to the Panel Secretary any such interests (in relation to the Code) as

are referred to in paragraph 2.8.1(b).

2.8.4 Upon a change in employment of a Panel Member, he shall so notify the Panel Secretary

and shall endeavour to obtain from his new employer and provide to the Panel Secretary a

letter in the terms required in paragraph 2.8.2(b); and he shall be removed from office if he

does not do so within a period of 60 days after such change in employment.

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2.9 Indemnity of and protections for Panel Members and others

2.9.1 BSCCo shall indemnify and keep indemnified each of the persons referred to in paragraph

2.9.2 (each such person an "indemnity beneficiary") in respect of all costs (including legal

costs), expenses, damages and other liabilities properly incurred or suffered by such person

when acting in or in connection with his office under the Code, or in what he in good faith

believes to be the proper exercise and discharge of the powers, duties, functions and

discretions of that office in accordance with the Code, and all claims, demands and

proceedings in connection therewith, other than:

(a) any such costs or expenses in respect of which such person is reimbursed

pursuant to paragraph 2.11;

(b) any such costs, expenses, damages or other liabilities incurred or suffered as a

result of the wilful default or bad faith of such person.

2.9.2 The persons referred to in paragraph 2.9.1 are each Panel Member, the Panel Secretary, any

member of any Panel Committee, the secretary of any Panel Committee, the Modification

Secretary and each member of a Workgroup, together with their alternates (where such

alternates are permitted to be appointed and are appointed in accordance with the Code).

2.9.3 BSCCo shall enter into and deliver to each Panel Member and, on request, each other

indemnity beneficiary a deed of indemnity in the terms in paragraph 2.9.1.

2.9.4 The Parties agree that no indemnity beneficiary shall be liable for anything done when

acting properly in or in connection with his office under the Code, or anything done in

what he in good faith believes to be the proper exercise and discharge of the powers, duties,

functions and discretions of that office in accordance with the Code; and each Party hereby

irrevocably and unconditionally waives any such liability of any indemnity beneficiary, and

any rights, remedies and claims against any indemnity beneficiary in respect thereof.

2.9.5 BSCCo acknowledges and agrees that it holds the benefit of paragraph 2.9.4 as trustee and

agent for each indemnity beneficiary.

2.9.6 Without prejudice to paragraph 2.9.1, nothing in paragraph 2.9.4 shall exclude or limit the

liability of an indemnity beneficiary for death or personal injury resulting from the

negligence of such indemnity beneficiary.

2.10 Alternates

2.10.1 It is expected that Panel Members will make themselves available to conduct the business

of the Panel; but where the Panel Chairman (on the application of the Panel Member)

accepts that particular circumstances warrant such appointment, a Panel Member (other

than the Panel Chairman) may, subject to paragraph 2.10.2, appoint a person (whether or

not a Panel Member) to be his alternate (provided the person to be appointed has not

already been appointed by another Panel Member), and may remove a person so appointed

as alternate, by giving notice of such appointment or removal to the Panel Secretary.

2.10.2 Paragraph 2.8.2 shall apply in respect of the appointment of an alternate as though

references in that paragraph to a Panel Member were to such alternate.

2.10.3 In the case of an alternate appointed by a Panel Member who is appointed under paragraph

2.5, the provisions of paragraphs 2.5.2 and 2.5.3 shall apply to such alternate as though

references in those paragraphs to a Panel Member were to such alternate.

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2.10.4 The appointment or removal by a Panel Member of an alternate shall be effective with

effect from the later of the time specified in such notice and the time when such notice is

given.

2.10.5 The Panel Secretary shall promptly notify all Panel Members of the appointment or

removal by any Panel Member of any alternate.

2.10.6 Where a Panel Member has appointed an alternate:

(a) the alternate shall be entitled:

(i) unless the appointing Panel Member shall otherwise notify the Panel

Secretary, to receive notices of meetings of the Panel;

(ii) to attend, speak and vote at any meeting of the Panel at which the

Panel Member by whom he was appointed is not present, and at such

meeting to exercise and discharge all of the functions, duties and

powers of such Panel Member;

(b) the alternate shall cast one vote for the Panel Member by whom he was

appointed, in addition (where he is a Panel Member himself) to his own vote;

(c) the provisions of paragraph 4 shall apply as if he were a Panel Member in

relation to any meeting at which he attends;

(d) the alternate shall only stand as an appointed alternate for one Panel Member at

a given meeting for which he was appointed as an alternate.

2.10.7 A person appointed as alternate shall automatically cease to be an alternate:

(a) if the appointing Panel Member ceases to be a Panel Member;

(b) if any of the circumstances in paragraph 2.7.4(b) applies in relation to such

person;

(c) if the Panel resolves, in accordance with the provisions mutatis mutandis of

paragraph 2.7.4(d), that such person should cease to be an alternate.

2.10.8 A reference in the Code to a Panel Member shall, unless the context otherwise requires,

include his duly appointed alternate.

2.11 Expenses, remuneration and facilities

2.11.1 Each Panel Member shall be entitled to be reimbursed by BSCCo for the reasonable costs

and expenses (including travel and accommodation costs) properly incurred by such Panel

Member in attending meetings of or otherwise in the conduct of the business of the Panel.

2.11.2 Where so agreed by the Panel, any member of a Panel Committee who is not employed or

engaged by BSCCo shall be entitled to be reimbursed by BSCCo for the reasonable costs

and expenses (including travel and accommodation costs) properly incurred by such person

in attending meetings of or otherwise in the conduct of the business of such Panel

Committee.

2.11.3 In addition to reimbursement under paragraph 2.11.1, the Panel Chairman shall be entitled

to be paid by BSCCo such remuneration and benefits as may be or have been determined

the Panel (excluding the Panel Chairman himself).

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2.11.4 In addition to reimbursement under paragraph 2.11.1, any Panel Member appointed under

paragraph 2.5 shall be entitled to be paid by BSCCo such remuneration and benefits as may

be determined by the Panel Chairman after consultation with the Panel.

2.11.5 Any remuneration or benefits awarded to the Panel Chairman under paragraph 2.11.3 or to

a Panel Member under paragraph 2.11.4 shall be disclosed in the Annual BSC Report.

2.11.6 Except as provided in paragraphs 2.11.2, 2.11.3 and 2.11.4, no Panel Member shall be

entitled under the Code to be paid any remuneration or benefits other than his costs and

expenses in accordance with paragraph 2.11.1.

2.11.7 The Panel Secretary and the Modification Secretary shall not be entitled to remuneration in

those capacities respectively, but without prejudice to the terms on which the Panel

Secretary and the Modification Secretary are employed or procured by BSCCo.

2.11.8 Where the Panel Chairman and the BSCCo Chairman are the same person, the Panel and

the Board may (but shall not be required to) agree joint arrangements for the remuneration

of that person.

2.12 Representative of Authority

2.12.1 A representative of the Authority shall be entitled to attend and speak at any meeting of the

Panel, and to receive notice of any such meeting, but such representative shall not be

entitled to vote at such meetings and shall not be a Panel Member.

2.13 Representative of Distribution System Operators

2.13.1 A person appointed (in accordance with paragraph 2.13.2) by a distribution-representative

body shall be entitled to attend and speak at any meeting of the Panel, and to receive notice

of any such meeting, but such person shall not be entitled to vote at such meetings and shall

not be a Panel Member.

2.13.2 A person shall be appointed or removed for the purposes of paragraph 2.13.1, where the

Panel Secretary has received notice of such appointment or removal from such distribution-

representative body, with effect from the later of the date of such appointment or removal

specified in such notice and the date on which such notice is given, provided (in the case of

an appointment) that no other person is or remains so appointed at such date.

2.13.3 For the purposes of this paragraph 2.13, a distribution-representative body is a body

approved (for such purposes) by the Authority as representing the interests of Distribution

System Operators collectively.

2.14 Chief Executive of BSCCo

2.14.1 The Chief Executive of BSCCo shall be entitled to (and, if requested to do so by the Panel

Chairman, shall be required to) attend and speak at any meeting of the Panel, and to receive

notice of any such meeting, but shall not be entitled to vote at such meetings and shall not

be a Panel Member.

2.15 Deputy Panel Chairman

2.15.1 The Panel Chairman may after consulting with the Authority appoint to act as Deputy

Panel Chairman one of the Panel Members appointed under paragraph 2.5.

2.15.2 A person appointed as Deputy Panel Chairman shall (if present) act as Panel Chairman of

any meeting of the Panel at which the Panel Chairman is not present, and subject to

paragraph 2.15.3 may at such a meeting (and if the Panel Chairman so decides, in other

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circumstances in which the Panel Chairman is not available to do so) exercise such of the

powers and functions of the Panel Chairman as the Panel Chairman may from time to time

(by notice to all Panel Members) determine.

2.15.3 The Deputy Panel Chairman shall not exercise the power:

(a) to appoint Panel Members under paragraph 2.5 or 2.6; or

(b) to determine the remuneration of Panel Members under paragraph 2.11.4.

3. POWERS AND FUNCTIONS OF PANEL, ETC

3.1 General

3.1.1 The Panel shall have the powers, functions and responsibilities provided in the Code and

any Code Subsidiary Document.

3.1.2 Without prejudice to paragraph 3.1.1, the powers, functions and responsibilities of the

Panel shall include the following:

(a) deciding (subject to a reference to or approval of the Authority, as provided in

the Code) on the expulsion or suspension of the rights of any Party pursuant to

and in accordance with Section H3.2;

(b) implementing or supervising the implementation of the procedures for

modification of the Code in Section F;

(c) establishing arrangements for the resolution of Trading Disputes in accordance

with Section W;

(d) determining values for parameters (to be applied in the Code) as may be

required of the Panel in accordance with any provision of the Code;

(e) adopting and from time to time revising Code Subsidiary Documents in

accordance with Section F3;

(f) taking steps to ensure that the Code is given effect in accordance with its terms,

and (but only where expressly so provided in the Code) taking steps to ensure

compliance by Parties with the provisions of the Code;

(g) providing or arranging for the provision of reports and other information to the

Authority in accordance with the further provisions of the Code;

(h) not used;

(i) deciding matters which (pursuant to any provision of the Code providing for

such referral) are referred to it following any decision or determination of

BSCCo or a BSC Agent;

(j) setting the terms of reference for the BSC Auditor under Section H5 and

considering the BSC Audit Report;

(k) if requested by the Authority, conveying any direction or request of the

Authority to any Party, BSCCo, the BSC Auditor or any BSC Agent;

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(l) preparing, considering, recommending changes (if necessary) and approving

documents relating to performance assurance in accordance with Section Z and

hearing and determining any Risk Management Determination Appeals; and

(m) approving or rejecting applications for transfer of a Party’s Accession

Agreement and BSC Party ID in accordance with Section A;

(n) implementing or supervising the implementation of the procedures for BSC

Sandbox Applications and monitoring BSC Derogations in accordance with

Section H10; and

(o) providing to the Smart Energy Code Panel such information, support and

assistance as it may reasonably request for the purposes of exercising its

function of making a determination under either Section L3.29 or Section

L.3.30 of the Smart Energy Code, and providing to the Authority such

information, support and assistance as it may reasonably request for the

purposes of exercising its function of deciding any appeal brought under

Section L3.33 of the Smart Energy Code.

3.1.2A Without prejudice to paragraph 3.1.1 and 3.1.2, the Panel may establish arrangements for

resolving disputes pursuant to regulation 14(7) of the Warm Home Discount

(Reconciliation) Regulations 2011 and regulations 14(1) to 14(5) shall apply to such

arrangements with the modifications that references to an appeal shall be treated as

references to a dispute and references to the Secretary of State shall be treated as references

to the person appointed to resolve the dispute.

3.1.2B Where the Panel establishes a Panel Committee to resolve disputes pursuant to regulation

14(7) of the Warm Home Discount (Reconciliation) Regulations 2011 the provisions of

paragraph 5 shall apply to the Panel Committee save for the application of paragraph 1.2

and for the purposes of paragraph 5.5 a decision of such a Panel Committee shall be

binding on all Parties.

3.1.3 The Panel may do anything necessary for or reasonably incidental to the discharge of the

functions and responsibilities assigned to it in the Code.

3.2 Particular powers

3.2.1 Without prejudice to paragraphs 3.1.1 and 3.1.2, the Panel shall have the power:

(a) to decide any matter which, under any provision of the Code, is or may be

referred to the Panel for decision;

(b) to establish Panel Committees in accordance with paragraph 5, and (subject to

paragraph 5) to delegate any of the Panel's powers, functions and

responsibilities to any such Panel Committee.

3.3 Provisions relating to data

3.3.1 The Panel (and, unless otherwise provided in its terms of reference, any Panel Committee)

may use and disclose such data as it sees fit, whether provided by or on behalf of Parties or

otherwise obtained under the Code, for the purposes of discharging its functions and duties

under the Code in accordance with the provisions of paragraph 1.2, but only for those

purposes, and subject to paragraph 3.3.3.

3.3.2 Not used.

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3.3.3 Where the Panel is intending (pursuant to paragraph 3.3.1) to disclose data obtained under

the Code, the provisions of Section H11 shall apply and accordingly:

(a) the Panel shall instruct BSCCo to perform the steps set out in Section H11 and:

(b) the provisions of SectionH11 shall apply mutais mutandis (as if references to

the BCB were references to the Panel).

3.3.4 Not used.

3.3.5 Not used.

3.3.6 Not used.

3.3.7 The provisions of paragraphs 3.3.3 and 3.3.9 shall not apply to the disclosure of data:

(a) to the Authority, BSCCo, any Panel Committee or (to the extent necessary for

the purposes of the Code) any BSC Agent; or

(b) where the data is in the public domain; or

(c) where the Panel is required or permitted to disclose such data in compliance

with any Legal Requirement; or

(d) where the disclosure of such data is expressly required under the Code.

3.3.8 In relation to any matter falling within the remit of the Performance Assurance Board or

the Trading Disputes Committee, no data relating to the affairs of a Party and/or a

Qualified Person which might reasonably be considered to be commercially sensitive shall

be disclosed save as:

(a) expressly provided by the Code; or

(b) necessary to perform the functions and duties of the Performance Assurance

Board or the Trading Disputes Committee respectively in accordance with the

Code; or

(c) agreed by that Party or Qualified Person; or

(d) has been assessed and disclosed in accordance with the procedures and criteria

set out in Section H11 with such mitigation options having been implemented

as may be appropriate having regard to the sensitivity of the data.

3.3.9 In relation to the release Trading Data which, for the purposes of Section V, may only be

provided to a "Relevant" Party (as defined in Section V), such data may only be released in

a form in which it cannot reasonably be identified as relating to that Party.

3.4 Performance Assurance Board

3.4.1 The Panel shall establish a Panel Committee to act as the Performance Assurance Board

and the provisions of Section Z shall apply.

3.5 Claims Committee

3.5.1 The Panel may establish a Panel Committee or Committees to be called the "Claims

Committee(s)", from time to time, in accordance with paragraph 5 to determine

applications for compensation made pursuant to Sections G3 and G5.

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4. PROCEEDINGS OF PANEL

4.1 Meetings

4.1.1 Meetings of the Panel shall be held at regular intervals and (subject to paragraph 4.1.2) at

least every month at such time and such place as the Panel shall decide.

4.1.2 A regular meeting of the Panel may be cancelled if:

(a) the Panel Chairman determines that there is no business for the Panel to

conduct, and requests the Panel Secretary to cancel the meeting;

(b) the Panel Secretary notifies all Panel Members, not less than 5 days before the

date for which the meeting is or is to be convened, of the proposal to cancel the

meeting, and

(c) by the time 3 days before the date for which the meeting is or is to be convened,

no Panel Member has notified the Panel Secretary that he objects to such

cancellation.

4.1.3 At the request of the Panel Chairman or Modification Secretary, the Panel Secretary will

convene a meeting of the Panel, before the next regular meeting, in order to transact any

Modification Business.

4.1.4 If (at the request of any Panel Member or otherwise) the Panel Chairman wishes to hold a

special meeting (in addition to regular meetings under paragraph 4.1.1 and any meeting

under paragraph 4.1.3) of the Panel:

(a) he shall request the Panel Secretary to convene such a meeting and inform the

Panel Secretary of the matters to be discussed at the meeting;

(b) the Panel Secretary shall promptly convene the special meeting for a day as

soon as practicable but not less than five days after such request.

4.1.5 Any meeting of the Panel shall be convened by the Panel Secretary by notice to each Panel

Member:

(a) setting out the date, time and place of the meeting and (unless the Panel has

otherwise decided) given at least 5 days before the date of the meeting, and

(b) accompanied by an agenda of the matters for consideration at the meeting and

any supporting papers available to the Panel Secretary at the time the notice is

given (and the Panel Secretary shall circulate to Panel Members any late papers

as and when they are received by him).

4.1.6 Subject to paragraph 4.1.13, the Panel Secretary shall send a copy of the notice convening a

meeting of the Panel, and the agenda and papers accompanying the notice (and any late

papers), to the following persons, at the same time at which the notice is given to Panel

Members:

(a) the Authority or his appointed representative;

(b) each Party;

(c) any alternate of any Panel Member entitled to receive the same pursuant to

paragraph 2.10.6(a)(i);

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(d) any person appointed by a distribution-representative body in accordance with

paragraph 2.13;

(e) any other person entitled to receive the same pursuant to any provision of the

Code.

4.1.7 Where the Panel Secretary considers that any BSC Agent or Market Index Data Provider is

or may be required to attend a meeting of the Panel, the Panel Secretary shall send to that

BSC Agent or Market Index Data Provider a copy of the notice convening the meeting, and

such part of the agenda and such accompanying papers as in the Panel Secretary’s opinion

concern that BSC Agent or Market Index Data Provider, at the same time at which the

notice is given to Panel Members; provided that nothing herein creates any entitlement of

any BSC Agent or Market Index Data Provider to receive such notice or papers or to attend

such meeting.

4.1.8 Any Panel Member may notify matters for consideration at a meeting of the Panel, in

addition to those notified by the Panel Secretary under paragraph 4.1.5, by notice to all

Panel Members and persons entitled to receive notice under paragraph 4.1.6, not less than 3

days before the date of the meeting.

4.1.9 The proceedings of a meeting of the Panel shall not be invalidated by the accidental

omission to give or send notice of the meeting or a copy thereof or any of the

accompanying agenda or papers to, or any failure to receive the same by, any person

entitled to receive such notice, copy, agenda or paper.

4.1.10 With the consent of all Panel Members (whether obtained before, at or after any such

meeting) the requirements of this paragraph 4.1 as to the manner in and notice on which a

meeting of the Panel is convened may be waived or modified; provided that no meeting of

the Panel shall be held unless notice of the meeting and its agenda has been sent to the

persons entitled to receive the same under paragraph 4.1.6 at least 24 hours before the time

of the meeting.

4.1.11 Subject to paragraph 4.1.12, no matter shall be resolved at a meeting of the Panel unless

such matter was contained in the agenda accompanying the Panel Secretary's notice under

paragraph 4.1.5 or was notified in accordance with paragraph 4.1.8.

4.1.12 Where:

(a) any other matter (not contained in the agenda or so notified) is put before a

meeting of the Panel, and

(b) in the opinion of the Panel it is necessary (in view of the urgency of the matter)

that the Panel resolve upon such matter at the meeting

the Panel may so resolve upon such matter, and the Panel shall also determine at such

meeting whether the decision of the Panel in relation to such matter should stand until the

next following meeting of the Panel, in which case (at such next following meeting) the

decision shall be reviewed and confirmed or (but not with effect earlier than that meeting,

and only so far as the consequences of such revocation do not make implementation of the

Code or compliance by Parties with it impracticable) revoked.

4.1.13 If the Panel Secretary considers that it may not be appropriate (having regard to the

principles set out in paragraph 3.3) for the agenda for any meeting of the Panel or any

accompanying paper to be sent to any class of person (not including the Authority nor any

alternate of a Panel Member) under paragraph 4.1.6 or to be made available to third parties

on request as provided in Section H4.9:

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(a) such agenda or paper shall not be sent to persons of such class or made

available, on request, to third parties at the time at which it is sent to Panel

Members;

(b) the Panel shall consider at the meeting whether it is appropriate (having regard

to the principles set out in paragraph 3.3) for such agenda or paper so to be sent

or made available;

(c) unless the Panel decides that it is not appropriate, such agenda or paper shall be

sent to persons of such class or (as the case may be) made available to third

parties on request promptly following the meeting.

4.2 Proceedings at meetings

4.2.1 Subject as expressly provided in the Code, the Panel may regulate the conduct of and

adjourn and reconvene its meetings as it sees fit.

4.2.2 Subject to paragraphs 4.2.3 and 4.2.4, the Panel Chairman shall preside as chairman of

every meeting of the Panel.

4.2.3 If the Panel Chairman is unable to attend a meeting:

(a) the Deputy Panel Chairman (if appointed) shall act as chairman of the meeting;

(b) if the Deputy Panel Chairman is unable to attend the meeting or no Deputy

Panel Chairman is appointed, the Panel Chairman shall nominate another Panel

Member to act as chairman of the meeting in his place.

4.2.4 If the Panel Chairman or Deputy Panel Chairman or a nominee under paragraph 4.2.3 is not

present within 30 minutes after the time for which a Panel Meeting has been convened (and

provided the Panel Chairman or Deputy Panel Chairman or nominee, as the case may be,

has not notified the Panel Secretary that he has been delayed and is expected to arrive

within a reasonable time), the Panel Members present may appoint one of their number to

be chairman of the meeting.

4.2.5 As soon as practicable after each meeting of the Panel, the Panel Secretary shall prepare

and send to Panel Members the minutes of such meeting, which shall be approved (or

amended and approved) at the next meeting of the Panel after they were so sent, and when

approved the minutes (excluding any matter which the Panel decided was not appropriate

for such publication, having regard to the principles set out in paragraph 3.3) shall be

placed on the BSC Website.

4.3 Quorum

4.3.1 No business shall be transacted at any meeting of the Panel unless a quorum is in

attendance at the meeting.

4.3.2 Subject to paragraph 4.3.3, a quorum shall be such number of Panel Members or alternates

in attendance (in person or via telephone conference call or other similar means) as

constitutes more than 50% of all Panel Members.

4.3.3 If within 30 minutes after the time for which a Panel meeting has been convened a quorum

is not present (and provided the Panel Secretary has not been notified by Panel Members

that they have been delayed and are expected to arrive within a reasonable time):

(a) the meeting shall be adjourned to the same day in the following week at the

same time;

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(b) the Panel Secretary shall give notice of the adjourned meeting as far as

practicable in accordance with paragraph 4.1.5, 4.1.6 and 4.1.7;

(c) at the adjourned meeting, if there is not a quorum present within 30 minutes

after the time for which the meeting was convened, those present shall be a

quorum.

4.4 Voting

4.4.1 At any meeting of the Panel any matter to be decided shall be put to a vote of Panel

Members upon the request of the chairman of the meeting or of any Panel Member.

4.4.2 Subject to paragraphs 2.10.6(b), 4.4.4 and 4.4.5, in deciding any matter at any meeting of

the Panel each Panel Member shall cast one vote.

4.4.3 Except as otherwise expressly provided in the Code, any matter to be decided at any

meeting of the Panel shall be decided by simple majority of the votes cast at the meeting

(and an abstention shall not be counted as a cast vote).

4.4.4 The Panel Chairman shall not cast a vote as a Panel Member but shall have a casting vote

on any matter where votes are otherwise cast equally in favour of and against the relevant

motion; provided that where any person other than the Panel Chairman is chairman of a

Panel meeting he shall not have a casting vote.

4.4.5 The Panel Member appointed by the NETSO shall not cast a vote in relation to any

decision to be taken pursuant to Section F in relation to any Modification Proposal.

4.4.6 A resolution in writing signed by or on behalf of all of the Panel Members entitled to vote

in respect of the matter the subject of the resolution shall be valid and effectual as if it had

been passed at a duly convened and quorate meeting of the Panel; and such a resolution

may consist of several instruments in like form each signed by or on behalf of one or more

Panel Members.

4.4.7 Where the Panel Chairman considers it appropriate a meeting of the Panel may be validly

held by telephone conference call (or other similar means) where all the Panel members

present at such meeting can speak to and hear each other; and any decision taken at such

meeting shall be validly taken provided that:

(a) the provisions of this paragraph 4 have otherwise been complied with; and

(b) Not used

4.5 Attendance by other persons

4.5.1 Subject to paragraph 4.5.2, any meeting of the Panel or of any Panel Committee shall be

open to attendance by a representative of any Party and any other person entitled to receive

notice of Panel Meetings under paragraph 4.1.6; and any person so attending such a

meeting may speak if invited to do so by the chairman of the meeting, but shall not vote at

the meeting.


(a) to meetings of the Trading Disputes Committee or those meetings of the

Performance Assurance Board as stated in Section Z, or to any meeting or part

of a meeting of the Panel at which a matter referred and/or appealed to the Panel

pursuant to Section W3.5.1 and/or Section Z6.3 (respectively) is to be

considered; and

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(b) to any other meeting or part of a meeting of the Panel or a Panel Committee at

which any particular matter (not including any Modification Business, but

without prejudice to paragraph 4.6.1(e)) is to be considered, where the chairman

of the meeting considers that it is not appropriate (having regard to the

principles set out in paragraph 3.3, or on the grounds of commercial sensitivity

in relation to any person which is not a Party) for such matter to be considered

in open session;

4.5.3 The chairman of a meeting of the Panel or Panel Committee may invite any person to

attend all or any part of the meeting, and may invite any person attending the meeting to

speak at the meeting.

4.6 Urgent Modification Proposals

4.6.1 Notwithstanding anything to the contrary in the preceding provisions of this paragraph 4, in

relation to any Modification Business involving an Urgent Modification Proposal (or a

Modification Proposal which the Proposer or BSCCo and/or the NETSO recommend

should be treated as an Urgent Modification Proposal):

(a) the Panel Chairman shall determine the time by which, in his opinion, a

decision of the Panel is required in relation to such matter, having regard to the

degree of urgency in all the circumstances, and references in this paragraph 4.6

to the 'time available' shall mean the time available, based on any such

determination of the Panel Chairman;

(b) the Panel Secretary shall, at the request of the Panel Chairman, convene a

meeting or meetings (including meetings by telephone conference call, where

appropriate) of the Panel in such manner and on such notice as the Panel

Chairman considers appropriate, and such that, where practicable within the

time available, as many Panel Members as possible may attend;

(c) each Panel Member shall be deemed to have consented, for the purposes of

paragraph 4.1.10, to the convening of such meeting(s) in the manner and on the

notice determined by the Panel Chairman;

(d) paragraph 4.1.11 shall not apply to any such Modification Business;

(e) any such meeting of the Panel may be in closed session if the Panel Chairman

considers that it is not reasonably practicable or appropriate in all the

circumstances to hold such meetings in open session;

(f) where:

(i) it becomes apparent, in seeking to convene a Panel meeting within

the time available, that a quorum will not be present; or

(ii) it transpires that the Panel meeting is not quorate and it is not

possible to rearrange such meeting within the time available,

the Panel Chairman shall endeavour to contact each Panel Member individually

in order to ascertain such Panel Member's vote, and (subject to paragraph (g))

any matter to be decided shall be decided by a majority of those Panel Members

who so cast a vote;

(g) where the Panel Chairman is unable to contact at least 4 Panel Members within

the time available, the Panel Chairman may decide the matter (in consultation

with the NETSO and with those Panel Members (if any) which he managed to

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contact) provided that the Panel Chairman shall include details in the relevant

Modification Report of the steps which he took to contact other Panel Members

first.

4.6.2 The measures to be undertaken by the Panel Chairman under paragraph 4.6.1 shall be

undertaken by the Deputy Panel Chairman in the absence of the Panel Chairman, and in the

absence of both of them by a Panel Member nominated for the purpose by the Panel

Chairman after consultation with the Authority.

4.7 Urgent Panel Meetings

4.7.1 Notwithstanding anything to the contrary in the preceding provisions of this paragraph 4, if

any matter (not being Modification Business) arises which, in the Panel Chairman’s

opinion is of a sufficiently urgent nature as to require a decision of the Panel earlier than

may be possible under paragraph 4.1.10:

(a) the Panel Chairman shall determine the time by which, in his opinion, a

decision of the Panel is required in relation to such matter, having regard to the

degree of urgency in all the circumstances, and references in this paragraph 4.7

to the 'time available' shall mean the time available, based on any such

determination of the Panel Chairman;

(b) the Panel Secretary shall, at the request of the Panel Chairman, convene a

meeting or meetings (including meetings by telephone conference call, where

appropriate) of the Panel in such manner and on such notice (but in any event

not less than 1 hours notice) as the Panel Chairman considers appropriate, and

such that, where practicable within the time available, as many Panel Members

as possible may attend;

(c) each Panel Member shall be deemed to have consented, for the purposes of

paragraph 4.1.10, to the convening of such meeting(s) in the manner and on the

notice determined by the Panel Chairman.

5. PANEL COMMITTEES

5.1 Establishment

5.1.1 Subject to paragraph 5.1.4, the Panel may establish committees for the purposes of doing or

assisting the Panel in doing anything to be done by the Panel pursuant to the Code, and

may decide that any such committee (other than one whose establishment is expressly

provided for in the Code) shall cease to be established.

5.1.2 A Panel Committee may be established on a standing basis or for a fixed period or a finite

purpose or otherwise as expressly provided by the Code.

5.1.3 Subject to paragraph 5.1.6, the Panel may delegate to any Panel Committee any of the

powers, responsibilities and functions of the Panel.

5.1.4 A Panel Committee shall not further delegate to any person any of its powers,

responsibilities and functions unless the Code or the Panel expressly permits such

delegation, and then only to the extent so permitted.

5.1.5 The Panel shall establish a Trading Disputes Committee in accordance with Section W; and

the provisions of Section W as to the Trading Disputes Committee shall prevail over, so far

as in conflict or inconsistent with, those of this paragraph 5.

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5.1.6 The Panel may not establish Panel Committees for the purpose of the discharge of the

functions of the Panel under Section F in relation to Code Modifications (but without

prejudice to the provisions of that Section as to Workgroups), and the provisions of this

paragraph 5 shall not apply in relation to those functions.

5.1.7 The Panel shall establish a Panel Committee to act as the Balancing Mechanism Reporting

Service Change Board (the "BCB") in respect of which the provisions of this paragraph 5

shall apply except that, in relation to the BCB’s functions and duties in relation to BSC

Data, the provisions of Section H11 shall apply.

5.2 Membership

5.2.1 Any Panel Committee shall be composed of such persons of suitable experience and

qualifications as the Panel shall decide (having regard to its duties under paragraph 1.2)

and as shall be willing to serve thereon.

5.2.2 The members of a Panel Committee may include inter alia any Panel Member, an

employee or other nominee of any Party, and any employee of BSCCo.

5.2.3 It is expected that each Party shall, to a reasonable level, make available suitably qualified

personnel to act as members from time to time of Panel Committees.

5.2.4 The Authority shall be entitled to receive notice of, and to appoint one or more

representatives to attend and speak, but not to vote, at any meeting of any Panel

Committee.

5.3 Duties and terms of reference of Panel Committees

5.3.1 Paragraph 1.2 shall apply in relation to any Panel Committee as it applies in relation to the

Panel, and paragraph 2.8.1 shall apply in relation to each member of any Panel Committee;

and the Panel may (but shall not be required to) obtain confirmation from any member of a

Panel Committee and/or the employer of any such member in terms equivalent to those

required by paragraph 2.8.2(a) and (b) respectively.

5.3.2 The Panel shall provide written terms of reference to each Panel Committee and may

modify such terms of reference as the Panel shall determine (unless such terms of reference

are prescribed in the Code).

5.4 Proceedings of Panel Committees

5.4.1 The Panel may prescribe the manner in which the proceedings and business of any Panel

Committee shall be conducted, including any matter which is provided for (in relation to

the Panel) in paragraph 4; but the Panel may prescribe that any such matter shall be

determined by the Panel Committee itself.

5.4.2 To the extent to which the Panel does not prescribe (in accordance with paragraph 5.4.1)

the manner in which the proceedings and business of any Panel Committee shall be

conducted, the provisions of paragraph 4 (other than paragraphs 4.1.1 to 4.1.4 (inclusive),

4.2, 4.4.5 and 4.6) shall apply, mutatis mutandis, in relation to that Panel Committee.

5.5 Decisions of Panel Committee

5.5.1 Where pursuant to the Code or any Code Subsidiary Document a decision of the Panel as to

any matter is to have binding effect on any Party or Parties, a decision of a Panel

Committee as to that matter shall be binding on Parties only to the extent that:

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(a) the Panel has expressly delegated to the Panel Committee the relevant decision-

making powers; or

(b) the Panel has approved the decision of the Panel Committee.

5.5.2 For the purposes of paragraph 5.5.1(a) the unanimous agreement of all Panel Members

present and entitled to vote at the meeting at which such matter is to be decided shall be

required in order to delegate the relevant decision-making powers to a Panel Committee.

5.5.3 Where (pursuant to paragraph 5.5.1) a decision of a Panel Committee is binding on Parties,

that decision shall not be capable of being referred to the Panel unless the Panel so

determined when delegating its decision-making powers to the Panel Committee.

5.5.4 In addition to those referred to in paragraph 5.1.6, the following decisions of the Panel shall

not be delegated to a Panel Committee:

(a) the decision to approve the Business Strategy (or any revision thereto) pursuant

to Section C6.3:

(b) the decision to exercise any of its powers in relation to a Defaulting Party

pursuant to Section H3.2;

(c) the decisions of the Panel as to precedence under Section H1.5 and H1.6.

5.5.5 For the avoidance of doubt, the delegation to a Panel Committee of any decision-making

powers of the Panel shall not relieve the Panel of its general responsibility to ensure that

such powers are exercised in accordance with the Code.

6. ANNUAL REPORTS AND ANNUAL BSC MEETING

6.1 Annual report

6.1.1 The Panel shall prepare and provide to all Parties and the Authority, no later than 30th June

in each BSC Year (the "current" year), a report summarising the implementation of the

Code and the activities of the Panel and its committees and of BSCCo in the preceding

BSC Year (the "report" year).

6.1.2 The Annual BSC Report shall include:

(a) a review of the operation of Settlement and the implementation of the Code

generally;

(b) a review of the implementation of the Modification Procedures and the

Modification Proposals which have been subject to those procedures;

(c) a report on the performance by each BSC Agent of its functions under the Code

and pursuant to its BSC Agent Contract;

(d) a review against the Business Strategy for that BSC Year of the activities

undertaken by BSCCo, and a review against the Annual Budget for that BSC

Year of the expenditure of BSCCo;

(e) a report on the performance of each SMRS and compliance with the BSC

Requirements for the MRA, and a review of arrangements (relevant to

implementation of the Code) between Parties and parties to the MRA;

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(f) a report in relation to Trading Disputes as provided in Section W5.2;

(g) a report on the performance by each Market Index Data Provider of its functions

under the Code and pursuant to its Market Index Data Provider Contract;

in and in respect of the report BSC Year.

6.1.3 The report shall be accompanied by:

(a) the Annual Report and Accounts of BSCCo for the report BSC Year;

(b) the most recent BSC Audit Report and report of the BM Auditor; and

(c) the Business Strategy and Annual Budget adopted by BSCCo pursuant to

Section C6 for the current BSC Year.

6.2 Annual BSC Meeting

6.2.1 An Annual BSC Meeting shall be held once in each BSC Year, in the month of July.

6.2.2 One or more representatives of each Party shall be entitled to attend and speak at the

Annual BSC Meeting.

6.2.3 Any person entitled (other than pursuant to paragraph 4.5.1) to attend and speak at a

meeting of the Panel shall be entitled to attend and speak at the Annual BSC Meeting.

6.2.4 The Panel Secretary shall convene the Annual BSC Meeting by giving not less than 28

days' notice, specifying the date, time and place of the meeting, to each Party, each Panel

Member, and each person entitled to receive notice of a meeting of the Panel.

6.2.5 Each Panel Member (in person and not via an alternate), each Director of BSCCo and the

Chief Executive of BSCCo shall attend the Annual BSC Meeting unless prevented from

doing so by exceptional circumstances. The Panel Chairman (or in his absence the Deputy

Panel Chairman failing whom a Panel Member nominated by the Panel) shall chair the

meeting except that any part of any Annual BSC Meeting dealing with Resolutions shall be

chaired by BSCCo in accordance with paragraph 3.2.1 of Annex C-2.

6.2.6 The purpose of the Annual BSC Meeting shall be for:

(a) an explanation and discussion of the accounts and reports provided pursuant to

paragraph 6.1 for the previous BSC Year, and the Business Strategy and Annual

Budget provided pursuant to paragraph 6.1 for the current BSC Year, and a

response to any questions which Parties may have in relation to them (including

any questions submitted in advance pursuant to paragraph 6.2.8);

(b) Not used.

(c) Voting Parties to vote on the appointment of certain Directors in accordance

with Section C4.1.9; and

(d) Voting Parties to vote on any Resolutions raised pursuant to Section C4.9.1 or

Section C4.10.1.

6.2.7 Subject to paragraph 6.2.6, the Annual BSC Meeting shall not be a general meeting of

BSCCo or a meeting of the Directors of BSCCo or of the Panel; and the Annual BSC

Meeting shall have no power to take any decision; and no vote on any matter shall be taken

at such meeting; and nothing said by any Panel Member or Director of BSCCo at such

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meeting shall amount to a decision of the Panel or Board of Directors of BSCCo or have

any other binding effect.

6.2.8 Where a Party wishes the Panel, the Directors of BSCCo and/or the Chief Executive of

BSCCo to address a particular question at the Annual BSC Meeting (other than a matter

raised pursuant to paragraphs 6.2.6(c) or 6.2.6(d), and having regard to the purpose of the

meeting as set out in paragraph 6.2.6), such Party may submit such question to BSCCo in

writing in advance of such meeting and BSCCo shall copy such question to all Parties.

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ANNEX B-1: NOT USED.

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ANNEX B-2: ELECTION OF INDUSTRY PANEL MEMBERS

1 GENERAL

1.1 Introduction

1.1.1 This Annex B-2 sets out the basis for election of Industry Panel Members for the purpose

of Section B2.2.

1.1.2 This Annex B-2 shall apply:

(a) in relation to each year (the "election year") in which the term of office of

Industry Panel Members expires, for the purposes of electing Industry Panel

Members to hold office with effect from 1st October in that year;

(b) subject to and in accordance with paragraph 4, upon an Industry Panel Member

ceasing to hold office before the expiry of his term of office.

1.1.3 For the purposes of an election under paragraph 1.1.2(a), references to Trading Parties are

to persons who are Trading Parties as at 20th June in the election year.

1.1.4 BSCCo shall administer each election of Industry Panel Members pursuant to this Annex

B-2.

1.1.5 In this Annex B-2 references to Panel Members are to Industry Panel Members.

1.2 Election timetable

1.2.1 BSCCo shall not later than 1st July in the election year prepare and circulate to all Trading

Parties, with a copy to the Authority, an invitation to nominate candidates and a timetable

for the election, setting out:

(a) the date by which nominations of candidates are to be received, which shall not

be less than 3 weeks after the timetable is circulated and shall be after the date

of the Annual BSC Meeting;

(b) the date by which BSCCo will circulate a list of candidates and voting papers;

(c) the date by which voting papers are to be submitted, which shall not be less than

3 weeks after the date for circulating voting papers;

(d) the date by which the results of the election will be made known, which shall

not be later than 15th September in the election year.

1.2.2 If for any reason it is not practicable to establish an election timetable in accordance with

paragraph 1.2.1, or to proceed on the basis of an election timetable which has been

established, BSCCo may establish a different timetable, or revise the election timetable, by

notice to all Trading Parties, the Panel and the Authority, provided that such timetable or

revised timetable shall provide for the election to be completed before 1st October in the

election year.

1.2.3 A nomination or voting paper received by BSCCo later than the respective required date

under the election timetable (subject to any revision under paragraph 1.2.2) will be

disregarded in the election.

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1.3 Publication of Election Results

1.3.1 Subject to paragraph 1.3.3, BSCCo shall as soon as reasonably practicable after the date

determined in accordance with paragraph 1.2.1(d), make known the following:

(a) the total number of voting papers received by BSCCo in accordance with

paragraph 3.1, but that have not been disregarded under paragraphs 1.2.3, 3.1.4

or 3.2.6;

(b) the total number of first, second and third preference votes allocated to each

candidate in all voting papers submitted in accordance with paragraph 3.2 and

prior voting rounds;

(c) the total number of remaining voting papers in each voting round;

(d) the total number of remaining Panel Members to be elected in each voting

round;

(e) the value of the qualifying total in each voting round; and

(f) the total number of qualifying preference votes allocated to each remaining

candidate under all remaining voting papers in each voting round.

1.3.2 The provisions of paragraph 1.3.1 above shall also apply in the case of an election of any

replacement Panel Member in accordance with paragraph 4.2.

1.3.3 Where the timetable for an election of a Panel Member is either:

(a) revised in accordance with paragraph 1.2.2; or

(b) expedited in accordance with paragraph 4.2.5;

then BSCCo shall make known the information described in paragraph 1.3.1 in accordance

with such revised or expedited timetable.

2. CANDIDATES

2.1 Nominations

2.1.1 Nominations for candidates shall be made in accordance with the election timetable.

2.1.2 Subject to paragraph 2.1.3, each Trading Party may nominate one candidate for election by

giving notice to BSCCo, accompanied by such documents as BSCCo may reasonably

require in order to ascertain that the requirements of Section B2.8.2 are (or will if the

candidate is elected) be satisfied.

2.1.3 A person shall not be nominated as a candidate:

(a) if that person would (if a Panel Member) be required to be removed from office

under Section B2.7.4(b)(ii), (iii), (iv) or (vi);

(b) unless his nomination is accompanied by the documents referred to in paragraph

2.1.2.

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2.1.4 If a Trading Party nominates more than one candidate:

(a) BSCCo shall endeavour to contact the Trading Party to establish which

candidate it wishes to nominate;

(b) if BSCCo is unable to do so it will select at random one of the nominations

submitted and the others will be disregarded.

2.2 List of candidates

2.2.1 BSCCo shall draw up a list of the nominated candidates for whom the requirements of

paragraph 2.1.3 are satisfied and circulate the list to all Trading Parties by the date

specified in the election timetable.

2.2.2 The list shall specify the Trading Party by whom each candidate was nominated and any

affiliations which the candidate may wish to have drawn to the attention of Trading Parties.

2.2.3 If five or fewer candidates (for whom the requirements of paragraph 2.1.3 are satisfied) are

nominated (or where paragraph 4 applies only one such candidate is nominated), no further

steps in the election shall take place and such candidate(s) shall be treated as elected and

paragraph 3.2.4 shall apply in relation to such candidate(s).

3. VOTING

3.1 Voting papers

3.1.1 Voting papers shall be submitted in accordance with the election timetable.

3.1.2 Subject to paragraph 3.1.3, each Trading Party may submit one voting paper for each

Energy Account which is held by that Trading Party.

3.1.3 Only one Trading Party (the "voting" Trading Party) in a trading party group may submit

voting papers.

3.1.4 If more than one Trading Party in a trading party group submits voting papers:

(a) BSCCo shall endeavour to contact each of such Trading Parties to establish

which of them is to be the voting Trading Party;

(b) if one of such Trading Parties is confirmed as the voting Trading Party by each

of the Trading Parties which BSCCo contacts, that Trading Party will be the

voting Trading Party;

(c) otherwise, BSCCo shall select at random one of such Trading Parties to be the

voting Trading Party and the others will be disregarded.

3.1.5 For the purposes of this paragraph 3, a "trading party group" means a Trading Party and

every Affiliate of that Trading Party.

3.2 Preference votes and voting rounds

3.2.1 Each Trading Party submitting a voting paper shall vote by indicating on the voting paper a

first, second and third preference ("preference votes") among the candidates.

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3.2.2 A voting paper need not indicate a second, or a third, preference, but the same candidate

may not receive more than one preference vote in a voting paper.

3.2.3 Candidates shall be elected in three voting rounds (together where necessary with a further

round under paragraph 3.6) in accordance with the further provisions of this paragraph 3.

3.2.4 BSCCo will determine which candidates are elected and announce (to the Authority and all

Parties) the results of the election in accordance with the election timetable.

3.2.5 BSCCo will not disclose the preference votes cast by individual Trading Parties; but a

Trading Party may by notice to BSCCo require that the BSC Auditor scrutinise the conduct

of the election, provided that such Trading Party shall bear the costs incurred by the BSC

Auditor in doing so unless the BSC Auditor recommended that the election results should

be annulled.

3.2.6 Further references to voting papers in this paragraph 3 do not include voting papers which

are invalid or are to be disregarded.

3.3 First voting round

3.3.1 In the first voting round:

(a) the number of first preference votes allocated under all voting papers to each

candidate shall be determined.

(b) the first round qualifying total shall be:

(T / N) + 1

where

T is the total number of first preference votes in all voting papers;

N is the number of Panel Members to be elected.

3.3.2 If the number of first preference votes allocated to any candidate is equal to or greater than

the first round qualifying total, that candidate shall be elected.

3.4 Second voting round

3.4.1 In the second voting round:

(a) the remaining candidates are those which were not elected in the first voting

round;

(b) the remaining voting papers are voting papers other than those under which the

first preference votes were for candidates elected in the first voting round;

(c) the number of first and second preference votes allocated under all remaining

voting papers to each remaining candidate shall be determined;

(d) the second round qualifying total shall be

( T' / N' ) + 1

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where

T' is the total number of first preference votes and second preference votes

allocated under all remaining voting papers;

N' is the number of Panel Members remaining to be elected after the first voting

round.

3.4.2 If the number of first and second preference votes allocated to any remaining candidate is

equal to or greater than the second round qualifying total, that candidate shall be elected.

3.5 Third voting round

3.5.1 In the third voting round:

(a) the remaining candidates are those which were not elected in the first or second

voting rounds;

(b) the remaining voting papers are voting papers other than those under which the

first or second preference votes were for candidates elected in the first or second

voting rounds;

(c) the number of first, second and third preference votes allocated under all

remaining voting papers to each remaining candidate shall be determined;

(d) the third round qualifying total shall be

( T" / N'' ) + 1

where

T'' is the total number of first preference votes, second preference votes and third

preference votes allocated under all remaining voting papers;

N'' is the number of Panel Members remaining to be elected after the first and

second voting rounds.

3.5.2 If the number of first, second and third preference votes allocated to any remaining

candidate is equal to or greater than the third round qualifying total, that candidate shall be

elected.

3.6 Further round

3.6.1 If any Panel Member(s) remain to be elected after the third voting round:

(a) the then remaining candidates shall be ranked in order of the number of first

preference votes allocated to them, and the candidate(s) with the greatest

number of such votes shall be elected;

(b) in the event of a tie between two or more candidates within paragraph (a), the

candidate(s) (among those tied) with the greatest number of second preference

votes shall be elected;

(c) in the event of a tie between two or more candidates within paragraph (b),

BSCCo shall select the candidate(s) (among those tied) to be elected by drawing

lots.

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4. VACANCIES

4.1 General

4.1.1 If a Panel Member (the "resigning" Panel Member) ceases to hold office pursuant to

Section B2.7.4:

(a) not less than 6 months before the expiry of the term of his office, paragraph 4.2

shall apply;

(b) less than 6 months before the expiry of the term of his office, paragraph 4.3

shall apply.

4.1.2 The provisions of paragraph 2.1.2 shall apply, mutatis mutandis, to any replacement Panel

Member under this paragraph 4.

4.2 Replacement for not less than 6 months

4.2.1 Where this paragraph 4.2 applies, a replacement Panel Member shall be elected (for the

remainder of the term of office of the resigning Panel Member) in accordance with

paragraph 2 and 3 but subject to the further provisions of this paragraph 4.2.

4.2.2 Only those Trading Parties who voted for the resigning Panel Member, or who did not vote

for (and are not Affiliates of any Trading Party which voted for) any elected Panel Member

still serving, shall participate in the election by nominating candidates or submitting voting

papers (but without prejudice to paragraph 3.1.3).

4.2.3 BSCCo shall circulate to all Trading Parties a list of the Trading Parties who are to

participate in the election.

4.2.4 For the purposes of this paragraph 4.2 a Trading Party is considered (in any election of

Industry Panel Members) to have voted for an elected candidate where that Trading Party

indicated a preference vote in favour of that candidate which was counted (under the first

or second or third voting round or further round under paragraph 3.6, as the case may be) in

electing that candidate.

4.2.5 The timetable for the election shall be expedited and BSCCo will prepare and obtain the

Panel's approval of a timetable accordingly.

4.3 Replacement for less than 6 months

4.3.1 Where this paragraph 4.3 applies, subject to paragraph 4.3.2, the Trading Party which

nominated the resigning Panel Member shall be entitled (by notice to BSCCo) to appoint a

replacement Panel Member (for the remainder of the term of office of the resigning Panel

Member).

4.3.2 Paragraph 2.1.3 shall apply for the purposes of paragraph 4.3.1 as though references to the

nomination of a candidate were to the appointment of a replacement Panel Member.

4.3.3 If such Trading Party does not appoint a replacement, the position shall remain vacant until

the next full election.

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C – 1 of 50 Effective Date: 27 April 2021

SECTION C: BSCCO AND ITS SUBSIDIARIES

1. GENERAL

1.1 Introduction

1.1.1 This Section C sets out:

(a) provisions as to the constitution of BSCCo and the obligations of the BSCCo

Shareholder;

(b) the powers, functions and responsibilities of BSCCo;

(c) provisions as to the management of BSCCo;

(d) provisions as to the relationship between BSCCo and Parties;

(e) arrangements for establishing a Business Strategy and Annual Budget for

BSCCo; and

(f) provisions relating to Subsidiaries of BSCCo.

1.1.2 In this Section C references to a Party do not include BSCCo or the BSC Clearer.

1.2 Role and powers, functions and responsibilities of BSCCo

1.2.1 The principal role of BSCCo (but subject as provided in this paragraph 1.2) is to provide

and procure facilities, resources and services (including providing or procuring resources

required by the Panel and Panel Committees, and procuring services under BSC Service

Descriptions) required for the proper, effective and efficient implementation of the Code.

1.2.1A Without prejudice to paragraph 1.2.1, a BSC Company (directly or through any agent) may

discharge the functions and responsibilities of the WHD Operator as set out in the Warm

Home Discount (Reconciliation) Regulations 2011 subject to the following:

(a) the appointed BSC Company may discharge the functions and responsibilities

of the WHD Operator in accordance with any of the provisions, powers and

mechanisms set out in the Code and the Code shall be construed accordingly;

(b) each Party and the Panel shall not (whether by action, omission or withholding

of consent) prevent or restrict such BSC Company from discharging the

functions and responsibilities of the WHD Operator and shall (where

applicable) co-operate with all requests for information and payment made by

such BSC Company in discharging those functions and responsibilities;

(c) each Party (to the fullest extent permitted by law) waives any claim in damages

or any other claim of a financial nature (other than for death or personal injury

as a result of negligence or for an equitable remedy) against any BSC Company

and releases each BSC Company from any such liability in respect of any

breach by such BSC Company in connection with its discharge of the functions

and responsibilities of the WHD Operator;

(d) Parties shall have no liability or obligation to provide financial support to the

appointed BSC Company in respect of its discharge of the functions and

responsibilities of the WHD Operator;

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(e) the appointed BSC Company shall account for all costs, expenses, liabilities and

resources (incurred or used) and for payments (received and made) in the

discharge of the WHD Operator’s functions and responsibilities separately from

BSC Costs and Trading Charges respectively;

(f) the appointed BSC Company shall provide all information requested by the

Authority or Secretary of State in relation to its discharge of the WHD

Operator’s functions and responsibilities;

(g) the appointed BSC Company shall provide the Panel with reports from time to

time in relation to its discharge of the WHD Operator’s functions and

responsibilities, provided that such BSC Company shall not be required to

disclose to the Panel any information that the Secretary of State or the Authority

expressly request such BSC Company to keep confidential;

(h) in discharging the WHD Operator’s functions and responsibilities, the

appointed BSC Company has the objective of the efficient and economic

discharge of the functions and responsibilities under the Warm Home Discount

(Reconciliation) Regulations 2011 and paragraph 1.3.1 shall accordingly not

apply to this paragraph 1.2.1A;

(i) paragraphs 3.4.5(b), 5.1, 5.2 and 7 shall not apply to this paragraph 1.2.1A;

(j) notwithstanding Section F2, this paragraph 1.2.1A and paragraphs 3.1.2A and

3.1.2B of Section B may not be amended without the prior written consent of

the Secretary of State or the Authority; and

(k) for the purposes of the Code, this paragraph 1.2.1A shall cease to have effect

upon the termination of the appointment of a BSC Company as the WHD

Operator, save for paragraphs (c), (d), (e), (f), (g) and (i) which shall continue to

apply to the extent and for such period as is necessary.

1.2.1B Without prejudice to paragraphs 1.2.1 and 1.2.1A, and subject to the provisions of

paragraphs 3.4, 3.5 and 10, the activities set out in Annex C-1 (the "Permissible

Activities") may be undertaken by an Affiliate (or Affiliates) of BSCCo established to

undertake those Permissible Activities ("Permitted Affiliate").

1.2.2 Subject to the further provisions of this Section C, BSCCo shall have the powers, functions

and responsibilities set out in or assigned to it pursuant to the Code, and shall not undertake

any business or activity other than as provided for in the Code.

1.2.3 Without prejudice to the generality of paragraph 1.2.2, BSCCo shall have the powers,

functions and responsibilities set out in paragraph 3.

1.2.4 Subject to the further provisions of this Section C, BSCCo may do anything necessary for

or reasonably incidental to the discharge of the functions and responsibilities assigned to it

in the Code or by the Panel pursuant to the Code.

1.2.5 The powers of BSCCo shall be subject to the restrictions and limits set out in or imposed

pursuant to the Code.

1.2.6 Subject always to Section H1.5.1, BSCCo shall, in the exercise of its powers, functions and

responsibilities, have regard to and, to the extent they are relevant, act consistently with the

Code Administration Code of Practice Principles.

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1.3 Objectives

1.3.1 BSCCo shall exercise its powers and discharge its functions and responsibilities with a

view to achieving the objectives set out in Section B1.2.1 (construed as though references

to the Panel were to BSCCo).

1.3.2 As provided in paragraph 5.1, BSCCo is not intended to make a profit or loss in any BSC

Year.

2. CONSTITUTION OF BSCCO AND OBLIGATIONS OF THENETSO AS BSCCO

SHAREHOLDER

2.1 Constitution of BSCCo

2.1.1 Subject to paragraph 2.1.2, the Memorandum and Articles of Association of BSCCo shall

be in the form designated pursuant to the Implementation Scheme.

2.1.2 The form of the Memorandum and Articles of Association of BSCCo (as amended by

paragraphs 2.1.4 and 2.1.5) shall be treated as incorporated in and forming part of the Code

for the purposes of enabling such form to be modified, and such form shall accordingly be

capable of being modified, by way of Code Modification made pursuant to a Modification

Proposal and otherwise in accordance with Section F; and the Memorandum and Articles

of Association of BSCCo shall be amended so as to be in any such modified form.

2.1.3 The authorised and issued share capital and accounting reference date of BSCCo shall be

those prevailing at the Code Effective Date.

2.1.4 All references to "England and Wales" in the Memorandum and Articles of Association of

BSCCo shall be deemed to be references to "Great Britain and Offshore".

2.1.5 For the purposes of the Articles of Association of BSCCo, the terms "NETSO" and

"Transmission Licence" shall have the meaning given to those terms in Annex X-1 of the

Code.

2.2 Share capital of BSCCo

2.2.1 Subject to paragraph 2.2.3, the NETSO shall be the registered holder of all of the issued

share capital of BSCCo.

2.2.2 The NETSO shall not do or authorise or agree to or take any step with a view to any of the

following:

(a) any increase in the authorised share capital of BSCCo, or the issue of any share

capital or the issue or grant of any option, warrant or other instrument, security

or right to subscribe for, or which is convertible into or exchangeable for, any

shares of BSCCo;

(b) except pursuant to paragraph 2.2.3, the transfer of any of the issued shares of

BSCCo;

(c) the creation of or allowing to subsist any pledge, mortgage, charge or other

encumbrance over any of the shares of BSCCo.

2.2.3 If directed to do so by the Authority, the NETSO shall execute and deliver a transfer of the

shares of BSCCo to such person as the Authority considers appropriate to succeed to the

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NETSO in the capacity of BSCCo Shareholder for the purposes of the Code, upon payment

by or on behalf of such person of an amount equal to the par value of such share or shares;

and upon such transfer taking effect the NETSO shall be released from all future

obligations as BSCCo Shareholder.

2.2.4 Modification Proposal P369, including any modifications to Code Subsidiary Documents

or any other document maintained under the Code made pursuant to Modification Proposal

P369, shall take effect from 00:00 hours on 1 April 2019.

2.3 Further undertakings of NETSO

2.3.1 The NETSO shall at all times exercise its rights, and take all available steps, as BSCCo

Shareholder, and shall only exercise any such right or take any such step, so as to give

effect to the provisions of the Code, or any direction of the Panel consistent with the

provisions of the Code, as to the matters set out in paragraph 2.3.2.

2.3.2 The matters referred to in paragraph 2.3.1 are:

(a) the amendment of the Memorandum or Articles of Association of BSCCo so

that they are in any modified form from time to time pursuant to paragraph

2.1.2;

(b) the appointment, re-appointment or removal of any Director (in accordance with

a nomination under or otherwise as required in accordance with paragraph 4) or

the secretary or auditors of BSCCo, provided that (in the case of an appointment

or reappointment) the consent of the person to be appointed or reappointed has

been obtained;

(c) the approval of the annual accounts (as defined in the Companies Act 2006) of

BSCCo; and

(d) any other act of or in relation to BSCCo which can, or under any Legal

Requirement must, be done by a vote or resolution or other assent of the BSCCo

Shareholder.

2.3.3 Without prejudice to the generality of paragraph 2.3.1, the steps which the NETSO may be

required to take pursuant to paragraph 2.3.2 include:

(a) the convening of an annual or extraordinary general meeting of BSCCo;

(b) the waiving of notice or agreeing to short notice of such meeting;

(c) the passing of any shareholders resolution of BSCCo including as a written

resolution.

2.3.4 The NETSO shall not consolidate the financial results of BSCCo or any Subsidiary of

BSCCo with those of the NETSO or any Affiliate of the NETSO unless required to do so

by a Legal Requirement.

2.4 No obligation to finance

2.4.1 The NETSO as BSCCo Shareholder shall have no liability or obligation to provide any

finance or financial support to BSCCo or any Subsidiary of BSCCo and shall have no

obligation to Parties as BSCCo Shareholder other than as expressly provided in the Code.

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2.5 Winding-up of BSCCo

2.5.1 The principles which are to apply in the event of the winding-up of BSCCo are that, so far

as is lawful:

(a) the assets and resources of BSCCo should be transferred (for value or otherwise

as may be lawful) to any successor under the Code to BSCCo;

(b) subject to paragraph (c), and after payment or settlement of all liabilities of

BSCCo, any amount which would otherwise be available for distribution to the

shareholder(s) of BSCCo should be paid (or an equivalent amount shall be paid

by the NETSO) to Trading Parties in their Annual Funding Shares or such other

proportions as the Authority may decide;

(c) the NETSO shall be entitled to be paid out of any such amount as is referred to

in paragraph (b) the amount of any taxation for which it is liable in connection

with such winding up and/or the giving effect to such principles;

and BSCCo, the NETSO and the other Parties shall take such steps as are available and

lawful to secure that these principles are given effect.

2.6 Legal Requirements relating to the NETSO

2.6.1 It is recognised that, by reason of the NETSO being BSCCo Shareholder, it is possible that

certain steps which might be taken by BSCCo or a Subsidiary of BSCCo could result in the

NETSO or an Affiliate of the NETSO being in breach of, or being required to take action

under or make a payment under, or incurring a liability under, a Legal Requirement (or

being or doing so in the absence of a notification to or approval of a Competent Authority)

(any such step which would have such result being a "relevant step").

2.6.2 The NETSO may from time to time notify to BSCCo particular Legal Requirements,

applying to the NETSO or its Affiliates, which the NETSO reasonably considers may fall

within paragraph 2.6.1, provided that the NETSO shall at the same time provide such

details of such Legal Requirement as are reasonably necessary to enable BSCCo to

determine whether any step which it might take would be a relevant step in relation to such

Legal Requirement.

2.6.3 Where the NETSO has for the time being notified BSCCo of a particular Legal

Requirement pursuant to paragraph 2.6.2, BSCCo will take all reasonable measures to

ensure that it and its Subsidiaries do not take any relevant step in relation to that Legal

Requirement unless:

(a) BSCCo has first notified and consulted with the NETSO in relation to such step,

and

(b) either the NETSO has approved the taking of such step or BSCCo is required to

take such step for the purposes of discharging its functions and responsibilities

under the Code (but subject always to any Code Modification made following a

proposal by any person entitled to do so).


(a) Legal Requirement shall be construed:

(i) as including a requirement of any stock exchange in any country or

of the Panel on Takeovers and Mergers or any body in any country

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having equivalent functions to those of that panel where compliance

with the requirements of such body is customary; and

(ii) in accordance with paragraph (b);

(b) Competent Authority shall be construed as though the reference to the United

Kingdom in the definition thereof included any country or state to the

jurisdiction of which the NETSO or any of its Affiliates is subject by reason of

having a presence in such country or state.

2.6.5 BSCCo agrees not (unless required to do so by a Legal Requirement) to represent that it is

a Subsidiary of the NETSO.

2.7 Taxation and other payments

2.7.1 BSCCo covenants to pay to the NETSO an amount equal to any liability to corporation tax

on chargeable gains for which BSCCo or any of its Subsidiaries is primarily liable for

which the NETSO or any of its Subsidiaries is liable for which any of them would not have

been liable but for being treated as being or having been a member of the same group as

BSCCo or any of its Subsidiaries for the purposes of corporation tax on chargeable gains.

2.7.2 The NETSO covenants to pay to BSCCo an amount equal to any liability for corporation

tax on chargeable gains for which the NETSO or any of its Subsidiaries is primarily liable

for which BSCCo or any of its Subsidiaries is liable but for which it would not have been

liable but for being treated as being or having been a member of the same group as the

NETSO for the purposes of corporation tax on chargeable gains.

3. POWERS AND FUNCTIONS OF BSCCO

3.1 General

3.1.1 Without prejudice to paragraph 1.2.2, BSCCo shall have the following powers, functions

and responsibilities:

(a) to enter into, manage and enforce contracts with service providers (as BSC

Agents) for the supply of the services required by BSC Service Descriptions,

and negotiate and agree amendments to such contracts, as further provided in

Section E and, where relevant, paragraph 10.1.5;

(b) to advise the Panel and keep it advised as to and in respect of the matters which

it is necessary or appropriate that the Panel should consider in order to

discharge the Panel's functions and responsibilities in accordance with the

Code;

(c) to provide or arrange the provision of such facilities, resources and other

support as may be required by the Panel to enable the Panel or any Panel

Committee or Workgroup to discharge its functions and responsibilities under

the Code;

(d) to provide secretarial and administrative services in connection with meetings

of the Panel and Panel Committees and Workgroups, including the convening

and holding of such meetings, and taking and circulation of minutes;

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(e) to provide and make available to Parties such facilities, services and

information in connection with the implementation of the Code as the Code

may provide or the Panel may require;

(f) to provide or arrange the provision of facilities, resources and other support in

connection with the procedures for modification of the Code in accordance with

Section F;

(g) to enter into contracts (in terms complying with any applicable provisions of

Section B) of employment or other engagement with persons from time to time

to be appointed as Panel Chairman or Panel Members under Section B2.5;

(h) to indemnify against liability and, if relevant, to reimburse the expenses of,

Panel Members, members of Panel Committees, members of Workgroups and

others as provided in the Code or as otherwise required in BSCCo’s discretion

in connection with any BSC Agent Contract;

(i) to enter on behalf of all Parties into Accession Agreements with new Parties in

accordance with Section A2.2, and to enter on behalf of all Parties into

Novation Agreements with Novation Applicants and Transferring Parties in

accordance with Section A2.7;

(j) to act as BSC Agent for the purposes of the Master Registration Agreement in

accordance with Annex K-1;

(k) to act as shareholder of the BSC Clearer in accordance with paragraph 7;

(l) to receive, collect and hold such data and information, and to prepare and

maintain such books and records, as may be required under the Code or

reasonably necessary to enable BSCCo to comply with its functions and

responsibilities under the Code; and to provide data and information held by it

to the Panel upon request and to other persons in accordance with any express

provision of the Code;

(m) without prejudice to the generality of paragraph (l), where it is not the function

of a BSC Agent to do so, to maintain records of the extent to which Parties have

satisfied requirements of the kind referred to in Section A4.5.3, and to provide

details thereof to BSC Agents and other persons as required for the purposes of

the Code;

(n) to monitor whether any Party is, or with the lapse of time or giving of notice

would be, in Default (in accordance with Section H3), and to give to any Party

any notice the giving of which will result in that Party being in Default (but not

for the avoidance of doubt to give any notice consequent upon a Party’s being

in Default unless expressly authorised to do so by the Panel or by a provision of

the Code);

(o) to act as the Performance Assurance Administrator;

(p) to prepare and/or (as the Panel may require) assist the Panel to prepare the

Annual BSC Report for each BSC Year in accordance with Section B6.1;

(q) to make recommendations to the Panel as to possible Modification Proposals in

the circumstances mentioned in paragraph 3.8.8 and Section F2.1.1(d)(ii) and

(iii);

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(r) to the extent provided in and in accordance with the policy from time to time

established by the Panel, to act as a point of contact for persons from other

countries interested in, and to explain to such persons, the arrangements for and

developments in wholesale trading of electricity in Great Britain and/or

Offshore, and to participate in institutional comparative discussions of such

arrangements and developments in other countries;

(s) to provide Profile Administration Services (with the consent of the Panel) and

to enter into, manage and (subject to the Code) enforce contracts with service

providers for the supply of Profile Administration Services in accordance with

Section C9;

(t) in conjunction with the other code administrators identified in the Code

Administration Code of Practice, to maintain, publish, review and where

appropriate (but subject always to the approval of the Authority) amend the

Code Administration Code of Practice;

(u) to delegate responsibility for performance of the powers, functions and

responsibilities specified in this paragraph 3.1.1 and otherwise provided for in

the Code, to the BSC Services Manager (save in respect of paragraph (k) and its

obligations and responsibilities under Section E, paragraph 4); and

(v) to provide Market-wide Half Hourly Settlement Implementation Management

services in accordance with Section C12.

3.1.1A BSCCo shall obtain the Panel’s consent prior to raising any potential amendments to the

Code Administration Code of Practice.

3.1.2 To the extent to which the terms of reference (pursuant to Section B5.3.2) of a Panel

Committee or Workgroup authorise the Panel Committee itself to request from BSCCo

facilities, resources or other support (falling within paragraph 3.1.1(c)), BSCCo shall

provide or arrange the provision of such facilities, resources or other support as may be so

requested.

3.1.3 The facilities, resources and other support which BSCCo may be required to provide to or

arrange for the Panel or a Panel Committee or Workgroup include:

(a) facilities for holding meetings;

(b) the provision of advice and expertise in connection with any matter which

(pursuant to the Code) is to be considered by the Panel or Panel Committee or

Workgroup;

(c) the preparation of draft and final working papers, reports and other documents;

and

(d) where BSCCo so decides or the Panel specifically so requests, the services of

external firms of advisers and consultants or the attendance at meetings of

experts (and paying the fees and expenses of such advisers, consultants and

experts).

3.1.4 BSCCo shall have the powers, functions and responsibilities assigned to it in the

Implementation Scheme (including without limitation those provided in connection with

the Pooling and Settlement Agreement).

3.2 Panel Secretary

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3.2.1 BSCCo shall at all times provide a person approved by the Panel to be the Panel Secretary

(and shall whenever required to fill a vacancy nominate a person to that position).

3.3 Enforcement of Code

3.3.1 If:

(a) a Party is or may be in breach of any provision of the Code, and

(b) the Panel is of the opinion that the breach or continuance of the breach has or

will have a material adverse effect on the operation of the Code consistent with

the objectives in Section B1.2.1, as a result of which it is appropriate that

proceedings should be commenced for the enforcement of such provision

against such Party

then the Panel may instruct BSCCo to take proceedings against such Party.

3.3.2 Where the Panel has instructed BSCCo to take proceedings against a Party in breach

pursuant to paragraph 3.3.1:

(a) BSCCo shall commence and with reasonable diligence continue such

proceedings, for such remedy or remedies as the Panel shall have decided,

subject to paragraph (b);

(b) BSCCo shall act in such proceedings (including without limitation any

discontinuance or settlement thereof) in accordance with such terms of

reference and reporting requirements, and subject to such supervision or

instruction, as may be stipulated or provided by the Panel (or where the Panel

has established any Panel Committee for that purpose, by that committee in

accordance with its terms of reference);

(c) each Party (other than the Party in breach) hereby appoints BSCCo as agent in

its name and on its behalf to commence and take such proceedings, and agrees

that BSCCo and/or the Panel and/or any Panel Committee (in accordance with

arrangements made for the purposes of paragraph (b)) shall exclusively have the

conduct of the proceedings;

(d) all costs and expenses incurred by BSCCo in the proceedings (including any

amounts awarded to the Party in breach) shall be BSC Costs;

(e) where any amount is recovered from the Party in breach pursuant to such

proceedings, such amount shall be paid to Parties in their Annual Funding

Shares (as at the time of the breach) or such other proportions and otherwise on

such basis as the Panel shall consider fair and reasonable in all the

circumstances;

(f) subject to paragraph 3.3.4, a Party shall not commence proceedings directly

against the Party in breach without the prior approval of the Panel.

3.3.3 Except pursuant to paragraph 3.3.2, and subject as set out below, BSCCo shall not

commence any proceedings against a Party in respect of breach of any provision of the

Code.

3.3.4 Paragraph 3.3.2(f) shall not prevent a Party from taking any proceedings for interim relief

or other steps against a Party which is or may be in breach of the Code where the first Party

reasonably believes that such proceedings or steps need to be taken as a matter of urgency

in order to protect its interests.

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3.3.5 Except as provided in paragraph 3.3.2, nothing in this paragraph 3.3 shall prevent a Party

from itself taking any steps to enforce against any other Party any provision of the Code.

3.3.6 Where:

(a) a Party is or may be in breach of the Code, and

(b) it appears to BSCCo that any proceedings for interim relief or other step should

be taken, as a matter of urgency, in relation to that Party, in order to protect the

interests of BSCCo and/or other Parties (or classes of Parties) pending such

instructions from the Panel

BSCCo may take or arrange for the taking of such interim proceedings or step, after

consulting where time permits with the Panel Chairman.

3.3.7 In any case where paragraph 3.3.2 does not apply, BSCCo may with the approval of the

Panel agree with any Parties to take proceedings on behalf of and at the cost of those

Parties against a Party in breach of the Code.

3.3.8 This paragraph 3.3 does not apply in relation to any breach by a Party of any payment

obligation under Section D or N.

3.4 Restrictions on powers of BSCCo

3.4.1 Subject to any contrary provision of the Code, any instructions (pursuant to any provision

of the Code expressly providing for such instructions to be given to BSCCo) of the Panel,

and the objectives referred to in paragraph 1.3.1, BSCCo shall have discretion as to the

means by which it discharges, and the manner in which it is managerially organised so as

to discharge, its functions and responsibilities under the Code.

3.4.2 In the discharge of its functions and responsibilities and the exercise of its powers, BSCCo

will comply with applicable law.

3.4.3 BSCCo shall not, without the prior approval of the Panel:

(a) enter into any borrowings in a cumulative aggregate principal amount

exceeding £10,000,000;

(b) make loans or grant any credit to any person, other than to a Subsidiary of

BSCCo or in the ordinary course of business or as required or expressly

permitted by the Code;

(c) mortgage, charge, assign by way of security, pledge or otherwise encumber any

property of BSCCo or enter into any transaction which has a financial effect

similar to a secured borrowing, other than:

(i) by way of lien or set-off arising by operation of law and in the

ordinary course of trading; or

(ii) by way of reservation of title by the supplier of any property (other

than real property) to BSCCo in the normal course of such supplier's

business;

(d) except pursuant to any provision of the Code:

(i) dispose (by way of licence, charge, sale or otherwise, other than by

way of licence to a BSC Agent in connection with a BSC Agent

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Contract) of any Intellectual Property Rights or other rights held by

BSCCo in or in respect of any BSC Systems, or

(ii) (where any BSC Agent Contract prohibits such disposal without

BSCCo’s authority or consent) authorise or consent to any such

disposal by a BSC Agent of any such rights held by that BSC Agent;

(e) commence any proceedings against any person, or grant a waiver of any claim

against any person, or settle any dispute, proceedings or claim brought by or

against BSCCo or any other BSC Company, where the amount of such dispute

or claim or subject to such proceedings exceeds (or in BSCCo's reasonable

opinion is likely to exceed) such threshold amount as the Panel may from time

to time specify for the purposes of this paragraph (e); provided that (without

prejudice to the further provisions of the Code) this paragraph (e) does not

apply in relation to claims, disputes and proceedings against or with Parties or

BSC Agents or Market Index Data Providers.

3.4.4 For the purposes of paragraph 3.4.3, "borrowing" means any obligation (whether present

or future, actual or contingent, as principal or surety) for the payment or repayment of

money (whether in respect of interest, principal or otherwise) of BSCCo and any

Subsidiary of BSCCo (other than the BSC Clearer) incurred in respect of:

(a) moneys borrowed or raised;

(b) any bond, note, loan stock, debenture or similar instrument;

(c) any acceptance credit, bill discounting, note purchase, factoring or documentary

credit facility;

(d) any hire purchase agreement, conditional sale agreement or lease, where that

agreement has been entered into primarily as a method of raising finance or

financing the acquisition of an asset;

(e) any guarantee, bond, stand-by letter of credit or other similar instrument issued

in connection with the performance of contracts;

(f) any interest rate or currency swap agreement or any other hedging or derivatives

instrument or agreement; or

(g) any guarantee, indemnity or similar insurance against financial loss given in

respect of the obligation of any person.

3.4.5 BSCCo shall not and shall not offer or agree to:

(a) issue, or grant any option, warrant or other instrument, security or right to

subscribe for, or which is convertible into or exchangeable for, any shares of

BSCCo;

(b) subscribe for, acquire or hold any share or other security in any company other

than:

(i) shares in the BSC Clearer; or

(ii) any shares acquired pursuant to the Implementation Scheme;

(c) dispose of any legal or beneficial interest in any shares in the BSC Clearer or

any other Subsidiary of BSCCo.

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3.4.6 Except where expressly provided for in the Code, BSCCo shall not give any cross-subsidy

to, or receive any cross-subsidy from, a Permitted Affiliate.

3.5 BSCCo resources

3.5.1 If at any time the resources (which in this paragraph 3.5 does not mean financial resources)

of BSCCo are inadequate to enable it to perform any particular requirement of the Code

(including a requirement specified by the Panel or a Panel Committee or Workgroup

pursuant to paragraph 3.1.1), BSCCo shall promptly so notify the Panel and discuss the

matter with the Panel, and following such discussion shall take such steps and procure such

resources as are necessary to enable BSCCo to meet such requirement (as it may have been

modified following such discussion) as soon as is reasonably practicable.

3.6 Provision of information to the Authority, etc

3.6.1 If at any time or from time to time requested by the Authority, BSCCo shall:

(a) collect and provide to the Authority all such relevant information as the

Authority may specify;

(b) where necessary in order to comply with such a request, subject to paragraph

3.6.3, procure the relevant information from the BSC Agent or Market Index

Data Provider which holds such information;

(c) undertake and provide to the Authority such analysis of relevant information

(but not in whole or in part of information other than relevant information) as

the Authority may so request.

3.6.2 A request by the Authority for the purposes of paragraph 3.6.1 may be made on a particular

occasion or on a standing basis.

3.6.3 BSCCo shall not be in breach of this paragraph 3.6 by reason of any failure of any BSC

Agent or Market Index Data Provider to provide any information which BSCCo has

requested from it, provided that BSCCo is reasonably diligent in pursuing such request.

3.6.4 For the purposes of this paragraph 3.6, "relevant information" is information which is or

is to be provided to BSCCo or the Panel or to any BSC Agent by or on behalf of any Party

pursuant to the Code, or is derived from any such information pursuant to the Code or is

otherwise produced or created pursuant to the Code.

3.6.5 Where BSCCo receives a request from the Authority for the purposes of paragraph 3.6.1,

BSCCo will so notify all Parties, unless the Authority has requested BSCCo to notify only

the Party to whom such information relates, in which case BSCCo will so notify that Party.

3.7 Matters relating to the Transmission Licence

3.7.1 If the Authority issues a direction pursuant to the Transmission Licence to the NETSO to

secure compliance with any relevant provision of the Code:

(a) BSCCo shall provide all such assistance and take all such steps as the NETSO

may reasonably require to comply or secure compliance with the relevant

provision;

(b) without limitation of paragraph (a), BSCCo hereby appoints and authorises the

NETSO to make any request of or issue any instruction to any BSC Agent or

Market Index Data Provider on behalf of and in the name of BSCCo;

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(c) the NETSO is hereby authorised by all Parties to provide to the Authority or

(where the relevant provision of the Code so requires) place on the BSC

Website or otherwise publish the information in question;

(d) the reasonable costs of the NETSO properly incurred in complying with such

direction shall be paid by BSCCo to the NETSO.

3.7.2 For the purposes of paragraph 3.7.1 the relevant provisions of the Code are the provisions

of paragraph 3.6.1 (subject to paragraph 3.6.3) and any provision of the Code which

provides for any information to be placed on the BSC Website or otherwise published.

3.8 Reviews of the Code

3.8.1 BSCCo shall carry out:

(a) periodic reviews of the Code and its implementation and of operations under the

Code, and

(b) upon the request of the Authority, a review of any particular aspect (as specified

by the Authority) of the Code or its implementation or of operations under the

Code

in order to evaluate whether the Code (or such aspect of the Code) continues to facilitate

achievement of the Applicable BSC Objectives and to do so in the most effective way.

3.8.2 Reviews under paragraph 3.8.1(a) shall take place at least once every 2 years and not more

often than once every year.

3.8.3 BSCCo shall notify all Parties and the Authority of the start of each review under

paragraph 3.8.1, and shall endeavour to complete each review within a period of 3 months,

or such other period as the Authority may specify in a case under paragraph 3.8.1(b).

3.8.4 In order to assist BSCCo to carry out any review under paragraph 3.8.1, the NETSO shall,

at BSCCo’s request, provide to BSCCo an assessment of the effect of the Code (or any

aspect of the Code specified by BSCCo) on the matters referred to in Condition C3(3)(a)

and (b) of the Transmission Licence.


(a) the analysis provided by the NETSO shall be prepared with the exercise of

reasonable skill and care, and shall include sufficient detail and reasoning to

enable a proper understanding of the relevant issues, and the NETSO shall

provide any further explanation thereof reasonably requested by BSCCo;

(b) such analysis shall be provided within such period as BSCCo may reasonably

request;

(c) the NETSO shall not be required to provide any information of a confidential

nature which it is not otherwise obliged to make available to Parties.

3.8.6 Upon completion of each review under paragraph 3.8.1, BSCCo shall:

(a) prepare a report in respect of the review and its conclusions (including any

analysis by the NETSO under paragraph 3.8.4);

(b) provide a copy of such report to the Authority; and

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(c) subject to paragraph 3.8.7, provide a copy of such report to each Party and place

a copy of the report on the BSC Website.

3.8.7 In a case under paragraph 3.8.1(b), if the Authority so requests or approves, the version of

the report which is provided to Parties and placed on the BSC Website shall be amended so

as to exclude such material, relating to particular Parties or persons, as the Authority shall

so request or approve.

3.8.8 In addition to the foregoing, BSCCo shall keep under review whether any possible

modification of the Code from time to time would better facilitate the objective in

Condition C3(3)(d) of the Transmission Licence, and shall recommend to the Panel any

particular such modification which in BSCCo’s opinion would do so.

3.9 Not used

3.10 Summary of Code

3.10.1 BSCCo shall prepare and from time to time update a useful summary of the Code, and

separately of the Code Subsidiary Documents, and shall provide a copy of each summary

to the Panel and the Authority and (upon payment of an amount not exceeding the

reasonable costs of making such a copy) to any person who requests such a copy.

3.10.2 The summary of the Code shall include (as a separate document) a summary and

explanation of the basis of calculation of System Buy Price and System Sell Price pursuant

to Section T.

3.10.3 No person shall be entitled to rely on such summaries for any purpose.

4. GOVERNANCE OF BSCCO

4.1 Appointment of Board of Directors and Chairman

4.1.1 The size and composition of the Board shall be determined by the Board’s Nomination

Committee but shall reflect the requirements set out in paragraph 4.1.3.

4.1.2 The Board shall establish a Nomination Committee which shall be responsible for:

(a) evaluating the balance of skills, experience, independence and knowledge on

the Board; and

(b) leading the process for Board appointments including:

(i) preparing a description of the role and capabilities required for a

particular appointment; and

(ii) making appointment recommendations to the Board.

4.1.3 The Board shall provide written terms of reference for the Nomination Committee which

shall, inter alia, specify that:

(a) the Nomination Committee shall, in recommending appointments to the Board,

have appropriate regard to reflecting different classes of, or categories of,

industry participants on the Board;

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(b) a majority of the Directors (excluding the BSCCo Chairman) and Directors

appointed under Section C4.1.3(d) but including the Panel Chairman shall have

relevant electricity industry experience;

(c) at least two Directors shall be, in the Nomination Committee's reasonable

opinion (having regard, among other things, to any present or future business

interests disclosed by those individuals), suitably independent from the

electricity industry;

(d) not more than two Directors may be employees of BSCCo, and if any

employees are appointed as Directors one of those must be the Chief Executive,

provided that in the event that a person ceases to be an employee of BSCCo that

person shall immediately cease to be a Director; and

(e) the Panel Chairman from time to time shall be appointed as a Director provided

that, if that Panel Chairman is subsequently removed as a Director pursuant to

Section C4.1.9 or Section C4.10.1, another Panel Member recommended by the

Panel shall be appointed as a Director during the remainder of the term of that

Panel Chairman.

4.1.3A Paragraph 4.1.3(d) shall not apply in respect of the BSCCo Chairman to the extent and for

such period as the person appointed to that role is an employee of BSCCo.

4.1.4 The Board shall publish the terms of reference on the BSC Website.

4.1.5 Not used.

4.1.6 Not used.

4.1.7 Not used.

4.1.8 The Board may, based on the recommendation of the Nomination Committee:

(a) appoint a Director as chairman of its meetings (the "BSCCo Chairman"); and

(b) subject to paragraph 4.2.l(a), determine the period for which the BSCCo

Chairman is to hold office.

4.1.9 BSCCo shall, when Directors have been appointed or re-appointed (in that capacity) since

the last Annual BSC Meeting following the Relevant Implementation Date of Modification

Proposal P324, prepare and circulate to all Parties not later than 28 days prior to an Annual

BSC Meeting the text of a resolution for Voting Parties to approve that appointment or re-

appointment ("Appointment Resolution") at the next Annual BSC Meeting in accordance

with the relevant provisions of Annex C-2. If an Appointment Resolution is rejected by

Voting Parties at a vote then the relevant person shall cease to be a Director either:

(a) five (5) Working Days after results are published under paragraph 4.2.2(b) of

Annex C-2; or

(b) if an audit has been commissioned under paragraph 4.3 of Annex C-2, promptly

after that audit’s confirmation, if it occurs, of the published results.

4.2 Directors

4.2.1 A person appointed as Director under paragraph 4.1:

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(a) shall hold office for a term not exceeding three years, but shall be eligible for

re-appointment on expiry of such term;

(b) may resign or be removed from office in accordance with the provisions of the

Articles of Association of BSCCo;

(c) not used;

(d) shall, if also a Panel Member, cease to hold office if he also ceases to hold

office as a Panel Member pursuant to Section B2.7.4(d); and

(e) shall cease to hold office if removed in accordance with the provisions of

paragraphs 4.1.9 or 4.10.1.

4.3 Not used.

4.4 Expenses and remuneration

4.4.1 Each Director shall be entitled to be reimbursed by BSCCo for the reasonable costs and

expenses (including travel and accommodation costs) properly incurred by such Director in

attending meetings of or otherwise in the conduct of the business of the Board.

4.4.2 In addition to reimbursement under paragraph 4.4.1, any Director, other than a Director

appointed under paragraph 4.1.3(d) (without prejudice to the remuneration and benefits

payable to such Director under a contract of employment with BSCCo), shall be entitled to

be paid by BSCCo such remuneration and benefits for the role of Director as may, subject

to Section B2.11.8, be determined by Board.

4.4.3 Not used.

4.4.4 The secretary of BSCCo shall not be entitled to remuneration in that capacity, but without

prejudice to the terms on which he is employed by BSCCo.

4.4.5 The remuneration and benefits payable to a Director for the role of Director pursuant to

paragraph 4.4.2 shall be disclosed in the Annual BSC Report.

4.5 Indemnity

4.5.1 The Directors of BSCCo shall be indemnified by BSCCo as and to the extent provided in

the Articles of Association of BSCCo.

4.6 Chief Executive

4.6.1 After consultation with the Panel, the Board may appoint, and may from time to time

remove, reappoint or replace, a person to be the Chief Executive of BSCCo.

4.6.2 Subject to paragraph 4.6.1, the person appointed as Chief Executive shall be employed or

otherwise engaged by BSCCo on such terms as the Board shall decide.

4.6.3 The Chief Executive may be a Director, but if they are not a Director they shall be entitled

to receive notices of and to attend and speak (but not to vote) at all meetings of the Board,

and (if requested by the Chairman of the Board) shall be required to attend such meetings,

provided that the Board may require him to be absent from any part of a meeting at which

any matter concerned with his employment or engagement by BSCCo is to be considered.

4.6.4 The Board shall delegate to the Chief Executive authority to conduct the day to day

business of BSCCo.

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4.7 Proceedings of the Board

4.7.1 Subject to the provisions of the Code, proceedings of the Board shall be conducted and

governed in accordance with the requirements contained in the Articles of Association of

BSCCo.

4.8 General Meetings

4.8.1 The Directors of BSCCo may call a General Meeting.

4.8.2 Voting Parties may require the Directors of BSCCo to call a General Meeting.

4.8.3 The Directors of BSCCo shall be required to call a General Meeting in accordance with

Annex C-2 once BSCCo has received a request for a Resolution to be voted on from

Voting Parties with a combined Actual Voting Share (as published on the BSC Website on

the day such request is received) of at least five (5) per cent (%).

4.8.4 A request from a Voting Party:

(a) must state the nature of the business to be dealt with at the General Meeting;

(b) must include the Voting Party’s rationale and any supporting documentation;

and

(b) may include the text of a Resolution that is intended to be moved at the General

Meeting.

4.8.5 A request:

(a) may be in hard copy form or in electronic form; and

(b) must be authenticated by the Authorised Signatory of the Voting Party or

Voting Parties making it.

4.8.6 A vote on a Resolution at any General Meeting or the Annual BSC Meeting shall be

conducted in accordance with the provisions of Annex C-2.

4.9 Non-Binding Resolutions

4.9.1 In respect of any General Meeting or the Annual BSC Meeting, one or more Voting Parties

may, subject to paragraph 4.8, propose a vote on a non-binding resolution in relation to any

matter related to the activities of the Board ("Non-Binding Resolution").

4.10 Binding Resolutions

4.10.1 In respect of any General Meeting or the Annual BSC Meeting, one or more Voting Parties

may, subject to paragraph 4.8, propose a vote on a binding resolution to remove one or

more Directors from the Board ("Binding Resolution"). If the Binding Resolution is

approved by Voting Parties at a vote then the relevant person shall immediately cease to be

a Director. either:

(a) five (5) Working Days after results are published under paragraph 4.2.2(b) of

Annex C-2; or

(b) if an audit has been commissioned under paragraph 4.3 of Annex C-2, promptly

after that audit’s confirmation, if it occurs, of the published results.

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5. RELATIONSHIP BETWEEN PARTIES AND BSCCO

5.1 Liability of BSCCo

5.1.1 It is acknowledged that, by virtue of the arrangements for funding BSCCo set out in

Section D:

(a) BSCCo is not intended to make profits or losses in any BSC Year; and

(b) if any Party or Parties were to make any claim against any BSC Company the

financial consequences of such claim would be borne by the Trading Parties

themselves.

5.1.2 Accordingly, subject to the further provisions of this paragraph 5.1 and paragraph 5.2, the

Parties agree that they do not intend that any Party or Parties should be able to make any

claim in damages or any other claim of a financial nature against any BSC Company; and

each Party (to the fullest extent permitted by law) waives any such claims against any BSC

Company and releases each BSC Company from any such liability in respect of any breach

by such BSC Company of any provision of the Code or in tort (including negligence) or

otherwise.

5.1.3 The obligations of each Trading Party in respect of the funding of BSCCo pursuant to

Section D shall not be prejudiced, qualified or affected in any way by any breach by any

BSC Company of any provision of the Code, or any other act or omission of any BSC

Company.

5.1.4 Nothing in paragraph 5.1.2 shall exclude or limit the liability of a BSC Company for death

or personal injury resulting from the negligence of such BSC Company or the ability of any

Party to seek any equitable remedy against a BSC Company.

5.1.5 Paragraph 5.1.2 is without prejudice to:

(a) the obligations of BSC Clearer to Trading Parties pursuant to Section N;

(b) any provision of the Code which may provide for an indemnity by BSCCo in

favour of any Party or other person, or which provides for BSCCo to make a

payment to any Party;

and nothing in paragraph 5.1.2 shall prevent any Party from or restrict it in enforcing any

obligation by way of debt owed by BSCCo or the BSC Clearer pursuant to any provision of

the Code.

5.1.6 No Party shall take any step in relation to a BSC Company which (if Section H3 were

expressed to apply in respect of such BSC Company) would or might result in such BSC

Company being in Default pursuant to Section H3.1.1(g); provided that this shall not

prevent a Party from notifying any BSC Company that such Party requires payment of any

amount which is due for payment by such BSC Company to such Party.

5.1.7 Each Party acknowledges and agrees that the provisions of this paragraph 5.1 have been the

subject of discussion and are fair and reasonable having regard to the circumstances at the

Code Effective Date.

5.2 Party particularly prejudiced by BSCCo breach

5.2.1 Subject to the further provisions of this paragraph 5.2, where:

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(a) BSCCo is in breach of a provision of the Code, other than any provision

specified in paragraph 5.2.2; and

(b) a Party (the "claimant Party") was unfairly and particularly prejudiced by the

breach, and in particular the circumstances in which such breach occurred, and

in which loss was suffered by the claimant Party as a result of such breach, were

not such as to result in some loss being suffered by all Parties or by all Trading

Parties

then paragraph 5.1 and Section H6.2.2(a) shall not exclude or limit the liability of BSCCo

in damages to the claimant Party in respect of such breach (an "actionable breach"), but

without prejudice to Section H6.2.2(b).

5.2.2 Paragraph 5.2.1 shall not apply in respect of a breach by BSCCo:

(a) of any of its obligations as, or provision of the Code relating to, the

Performance Assurance Administrator; or

(b) of any provision of Section M; or

(c) of paragraph 2.6; or

(d) of any provision of Section F.

5.2.3 A Party may not bring a claim or commence any proceedings against BSCCo in respect of

an actionable breach more than 6 months after the date on which the breach occurred or

commenced or (if later) more than 3 months after the Party became or could reasonably be

expected to have become aware of the breach.

5.2.4 A Party may not make a claim against BSCCo in respect of an actionable breach if the

amount of the Party's loss resulting from such breach is less than £50,000.

5.2.5 The aggregate cumulative amount payable by BSCCo to all Parties in respect of actionable

breaches under this paragraph 5.2 for which payments (of damages or otherwise) fall to be

made by BSCCo in any BSC Year shall not exceed £3,000,000.

5.2.6 If the aggregate amount so payable by BSCCo in a BSC Year would otherwise exceed the

amount specified in paragraph 5.2.5:

(a) the amounts for which BSCCo is liable to each relevant Party shall be reduced

pro rata (and if unpaid, BSCCo shall pay such reduced amounts);

(b) where BSCCo has already paid any such amount to a Party, BSCCo shall

require and each relevant Party shall make and pay such adjustment amounts as

the Panel shall approve for the purposes of giving effect to paragraph (a).

5.3 Capacity of BSCCo

5.3.1 Subject to paragraph 5.3.2, BSCCo shall act as principal and not as agent of Parties in the

exercise and discharge of its powers, functions and responsibilities.

5.3.2 Where the Code so provides, BSCCo shall, or (if the Code so provides) may, act as agent

for and on behalf of, or as trustee for, Parties or particular Parties.

5.3.3 Except as provided by the Code, BSCCo shall not, and is not authorised to, enter into any

commitment or incur any liability as agent for or in the name of any Party (but without

prejudice to Parties’ funding obligations under Section D).

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6. BUSINESS STRATEGY AND ANNUAL BUDGET

6.1 Introduction

6.1.1 For each BSC Year (the "Plan Year") BSCCo shall have:

(a) a Business Strategy, setting out the principal activities which BSCCo expects to

be carrying out in the Plan Year and each of the two following BSC Years, on

the basis of the functions and responsibilities which are or have been assigned

to BSCCo under or pursuant to the Code but excluding the activities of

Permitted Affiliates, except as contemplated in paragraph 1.3.1 of Annex C-1;

(b) an Annual Budget, setting out the expenditure which BSCCo considers

reasonably necessary in order to carry out such activities in the Plan Year,

each established and from time to time amended in accordance with this paragraph 6.

6.1.2 The Panel and all Parties shall be invited to comment prior to finalisation of the Business

Strategy for each BSC Year in accordance with paragraph 6.3.

6.1.3 BSCCo shall provide a copy of each Business Strategy and Annual Budget, and each

revision thereof, to the Authority, the Panel and each Party, promptly after adopting or

making any revision to such Business Strategy or Annual Budget.

6.2 Scope of Business Strategy and Annual Budget

6.2.1 BSCCo will discuss with the Panel the scope and format from time to time of the Business

Strategy and Annual Budget.

6.3 Business Strategy

6.3.1 For each BSC Year, BSCCo shall:

(a) not used;

(b) not later than 1 January in the preceding BSC Year, prepare an initial draft

Business Strategy, provide a copy to the Panel and to all Parties, and invite

comments from persons eligible to propose Code Modifications thereon;

(c) not later than 20 February in the preceding BSC Year publish a summary of the

comments received on the initial draft; and

(d) not later than 15 March in the preceding BSC Year, after considering all

comments received by BSCCo, make such further revisions to the draft

Business Strategy as BSCCo may consider appropriate having regard to the

functions and responsibilities of BSCCo and the objectives in Section B1.2.1,

and finalise and adopt the Business Strategy.

6.3.2 Where BSCCo considers that there are options or alternatives as to any activity which

BSCCo may carry out in the Plan Year, which or the costs of which are materially different

from each other, the initial draft Business Strategy provided under paragraph 6.3.1(b) shall

set out such options or alternatives.

6.3.3 With the consent of the Panel, BSCCo may vary the times by which the steps in paragraph

6.3.1 are to be taken.

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6.3.4 After adopting the Business Strategy, BSCCo shall keep the Business Strategy (so far as it

relates to the Plan Year) under review and shall make any revision to the Business Strategy

which appears requisite after seeking such further comments from the Panel and all Parties

as the Board considers necessary.

6.4 Annual Budget

6.4.1 At the same time as preparing each draft of the Business Strategy under paragraph 6.3,

BSCCo shall prepare or revise, and submit to the persons to whom each draft Business

Strategy is submitted, a draft Annual Budget for the Plan Year.

6.4.2 Following finalisation of the Business Strategy, BSCCo shall finalise and adopt the Annual

Budget.

6.4.3 Following any revision of the Business Strategy, BSCCo shall review and if appropriate

revise the Annual Budget.

6.4.4 The Annual Budget for each BSC Year and any revision (including under paragraph 6.5) of

such Annual Budget shall be approved by the Board.

6.5 Budget overspend

6.5.1 If the aggregate amount of BSCCo's expenditure in any BSC Year exceeds, or BSCCo

anticipates that it may exceed, the amount contained in the Annual Budget, BSCCo shall

promptly:

(a) notify the Panel and all Parties, giving details of the excess expenditure and an

explanation of the reasons therefor; and

(b) submit to the Panel and all Parties a draft revision of the Annual Budget,

together with its proposal for modifying the Business Strategy if BSCCo

considers it appropriate to modify the Business Strategy so as to reduce or limit

its expenditure in the relevant BSC Year.

6.5.2 After seeking such further comments from the Panel and Parties as the Board considers

necessary, but taking account of any consequent revision of the Business Strategy BSCCo

shall revise the Annual Budget.

6.6 MHHS Implementation Management First Year Budget

6.6.1 Each Party acknowledges that the commencement of the MHHS Implementation is

unlikely to coincide with the adoption of the Annual Budget pursuant to paragraph 6.4 and

consequently, in order to recover the costs relating to MHHS Implementation Management,

it may be necessary for BSCCo to develop and adopt an amendment to the Annual Budget

for the BSC Year in which the MHHS Implementation commences, in which case BSCCo

shall:

(a) notify the Panel and all Parties, giving details of the MHHS Implementation

additional expenditure; and

(b) submit to the Panel and all Parties a draft revision of the Annual Budget.

6.6.2 After seeking such further comments from the Panel and Parties as the Board considers

necessary, BSCCo shall revise the Annual Budget.

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7. BSC COMPANIES

7.1 General

7.1.1 BSCCo may discharge any of its powers, functions and responsibilities under the Code

through (and by delegation to) a Subsidiary in which BSCCo is permitted to hold shares in

accordance with paragraph 3.4.5(b)(ii) (and in particular may hold any BSC Agent

Contract through such a Subsidiary); but only to the extent to which the powers, functions

or responsibilities relate to activities which were carried out, or which are equivalent to or

developed from activities which were carried out, by the relevant company before it

became a Subsidiary pursuant to the Implementation Scheme on the Code Effective Date.

7.1.2 No Subsidiary of BSCCo shall, and BSCCo shall procure that any Subsidiary shall not:

(a) have or exercise any powers or functions beyond the powers and functions of

BSCCo; or

(b) otherwise do anything which pursuant to the Code may not be done by BSCCo,

or may not be done without the consent or approval of the Panel.

7.1.3 For the purposes of paragraph 3.4.3(a) the reference to borrowings in that paragraph shall

be to the borrowings of BSCCo and all of its Subsidiaries in aggregate.

7.1.4 Reference in this paragraph 7.1 to Subsidiaries of BSCCo do not include the BSC Clearer.

7.1.5 Without prejudice to the generality of paragraph 7.1.1, a Subsidiary in which BSCCo is

permitted to hold shares in accordance with paragraph 3.4.5(b)(ii) may discharge any of its

powers, functions and responsibilities under the Code through (and by delegation to) the

BSC Services Manager.

7.2 BSC Clearer

7.2.1 The BSC Clearer shall fulfil the role provided in Section N, and shall have the duties,

powers and functions set out in that Section.

7.2.2 The BSC Clearer shall not undertake any business or activity, and shall not take any step or

incur any commitment or liability, other than pursuant to and in accordance with Section N

and this paragraph 7.

7.3 Duties of BSCCo

7.3.1 BSCCo shall at all times be the registered holder of all of the issued share capital of each of

its Subsidiaries.

7.3.2 Neither BSCCo nor any of its Subsidiaries shall authorise or agree to, or permit or take any

step for or with a view to, any of the following:

(a) any change in the authorised share capital of any Subsidiary;

(b) the issue of any share capital, or issue or grant of any option, warrant or other

instrument, security or right to subscribe for or which is convertible into shares

of any Subsidiary;

(c) any transfer of any shares of any Subsidiary;

(d) the creation of any pledge, mortgage, charge or other encumbrance over any

shares of any Subsidiary.

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7.3.3 BSCCo shall act, and exercise its rights, as shareholder of each Subsidiary so as and only

so as to secure that the provisions of the Code are given effect in relation to such

Subsidiary.

7.4 Constitution, etc

7.4.1 Subject to paragraph 7.4.2, the Memorandum and Articles of Association of the BSC

Clearer shall be in the form designated pursuant to the Implementation Scheme.

7.4.2 The form of the Memorandum and Articles of Association of the BSC Clearer shall be

treated as incorporated in and forming part of the Code for the purposes of enabling such

form to be modified, and such form shall accordingly be capable of being modified, by way

of Code Modification made pursuant to a Modification Proposal and otherwise in

accordance with Section F; and the Memorandum and Articles of Association of the BSC

Clearer shall be amended so as to be in any such modified form.

7.4.3 The Memorandum and Articles of Association of each other Subsidiary of BSCCo shall be

in the same form as nearly as practicable as those of BSCCo (but with any differences

consequent on its being such a Subsidiary).

7.4.4 The registered office, accounting reference date and statutory auditors of each Subsidiary

of BSCCo shall be the same as those of BSCCo.

7.5 Directors and secretary

7.5.1 Subject to paragraph 7.5.1A, the board of directors of each Subsidiary of BSCCo shall at

all times comprise the persons who are for the time being Directors of BSCCo, and the

company secretary of such Subsidiary shall be the person who is for the time being

company secretary of BSCCo.

7.5.1A Where any Subsidiary of BSCCo is a Dormant Subsidiary then it shall not be necessary for

all of the persons who are for the time being Directors of BSCCo to also be Directors of

each Dormant Subsidiary, provided that the chairman of BSCCo shall at all times be a

Director of each Subsidiary.

7.5.2 Subject to paragraph 7.5.1A, any person who is appointed or re-appointed as, or who

resigns or is removed as, Director or company secretary of BSCCo shall be appointed or re-

appointed, or shall resign or be removed, as a director or (as the case may be) the company

secretary of each Subsidiary of BSCCo; and a director or the company secretary of such a

Subsidiary shall not resign as such unless he resigns at the same time as a Director or (as

the case may be) the company secretary of BSCCo.

7.5.3 Subject to paragraph 4.6.1, the person who is for the time being Chief Executive of BSCCo

shall act as chief executive of each Subsidiary of BSCCo, under such terms of reference as

the board of directors of such Subsidiary may determine.

7.5.4 Each director of a Subsidiary shall be entitled to be reimbursed by BSCCo for the

reasonable costs and expenses (including travel and accommodation costs) properly

incurred by such director in attending meetings or otherwise in the conduct of the business

of the board of directors of the Subsidiary and not otherwise reimbursed under paragraph

4.4.1.

7.5.5 No director of a Subsidiary shall be entitled (in that capacity) to be paid any remuneration

or benefits other than his costs and expenses in accordance with paragraph 7.5.4.

7.6 BSCCo services

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7.6.1 BSCCo shall provide to each of its Subsidiaries such administrative, support and other

services, and may make such other arrangements with such Subsidiaries, as may be

required to enable the Subsidiary to perform its functions.

7.6.2 The arrangements made by BSCCo under paragraph 7.6.1 shall include arrangements

which ensure that each Subsidiary has funds sufficient to meet its costs, expenses and other

outgoings.

7.6.3 In the case of the BSC Clearer, the services to be provided by BSCCo under paragraph

7.6.1 include, without limitation, to the extent to which (under the Code and the relevant

BSC Service Description) the FAA is to provide services to or for the benefit of the BSC

Clearer, entering into and managing the relevant BSC Agent Contract with the FAA.

7.6.4 The BSC Clearer and BSCCo will make such further arrangements (including the

conferring of appropriate authorities on BSCCo) as are requisite in connection with the

provision of services by BSCCo under paragraph 7.6.1.

8. BSCCO INVOLVEMENT IN BETTA

8.1 BETTA Support Work

8.1.1 Subject to the further provisions of this paragraph 8, and without prejudice to the discharge

of its other functions and responsibilities in accordance with paragraph 1.3.1 and any other

provisions of the Code, BSCCo may undertake work (BETTA Support Work) by way of

the provision to the Authority of facilities, resources and other services and support in

connection with the development and implementation of BETTA, including in particular:

(a) the identification and development of the changes which would be required to

the Code and Code Subsidiary Documents to enable them to serve as a

balancing and settlement code for Great Britain (GB BSC) and its subsidiary

documents for BETTA;

(b) the identification, impact assessment, design, development, testing and trialling

of the changes which would be required to BSC Agent Systems, BSC Service

Descriptions and BSC Agent Contracts and the systems, service descriptions

and contracts of other service providers to enable them to serve as systems,

service descriptions and contracts for BETTA;

(c) planning and preparation for the introduction of, and the transition from the

arrangements subsisting pursuant to the Code and the Settlement Agreement for

Scotland to those subsisting under, a GB BSC; and

(d) the implementation of BETTA during the Transition Period.

8.1.2 BSCCo shall not undertake any BETTA Support Work unless BSCCo has proposed to the

Authority a work specification (in such form and detail as the Authority may require) for

such BETTA Support Work and the Authority has approved such work specification.

8.1.3 If the Transmission Licence is modified so as to exclude Standard Condition C3.3(e), with

effect from the effective date of such modification, BSCCo's authority to conduct BETTA

Support Work shall lapse, without prejudice to the BETTA Support Work undertaken by

BSCCo before such date, and to BSCCo's authority to satisfy any commitment entered into

in the course of undertaking BETTA Support Work (pursuant to a work specification

approved pursuant to paragraph 8.1.2) before such date.

8.2 Further provisions

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8.2.1 In the course of undertaking BETTA Support Work pursuant to a work specification

approved pursuant to paragraph 8.1.2 BSCCo may (without limitation):

(a) procure advice, impact assessments and other services (as required for the

purposes of paragraph 8.1.1(b), (c) or (d)) from BSC Agents and other service

providers;

(b) prior to BETTA Go Active negotiate amendments with BSC Agents and other

service providers (as to such additions and changes as are described in

paragraph 8.1.1(b)) to BSC Agent Contracts, BSC Service Descriptions and

other service provider contracts and service descriptions, or with the approval of

the Authority procure and/or negotiate an offer from a person not being the

existing BSC Agent to enter into such an additional or amended BSC Agent

Contract, provided that any such amendment (or acceptance of any such offer)

shall be expressed to be conditional and contingent upon the decision (which

BSCCo will not, until BETTA Go Active and in accordance with paragraph

8.2.6, be authorised to take) that the relevant BSC Agent or other person is to be

appointed in an equivalent capacity under the GB BSC;

(c) subsequent to BETTA Go Active, negotiate and agree additions or changes to

existing BSC Agent Contracts, BSC Service Descriptions and other service

provider contracts and service descriptions and negotiate, agree and enter into

new BSC Agent Contracts, BSC Service Descriptions and other contracts, or in

each case negotiate offers for the same;

(d) liaise, cooperate and exchange information with Core Industry Document

Owners;

(e) consult with Parties and others in relation to the matters in paragraphs 8.1.1(a),

(b), (c) and (d);

(f) for the purposes of any such consultation required by paragraph 8.2.1(e),

disclose or publish any relevant information (as defined in paragraph 3.6.4),

excluding any information which relates to the affairs of an individual Party and

is in BSCCo's opinion commercially sensitive, or the disclosure or publication

of which would in BSCCo's opinion substantially prejudice the interests of all

or a class of Parties collectively, unless the Authority notifies BSCCo that the

Authority has determined that such disclosure or publication is requisite for the

purposes of the undertaking of the BETTA Support Work;

(g) procure such further resources and services as it may reasonably require to

enable it to undertake such BETTA Support Work.

8.2.2 The costs, expenses and liabilities incurred by BSCCo in the undertaking of BETTA

Support Work shall be BSC Costs, but BSCCo shall keep account of such costs, expenses

and liabilities separately from all other BSC Costs.

8.2.3 BSCCo shall prepare and make available to the Panel and to Parties regular reports in

respect of BETTA Support Work, and the costs, expenses and liabilities incurred in

undertaking such work, but BSCCo shall not be required to disclose to Parties or the Panel

any information relating to BETTA which the Authority expressly requests BSCCo to keep

confidential.

8.2.4 The functions of, and the things done by, BSCCo under and pursuant to this paragraph 8

shall be considered to be functions under and things done pursuant to the Code for the

purposes of paragraphs 3.4.1, 3.4.2, 4.4, 4.5, 4.6, 5.1 and 5.3 and Sections D2, H4.2 and

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H4.3 (but subject to paragraph 8.2.1(f) above), H4.5, H4.6, H4.7 (for the purposes of which

BSCCo Materials and BSC Systems shall be construed taking account of BETTA Support

Work), H4.9, H4.10.2, H6, H7 and H9 but not for the purposes of any other provision of

the Code (including paragraph 1.3) which applies or refers directly or indirectly to the

functions of BSCCo; and the Panel shall have no duties or responsibilities in relation to

BETTA Support Work and (except as provided in paragraph 8.2.3) BSCCo shall owe no

duties to the Panel or to any Party or Parties generally in the carrying out of such functions.

8.2.5 Without prejudice to what may be provided in the relevant work specification pursuant to

paragraph 8.1.2, Section E2.7 shall not apply in relation to anything done by BSCCo

pursuant to paragraph 8.2.1(b) and (c).

8.2.6 BSCCo shall on and from BETTA Go Active be authorised and entitled to:

(a) waive or treat as satisfied any condition or contingency to which any change,

addition or amendment to an existing BSC Agent Contract, BSC Service

Description or other service provider contractor or service description, or to

which any new BSC Agent Contract, BSC Service Description, service provider

contract or service description, is expressed as being subject to or contingent on;

and

(b) make the decision referred to in paragraph 8.2.1(b) that the relevant BSC Agent

or other person is to be appointed in an equivalent capacity under the GB BSC.

9. PROVISION OF PROFILE ADMINISTRATION SERVICES BY BSCCO

9.1 Provision of Profile Administration Services in certain circumstances

9.1.1 Subject to the further provisions of this paragraph 9, BSCCo shall where the Panel’s prior

consent has been obtained, provide (directly and/or via a service provider) the services set

out in Section S4.2 (the "Profile Administration Services").

9.1.2 Where the Panel’s prior consent to BSCCo providing the Profile Administration Services

has not been obtained, a Profile Administrator shall be appointed in accordance with

Section E.

9.1.3 BSCCo shall obtain further Panel consent to continue to provide the Profile Administration

Services if a material change occurs in BSCCo’s provision of the Profile Administration

Services and in any event not less than once every five years.

9.1.4 A "material change" for the purposes of this paragraph 9 means a change to BSCCo’s

systems, processes or resources which is of such a type or magnitude as to raise the

reasonable expectation of an impact on BSCCo’s ability to efficiently meet its obligations

to deliver the Profile Administration Services.

9.2 BSCCo’s capacity and obligations

9.2.1 Where the Profile Administration Services are provided by BSCCo, they are provided in its

capacity as BSCCo and not as a BSC Agent.

9.2.2 For the duration of any period where BSCCo provides the Profile Administration Services,

Section E shall not apply in respect of the provision of those services.

9.2.3 Subject to paragraphs 9.2.1 and 9.2.2, BSCCo shall provide the Profile Administration

Services in accordance with the Code.

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9.2.4 Where the Profile Administration Services are provided by BSCCo, all obligations and

requirements on Parties and other persons in the Code with respect to Profile

Administration Services and/or the Profile Administrator shall continue unaltered (mutatis

mutandis) notwithstanding that the Profile Administration Services shall be provided by

BSCCo.

9.2.5 For the duration of any period where BSCCo provides the Profile Administration Services,

the following provisions of Section S4 shall be deemed to have been amended as follows:

(a) Section S4.2.1(f) shall not apply;

(b) Section S4.2.2 shall read:

BSCCo shall prepare a set of Regression Coefficients, Group Average Annual Consumption values and Profile Coefficients for each BSC Year on or before 30th November before the beginning of the relevant BSC Year, using data collected from the load research programme carried out by it or its appointee, augmented with data provided by Suppliers which is consistent with the overall sample design;

(c) Section S4.2.3 shall read:

BSCCo shall prepare:

(a) on a quarterly basis, a breakdown by GSP Group of each Profile Class sample, together with a statement of the daily average number of customers for which monitoring equipment has been successfully installed and commissioned for each Profile Class in respect of the previous quarter (a quarter being a period of 3 months commencing on 1st January, 1st April, 1st July and 1st October in any year); and

(b) an annual report and data analysis plan (in such form as may be specified by the Panel) setting out what load research data it proposes to use, together with a load research plan (in such form as the Panel shall specify) setting out the proposed sample design and sample sizes in respect of the following BSC Year.

(d) for the purposes of Sections S4.2.4, S4.2.5, S4.2.6, S4.2.7 and S4.2.8 “Profile Administrator” shall be read as “BSCCo”.

9.3 Contracts for Profile Administration Services

9.3.1 Where BSCCo provides the Profile Administration Services, in whole or in part, via a

service provider(s), BSCCo shall enter into each contract for the provision of Profile

Administration Services in accordance with this paragraph 9.3 (a "Profile Administration

Services Contract") and for these purposes:

(a) a service provider providing Profile Administration Services shall not be

considered to be a 'BSC Agent' under the Code; and

(b) notwithstanding paragraphs 9.2.2 and 9.3.1(a), the provisions of Section E2.4

and Section E3 shall apply to each Profile Administration Services Contract as

if references to a BSC Agent included the service provider and references to a

BSC Agent Contract included all Profile Administration Services Contracts

subject to the provisions of Section E3.2 applying to a service provider of

Profile Administration Services in its capacity as such and not in any other

capacity which it may have under the Code.

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9.3.2 Each Profile Administration Services Contract shall contain terms which provide that the

service provider shall make provision for the BSC Auditor to access those things required

by Section H5.5.2.

9.3.3 It is recognised that where paragraph 9.3.1 applies, a service provider of Profile

Administration Services may be a Party. Where a service provider of Profile

Administration Services is a Party:

(a) such Party shall have no rights, benefits, obligations or liability in its capacity as

a service provider to or against any other Party under the Code, but without

prejudice to its rights and obligations:

(i) as service provider under its Profile Administration Services

Contract; and

(ii) in any other capacity under the Code;

(b) references to a Party or Parties in the Code shall be construed as excluding any

service provider of Profile Administration Services (which is a Party) in its

capacity as a service provider (but as including such person in any other

capacity it may have under the Code); and

(c) the provision, disclosure and use of any data relating to a Party which is used in

or in connection with the Profile Administration Services by a service provider

shall not be considered or construed as being made pursuant to any provision of

the Code.

9.3.4 Notwithstanding paragraph 9.3.1(a):

(a) Section H4.6 shall apply to service providers of Profile Administration Services

as if references to BSC Agents included service providers and references to

BSC Agent Contracts included Profile Administration Services Contracts;

(b) references to BSC Agents and BSC Agent Contracts in Section W shall be

deemed to include, respectively, service providers referred to in paragraph

C9.3.1 and Profile Administration Services Contracts; and

(c) references to BSC Agents in Section W1.4.1 shall be deemed to include

BSCCo.

10. PERMISSIBLE ACTIVITIES UNDERTAKEN BY PERMITTED AFFILIATES

10.1 General

10.1.1 In respect of each Permitted Affiliate:

(a) BSCCo shall be entitled to subscribe for, acquire or hold any share or other

security in a Permitted Affiliate and paragraph 3.4.5(b) shall not apply;

(b) BSCCo shall not dispose of any legal or beneficial interest in any shares or

other security in a Permitted Affiliate undertaking activities and functions

specified in paragraph 1 of Annex C-1 except:

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(i) to the CfD Counterparty and/or the CM Settlement Body and/or to

any nominees of the CfD Counterparty and/or the CM Settlement

Body; or

(ii) where otherwise directed to do so by the Secretary of State,

in which case paragraph 3.4.5(c) shall not apply;

(c) the Panel shall have no rights of approval or disapproval in respect of claims or

proceedings by or against a Permitted Affiliate, or waivers or settlements of

such claims, and paragraph 3.4.3(e) shall not apply; and

(d) paragraph 7 shall not apply.

10.1.2 Each Party and the Panel shall not (whether by action, omission or withholding of consent)

prevent or restrict a Permitted Affiliate from performing all activities and functions and

assuming all responsibilities and duties set out in Annex C-1.

10.1.3 Paragraphs 5.1. and 5.2 shall not apply to a Permitted Affiliate and, subject to paragraph

10.1.4, each Party (to the fullest extent permitted by law) waives any claim in damages or

any other claim of a financial nature against a Permitted Affiliate and releases each

Permitted Affiliate from any liability in respect of any breach by such Permitted Affiliate

of any provision of the Code or in tort (including negligence) or otherwise.

10.1.4 Nothing in paragraph 10.1.3 shall exclude or limit the liability of a Permitted Affiliate for:

(a) death or personal injury resulting from the negligence of such Permitted

Affiliate; or

(b) fraud or fraudulent misrepresentation; or

(c) any claim against that Permitted Affiliate brought by a Party (acting in a

capacity other than as a Party) solely to the extent that such Party has a right to

bring a claim under an EMR Legal Requirement.

10.1.5 BSCCo may amend any BSC Agent Contract to include the supply of services to support

Permissible Activities.

10.1.6 Nothing in this paragraph 10 shall affect or limit BSCCo’s obligation to discharge its

functions and responsibilities pursuant to the Code.

10.2 Ring-Fencing of Permitted Affiliates

10.2.1 Without prejudice to paragraphs 3.4 and 3.5, but subject to paragraph 10.1, the following

provisions shall apply (as relevant) to BSCCo and to each Permitted Affiliate:

(a) without prejudice to paragraph 3, BSCCo shall not transfer, lease, licence, or

lend any sum or sums, asset (including non-financial resources), right, or

benefit to a Permitted Affiliate except by way of:

(i) a payment properly due for any goods, services, data, information, or

assets provided on an arm’s length basis and on normal commercial

terms; or

(ii) a transfer, lease, licence, or loan of any sum or sums, data,

information, asset, right, or benefit that is on an arm’s length basis

and on normal commercial terms;

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(b) except as permitted in paragraph 10.2.1(a), BSCCo shall not enter into any

borrowing for or on behalf of a Permitted Affiliate where the term "borrowing"

has the same meaning as that term in accordance with paragraph 3.4.4;

(c) BSCCo and each Permitted Affiliate shall implement agreed contractual

arrangements to ensure that:

(i) where any common or shared costs between BSCCo and a Permitted

Affiliate are incurred these costs are allocated reasonably and

equitably, provided that in determining such allocation a Permitted

Affiliate shall not be obliged to pay in excess of the established

market rate, if applicable; and

(ii) where BSCCo incurs any costs (including costs in respect of any

liabilities incurred by BSCCo) that arise as a consequence of

services provided by BSCCo, or on BSCCo’s behalf by a BSC

Agent, to a Permitted Affiliate, such costs shall be recoverable from

the Permitted Affiliate on a cost recovery basis; and

(d) Parties shall have no liability or obligation to provide financial support to a

Permitted Affiliate in respect of its performance of Permissible Activities.

11. PROVISION OF SUPPORT TO EMR SETTLEMENT SERVICES PROVIDERS

11.1 Provision of Support to EMR Settlement Services Providers

11.1.1 Without prejudice to paragraph 10, BSCCo may, in its discretion, provide (directly and/or

via a BSC Agent) to an EMR Settlement Services Provider such support services

(including the provision of assurance services) as may be reasonably incidental to

supporting that EMR Settlement Services Provider in discharging its EMR Settlement

Functions.

11.2 Agreement between BSCCo and EMR Settlement Services Providers

11.2.1 Subject to the disclosure obligations in Section V5, BSCCo shall enter into an agreement or

agreements with any CFD Settlement Services Provider and any CM Settlement Services

Provider including, inter alia, terms relating to the provision of Relevant EMR Settlement

Data in accordance with Section V5, and terms that:

(a) restrict the use of the Relevant EMR Settlement Data to the extent necessary to

enable any CFD Settlement Services Provider and/or any CM Settlement

Services Provider (and their service providers) to discharge their EMR

Settlement Functions;

(b) are consistent with the terms (as to availability and reliability of data) contained

in agreements entered into by BSCCo pursuant to Section V3.2.7;

(c) in respect of the CFD Settlement Data, impose restrictions on the use of CFD

Settlement Data equivalent to the restrictions on the use of Confidential

Information in Section H4 provided that a CFD Settlement Services Provider

shall be entitled to share CFD Settlement Data with any CfD Counterparty, and

otherwise in accordance with the EMR Legal Requirements;

(d) in respect of the CM Settlement Data, reflect the provisions on the use of

protected information contained in the EMR Legal Requirements;

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(e) where EMR Settlement Data is to be disclosed to a service provider of an EMR

Settlement Services Provider, provide that such EMR Settlement Data shall

only be disclosed on a "need-to-know" basis and requiring such service

providers to enter into a confidentiality agreement with the relevant EMR

Settlement Services Provider on terms equivalent to those contained in an EMR

Legal Requirement or, if there is no applicable EMR Legal Requirement,

Section H4;

(f) allow for the provision of support services in accordance with paragraph 11.1.1

and which, to the fullest extent permitted by law, restrict BSCCo’s liability to

the EMR Settlement Services Provider for any claim in damages or any other

claim of a financial nature relating to the supply of services to the EMR

Settlement Services Provider to the amounts payable under the agreement for

those services; and

(g) provide for the payment by any CFD Settlement Services Provider of CFD

Settlement Services Provider Costs and by any CM Settlement Services

Provider of CM Settlement Services Provider Costs, as appropriate to the

relevant agreement, in each case in accordance with Section D7.

12. MARKET-WIDE HALF HOURLY SETTLEMENT IMPLEMENTATION

MANAGEMENT

12.1 MHHS Implementation Management

12.1.1 For the purposes of the Code:

(a) "MHHS Implementation" means the implementation of the systems and

processes that will enable market-wide Settlement on a half hourly basis;

(b) "MHHS Implementation Assurance Provider" has the meaning given to that

term in paragraph 12.3.1;

(c) "MHHS Implementation Manager" means BSCCo to the extent that BSCCo

is responsible for, and/or has been appointed to provide, some or all of the

MHHS Implementation Management services pursuant to this paragraph 12 (or

any part thereof); and

(d) "Market-wide Half Hourly Settlement Implementation Management" or

"MHHS Implementation Management" shall have the meaning given to that

term in paragraph 12.1.3.

12.1.2 The provisions of this paragraph 12 shall apply to the extent, and for the duration that,

BSCCo is responsible for, and/or has been appointed to provide, the MHHS

Implementation Management services or any part thereof.

12.1.3 Subject to the further provisions of this paragraph 12, BSCCo shall provide (either itself or

through service provider(s)) the activities and functions, and shall assume the

responsibilities and duties, in connection with the management of the MHHS

Implementation which may include:

(a) programme management which shall include responsibility, amongst other

things, for managing the delivery of the MHHS Implementation including

mobilisation, design, build, test, integration and go-live;

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(b) system integration which shall include, amongst other things, supporting the

programme’s system design and build phases, and planning, co-ordinating and

managing programme parties’ activities and resources during the programme’s

system test and integration phases;

(c) programme party coordination including, amongst other things, assessing

programme party readiness during the build, and before each test and

integration milestone to ensure programme parties are ready to meet programme

milestones; and/or

(d) such other roles as may be necessary for or reasonably ancillary to the delivery

of MHHS Implementation Management,

(collectively "MHHS Implementation Management"), in each case in accordance with

the specification for such roles as is set out in a Code Subsidiary Document or as has

otherwise been approved by the Authority from time to time. As regards each of the roles

which comprise MHHS Implementation Management, BSCCo shall publish a statement on

the BSC Website providing an explanation of its decision as to whether to appoint a service

provider to perform such role.

12.1.4 BSCCo shall provide (without prejudice to paragraph 3.6) such reporting and information

to the Authority, and shall attend such boards, steering groups and meetings, in each case in

connection with the MHHS Implementation as the Authority may specify.

12.1.5 The costs, expenses and liabilities incurred by BSCCo in undertaking MHHS

Implementation Management (including such additional expenses and liabilities as BSCCo

may incur, including with respect to service providers, in the event that BSCCo’s

appointment or responsibilities pursuant to this paragraph 12 cease prior to the completion

of the MHHS Implementation) shall be BSC Costs, but BSCCo shall keep account of such

costs, expenses and liabilities separately from all other BSC Costs (including separately

from any costs incurred by BSCCo in changing BSC Systems, documentation and

processes in order to implement MHHS).

12.1.6 BSCCo shall prepare and make available to the Panel and to Parties regular reports in

respect of its MHHS Implementation Management work, and the costs, expenses and

liabilities incurred in undertaking such work, but BSCCo shall not be required to disclose

to Parties or the Panel any information relating to the MHHS Implementation which the

Authority expressly requests BSCCo to keep confidential.

12.1.7 The functions of, and the things done by, BSCCo under and pursuant to this paragraph 12

shall be considered to be functions under and things done pursuant to the Code provided

that, if and to the extent so specified by the Authority:

(a) other than as provided in paragraph 3 of Annex D-3, the Panel shall have no

duties or responsibilities in relation to MHHS Implementation Management;

and

(b) other than as provided in paragraphs 6.3.1, 12.1.6, 12.2.1 and Section D4,

BSCCo shall owe no duties to the Panel in the carrying out of such functions.

12.1.8 In the event that BSCCo’s appointment or responsibilities pursuant to this paragraph 12

cease prior to the completion of the MHHS Implementation, BSCCo shall provide such

reasonable co-operation to a replacement MHHS Implementation Manager (including the

provision of materials and information relating to the MHHS Implementation) as may be

reasonably necessary.

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12.2 Tendering for the MHHS Implementation Manager Role

12.2.1 In the event that the appointment of the MHHS Implementation Manager is undertaken

through a competitive tender process then BSCCo may participate in that process provided

that:

(a) the maximum amount that BSCCo may incur in participating in such process

shall not in any event exceed the sum of one hundred thousand pounds sterling

(£100,000.00) in connection with:

(i) its third party costs (including in respect of professional advisors),

expenses, other outgoings and liabilities incurred in connection with

the planning, preparation, negotiation and award (or any other

process leading to an award), of the proposed MHHS

Implementation Manager role; and

(ii) its overhead costs (including, without limitation, personnel costs),

and any such costs, expenses and liabilities shall be BSC Costs;

(b) BSCCo shall keep account of such costs, expenses and liabilities separately

from all other BSC Costs; and

(c) BSCCo shall ensure that such costs are subject to a statutory audit and the

findings of such audit are reported to the Panel and Parties.

12.3 MHHS Independent Assurance

12.3.1 BSCCo may, and shall if requested by the Authority (subject to approval by the Authority),

appoint a person to provide assurance that the implementation of Market-wide Half Hourly

Settlement is being performed effectively (the "MHHS Implementation Assurance

Provider").

12.3.2 BSCCo shall:

(a) in appointing the MHHS Implementation Assurance Provider, put such

measures in place as may be necessary, including any measures specified by the

Authority, to ensure the independence of the MHHS Implementation Assurance

Provider from the MHHS Implementation Manager; and

(b) if directed to do so by the Authority, remove any person appointed as MHHS

Implementation Assurance Provider from time to time.

12.3.3 The costs, expenses and liabilities incurred by BSCCo in respect of the MHHS

Implementation Assurance Provider shall be BSC Costs, but BSCCo shall keep account of

such costs, expenses and liabilities separately from all other BSC Costs.

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ANNEX C-1: PERMISSIBLE ACTIVITIES

1 Activities performed pursuant to the Energy Act 2013

1.1 Settlement Services Provider for Feed in Tariff Contracts for Difference

1.1.1 A Permitted Affiliate may, for the duration of its appointment as a CFD Settlement

Services Provider, perform (either itself or through a service provider) all activities and

functions and assume all responsibilities and duties relating to, or otherwise (whether

specified in any EMR Legal Requirement or in a contract between a Permitted Affiliate and

a CfD Counterparty) in connection with:

(a) the calculation, invoicing, reconciliation and, where applicable, settlement of

amounts payable or arising under:

(i) Contracts for Difference; and

(ii) the Contracts for Difference Supplier Obligation;

(b) the calculation, collection, administration and enforcement of financial

collateral pursuant to Chapter 2 of Part 2 of the Energy Act 2013 and as set out

in:

(i) contracts for difference entered into by a CfD Counterparty pursuant

to Chapter 2 of Part 2 of the Energy Act 2013; and

(ii) the Contracts for Difference Supplier Obligation; and

(c) any other matters pursuant to Chapter 2 of Part 2 of the Energy Act 2013.

1.2 Settlement Services Provider for Capacity Agreements

1.2.1 A Permitted Affiliate may, for the duration of its appointment as a CM Settlement Services

Provider, perform (either itself or through a service provider) all activities and functions

and assume all responsibilities and duties relating to, or otherwise (whether specified in any

EMR Legal Requirement or in a contract between a Permitted Affiliate and the CM

Settlement Body) in connection with:

(a) the calculation, administration and, where applicable, settlement of amounts

payable or arising under Chapter 3 of Part 2 of the Energy Act 2013 and set out

in:

(i) the Electricity Capacity Regulations 2014;

(ii) any other regulations made under Chapter 3 of Part 2 of the Energy

Act 2013 which are in force from time to time;

(iii) the Capacity Market Rules; and

(b) the calculation, collection, administration and enforcement of financial

collateral pursuant to Chapter 3 of Part 2 of the Energy Act 2013 and set out in:

(i) the Electricity Capacity Regulations 2014;

(ii) any other regulations made under Chapter 3 of Part 2 of the Energy

Act 2013 which are in force from time to time;

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(iii) the Capacity Market Rules; and

(c) any other matters pursuant to Chapter 3 of Part 2 of the Energy Act 2013.

1.3 EMR Tender Activities

1.3.1 A Permitted Affiliate may prepare for and participate in the process for the award of the

activities referred to in paragraphs 1.1 and 1.2 and if such preparation and participation has

been included in a Business Strategy and an Annual Budget which have been approved and

adopted under paragraph 6, the costs thereof shall be BSC Costs and Sections C10.2.1(d)

and D7.3.1 shall not apply in respect of such BSC Costs.

2. Uniform Network Code Gas Performance Assurance Framework Administrator

(PAFA) role

2.1 General

2.1.1 BSCCo shall be entitled to establish or acquire PAFACo for the purpose of investigating

and, if the Board of PAFACo decides to do so, participating in a PAFA Tender, and if

successful in such PAFA Tender, performing the functions and responsibilities of the

PAFA Role, provided that the total consideration for the payment in respect of all of the

allotted shares of PAFACo shall not exceed £1.00.

2.2 PAFA tender

2.2.1 Subject to paragraphs 2.2.3 and 2.3, BSCCo may provide a loan or grant credit to PAFACo

on such terms as the Board may approve, from time to time, provided always that the

maximum amount of the loan or credit granted shall not in any event exceed the total

aggregate sum of one hundred thousand pounds sterling (£100,000.00) to enable PAFACo

to pay, in aggregate in connection with a PAFA Tender:

(a) its third party costs (including in respect of professional advisors), expenses,

other outgoings and liabilities incurred in connection with the planning,

preparation, negotiation and award (or any other process leading to an award),

of the PAFA Role; and

(b) its overhead costs (including, without limitation, personnel costs), provided that

such costs shall in the first instance be incurred by BSCCo on behalf of

PAFACo,

(together, "PAFA Tender Costs").

2.2.2 Subject to paragraph 2.2.1, PAFA Tender Costs may be incurred over successive BSC

Years.

2.2.3 PAFA Tender Costs shall be BSC Costs and BSCCo shall keep account of such costs,

expenses and liabilities separately from all other BSC Costs.

2.2.4 BSCCo shall submit any report it receives from PAFACo pursuant to paragraph 2.4.6(c) to

the Panel at its next available meeting and every quarter thereafter until repayment of the

Aggregate PAFA Tender Costs or the loan is written off in accordance with paragraph

2.3.6 (as the case may be).

2.2.5 BSCCo shall ensure that PAFA Tender Costs are subject to a statutory audit and such

findings are reported to the Panel and Parties.

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2.3 Reimbursement of PAFA Tender Costs to Trading Parties

2.3.1 The amounts recoverable by BSCCo as PAFA Tender Costs are amounts expended or

funded by or on behalf of Trading Parties pursuant to paragraph 2.2 and any amounts

which are otherwise described in the Code as PAFA Tender Costs.

2.3.2 BSCCo shall procure the agreement of PAFACo that in the event PAFACo is successful in

a PAFA Tender exercise PAFACo shall repay Aggregate PAFA Tender Costs to BSCCo

within the PAFA Tender Recovery Period.

2.3.3 Subject to paragraphs 2.3.2, 2.3.5 and 2.3.6, Trading Parties shall be entitled to recover

Aggregate PAFA Tender Costs in accordance with their respective Main Funding Shares at

that time.

2.3.4 As soon as reasonably practicable after receipt of the statement referred to in paragraph

2.4.5(c), BSCCo shall determine the Aggregate PAFA Tender Costs and the recovery share

for each Trading Party and provide its own statement of account to the Panel, the Authority

and all Parties (excluding commercially sensitive information). Subject to the Panel’s

approval, such statement of account shall be final and binding in the absence of manifest

error (provided that such error must be notified no later than six months following receipt

of the statement of account, failing which the statement of account shall be a final

determination for the purposes of the Code).

2.3.5 Subject to paragraph 2.3.6 it is acknowledged that:

(a) in the event PAFACo is unsuccessful in a PAFA Tender exercise, it is unlikely

that BSCCo will be able to recover Aggregate PAFA Tender Costs (in whole or

in part) from PAFACo; and

(b) if BSCCo were obliged to reimburse Aggregate PAFA Tender Costs to Trading

Parties the financial consequences of such reimbursement would be borne by

Trading Parties themselves.

2.3.6 Notwithstanding Section C3.4.6, in accordance with paragraph 2.3.5, the Parties agree that:

(a) subject to paragraph 2.3.6(b), any loan arrangements agreed pursuant to this

paragraph 2 may provide that the Board may, in its absolute discretion, resolve

to write off any loan or credit provided to PAFACo for PAFA Tender Costs

which relates to an unsuccessful PAFA Tender exercise, provided the amount

written off shall not exceed the total cumulative amount of £100,000.00 plus

any interest agreed to have been paid in the agreement documenting that loan or

credit which would otherwise have been receivable; and

(b) for the purposes of the Code, such loan arrangements as referred to in paragraph

2.3.6(a) which permit the Board to write off a loan or credit to PAFACo shall be

treated as arrangements concluded at arm’s length and on normal commercial

terms.

2.3.7 For the avoidance of doubt, BSCCo shall procure that any PAFA Tender Costs provided

pursuant to paragraph 2.2.1(a) which are underspent shall be refunded to BSCCo.

2.4 Shareholder arrangements with PAFACo

2.4.1 At all times BSCCo shall be the registered holder of all of the issued share capital in

PAFACo.

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2.4.2 For the avoidance of doubt, the form of the Memorandum and Articles of Association of

PAFACo shall not form part of the Code, but shall be subject to Board approval.

2.4.3 Subject to the provision of PAFA Tender Costs, but without limitation to paragraph 2.4.4,

BSCCo shall not provide any finance or financial support to PAFACo.

2.4.4 BSCCo agrees and undertakes that it shall not cause PAFACo to be in default of the Legal

Requirements of the PAFA Role by reason of any act or omission in connection with its

capacity as the PAFACo Shareholder, and each Party agrees that BSCCo may contract or

otherwise put in place arrangements with PAFACo on such basis, unless:

(a) BSCCo is required to take such step by reason of a Legal Requirement and/or

the Code; and

(b) BSCCo has first notified and, where practicable, consulted with PAFACo in

relation to such step.

2.4.5 In its capacity as the PAFACo Shareholder, BSCCo shall ensure PAFACo’s contractual

agreement, that:

(a) subject always to paragraph 2.4.4:

(i) the Board shall appoint the chairman of the PAFACo Board from

time to time;

(ii) the initial chairman of the PAFACo Board shall, in consultation with

the Panel, appoint the other initial directors of PAFACo;

(iii) BSCCo, in its capacity as PAFACo Shareholder, shall have the

power to appoint or remove directors of PAFACo; and

(iv) BSCCo, in its capacity as PAFACo Shareholder, shall approve or

reject the appointment of directors of PAFACo;

(b) PAFACo shall provide a quarterly summary of PAFA Tender Costs to BSCCo,

provided that PAFACo shall:

(i) ensure that it reports on total costs and, subject to paragraph

2.4.5(b)(ii), provides in sufficient detail a breakdown of the costs

such as to provide BSC Parties with a reasonable level transparency

in respect of the scope and level of expenditure; and

(ii) be entitled to exclude any information from the breakdown of costs

provided to Parties which relates to the affairs of PAFACo, a BSC

Company or any other third party and is in PAFACo's reasonable

opinion confidential and/or commercially sensitive in connection

with a PAFA Tender; and

(c) without prejudice to paragraph 2.4.5(b), PAFACo shall, as soon as reasonable

practicable after it is notified of its success or not (as the case may be) in a

PAFA Tender exercise, submit a statement of its costs incurred in accordance

with paragraph 2.2.1(b) to BSCCo.

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3. Retail Energy Code (REC) Administrative Services (RECAS) Role

3.1 General

3.1.1 BSCCo shall be entitled to establish or acquire RECASCo for the purpose of:

(a) investigating and, if the Board of RECASCo decides to do so, participating in a

RECAS Tender; and

(b) performing the functions and responsibilities of the RECAS Role,

provided that the total consideration for the payment in respect of all of the allotted shares

of RECASCo shall not exceed £1.00.

3.2 RECAS Tender

3.2.1 Subject to paragraphs 3.2.3 and 3.3, BSCCo may provide a loan or grant credit to

RECASCo on such terms as the Board may approve, from time to time, provided always

that the maximum amount of the loan or credit granted shall not in any event exceed the

total aggregate sum of one hundred thousand pounds sterling (£100,000.00) to enable

RECASCo to pay, in aggregate in connection with a RECAS Tender:




of the RECAS Role; and


such costs shall in the first instance be incurred by BSCCo on behalf of

RECASCo,

(together, "RECAS Tender Costs").

3.2.2 Subject to paragraph 3.2.1, RECAS Tender Costs may be incurred over successive BSC

Years.

3.2.3 RECAS Tender Costs shall be BSC Costs and BSCCo shall keep account of such costs,


3.2.4 BSCCo shall submit any report it receives from RECASCo pursuant to paragraph 3.4.6(c)

to the Panel at its next available meeting and every quarter thereafter until repayment of the

Aggregate RECAS Tender Costs or the loan is written off in accordance with paragraph

3.3.6 (as the case may be).

3.2.5 BSCCo shall ensure that RECAS Tender Costs are subject to a statutory audit and such

findings are reported to the Panel and Parties.

3.3 Reimbursement of RECAS Tender Costs to Trading Parties

3.3.1 The amounts recoverable by BSCCo as RECAS Tender Costs are amounts expended or


which are otherwise described in the Code as RECAS Tender Costs.

3.3.2 BSCCo shall procure the agreement of RECASCo that in the event RECASCo is successful

in a RECAS Tender exercise RECASCo shall repay Aggregate RECAS Tender Costs to

BSCCo within the RECAS Tender Recovery Period.

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Aggregate RECAS Tender Costs in accordance with their respective Main Funding Shares

at that time.

3.3.4 As soon as reasonably practicable after receipt of the statement referred to in paragraph

3.4.5(c), BSCCo shall determine the Aggregate RECAS Tender Costs and the recovery

share for each Trading Party and provide its own statement of account to the Panel, the

Authority and all Parties (excluding commercially sensitive information). Subject to the

Panel’s approval, such statement of account shall be final and binding in the absence of

manifest error (provided that such error must be notified no later than six months following

receipt of the statement of account, failing which the statement of account shall be a final

determination for the purposes of the Code).


(a) in the event RECASCo is unsuccessful in a RECAS Tender exercise, it is

unlikely that BSCCo will be able to recover Aggregate RECAS Tender Costs

(in whole or in part) from RECASCo; and

(b) if BSCCo were obliged to reimburse Aggregate RECAS Tender Costs to

Trading Parties the financial consequences of such reimbursement would be

borne by Trading Parties themselves.




to write off any loan or credit provided to RECASCo for RECAS Tender Costs

which relates to an unsuccessful RECAS Tender exercise, provided the amount

written off shall not exceed the total cumulative amount of £100,000.00 plus

any interest agreed to have been paid in the agreement documenting that loan or

credit which would otherwise have been receivable; and


3.3.6(a) which permit the Board to write off a loan or credit to RECASCo shall

be treated as arrangements concluded at arm’s length and on normal

commercial terms.

3.3.7 For the avoidance of doubt, BSCCo shall procure that any RECAS Tender Costs provided

pursuant to paragraph 3.2.1(a) which are not spent shall be refunded to BSCCo.

3.4 Shareholder arrangements with RECASCo

3.4.1 At all times BSCCo shall be the registered holder of all of the issued share capital in

RECASCo.


RECASCo shall not form part of the Code, but shall be subject to Board approval.

3.4.3 Subject to the provision of RECAS Tender Costs, but without limitation to paragraph 3.4.4,

BSCCo shall not provide any finance or financial support to RECASCo.

3.4.4 BSCCo agrees and undertakes that it shall not cause RECASCo to be in default of the

Legal Requirements of the RECAS Role by reason of any act or omission in connection

with its capacity as the RECASCo Shareholder, and each Party agrees that BSCCo may

contract or otherwise put in place arrangements with RECASCo on such basis, unless:

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(a) such act or omission is required by reason of a Legal Requirement and/or the

Code; and

(b) BSCCo has first notified and, where practicable, consulted with RECASCo in

relation to such act or omission.

3.4.5 In its capacity as the RECASCo Shareholder, BSCCo shall:

(a) subject always to paragraph 3.4.4:

(i) appoint the chairman of the RECASCo Board from time to time

(ii) ensure that the initial chairman of the RECASCo Board, in

consultation with the Panel, appoints the other initial directors of

RECASCo;

(iii) have the power to appoint or remove directors of RECASCo; and

(iv) approve or reject the appointment of directors of RECASCo;

(b) ensure that RECASCo provides a quarterly summary of RECAS Tender Costs

to BSCCo, provided that RECASCo shall:

(i) ensure that it reports on total costs and, subject to paragraph

3.4.5(b)(ii), provides in sufficient detail a breakdown of the costs

such as to provide BSC Parties with a reasonable level transparency

in respect of the scope and level of expenditure; and

(ii) be entitled to exclude any information from the breakdown of costs

provided to Parties which relates to the affairs of RECASCo, a BSC

Company or any other third party and is in RECASCo's reasonable

opinion confidential and/or commercially sensitive in connection

with a RECAS Tender; and

(c) without prejudice to paragraph 3.4.5(b), ensure that RECASCo submits, as soon

as reasonable practicable after it is notified of its success or not (as the case may

be) in a RECAS Tender exercise, a statement of its costs incurred in accordance

with paragraph 3.2.1(b) to BSCCo.

4. Other Permitted Activities

4.1 General

4.1.1 Subject to paragraph 4.1.2, 4.1.3 and 4.1.4, BSCCo shall be entitled to establish or acquire

a company or companies, either solely or together with a third party, to become a Permitted

Affiliate carrying out Permissible Activities ("PACo") for the purpose of:

(a) investigating and, if the Board of PACo decides to do so, participating in a

Permissible Activity Tender; and

(b) performing the functions and responsibilities of the proposed PACo Role,

provided that the total consideration for the payment in respect of all of the allotted shares

of PACo shall not exceed £1.00.

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4.1.2 Prior to commencing a tender for a Permissible Activity, BSCCo shall satisfy itself that the

proposed PACo Role meets the following conditions:

(a) that the proposed PACo Role relates to the UK and/or the Republic of Ireland;

(b) that the proposed PACo Role relates to the gas, electricity, heat and/or transport

sector;

(c) that the proposed PACo Role is linked to BSCCo core competencies;

(d) BSC Parties shall benefit BSCCo undertaking the proposed PACo Role;

(e) that BSCCo undertaking the proposed PACo Role shall not place

disproportionate risk on BSC Parties;

(f) that BSCCo undertaking the proposed PACo Role shall not prevent standards of

service under the Code from being maintained by BSCCo; and

(g) that BSCCo’s role given to it under the Code shall not give it any undue

competitive advantage in a tendering for the proposed PACo Role.

4.1.3 For the avoidance of doubt, if BSCCo is not satisfied that the conditions in paragraph 4.1.2

have been met it shall not pursue the proposed PACo Role.

4.1.4 At any point prior to undertaking substantive work on a formal offer by the Permitted

Affiliate for the provision of the proposed PACo Role, BSCCo shall seek the views of

Parties, the Panel and interested third parties in accordance with paragraphs 4.1.5, 4.1.6 and

4.1.7.4.1.5 Where it is reasonably practicable to do so, BSCCo shall notify the persons

referred to in paragraph 4.1.4 that it intends to, or may intend to, seek comments under

paragraph 4.1.4.

4.1.6 BSCCo shall send out a notice to the persons referred to in paragraph 4.1.4 inviting them to

provide comments on BSCCo’s potential participation in one or more Permissible Activity

Tenders within such period as the Board may determine (and in any event, no less than 10

Business Days from the date of the notice) ("Tender Notice"). The Tender Notice shall

contain information on the nature and scope of the proposed PACo Role which BSCCo is

interested in but shall not include any information that is confidential to third parties or

which BSCCo reasonably regards as being commercially sensitive.

4.1.7 As soon as reasonably practicable after receipt of the comments referred to in paragraph

4.1.6, BSCCo shall:

(a) publish a summary of the comments received by the persons referred to in

paragraph 4.1.4;

(b) send to the Authority:

(i) a copy of the comments received by the persons referred to in

paragraph 4.1.4; and

(ii) a summary of BSCCo’s assessment against the conditions referred to

in paragraph 4.1.2

together with an invitation to consider PACo’s proposed Permissible Activity

Tender for the proposed PACo role (“Request for Permissible Activity

Consent”).

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4.1.8 The Authority may no later than 15 Business Days after receipt of the Request for

Permissible Activity Consent:

(a) reject BSCCo’s Request for Permissible Activity Consent; or

(b) inform BSCCo that it will communicate its decision and, having regard for the

timelines applicable to the Permissible Activity Tender, provide a date by when

such decision will be made;

(c) if no response is received by BSCCo pursuant to paragraph 4.1.8(a) or (b) the

Authority shall be deemed for the purposes of the Code to have provided its

consent to PACo’s proposed Permissible Activity Tender.

4.2 PACo Tender

4.2.1 Subject to paragraphs 4.2.2, 4.2.4, 4.3 and notwithstanding Section C10.2, BSCCo may

provide a loan or grant credit to PACo (interest or non-interest bearing) on such terms as

the Board may approve, from time to time, provided always that the maximum amount of

the loan or credit granted shall not in any event exceed the sum of one hundred thousand

pounds sterling (£100,000.00) per each Permissible Activity Tender with this amount

linked to the Retail Price Index to account for inflation ("Total Amount Lent") to enable

PACo to pay, in aggregate in connection with a Permissible Activity Tender:




of the proposed Permissible Activity Role; and


such costs shall in the first instance be incurred by BSCCo on behalf of PACo,

(together, "PACo Tender Costs").

4.2.2 The total aggregate PACo Tender Costs in any given BSC Year shall in no event exceed

1% of that year’s Annual Budget.

4.2.3 Subject to paragraphs 4.2.1 and 4.2.2 and in relation to each Permissible Activity Tender,

PACo Tender Costs may be incurred over successive BSC Years.

4.2.4 PACo Tender Costs shall be BSC Costs and BSCCo shall keep account of such costs,


4.2.5 BSCCo shall notify the Panel, the Authority and Parties whether or not it has been

successful in a tender exercise as soon as reasonably practicable after the PACo is entitled

to publish that information.

4.3 Reimbursement of PACo Tender Costs to Trading Parties

4.3.1 The amounts recoverable by BSCCo as PACo Tender Costs are amounts expended or


which are otherwise described in the Code as PACo Tender Costs.

4.3.2 BSCCo shall procure the agreement of PACo that in the event PACo is successful in a

PACo Tender exercise PACo shall repay Aggregate PACo Tender Costs to BSCCo within

the PACo Tender Recovery Period.

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Aggregate PACo Tender Costs in accordance with their respective Main Funding Shares at

that time.


(a) in the event PACo is unsuccessful in a PACo Tender exercise, it is unlikely that

BSCCo will be able to recover Aggregate PACo Tender Costs (in whole or in

part) from PACo; and

(b) if BSCCo were obliged to reimburse Aggregate PACo Tender Costs to Trading

Parties the financial consequences of such reimbursement would be borne by

Trading Parties themselves.




to write off any loan or credit provided to PACo for PACo Tender Costs in the

event of:

(i) an unsuccessful PACo Tender exercise; or

(ii) a successful PACo Tender where PACo has subsequently ceased

performing the PACo Role prior to the end of the PACo Tender

Recovery Period,

provided the amount written off shall not exceed the Total Amount Lent which

would otherwise have been receivable and shall in no event exceed 1% of the

Annual Budget of the BSC Year in which the loan or credit was granted; and


4.3.6(a) which permit the Board to write off a loan or credit to PACo shall be

treated as arrangements concluded at arm’s length and on normal commercial

terms.

4.3.6 For the avoidance of doubt, BSCCo shall procure that any PACo Tender Costs provided

pursuant to paragraph 4.2.1(a) which are not spent shall be refunded to BSCCo.

4.4 Shareholder arrangements with PACo


PACo shall not form part of the Code, but shall be subject to Board approval.

4.4.2 BSCCo shall approve a dividend policy issued by PACo from time to time and,

notwithstanding Section C3.4.6, any dividend payable to BSCCo shall be subject to that

dividend policy.

4.4.3 In its capacity as the PACo Shareholder, BSCCo shall:

(a) appoint the chairman of the PACo Board from time to time;

(b) ensure that the initial chairman of the PACo Board appoints the other initial

directors of PACo;

(c) have the power to appoint or remove directors of PACo; and

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(d) approve or reject the appointment of directors of PACo.

4.5 Financial Reporting4.5.1 BSCCo shall:

(a) ensure that PACo submits, as soon as reasonably practicable after it is notified

of its success or not (as the case may be) in a PACo Tender exercise and every

year thereafter until repayment of the Aggregate PACo Tender Costs or the loan

is written off in accordance with paragraph 4.3.5 (as the case may be), a

statement of its costs incurred in accordance with paragraph 4.2.1 to BSCCo;

(b) submit any summary it receives from PACo pursuant to paragraph 4.5.1(a) to

the Panel at its next available meeting and every year thereafter until repayment

of the Aggregate PACo Tender Costs or the loan is written off in accordance

with paragraph 4.3.5 (as the case may be);

(c) as soon as reasonably practicable after receipt of the statement referred to in

paragraph 4.5.1(a), determine the Aggregate PACo Tender Costs and the

recovery share for each Trading Party and provide its own statement of account

to the Panel, the Authority and all Parties (excluding commercially sensitive

information). Subject to the Panel’s approval, such statement of account shall be

final and binding in the absence of manifest error (provided that such error must

be notified no later than six months following receipt of the statement of

account, failing which the statement of account shall be a final determination

for the purposes of the Code); and

(d) BSCCo shall ensure that PACo Tender Costs are subject to a statutory audit and

such findings are reported to the Panel and Parties.

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ANNEX C-2: VOTING PROCEDURES FOR BINDING RESOLUTIONS, NON-

BINDING RESOLUTIONS AND APPOINTMENT RESOLUTIONS

1 GENERAL

1.1 Introduction

1.1.1 This Annex C-2 sets out the basis and procedures which should be used for the raising of

and voting on Resolutions by Voting Parties (as described in paragraph 2) at General

Meetings or BSC Annual General Meetings in accordance with Section C4.1.9, Section

C4.8, Section C4.9.1 or Section C4.10.1 (as appropriate).

1.1.2 For the purposes of this Annex C-2:

(a) "Authorised Signatory" means a person authorised by a BSC Party in writing

to act for it in accordance with paragraph 1.2.1 of this Annex C-2;

(b) "Provisional Voting Share" has the meaning given to that term in paragraph

2.1.2 of this Annex C-2;

(c) "Voting Party Resolution" means a Binding Resolution or a Non-Binding

Resolution;

(d) "Voting Share Cap" has the meaning given to that term in paragraph 2.1.2 of

this Annex C-2; and

(e) "Quorum Requirements" means the quorum requirements set out in paragraph

3.1 of this Annex C-2.

1.1.3 Each Party shall procure that BSCCo is notified of the persons it authorises as Authorised

Signatory from time to time to:

(a) notify a Trading Party Group or Distribution Business Group;

(b) require the Directors of BSCCo to call a General Meeting; or

(c) propose Resolutions and vote on Resolutions under this Annex C-2,

in accordance with the requirements of BSCP38. If for any reason it is unclear which

person is the Authorised Signatory for a Voting Party Group for any of the above purposes,

the Authorised Signatory shall be determined at random by BSCCo.

1.2 Resolutions raised by Parties (Binding Resolutions and Non-Binding Resolutions)

1.2.1 An Authorised Signatory may require BSCCo to raise a Non-Binding Resolution or

Binding Resolution ("Voting Party Resolution") by following the process set out in Section

C4.8.

1.2.2 BSCCo shall, (with reference to the process set out in paragraph 2):

(a) within two (2) Working Days of receipt of a proposed Voting Party Resolution,

notify an affected Director (in the case of a Binding Resolution) and the Board

(in the case of all Resolutions) that a Resolution has been raised; and

(b) within fifteen (15) Working Days of receipt of a proposed Voting Party

Resolution, send a notice to all Parties, the Board and the Authority informing

them of the details of a General Meeting to be held not earlier than twenty (20)

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Working Days and not later than thirty (30) Working Days following the date of

the notice, and including the information set out in paragraph 1.2.3 together

with, in the case of Voting Parties, their Actual Voting Share.

1.2.3 Every notice calling a General Meeting shall specify the place, date and time of the

meeting, and include a statement that a Voting Party entitled to attend and vote is entitled

to appoint a proxy. The notice shall specify the general nature of the business to be

transacted at the meeting, shall set out the text of all resolutions to be considered by the

meeting, together with any rationale or supporting documentation provided by the

proposer, and may include information provided by the Board or a Director in response to a

Resolution.

1.2.4 Voting Parties (other than the NETSO) wishing to appoint a proxy shall notify BSCCo via

their Authorised Signatory of the details of that proxy not less than two (2) Working Days

prior to the relevant General Meeting. In order to accept the appointment of a proxy

BSCCo may require:

(a) such details as it may determine concerning the identity of the proxy; and

(b) the Authorised Signatory’s instructions as to how the proxy is to vote.

1.3 Resolutions raised by BSCCo (Appointment Resolutions)

1.3.1 Where BSCCo wishes to raise an Appointment Resolution in accordance with Section

C4.1.9, not later than 28 days prior to an Annual BSC Meeting, it shall prepare and

circulate to all Parties, the Board and the Authority a notice including the text of the

Resolution and explanatory notes as to how a Voting Party may appoint a proxy or vote in

person on the Appointment Resolution at the Annual BSC Meeting, together with a request

to Parties to declare any Trading Party Group or Distribution Party Group.

1.3.2 Voting Parties (other than the NETSO) wishing to appoint a proxy shall notify BSCCo via

their Authorised Signatory of the details of that proxy not less than two (2) Working Days

prior to the relevant Annual BSC Meeting. In order to accept the appointment of a proxy

BSCCo may require:

(a) such details as it may determine concerning the identity of the proxy; and

(b) the Authorised Signatory’s instructions as to how the proxy is to vote.

1.4 Distribution Business Groups and Trading Party Groups

1.4.1 Each Party shall notify BSCCo via its Authorised Signatory of its Voting Party Group by 1

June in each year.

1.4.2 Each Party shall promptly notify BSCCo via its Authorised Signatory of any amendment to

its Voting Party Group.

1.4.3 Voting Parties for the purposes of voting on a Resolution shall be published on the BSC

Website from time to time. Voting Parties Groups shall initially be those most recently

published on the BSC Website for the purposes of Panel elections. The register of Voting

Parties shall be adjusted and re-published:

(a) annually, within five (5) Working Days of Parties’ provisions of revised

information under paragraph 1.4.1; and

(b) at any time, within five (5) Working Days of BSCCo’s receipt of a notification

under paragraph 1.4.2.

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2. VOTE ALLOCATION MECHANISM

2.1.1 The base number of votes allocated to eligible voting parties (as described in this paragraph

2) shall be 10,000 votes which shall be allocated on the basis set out in this paragraph 2.

Eligible voting parties for the purposes of this Annex C-2 means:

(a) the NETSO;

(b) each Trading Party and/or each Distribution System Operator; and

(c) for Authorised Signatory purposes only, where a Trading Party or a Distribution

System Operator is Affiliated to any other Trading Party or Distribution System

Operator, the largest aggregation of such Parties that are Affiliated to each other

("Voting Party Group"),

each being referred to in the Code as a "Voting Party".

2.1.2 For the purposes of this Annex C-2:

Defined Term Acronym Definition

"Actual Voting Share" VSAv The voting share allocated to a Voting Party v

for the purpose of voting on a Resolution

following the application of the Voting Share

Cap;

"Provisional Voting Share" VSPv The voting share allocated to a Voting Party

before the application of the Voting Share Cap.

"Voting Party" v Has the meaning given to that term in paragraph

2.1.1 and in respect of whom votes will be

allocated in accordance with paragraph 2.1.5;

"Voting Share Cap" VSC The cap applied to a Voting Party’s Provisional

Voting Share in order to determine that Voting

Party’s Actual Voting Share. The Voting Share

Cap is six (6) per cent;

2.1.3 The Actual Voting Share for each Voting Party shall be calculated by BSCCo and

published on the BSC Website within 5 Working Days of:

(a) the monthly publication of the Annual Funding Share values for that month; or

(b) BSCCo’s receipt at any time of updated Trading Party Group or Distribution

Business Group information from an Authorised Signatory.

2.1.4 The Actual Voting Share for each Voting Party v will be determined as the lesser of the

Provisional Voting Share and the Voting Share Cap, or:

VSAv = min(VSPv, VSC)

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2.1.5 The Provisional Voting Share for each Voting Party v will be determined as:

(a) For the NETSO:

VSPv = 600

(b) For each Voting Party that is a Trading Party Group but is not a Distribution

Business Group:

VSPv = max( (8600 * (Σp(v) FSApm / Σp FSApm)) , 1)

(c) For each Voting Party that is a Trading Party Group and a Distribution Business

Group:

VSPv = max( (8600 * (Σp(v) FSApm / Σp FSApm)) + (800 / D) , 1)

(d) For each Voting Party that is a Distribution Business Group but is not a Trading

Party Group:

VSPv = max( (800 / D) , 1)

where:

FSApm is the Annual Funding Share for Trading Party p determined for the month m that is

the most recent month for which Annual Funding Shares can be calculated in accordance

with Section D1.2.1(e);

Σp(v) is the sum across all Trading Parties p that belong to the Trading Party Group that

forms Voting Party v;

Σp is the sum across all Trading Parties p; and

D is the number of individual Distribution Business Groups.

2.1.6 The Voting Share Cap will be determined as:

VSC = (Σv VSPv) * 0.06

where Σv is the sum across all Voting Parties v.

3. QUORUM AND CONDUCT OF MEETING

3.1 Quorum

3.1.1 No business in relation to a Resolution shall be transacted at a meeting unless the Quorum

Requirements have been met.

3.1.2 The Quorum Requirements in respect of votes under this Annex C-2 are as follows:

(a) A minimum of at least ten (10) Voting Parties should be present at the relevant

meeting either in person or through a duly appointed proxy;

(b) The Voting Parties casting a vote at the meeting (in person or through a duly

appointed proxy) should hold an aggregate Actual Voting Share of at least thirty

(30) per cent (%) of the total Actual Voting Share; and

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(c) an Authorised Signatory of the NETSO should be present at the meeting.

3.1.3 If within 30 minutes after the time for which a General Meeting has been convened the

Quorum Requirements have not been met:

(a) the Board shall fix the time and date of the adjourned meeting; and

(b) BSCCo shall give notice of the adjourned meeting.

3.1.4 If within 30 minutes after the time for which a vote on a Resolution is scheduled at an

Annual BSC Meeting has been convened the Quorum Requirements have not been met:

(a) the Board shall fix the time and date of the adjourned meeting; and

(b) BSCCo shall give notice of the adjourned meeting.

3.1.5 For the purposes of this Annex C-2 (including the provisions of this paragraph 3.1) any

person (including a proxy) can attend any meeting virtually (including, without limitation,

teleconference and videoconference) if that person is able to exercise a right to speak and

be heard and to vote.

3.1.6 BSCCo shall review the Quorum Requirements:

(a) from time to time; and

(b) in accordance with a request from the Authority or the Panel.

3.1.7 If a review under paragraph 3.1.6 results in a recommendation that the Quorum

Requirements should be modified, the Panel shall decide at the following Panel meeting

whether to propose a modification to the Quorum Requirements in accordance with Section

F.

3.2 Conduct of Meeting

3.2.1 Each General Meeting and any part of any Annual BSC Meeting dealing with Resolutions

shall be chaired by the BSCCo Chairman, except:

(a) if the BSCCo Chairman is the subject of a Binding Resolution, a vice-chairman

of the Board (if appointed) will chair the meeting; or

(b) if there is no vice-chairman of the Board, or if that person is also the subject of

a Binding Resolution, another Director selected by the Board will chair the

meeting; or

(c) if the entire Board is the subject of a Binding Resolution, the NETSO attendee

will chair the meeting.

3.2.2 Resolutions at Annual BSC Meetings shall, subject to the provisions of this Annex C-2, be

conducted in accordance with the provisions of Section B6.2.

3.2.3 The following shall be entitled to attend and speak at any General Meeting or, for the

purposes only of a vote on a Resolution (but without prejudice to Section B6.2 in respect of

other business to be conducted), any Annual BSC Meeting:

(a) the representative (which may include its Authorised Signatory) of any Voting

Party;

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(b) any proxy that has been duly appointed by a Voting Party;

(c) any Director of BSCCo;

(d) in respect of an Annual BSC Meeting, any person who is entitled to attend the

Annual BSC Meeting shall be entitled to attend the business relating to a

Resolution but shall not be permitted to speak except pursuant to paragraph

3.2.3(e); and

(e) any other person who the chairman has permitted to attend and speak at such

meeting.

4. VOTING

4.1 Administration of Voting

4.1.1 BSCCo shall administer each vote pursuant to this Annex C-2.

4.1.2 In respect of each Voting Party only an Authorised Signatory may submit a vote or

authorise a proxy to submit a vote on their behalf.

4.1.3 A Voting Party’s Actual Voting Share for the purposes of a vote shall be the Actual Voting

Share published on the BSC Website at 17:00 on the last Working Day before the day of

the vote.

4.2 Voting

4.2.1 Provided the Quorum Requirements are met a vote on any Resolution shall be determined

by a simple majority of votes cast.

4.2.2 BSCCo shall count the votes on any Resolution held and:

(a) within one Working Day of the meeting shall publish indicative results of such

a vote; and

(b) within five Working Days of the meeting shall publish final confirmation of the

result of the vote.

4.3 Audit

4.3.1 Provided a Voting Party requests an audit within five (5) Working Days of a confirmation

under paragraph 4.2.2(b), BSCCo shall commission an audit of that vote, which shall be

completed within thirty (30) Working Days.

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D – 1 of 28 Effective Date: 27 April 2021

SECTION D: BSC COST RECOVERY AND PARTICIPATION CHARGES

1. GENERAL

1.1 Introduction

1.1.1 This Section D sets out:

(a) the basis on which Trading Parties’ various Funding Shares will be determined;

(b) the basis for determining specified charges payable by Parties and others to

BSCCo in respect of participation under the Code;

(c) further arrangements pursuant to which BSCCo will recover BSC Costs from

Trading Parties; and

(d) not used;

(e) further arrangements pursuant to which BSCCo will recover:

(i) CFD Settlement Services Provider Costs; and

(ii) CM Settlement Services Provider Costs.

1.1.2 In this Section D:

(a) references to Parties exclude BSCCo and the BSC Clearer;

(b) references to a month are to a calendar month, unless the context otherwise

requires.

1.1.3 For the purposes of the Code, "BSCCo Charges" means amounts payable by Parties by

way of Specified BSC Charges in accordance with paragraph 3.1 and any further charges in

accordance with paragraph 3.3, and in respect of the recovery of BSC Costs pursuant to

paragraph 4.2.

1.1.4 Nothing in this Section D applies in relation to Trading Charges.

1.2 Funding Shares

1.2.1 For the purposes of the Code, in relation to a month:

(a) the "Main Funding Share" (FSMpm) of a Trading Party is the proportion

determined in accordance with Part 1 of Annex D-1;

(b) not used;

(c) the "SVA (Production) Funding Share" (FSPSpm) of a Trading Party is the

proportion determined in accordance with Part 3 of Annex D-1;

(d) subject to paragraph 1.2.2, the "General Funding Share" of a Trading Party is

the proportion determined in accordance with Part 4 of Annex D-1;

(e) subject to paragraphs 1.2.2, 1.2.3 and 1.2.4, the "Annual Funding Share" of a

Trading Party is the sum of its General Funding Shares for the 12 consecutive

months ending with and including that month, divided by the sum for all

Trading Parties of their General Funding Shares for such 12 months;

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(f) "Funding Shares" means Main Funding Shares, SVA (Production) Funding

Shares, General Funding Shares, Annual Funding Shares and (where applicable

in accordance with paragraph 1.3) Default Funding Shares.

1.2.2 A reference in any provision of the Code to the General Funding Share or Annual Funding

Share (in relation to any month) of a Trading Party on a "default basis", in the context of

one or more other Trading Parties being in default of a payment obligation under the Code,

is to such General Funding Shares or Annual Funding Shares determined, as provided in

Part 4 of Annex D-1, so as to disregard the participation of the Trading Party(ies) in

default.

1.2.3 Subject to paragraph 1.2.4, for the purposes of paragraph 1.2.1(e) a Trading Party shall be

treated as having a General Funding Share of zero for any month for which no General

Funding Share was determined for that Trading Party.

1.2.4 In relation to any month which is less than 12 months after the Go-live Date, the number of

months referred to in paragraph 1.2.1(e) shall be the number of whole months from the Go-

live Date to and including that month.

1.3 Default Funding Shares

1.3.1 For the purposes of this Section D:

(a) a Trading Party is a "defaulting party" in relation to a BSC Year (a "default"

BSC Year) where:

(i) the Trading Party failed to pay any amount by way of BSCCo

Charges (for which that Party was liable) accruing in respect of the

default BSC Year, and

(ii) such unpaid amount was recognised by BSCCo as a bad debt and

included in BSC Costs pursuant to paragraph 2.1.1(a)(ii) in relation

to the default BSC Year;

(b) in relation to every month in a default BSC Year (irrespective of the month in

which any defaulting party failed or first failed to make payment), the "Default

Funding Share" (FSDpm) of each Trading Party which was not a defaulting

party in that year is its General Funding Share determined on a default basis in

relation to all defaulting parties.

1.4 Determination of Funding Shares

1.4.1 BSCCo will:

(a) determine periodically in accordance with paragraph 4 each Trading Party’s

Main Funding Share, SVA (Production) Funding Share and General Funding

Share, Annual Funding Share and (where applicable) Default Funding Share for

each month; and

(b) notify all such Funding Shares to all Trading Parties in the statement provided

under paragraph 4.5.1(b).

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1.4.2 Annual Funding Shares determined in relation to any month in accordance with

paragraph 4:

(a) shall be final and binding on Trading Parties, notwithstanding that (in

accordance with paragraph 4.3) they are based on estimated data (used in the

determination of General Funding Shares) for certain months; and

(b) shall not be subject to any subsequent adjustment or reconciliation upon actual

data becoming available or upon any subsequent redetermination of General

Funding Shares.

1.4.3 Each Party shall, upon request of BSCCo, provide to BSCCo any information reasonably

requested by it for the purposes of determining Trading Parties' various Funding Shares.

1.4.4 So far as data derived in Volume Allocation is used in the determination of any Funding

Shares:

(a) such data shall be that derived from the Initial Volume Allocation Runs for

Settlement Days in the relevant month, which shall be final and binding for the

purposes of such determination;

(b) no adjustment or reconciliation shall be made in respect of or by reference to

any Reconciliation Volume Allocation Run or data derived therefrom, or

otherwise as a result of the resolution of any Trading Dispute relating to such

data.

1.4.5 If:

(a) at the time at which a Trading Party first raised a Trading Dispute in accordance

with Section W, such Party notified the Panel that the Party wishes this

paragraph 1.4.5 to apply; and

(b) following resolution of the Trading Dispute (or as the case may be the making

of an arbitral award) and the carrying out of a Reconciliation Volume

Allocation Run, the Panel in its sole discretion considers that such resolution or

award amounts to an exceptional circumstance which justifies making an

adjustment in respect of the Volume Allocation data used in determining

Funding Shares,

then the Panel may require BSCCo to redetermine Funding Shares (for all or any particular

purposes of the Code) accordingly, and to make the consequential adjustments in respect of

the amounts paid or payable by Trading Parties by way of BSCCo Charges.

2 BSC COSTS

2.1 General

2.1.1 For the purposes of the Code, subject to paragraph 2.4:

(a) "BSC Costs" means, subject to paragraph (b):

(i) all costs, expenses and other outgoings of BSCCo and its

Subsidiaries and other amounts for which BSCCo or any of its

Subsidiaries may be liable (other than amounts payable as trustee for

any person), net of recoverable VAT; and

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(ii) with effect from such time as BSCCo determines to treat such

amount as a bad debt, any amount payable by a Party in respect of

BSCCo Charges which was not paid within 15 Business Days after

the due date for payment and remains outstanding at such time,

excluding any part of such amount which comprises VAT to the

extent to which BSCCo considers that it will recover such VAT from

a taxation authority;

(b) BSC Costs do not include:

(i) amounts payable by or to the BSC Clearer in respect of Trading

Charges pursuant to Section N;

(ii) (to avoid double counting) amounts paid by BSCCo to its

Subsidiaries by way of funding;

(iii) any amounts payable to any Parties in respect of Supplier Charges

pursuant to Annex S-1;

(iv) any CFD Settlement Services Provider Costs and/or CM Settlement

Services Provider Costs incurred by BSCCo and/or any of its

Subsidiaries;

(c) "SVA Costs" are BSC Costs incurred by BSCCo in connection with Supplier

Volume Allocation, determined in accordance with Annex D-2;

(d) "Annual BSC Costs" in relation to a BSC Year, means all BSC Costs accruing

(in accordance with the BSCCo Accounting Policies) in that year;

(e) "Annual SVA Costs" in relation to a BSC Year, means all SVA Costs accruing

(in accordance with the BSCCo Accounting Policies) in that year;

(f) "Annual Default Costs" in relation to a BSC Year, means the aggregate of all

unpaid amounts falling to be treated as BSC Costs under paragraph 2.1.1(a)(ii)

in that BSC Year.

2.1.2 Without prejudice to the generality of paragraph 2.1.1, and subject always to 2.1.1(b)(iv),

BSC Costs include amounts for which BSCCo or any of its Subsidiaries is liable:

(a) pursuant to or in connection with any BSC Agent Contract or Market Index

Data Provider Contract or any breach by BSCCo thereof or the termination

thereof;

(b) pursuant to any indemnity given by it pursuant to the Code or any BSC Agent

Contract or Market Index Data Provider Contract or otherwise;

(c) pursuant to any provision of the Implementation Scheme;

(d) should BSCCo in any circumstances be required to pay (other than as trustee) to

any Party any amount recovered or recoverable by BSCCo from a BSC Agent

or Market Index Data Provider;

(e) by way of payment of interest or other charges or repayment (including any

prepayment or premature or accelerated repayment) of principal in respect of

any borrowing (and including any grossed-up amounts where any deduction is

made from payment of interest);

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(f) in respect of any taxes (save to the extent to which such amounts are

recoverable from any person or authority in the BSC Year in question);

(g) to a Contract Trading Party pursuant to Section M4;

(h) in damages (in contract or tort or otherwise) to any person, including (by virtue

of Section C5.2 or otherwise) any Party.

2.2 Recovery of BSC Costs

2.2.1 BSCCo shall and shall be entitled to recover all BSC Costs from Trading Parties severally

as provided in this Section D.

2.3 BSC Accounting Policies

2.3.1 BSCCo shall prepare and adopt, and may from time to time amend, after consulting with

the Panel, accounting policies, as required by or consistent with requirements of law and

generally accepted accounting practice in the United Kingdom, and having regard to the

objectives referred to in Section C1.3.1.

2.3.2 BSCCo shall prepare a statement of the accounting policies from time to time adopted or

amended pursuant to paragraph 2.3.1 and shall provide a copy of such statement and any

amendment thereof to the Panel and upon request to any Trading Party.

2.3.3 BSCCo shall account for its transactions, costs and revenues, and shall maintain and

prepare accounting records, statements and other documents, as required by law and as

further appropriate to give effect to this Section D and in accordance with the BSC

Accounting Policies.

2.4 Taxation

2.4.1 Each Party agrees that it will be bound by any agreement made (whether before or after the

entry into force of the Code) between BSCCo (or any of its Subsidiaries) and any tax

authority as to the treatment for taxation purposes of any transactions envisaged by the

Code between BSCCo (or any of its Subsidiaries) and any other Party.

2.4.2 Each Party further undertakes that it will not act in any way prejudicial to such agreement,

including acting on the basis of, assuming, seeking or making any application or request to

any tax authority for, any conflicting treatment.

2.4.3 BSCCo shall ensure that details of each such agreement as is referred to in this paragraph

2.4 are provided to each Party upon its becoming a Party and upon any change in such

agreement.

3. SPECIFIED BSC CHARGES

3.1 General


(a) "Specified BSC Charges" means Main Specified Charges and SVA Specified

Charges;

(b) not used;

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(c) "Main Specified Charges" means the charges determined in accordance with

paragraph 3 of Annex D-3;

(d) "SVA Specified Charges" means the charges determined in accordance with

paragraph 4 of Annex D-3.

3.2 Liability to pay Specified BSC Charges

3.2.1 Each Party shall be liable for and shall pay Specified BSC Charges determined in

accordance with Annex D-3.

3.2.2 BSCCo shall determine amounts payable by way of Specified BSC Charges, and invoice

such amounts to Parties (in accordance with paragraph 4.3 in the case of Trading Parties).

3.3 Further charges

3.3.1 The further provisions of Annex D-3 shall apply for the purposes of determining further

charges which may be made by BSCCo; and Parties shall be liable to BSCCo for and shall

pay all such amounts which may be so charged and invoiced by BSCCo.

4. RECOVERY OF NET ANNUAL COSTS

4.1 Net Annual BSC Costs

For each BSC Year:

(a) "Annual Net Main Costs" is the amount of the Annual BSC Costs, less:

(i) all amounts payable by Parties by way of Main Specified Charges

and SVA Specified Charges;

(ii) all amounts payable to BSCCo by any BSC Agent or Market Index

Data Provider by way of credit, damages or liquidated damages or

otherwise (unless deducted from amounts payable to such BSC

Agent or Market Index Data Provider before the latter amounts were

counted as BSC Costs), other than amounts falling within paragraph

(b)(ii);

(iii) the amount of the Annual Production-Charging SVA Costs;

(iv) any amount recovered by BSCCo from any insurer;

(v) any amounts paid to BSCCo by way of fees pursuant to Section

Q7.2.3;

(vi) not used;

(vii) all amounts otherwise paid to BSCCo (other than as trustee) by any

person (including any Party, pursuant to any indemnity given by the

Party to BSCCo under the Code, or otherwise);

(b) "Annual SVA (Consumption) Costs" is one-half of the amount of the Annual

SVA Costs less all amounts payable to BSCCo by any of the BSC Agents

referred to in Annex D-2, by way of credit, damages or liquidated damages or

otherwise (unless deducted from amounts payable to such BSC Agent before

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the latter amounts were counted as BSC Costs), in respect of services referred to

in Annex D-2;

(c) "Annual Production-Charging SVA Costs" is one-half of the amount of the

Annual SVA Costs;

(d) subject to paragraph 4.3.8:

(i) "Monthly Net Main Costs" (MNMCm) is 1/12 of Annual Net Main

Costs;

(ii) not used;

(iii) "Monthly Production-Charging SVA Costs" (MPSCm) is 1/12 of

Annual Production-Charging SVA Costs;

(e) "Monthly Default Costs" (MDCm) is 1/12 of Annual Default Costs.

4.2 Liability in Funding Shares

4.2.1 For each month in any BSC Year, each Trading Party shall be liable to BSCCo for:

(a) its Main Funding Share for that month of the Monthly Net Main Costs;

(b) not used;

(c) its SVA (Production) Funding Share for that month of the Monthly Production-

Charging SVA Costs;

(d) its Default Funding Share of the Monthly Default Costs.

4.2.2 Amounts for which Trading Parties are liable pursuant to paragraph 4.2.1 shall be invoiced

in accordance with the further provisions of this paragraph 4.

4.3 Invoicing, estimation and reconciliation

4.3.1 In relation to each month (the "invoice month") of each BSC Year, BSCCo shall

determine:

(a) the amounts of:

(i) Monthly Net Main Costs,

(ii) Monthly Consumption-Charging Net SVA Costs,

(iii) Monthly Production-Charging SVA Costs,

(iv) Monthly Default Costs (if any)

for the invoice month and each preceding month in that year, consistent with the

prevailing Annual Budget, and based on its prevailing estimate of Annual Net

Main Costs, Annual Production-Charging SVA Costs and Annual Default Costs

for the year;

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(b) for each Trading Party, in relation to the invoice month and each preceding

month in that BSC Year:

(i) the Main Funding Shares, SVA (Production) Funding Shares and

(where applicable) Default Funding Shares of such Party; and

(ii) the amounts for which such Party is liable by way of Specified

Charges;

(c) for each Trading Party:

(i) on the basis of paragraphs (a) and (b), the aggregate amounts for

which such Party is liable in such BSC Year, up to and including the

invoice month, by way of BSCCo Charges;

(ii) the aggregate amount (if any) already paid or payable by each Party

by way of BSCCo Charges in such BSC Year, up to and including

the month preceding the invoice month;

(iii) the amount of the difference (whether positive or negative) between

the amounts in paragraphs (i) and (ii).

4.3.2 BSCCo’s determinations under paragraph 4.3.1 shall be made:

(a) as at 1000 hours on the 15th Business Day of the month preceding (or if BSCCo

has so notified Parties, the second month preceding) the invoice month, subject

to paragraph 4.5.2 (and as soon as is practicable after that time and in any event

no later than the last Business Day of that month);

(b) on the basis of actual data available to it at the time referred to in paragraph (a),

and otherwise on the basis of BSCCo’s estimates of the relevant data; and

accordingly actual data received by BSCCo after such time will not be taken

into account until the following month.

4.3.3 BSCCo shall prepare and from time to time revise, and make available to the Panel and to

Parties, a statement of the principles and methods by which it makes estimates under

paragraph 4.3.2(b), but it is acknowledged that such principles and methods will not be

applicable in all cases, and in the absence of any such applicable principle or method

BSCCo will make such estimates as appear to it to be reasonable.

4.3.4 Subject to paragraph 4.3.5, the amount to be invoiced by BSCCo to each Trading Party

each month by way of BSCCo Charges shall be the amount determined pursuant to

paragraph 4.3.1(c)(iii) (which amount shall be payable by or to the Trading Party according

to whether it is positive or negative).

4.3.5 Where for any Trading Party in relation to any month the magnitude of the amount referred

to in paragraph 4.3.4 is less than the minimum invoice amount, no amount shall be

invoiced to that Party by way of BSCCo Charges in respect of that month (but without

prejudice to the determinations made pursuant to paragraph 4.3.1 in the following month);

and for the purposes of this Section D the "minimum invoice amount" shall be such

amount as the Panel shall from time to time determine, and shall initially be £500.

4.3.6 No interest shall accrue on or be taken into account in the determination of any amounts

under paragraph 4.3.1 or upon reconciliation under paragraphs 4.4 or 8.

4.3.7 Notwithstanding paragraph 4.3.1, BSCCo shall apply the formula set out in Annex D-4 for

the purposes of determining the amount to be invoiced each month to each Trading Party

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by way of BSCCo Charges, and in the event of any conflict between this paragraph 4 and

that Annex, that Annex shall prevail.

4.3.8 Where upon the application of BSCCo the Panel accepts that a substantial proportion of

BSC Costs are or are likely to be incurred on a significantly uneven basis over the course

of a BSC Year, and the Annual Budget indicates such basis by specifying the factors

(approved by the Panel) referred to in paragraph (b):

(a) for the purposes of its determinations under paragraph 4.3.1 (except pursuant to

paragraph 4.4), BSCCo may, with the approval of the Panel, adjust the basis of

determining Monthly Net Main Costs and Monthly Net SVA Costs, by

recognising the expected profile of such expenditure in accordance with

paragraph (b);

(b) such profile will be recognised by applying factors (as approved by the Panel)

other than 1/12 in relation to all or certain months for the purposes of paragraph

4.1(d);

(c) BSCCo will inform Trading Parties of such factors (and the month(s) to which

each such factor applies) as soon as they have been approved by the Panel; but

(d) Trading Parties' General Funding Shares shall be determined pursuant to Annex

D-1 disregarding the recognition of such expected profile (and on the basis of

factors of 1/12 in paragraph 4.1(d).

4.4 Reconciliation

4.4.1 In relation to each BSC Year, BSCCo shall, not later than 28 days after publication of its

audited accounts for that year, make a final determination and adjustment in respect of the

amounts payable by each Trading Party way of BSCCo Charges.

4.4.2 Such determination and adjustment shall be made in accordance with paragraph 4.3 except

that:

(a) BSCCo shall use only actual data and shall not (unless any actual data remains

unavailable to it at the time of such determination) use estimated data;

(b) paragraph 4.3.4 (providing for a minimum invoiced amount) shall not apply;

(c) paragraph 4.3.8 (providing for recognition of profiled expenditure) shall not

apply

(d) paragraph 4.4.8 shall also apply in respect of MHHS Implementation

Management Monthly Charges.

4.4.3 BSCCo shall invoice to Trading Parties the amounts determined to be payable pursuant to

paragraph 4.4.1 by way of final reconciliation and adjustment in respect of BSCCo Charges

payable by Trading Parties in the relevant BSC Year.

4.4.4 Subject only to paragraph 4.4.5, BSCCo’s determination of BSCCo Charges in a BSC Year

under paragraph 4.4.1 shall be final and binding, and no further adjustment shall be made

(and accordingly any subsequent adjustment in respect of BSC Costs in the BSC Year shall

be taken into account in the BSC Costs for the BSC Year in which such adjustment is

identified and made).

4.4.5 If, after the final determination under paragraph 4.4.1, the Panel determines that there are

exceptional circumstances which justify an adjustment in respect of an extraordinary error

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in the determination of, or in data used in the determination of, any Funding Shares under

that paragraph, the Panel may in its discretion direct, and Trading Parties shall be bound

by, and BSCCo shall give effect to, such adjustment in respect of BSCCo Charges (payable

by and to Trading Parties) in that BSC Year as appears to the Panel to be appropriate.

4.4.6 It is acknowledged that any BSC Costs referred to in Section H1.7 may, if the Panel

decides it is appropriate to do so, be apportioned (on such basis as the Panel shall so

decide) over the period from the Go-live Date to the BSC Year in which they are incurred,

and in such case the Panel may direct that BSCCo shall redetermine (on such basis of

approximation as the Panel may approve) each Trading Party's liability for BSCCo Charges

over such period, and each Trading Party shall be bound by such direction and

determination and shall be liable to make adjustment payments in respect of BSCCo

Charges accordingly.

4.4.7 In respect of Modification Proposal P396:

(a) for the purposes of this paragraph 4.4.7, the "P396 Reconciliation Date" shall

be the later of:

(i) the day next following the date on which the Authority issued a

notice of modification to the National Grid Electricity System

Operator Limited in respect of Modification Proposal P396; or

(ii) the first day of the BSC Year during which the date on which the

implementation of Approved Modification P396 takes place (the

"P396 Implementation Date");

(b) as soon as practically possible after the P396 Implementation Date, BSCCo

shall determine, in accordance with paragraph (c), an adjustment to the amounts

paid to or payable by each Party by way of BSCCo Charges;

(c) the adjustment referred to in paragraph (b) shall be determined so as to

reconcile the difference between:

(i) the amounts already paid to or payable by each Party by way of

BSCCo Charges in relation to the period commencing on the P396

Reconciliation Date and ending on day immediately prior to the

P396 Implementation Date; and

(ii) the amounts that would have been payable by each Party over the

same period had Modification Proposal P396 been in effect from the

P396 Reconciliation Date;

(d) BSCCo shall send an invoice to Parties in respect of the reconciliation amounts

determined pursuant to paragraph 4.4.7(c) (and where such amounts are not

included in an invoice to be sent to Parties pursuant to paragraph 4.5.1 then, in

respect of such invoice, the provisions of paragraph 4.5 shall apply mutatis

mutandis);

(e) subject to paragraph 4.4.5, BSCCo’s determination of the reconciliation

amounts shall be final and binding.

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4.4.8 As part of the reconciliation determined under this paragraph 4.4, BSCCo shall:

(a) recalculate the charge rate for the MHHS Implementation Management

Monthly Charge set for the previous BSC Year but, for the purposes of such

recalculation, shall use the actual MHHS Programme Costs incurred by BSCCo

during that BSC Year; and

(b) report, to the Panel, the revised charge rate for the MHHS Implementation

Management Monthly Charge together with the outcome of the reconciliation

calculated under paragraph 4.4.8(a).

4.5 Invoicing

4.5.1 In respect of each month, not less than 5 Business Days after making its determination for

that month under paragraph 4.3.2, BSCCo shall send to each Trading Party:

(a) an invoice in respect of the amounts accruing in respect of BSCCo Charges in

the following month (or where paragraph 4.5.2 applies, accruing in the relevant

prior month), setting out:

(i) the net amount determined as payable by or to the Trading Party in

pursuant to paragraph 4.3.1(c)(iii);

(ii) applicable VAT in respect of supplies to which the invoice relates;

(iii) the invoice due date in accordance with paragraph 4.5.3;

(b) a statement showing the basis of calculation (pursuant to paragraph 4.3) of the

amounts under paragraph (a).

4.5.2 Where BSCCo has sufficient working capital available to it (pursuant to any permitted

borrowing in accordance with Section C3.4.3(a)), BSCCo may decide, after consultation

with the Panel, to invoice BSCCo Charges (to all Parties) up to 3 months in arrears.

4.5.3 Following the final determination by BSCCo in respect of the preceding BSC Year in

accordance with paragraph 4.4, BSCCo shall send to each Trading Party an invoice and

statement setting out the matters specified in paragraph 4.5.1.

4.5.4 The due date of each invoice for BSCCo Charges shall be the 10th Business Day after the

date of receipt of the invoice.

4.6 Combined invoicing of Supplier charges

4.6.1 It is agreed and acknowledged:

(a) that the Performance Assurance Board may delegate to BSCCo the invoicing

and administration of payment of Supplier charges (and any associated amounts

in respect of VAT) on behalf of Suppliers and qualifying Trading Parties under

Annex S-1,

(b) in such case, that BSCCo may combine the invoicing and administration of

payment of BSCCo Charges (on its own behalf) and Supplier charges under

Annex S-1, and may submit a single invoice to each Party and require and make

or receive a single payment in respect such amounts; and subject to paragraph

4.6.2 each Party authorises BSCCo to do so, notwithstanding any contrary

provisions as to the basis (including any express or implied trust) on which such

amounts are to be held by the Performance Assurance Board pursuant to Annex

S-1.

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4.6.2 Where pursuant to paragraph 4.6.1:

(a) BSCCo receives any amount which includes any payment from any Supplier of

any amount under Annex S-1, and

(b) BSCCo does not on the same day make payment of the corresponding amount

payable to the qualifying Trading Parties entitled thereto pursuant to Annex S-1

(or has not given credit for such corresponding amount in determining the net

amount invoiced pursuant to paragraph 4.6.1 to such qualifying Trading Parties)

then BSCCo shall promptly upon receipt of such amount segregate that part of such amount

which is referable to the payment from the Supplier pursuant to Annex S-1 into an account

separate from that in which amounts paid in respect of BSCCo Charges are held (but

without prejudice to paragraph 4.1.12 of Annex S-1).

5. NOT USED

6. PAYMENT OF BSCCO CHARGES AND PARTY CHARGES

6.1 Bank Accounts

6.1.1 Each Trading Party shall notify to BSCCo, and BSCCo shall notify to each Party, details of

the banks and accounts to which any payments are to be made (to BSCCo or such Party) in

respect of BSCCo Charges and Party Charges.

6.1.2 BSCCo shall establish and notify under paragraph 6.1.1 separate accounts in respect of

BSCCo Charges and Party Charges.

6.2 Payment by Parties

6.2.1 Each Party shall pay all amounts invoiced in respect of BSCCo Charges and Party Charges

payable by it and applicable VAT thereon no later than the due date for payment in

accordance with this Section D.

6.2.2 Payment of BSCCo Charges and Party Charges shall be made in sterling in cleared funds to

the relevant account of the payee for the time being notified pursuant to paragraph 6.1.

6.2.3 Payment of BSCCo Charges and Party Charges shall be made in full, free and clear of any

restriction, reservation or condition, and except to the extent (if any) required by law,

without deduction, withholding, set-off or counter-claim of any kind (but without prejudice

to any other remedy).

6.2.4 In this paragraph 6, where the context admits, references to BSCCo Charges and Party

Charges include amounts payable by Trading Parties pursuant to paragraph 6.5 upon a

failure by a Trading Party to pay such a charge, or by way of cash call pursuant to

paragraph 6.6.

6.2.5 Where BSCCo is required by law to make any deduction or withholding, the amount

thereof shall be the minimum amount required by law (as modified by the terms of any

agreement between BSCCo and any relevant taxation authority), and BSCCo shall make

payments and returns to the relevant tax authorities and issue certificates to Parties in

respect thereof as required by law (as so modified).

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6.2.6 BSCCo may agree with any Party that such Party will pay BSCCo Charges and/or Party

Charges by direct debit.

6.3 Disputes

6.3.1 If a Party disputes any amount shown in an invoice or statement as payable by it in respect

of any BSCCo Charges or Party Charges, that Party shall nevertheless pay the amount

shown in full and may not withhold payment of such amount or any part thereof, but

without prejudice to that Party’s right subsequently to dispute such invoice or statement

subject to and in accordance with applicable provisions of the Code.

6.3.2 Where a Party notifies BSCCo of any dispute or query as to the amount shown in any

invoice or statement as payable by that Party in respect of BSCCo Charges or Party

Charges, BSCCo shall as soon as is reasonably practicable (but not necessarily before the

due date for payment) investigate the matter and inform the Party of the outcome of its

investigation.

6.3.3 Where (pursuant to paragraph 6.3.2 or otherwise) BSCCo establishes that, or it is

determined that, any error has been made in the determination of the amounts payable by

any Party or Parties in respect of BSCCo Charges or Party Charges (whether such error

resulted in over-payments or in under-payment by any such Party), BSCCo will make such

adjustments, in respect of the BSCCo Charges or Party Charges respectively next

(following such establishment or determination) to be payable in accordance with the Code

by or to such Party or Parties, as will ensure that the correct amounts have been so paid.

6.3.4 No amount in respect of interest shall be included in any adjustment under paragraph 6.3.3

unless otherwise ordered in any award of an arbitrator.

6.3.5 Nothing in this Section D shall be construed as preventing BSCCo from withdrawing and

replacing (with the same due date for payment) any invoice or other statement, before the

due date for payment, by agreement with the Party concerned, where BSCCo is aware of an

error in such invoice or statement.

6.4 Interest on late payment

6.4.1 If any amount payable by a Party in respect of BSCCo Charges or Party Charges is not paid

on or before the due date, the paying Party shall pay interest, after as well as before

judgment, at the Default Interest Rate, on the unpaid amount from the due date until the

day on which payment is made.

6.5 Failure to pay

6.5.1 If any Party (a "non-paying" Party) fails to pay in full, within 15 Business Days after the

invoice due date, any amount payable by it in respect of BSCCo Charges or (as the case

may be) Party Charges:

(a) BSCCo shall promptly notify all Trading Parties, the Panel and the Authority to

that effect, and paragraph 6.5.2 shall apply;

(b) in the case of BSCCo Charges, subject to and with effect from the time referred

to in paragraph 2.1.1(a)(ii) and by virtue of paragraph 4.2.1(d), each Trading

Party will be liable to pay additional amounts by way of BSCCo Charges,

determined by reference to its Default Funding Share (where the non-paying

Party is a Trading Party) in respect of the unpaid amount;

(c) in the case of Party Charges:

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(i) each other Trading Party shall be severally liable to pay an

additional amount to the payee Funding Parties representing the

Trading Party's Default Party Charge Share of the unpaid amount;

(ii) BSCCo shall promptly invoice to each Trading Party the amount

payable by it under paragraph (i), together with applicable VAT

thereon, which amount shall be payable within 10 Business Days

after the date of the invoice.

6.5.2 Where an amount is unpaid as described in paragraph 6.5.1 (and whether or not any

amounts have become payable by Trading Parties as provided in paragraph 6.5.1(b) or (c)):

(a) if the amount is unpaid in respect of BSCCo Charges, unless the Panel (upon

the recommendation of BSCCo or otherwise) determines that it would not be

worthwhile to do so, BSCCo shall

(b) if the amount is unpaid in respect of Party Charges, if the Panel so instructs

BSCCo, BSCCo shall (on behalf of the Trading Parties having an entitlement in

respect thereof)

take all reasonable steps and proceedings, in consultation with the Panel, to pursue and

recover from the non-paying Party the unpaid amount.

6.5.3 If BSCCo subsequently recovers any amount from the non-paying Trading Party in respect

of the unpaid BSCCo Charges or Party Charges:

(a) in the case of a recovery in respect of BSCCo Charges, the amount recovered

will be taken into account in determining under paragraph 4.3.2 the amounts

payable in subsequent months by Trading Parties in respect of Trading Charges

(provided that where such amount is recovered after BSCCo’s final

determination under paragraph 4.4.1, such amount will be taken into account in

the BSC Year in which it is recovered);

(b) in the case of a recovery in respect of Party Charges, BSCCo will credit such

amount to Trading Parties in their respective Default Party Charge Shares which

applied under paragraph 6.5.1(c).

6.5.4 Without prejudice to BSCCo’s continuing entitlement to payment by a non-paying Trading

Party in respect of BSCCo Charges, a non-paying Trading Party shall indemnify and keep

indemnified each other Trading Party on demand in respect of all amounts:

(a) paid by such other Trading Party to BSCCo in respect of its liability under

paragraph 6.5.1(b);

(b) paid by such other Trading Party under paragraph 6.5.1(c).

6.5.5 While any amount is outstanding from the non-paying Trading Party in respect of BSCCo

Charges, BSCCo will be entitled to withhold any payments which may be due to that

Trading Party pursuant to an invoice under paragraph 4.5.

6.5.6 A Trading Party shall give notice to the BSCCo before instituting any action or proceeding

to enforce payments due to it under paragraph 6.5.3.

6.5.7 If an unpaid amount has been increased by an amount in respect of VAT because it would

constitute the consideration for a taxable supply or deemed taxable supply (as such terms

are used in the Value Added Tax Act 1994), then any reference to an unpaid amount in

paragraph 6.5.1 shall not include that increased part to the extent that the relevant taxable

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supply or deemed taxable supply (as such terms are used in the Value Added Tax Act

1994) does not take place. This paragraph 6.5.7 is without prejudice to the fact that any

payment pursuant to paragraph 6.5.1 is exclusive of VAT and applicable VAT (if any)

should be payable in addition.

6.5.8 Any part of the Code providing that an amount that is payable should be increased by an

amount in respect of VAT, or should otherwise be paid with an amount attributable to VAT

or in respect of VAT, shall not apply to amounts constituting consideration for a taxable or

deemed taxable supply (as such terms are used in the Value Added Tax Act 1994) where

the VAT is payable by the recipient of that supply (or any person that is treated as the

recipient in accordance with any agreement referred to in paragraph 2.4.1) by way of the

reverse charge mechanism.

6.6 Emergency funding

6.6.1 If at any time BSCCo is or anticipates that it will be unable to pay any BSC Costs falling

due for payment before BSCCo will receive (from Trading Parties pursuant to invoices

issued under paragraph 4.5) funds sufficient to enable it to pay such BSC Costs:

(a) BSCCo may, with the approval of the Panel, give notice by way of cash call to

Trading Parties:

(i) requiring them to pay in their Main Funding Shares for the month in

which such notice is given such amount as BSCCo requires so as to

be sufficiently funded; and

(ii) specifying the date (as approved by the Panel) for payment of such

cash call, which shall not be less than 3 Business Days after the date

of such notice;

(b) each Trading Party shall pay the amount so notified as payable by it, not later

than the date specified for payment;

(c) amounts so payable by Trading Parties will be BSCCo Charges, treated as

accruing due when so notified, and will be taken into account in determining the

amounts subsequently payable as BSCCo Charges in the relevant BSC Year (by

being taken into account in the invoicing of such charges pursuant to paragraph

4.3.1);

(d) BSCCo shall promptly after making such cash call provide to all Trading

Parties an explanation of the circumstances which required it to be made, and

(without prejudice to Section C6.5) a statement of whether the BSC Costs in

question represent expenditure in excess of the amount in the Annual Budget.

7. EMR SETTLEMENT SERVICES PROVIDER COSTS

7.1 CFD Settlement Services Provider Costs to be recovered by BSCCo

7.1.1 For the purposes of the Code, "CFD Settlement Services Provider Costs" means:

(a) the costs directly incurred by BSCCo in providing, or procuring the provision

of, CFD Settlement Data to a CFD Settlement Services Provider; and

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(b) any other costs directly incurred by BSCCo in providing, or procuring the

provision of, those further services to a CFD Settlement Services Provider as

are permitted elsewhere in the Code.

7.2 CM Settlement Services Provider Costs to be recovered by BSCCo

7.2.1 For the purposes of the Code, "CM Settlement Services Provider Costs" means:

(a) the costs directly incurred by BSCCo in providing, or procuring the provision

of, CM Settlement Data to a CM Settlement Services Provider; and

(b) any other costs directly incurred by BSCCo in providing, or procuring the

provision of, those further services to a CM Settlement Services Provider as are

permitted elsewhere in the Code.

7.3 General

7.3.1 No Party shall be liable to pay CFD Settlement Services Provider Costs or CM Settlement

Services Provider Costs to BSCCo (other than a Party in its capacity as a CFD Settlement

Services Provider or a CM Settlement Services Provider, as appropriate, appointed for the

time being).

8. MHHS PROGRAMME COSTS

8.1 For the purposes of the Code:

(a) "MHHS Implementation Management Monthly Charge" means the

Specified BSC Charges determined in accordance with Annex D-3 to recover

MHHS Implementation Management Costs;

(b) "MHHS Implementation Management Costs" means the BSC Costs

associated with MHHS Implementation Management and MHHS Independent

Assurance as such costs are determined by BSCCo under Section C6 and in

accordance with Section C12,

and for the purposes of this paragraph 8:

(c) the "P413 Reconciliation Date" shall be the later of:

(i) 1 April 2021; or

(ii) the first day of the BSC Year during which the P413 Systems

Implementation Date falls;

(d) the "P413 Reconciliation Period" shall be the period commencing on the P413

Reconciliation Date and ending on the day immediately preceding the P413

Systems Implementation Date; and

(e) "P413 Systems Implementation Date" means the date notified to Parties in

advance by BSCCo on which the system changes needed to determine MHHS

Implementation Management Monthly Charges are implemented by BSCCo.

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8.2 In respect of Modification Proposal P413:

(a) as from the P413 Relevant Implementation Date until the day immediately

preceding the P413 Systems Implementation Date (and subject to the remaining

provisions of this paragraph), MHHS Implementation Management Costs shall

be recovered by BSCCo from each Trading Party in accordance with the

provisions of this Section D, including paragraph 4.2; and

(b) as from the P413 Systems Implementation Date, the MHHS Implementation

Management Costs shall be recoverable from Suppliers through the MHHS

Implementation Management Monthly Charges in accordance with this

paragraph and paragraph 3 of Annex D-3.

8.3 As soon as practically possible after the P413 Systems Implementation Date, BSCCo shall

determine for each Party the difference between:

(a) the amounts already paid to or payable by way of BSCCo Charges in relation to

the period commencing on the P413 Reconciliation Date and ending on the day

immediately prior to the P413 Systems Implementation Date; and

(b) the amounts that would have been paid or payable by each Supplier by way of

MHHS Implementation Management Monthly Charges and by each other Party

by way of BSCCo Charges over the same period had such MHHS

Implementation Management Monthly Charges been recovered from Suppliers

as from the P413 Reconciliation Date.

8.4 BSCCo shall send an invoice to Parties in respect of the reconciliation amounts determined

pursuant to paragraph 8.3 (and where such amounts are not included in an invoice to be

sent to Parties pursuant to paragraph 4.5.1 then, in respect of such invoice, the provisions

of paragraph 4.5 shall apply mutatis mutandis).

8.5 Subject to paragraph 4.4.5, BSCCo’s determination of such reconciliation amounts shall be

final and binding.

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ANNEX D-1: FUNDING SHARES

Part 1 – Main Funding Shares

A Trading Party’s Main Funding Share (FSMpm) in relation to a month (month ‘m’) reflects its

proportionate share of aggregate Credited Energy Volumes for that month and shall be determined as

follows:

FSMpm = ½ * {P+ (non-I) (QCEiaj) + P- (non-I) (- QCEiaj)} / p {P+(non-I) (QCEiaj) + P- (-

QCEiaj)}

+ ½ * {C+(non-I) (QCEiaj) + C-

(non-I) (-QCEiaj)} / p {C+ (non-I) (QCEiaj) + C-

(non-I) (-

QCEiaj)}

where:

P+(non-I)

represents, for the Production Energy Account a belonging to Party p, a sum

over each Settlement Period in month m and each BM Unit that is not an

Interconnector BM Unit, where the Trading Unit to which the BM Unit belongs

is delivering in the Settlement Period j.

P(non-I) represents, for the Production Energy Account a belonging to Party p, a sum



is offtaking in the Settlement Period j.

C+(non-I)

represents, for the Consumption Energy Account a belonging to Party p, a sum



is delivering in the Settlement Period j.

C-(non-I)

represents, for the Consumption Energy Account a belonging to Party p, a sum



is offtaking in the Settlement Period j.

p represents the sum over all Trading Parties p;

and where delivering and offtaking are construed in accordance with Section

T2.1.1.

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Part 3 – SVA (Production) Funding Shares

A Trading Party’s SVA (Production) Funding Share (FSPSpm) in relation to a month (month ‘m’)

reflects its proportionate share of aggregate Credited Energy Volumes for Production BM Units for

that month and shall be determined as follows:

FSPSpm = {P+(non-I) (QCEiaj) + P-

(non-I) (- QCEiaj)} / p {P+(non-I) (QCEiaj) + P-

(non-I) (-

QCEiaj)}

where the summations are the same as in Part 1.

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Part 4 – General Funding Shares

1. General funding shares

A Trading Party’s General Funding Share (FSGpm) in relation to a month (month ‘m’)

reflects its proportionate share of the aggregate of certain BSCCo Charges for that month

shall be determined as follows:

FSGpm = {TSCpm + (MNMCm * FSMpm) + (MPSCm * FSPSpm)} / p {TSCpm

+ (MNMCm * FSMpm) + (MPSCm * FSPSpm)}

where

TSCpm = Total Specified BSC Charges, with the exception of Secondary BM Unit

Monthly Charges and MHHS Implementation Management Monthly

Charges, for Trading Party p relating to month m

MNMCm = Monthly Net Main Costs relating to month m

FSMpm = Main Funding Share for Trading Party p relating to month m

MPSCm = Monthly Production-Charging SVA Costs relating to month m

FSPSpm = SVA (Production) Funding Share for Trading Party p relating to month m

p = the sum over all Trading Parties p

2. Default basis

Where for any month General Funding Shares are to be determined on a default basis in

relation to any defaulting Trading Party or Trading Parties:

(a) paragraph 1 shall apply on the basis that:

p = the sum over all Trading Parties p other than the defaulting Trading

Party(ies);

(b) FSGpm shall not be determined in respect of the defaulting Trading Party(ies).

Part 5 – Determination of Funding Shares

In accordance with the further provisions of the Code, the following data (or such other data as may be

agreed by BSCCo and the relevant BSC Agent) will be provided to BSCCo by the following BSC

Agents in order to enable BSCCo to determine Funding Shares in accordance with Section D1.4 each

month:

(a) SVAA will provide monthly total values (by Trading Party and BM Unit) of

(pmZHjNHHSDTHZj );

(b) SAA will provide for each month m, in relation to the Energy Account a of each

Party, each BM Unit i and each Settlement Period j, values of QCEiaj.

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ANNEX D-2: SVA COSTS

1. SVA Costs shall be those BSC Costs determined by BSCCo to be operational costs directly

or indirectly referable to Supplier Volume Allocation.

2. Subject to paragraph 3 and paragraph 5, SVA Costs shall include the following amounts

and costs payable or incurred by BSCCo or any of its Subsidiaries:

(a) amounts payable to the Supplier Volume Allocation Agent;

(b) amounts payable in respect of the use by the Supplier Volume Allocation Agent

of the Managed Data Network;

(c) amounts payable to the Profile Administrator;

(d) amounts payable to the Teleswitch Agent;

(e) amounts payable to the Technical Assurance Agent for Supplier Volume

Allocation;

(f) amounts payable to BSCCo agent (if any), so far as relating to the Qualification

of Supplier Agents;

(g) costs of the maintenance and support of the software and systems referred to in

paragraph 4;

(h) the costs of resolving Trading Disputes relating to Supplier Volume Allocation;

(i) the costs of implementing, conducting and administering the Qualification

Processes relating to Suppliers and Supplier Agents;

(j) amounts payable to the BSC Auditor, in respect of the functions of the BSC

Auditor referable to Supplier Volume Allocation;

(k) costs of the operation of the Performance Assurance Reporting and Monitoring

Systems (other than any such operation not referable to Supplier Volume

Allocation);

(l) costs of providing advice and support to Parties in connection with those

provisions of the Code relating to Supplier Volume Allocation.

3. SVA Costs shall not include

(a) any such costs (as described in paragraph 2) in respect of services provided by a

BSC Agent in connection with the implementation of an Approved

Modification of otherwise for the development of any BSC Systems;

(b) any such costs in respect of services which are not directly or indirectly

referable to Supplier Volume Allocation.

4. The software and systems referred to in paragraph 2(g) are software and systems made

available by BSCCo to Trading Parties for estimation of annual consumption and

annualised advance, and for non half hour data aggregation; and the Supplier Volume

Allocation System.

5. SVA Costs shall include the costs of implementing Approved Modification P246

("Reporting to LDSOs of Aggregated Metering Data for Embedded Networks") which

shall be payable by all Licensed Distribution System Operators in equal proportion,

provided that such implementation costs shall not be treated as Annual SVA Costs.

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ANNEX D-3: SPECIFIED BSC CHARGES

1. General

1.1 This Annex D-3 sets out the basis on which Specified BSC Charges will be determined.

1.2 The amounts or rates of each of the Specified BSC Charges, in relation to each BSC Year,

shall be the amounts or rates determined and notified to Parties by the Panel, in accordance

with this Annex D-3, not later than the start of that BSC Year, provided that:

(a) the amounts or rates prevailing in one BSC Year shall continue to apply in the

following BSC Year if the Panel does so not notify any revised such amounts or

rates; and

(b) where BSCCo has amended, or proposes to amend, its Annual Budget in

accordance with Section C6.6, the Panel may set a rate for the MHHS

Implementation Management Monthly Charge for the relevant BSC Year after

the start of that BSC Year.

2. Not Used

3. Main Specified Charges

3.1 The Main Specified Charges payable by Parties in relation to each month are as follows:

(a) a Base Monthly Charge, payable by each Party, with the exception of Virtual

Lead Parties that do not hold Energy Accounts, at a charge rate as determined

and notified to Parties by the Panel by publication on the BSC Website;

(b) a CVA Metering System Monthly Charge, for each CVA Metering System

(including a Metering System at a Systems Connection Point) of which a Party

is Registrant for all or any part of that month, at a charge rate as determined and

notified to Parties by the Panel by publication on the BSC Website;

(c) a CVA BM Unit Monthly Charge, for:

(i) each BM Unit (other than a Supplier BM Unit, Secondary BM Unit

and BM Units as provided in paragraph (ii)) for which a Trading

Party is Lead Party for all or any part of that month; and

(ii) for:

(1) each Consumption BM Unit associated with an

Exemptable Generating Plant for which (Consumption

BM Unit) the Trading Party is Lead Party for all or any

part of that month (and, in this case, no charge will be

made for any Exempt Export BM Units at the

Exemptable Generating Plant); or

(2) (if there are no Consumption BM Units associated with

an Exemptable Generating Plant) all Exempt Export BM

Units at the Exemptable Generating Plant for which the

Trading Party is Lead Party for all or any part of that

month (as a single charge taking such Exempt Export BM

Units in aggregate),

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at a charge rate as determined and notified to Parties by the Panel by publication

on the BSC Website;

(d) a Dataline Monthly Charge, for each data communications line supplied to a

Trading Party (as described in paragraph 3.3(a)), at a charge rate as determined

and notified to Parties by the Panel in a 'Schedule of Specified Communication

Charges' placed on the BSC Website;

(e) a TIBCO Software Support Charge (as described in paragraph 3.3(b)), at a

charge rate as determined and notified to Parties by the Panel in a 'Schedule of

Specified Communication Charges' placed on the BSC Website;

(f) a Notified Volume Charge, for the Gross Contract MWh determined for a

Trading Party in accordance with paragraph 3.2, at a charge rate as determined

and notified to Parties by the Panel by publication on the BSC Website;

(g) a Base BM Unit Monthly Charge, for a set of Base BM Units (in aggregate)

automatically allocated (in accordance with Section K3.3.1(a)) to a Supplier (in

respect of each of its Supplier IDs), and held by a Supplier for all or any part of

that month, at a charge rate as determined and notified to Parties by the Panel by

publication on the BSC Website;

(h) except for Additional BM Units that are comprised of CFD Assets or CM

Assets (for which there shall be no Additional BM Unit Monthly Charge), an

Additional BM Unit Monthly Charge, for each Supplier BM Unit for which a

Supplier is Lead Party for all or any part of that month, and which is not

charged for under paragraph (g), at a charge rate as determined and notified to

Parties by the Panel by publication on the BSC Website;

(i) for a Replacement Supplier BM Unit held by a Replacement Supplier for all or

any part of that month:

(i) which corresponds to a Base BM Unit, to the Replacement Supplier,

one twelfth of the Base BM Unit Monthly Charge;

(ii) which corresponds to an Additional BM Unit, to the Replacement

Supplier, the Additional BM Unit Monthly Charge,

and no charge will be made in respect of Replacement Supplier BM Units under

paragraphs (g) or (h) provided that, for the purposes of this paragraph 3.1, a BM

Unit shall cease to be considered a Replacement Supplier BM Unit when all the

Metering Systems associated with that BM Unit are no longer registered in the

name of the relevant failing Supplier;

(j) a Base Virtual Lead Party Monthly Charge, payable by each Virtual Lead Party

that is not a Trading Party, at a charge rate as determined and notified to Virtual

Lead Parties by the Panel by publication on the BSC Website;

(k) a Secondary BM Unit Monthly Charge, payable by each Party for each

Secondary BM Unit for which that Party is Lead Party for all or any part of that

month, at a charge rate as determined and notified to Parties by the Panel by

publication on the BSC Website; and

(l) a MHHS Implementation Management Monthly Charge payable by each

Supplier for each SVA Metering System for which a Supplier is Registrant on

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the first day of that month, at a charge rate as determined and notified to Parties

by the Panel by publication on the BSC Website.

3.2 For the purposes of paragraph 3.1(f), the Gross Contract MWh for a Trading Party in

relation to a month shall be determined as follows:

zabj {| ECQ zabj | + | ECQ zbaj |} + ziaj {| QMFR ziaj |} + zibj {| QMFR zibj |}

where

zabj represents the sum over all Energy Accounts b, over the two Energy Accounts a which

belong to Party p, over all Energy Contract Volume Notifications z and over all Settlement

Periods j in month m

ziaj represents the sum over all BM Units i for which the Party p is a Subsidiary Party, over

the two Energy Accounts a which belong to Party p, over all Metered Volume Reallocation

Notifications z and over all Settlement Periods j in month m

zibj represents the sum over all BM Units i for which Party p is the Lead Party, over all

Energy Accounts b which Subsidiary Energy Accounts for BM Unit i, over all Metered

Volume Reallocation Notifications z and over all Settlement Periods j in month m

3.3 For the purposes of this paragraph 3:

(a) the 'Dataline Monthly Charge' is a charge payable by a Party in respect of the

provision of the High Grade Service of the BMRS referred to in Section V2

(where the Party has requested that service), and is payable:

(i) for each dedicated communications line (as described in the

applicable Communication Requirements Document) supplied in

order to provide the High Grade Service; and

(ii) for a minimum period (of supply of each such line) of 12 months;

and

(b) where the Party (having requested the High Grade Service) does not already

have available and therefore has requested the provision of the software known

as 'TIBCO' software (as described in the applicable Communications

Requirements Document) for operation with the High Grade Service, the Party

is required to pay to BSCCo:

(i) a set-up charge known as the 'TIBCO Set-up Charge' in accordance

with paragraph 3.4; and

(ii) a software support charge known as the 'TIBCO Software Support

Charge' in accordance with paragraph 3.1(e).

3.4 The TIBCO Set-up Charge is payable in relation to the month in which the TIBCO

software is provided, and the amount of such charge shall be as determined and notified to

Parties by the Panel in a 'Schedule of Specified Communication Charges' placed on the

BSC Website.

3.5 The MHHS Implementation Management Monthly Charge is a charge payable by

Suppliers in order to recover MHHS Implementation Management Costs.

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4. SVA Specified Charges

4.1 The SVA Specified Charge payable by each Supplier in order to recover Annual SVA

(Consumption) Costs is an SVA Metering System Monthly Charge, for each SVA

Metering System for which a Supplier is Registrant on the first day of that month, at a

charge rate as determined and notified to Parties by the Panel by publication on the BSC

Website.

5. Provision of information to BSCCo

5.1 The following data (or such other data as may be agreed by BSCCo and the relevant BSC

Agent) will be provided to BSCCo by the following BSC Agents in order to enable BSCCo

to determine Specified BSC Charges in accordance with this Annex D-3 for each month:

(a) the ECVAA will provide for each month m;

(i) in relation to each Energy Contract Volume Notification z, each

Energy (From) Account a of each Party, each Energy (To) Account

b of each Party and each Settlement Period j, values of ECQzabj;

(ii) in relation to each Metered Volume Reallocation Notification z, the

relevant Energy Account a of each Subsidiary Party, each BM Unit i

and each Settlement Period j, values of QMFRzaij;

(b) the CRA will provide:

(i) the number of CVA Metering Systems of which each Party is

Registrant in each month;

(ii) the number of BM Units (other than Supplier BM Units and Exempt

Export BM Units) and the number of Exempt Export BM Units for

which each Party is Lead Party in each month;

(iii) the number of Base BM Units, Additional BM Units and Secondary

BM Units of which each Supplier is Lead Party in each month;

(c) the BMRA will provide:

(i) details of the Parties which have requested the High Grade Service

and the number of data communications lines under supply to each

such Party in each month;

(ii) details of the Parties to whom TIBCO software is being provided

and the number of additional users of each such Party in each month.

6. Further charges

6.1 Where BSCCo provides or procures any relevant service to or for a relevant person, subject

to paragraph 6.3, BSCCo may, and if the Panel so requires shall, make a charge to the

relevant person of an amount sufficient to recover the relevant costs.

6.2 For the purposes of paragraph 6.1:

(a) a relevant service is a service (including but not limited to the provision of a

copy of any document) provided at the request of and to or for a particular

person (not including the Authority) and not provided to Parties or Trading

Parties on a routine basis pursuant to the Code;

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(b) a relevant person is the person, whether or not a Trading Party or another Party,

to whom a relevant service is provided;

(c) the relevant costs are the costs (excluding overhead costs) directly incurred by

BSCCo in providing or procuring the relevant service, to the extent to which

such costs have not been taken into account by the Panel in determining the rate

or amount of any Specified BSC Charge.

6.3 Where BSCCo is required by any provision of the Code or a Code Subsidiary Document to

provide (at the request of a Party) the relevant service, BSCCo may only make such a

charge with the prior approval of the Panel.

6.4 Without prejudice to the generality of paragraph 6.1, where a BSC Agent makes a specific

charge to BSCCo in respect of the provision on a particular occasion of a relevant service

by that BSC Agent, BSCCo may make a charge of an equal amount to the relevant person,

provided that the amount of such charge has not been taken into account by the Panel in

determining the rate or amount of any Specified BSC Charge.

6.5 In addition to the charges to be made pursuant to the foregoing provisions of this Annex D-3:

(a) the NETSO shall pay to BSCCo 10% of the amounts from time to time borne by

BSCCo in respect of the overhead costs of the Electricity Arbitration

Association as provided in Section H7.1.7;

(b) fees in respect of Qualification (or re-Qualification) will be charged in

accordance with the Menu of Qualification Fees;

(c) application fees are payable by Party Applicants in accordance with Section

A2.5;

(d) charges are payable by persons (other than Parties) requesting the High Grade

Service of the BMRS as provided in Section V2.3.4(a).

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ANNEX D-4: DETERMINATION OF MONTHLY BSCCO CHARGES

1. Invoicing within year

1.1 For the purposes of Section D4.3.7, the monthly payment (Ppm) for each Trading Party p for

month m is determined as follows:

Ppm = m (TSCpm)

+m (MNMCm) * m (FSMpm) / m (1)

+m (MPSCm) * m (FSPSpm) / m (1)

+m (MDCm) * m (FSDpm) / m (1)

m-1 (Ppm)

where:

TSCpm = the aggregate amount payable by a Trading Party by way of Specified BSC

Charges in respect of month m;

MNMCm = Monthly Net Main Costs relating to month m

FSMpm = Main Funding Share for Trading Party p relating to month m

MPSCm = Monthly Production-Charging SVA Costs relating to month m

FSPSpm = SVA (Production) Funding Share for Trading Party p relating to month m

MDCm = Monthly Default Costs relating to month m

FSDpm = Default Funding Share for Trading Party p relating to month m

m = the sum over all of the months of the BSC Year up to and including month

m;

m-1 = the sum over all of the months of the BSC Year up to and including the

month preceding month m;

m(1) = the number of months of the BSC Year up to and including month m;

1.2 In accordance with Section D4.3 the data used for the calculation will be estimated data

where actual data is not available; and values of monthly BSC Costs (of different types)

will be determined in accordance with Section D4.3.8 where that paragraph applies.

2. Reconciliation

2.1 For the purposes of the reconciliation pursuant to Section D4.4 the amount (Pp) payable by

each Trading Party p by way of final reconciliation and adjustment is determined as

follows:

Pp = m (TSCpm)

+m (MNMCm) * m (FSMpm) / 12

+m (MPSCm) * m(FSPSpm) / 12

+m (MDCm) * m (FSDpm) / 12

m (Ppm)

where

m = the sum over all of the months of the BSC Year

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all other terms have the meanings in paragraph 1.

2.2 In accordance with Section D4.4.2 the data used for the calculation will be actual data

(unless not then available); and Section D4.3.8 shall not apply in relation to the

determination of values of monthly BSC Costs (of different types).

ANNEX D-5: NOT USED

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E – 1 of 15 Effective Date: 1 April 2018

SECTION E: BSC AGENTS

1. GENERAL

1.1 Introduction

1.1.1 This Section E sets out:

(a) requirements that certain services be provided by BSC Agents;

(b) the role of BSCCo in contracting with BSC Agents;

(c) provisions relating to the relationship between BSCCo, Parties, and BSC

Agents; and

(d) provisions relating to the BSC Services Manager.

1.1.2 It is a requirement of the Code that a person or persons should be appointed at all times by

BSCCo for the purposes of providing certain services, necessary for giving effect to the

Code, which are to be provided centrally (and not by Parties individually).

1.1.3 The services which are so required to be provided are specified in BSC Service

Descriptions.

1.1.4 In this Section E references to Parties do not include BSCCo or the BSC Clearer.

1.2 BSC Agents

1.2.1 The person for the time being appointed for the purposes of providing the services

specified in a BSC Service Description is a BSC Agent. This does not include BSCCo

where BSCCo provides the Profile Administration Services.

1.2.2 Subject to paragraph 1.2.3, a person may be appointed to act in the capacity of more than

one BSC Agent.

1.2.3 The same person may be appointed to act as BSC Auditor and as BSCCo's agent (if any) in

relation to the Qualification Process (or any part thereof), but subject thereto the person

appointed as BSC Auditor and the person appointed as BSCCo's agent in relation to the

Qualification Process (or any part thereof) shall not be appointed in the capacity of another

BSC Agent.

1.2.4 A Party shall not be appointed as a BSC Agent.

1.2.5 The services which are the subject of each BSC Service Descriptions, and the name by

which the BSC Agent for each BSC Service Description is known in the Code, are set out

below:

BSC Service Description BSC Agent Abbreviation

Settlement Administration Settlement Administration Agent SAA

Funds Administration Funds Administration Agent FAA

Balancing Mechanism

Reporting

Balancing Mechanism Reporting

Agent

BMRA

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BSC Service Description BSC Agent Abbreviation

Energy Contract Volume

Aggregation

Energy Contract Volume

Aggregation Agent

ECVAA

Central Data Collection Central Data Collection Agent CDCA

Technical Assurance Technical Assurance Agent TAA

Central Registration Central Registration Agent CRA

Supplier Volume Allocation Supplier Volume Allocation Agent SVAA

Teleswitch Monitoring Teleswitch Agent -

BSC Audit BSC Auditor -

Profile Administration Profile Administrator -

TLF Determination Transmission Loss Factor Agent TLFA

1.2.6 It is acknowledged that at the Code Effective Date separate persons are appointed as TAA

in relation respectively to CVA Metering Systems and to SVA Metering Systems, and

references to the TAA in the Code shall be construed accordingly.

1.3 BSC Service Descriptions

1.3.1 A BSC Service Description shall specify the services which are required to be provided by

the BSC Agent for the purposes of the Code, and will provide for (or refer to another

document which provides for):

(a) such required levels of performance by the BSC Agent;

(b) such associated amounts (payable by or recoverable from the BSC Agent by

way of liquidated damages or adjustment to charges or otherwise) in respect of

failures to achieve the required levels of performance; and

(c) such requirements as to:

(i) the development and maintenance by the BSC Agent of a

contingency plan;

(ii) the provision by the BSC Agent of a disaster recovery service and

the development and maintenance by the BSC Agent of a disaster

recovery plan;

(iii) the preparation and maintenance by the BSC Agent of records;

(iv) the provision to the BSC Auditor of access to those things required

by Section H5.5.2; and

(v) the provision by the BSC Agent of a help-desk service;

as the Panel decides (when establishing or amending such BSC Service Description) to be

appropriate.

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1.3.2 A BSC Service Description shall to the extent practicable specify the services to be

provided by the BSC Agent by reference to those provisions of the Code and of any other

Code Subsidiary Document which relate to the functions to be carried out by the relevant

BSC Agent.

1.3.3 A BSC Agent Contract may provide for the BSC Agent to provide routine or ad-hoc

services (necessary for or reasonably incidental to giving effect to the Code) in addition to

those set out in the BSC Service Description.

1.3.4 Subject to and in accordance with Section F3, the Panel may from time to time, upon the

recommendation of BSCCo or otherwise, amend a BSC Service Description (including

adding or removing requirements thereunder).

1.3.5 Where a Code Modification is or is to be made, and/or the Panel decides to amend a BSC

Service Description or other Code Subsidiary Document, BSCCo shall take all such steps

(in accordance with the change management provisions in and otherwise in accordance

with the BSC Agent Contract) as are available with a view to securing that the relevant

BSC Agent Contract takes effect by reference to, and the BSC Agent is bound by, the Code

as so modified or (as the case may be) the amended BSC Service Description or other Code

Subsidiary Document, with effect from the date from which such modification or

amendment is to take effect.

1.4 Data flows between certain BSC Agents

1.4.1 Where and for so long as the same person is appointed in the capacity of more than one

BSC Agent:

(a) it is not necessary for Code Subsidiary Documents to contain data transfer

provisions;

(b) such person in each such capacity of BSC Agent shall be assumed (for the

purposes of the Code) to be in possession of all data and information of which it

is in possession in any of such capacities, notwithstanding any data transfer

provisions which are contained in the Code or any Code Subsidiary Document,

but without prejudice to any requirements under the Code or any Code

Subsidiary Document for validation of such data or information;

and for the purposes of this paragraph 1.4 data transfer provisions are provisions or

procedures for the passing of data or information between one such BSC Agent and

another.

1.4.2 Where paragraph 1.4.1 applies for the time being, but it is proposed that a BSC Agent

Contract is to be entered into with a different person in the capacity of any such BSC

Agent, the Panel shall first establish in Code Subsidiary Documents appropriate data

transfer provisions (to the extent not already contained in the Code or Code Subsidiary

Documents).

1.5 Reconfiguration of BSC Service Descriptions

1.5.1 If at any time BSCCo proposes and the Panel agrees that particular services (contained

within a particular BSC Service Description(s)) should in the future be provided by a

person (whether a person already acting in the capacity of another BSC Agent, or a new

BSC Agent) other than the BSC Agent under that BSC Service Description:

(a) the Panel may modify the prevailing BSC Service Descriptions (including

creating a new BSC Service Description) so as to give effect to such proposal

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with effect from the amendment or execution of the relevant BSC Agent

Contracts; and

(b) with effect from such modification, references to particular BSC Agents in the

Code and Code Subsidiary Documents shall be construed consistent with such

modified BSC Service Descriptions.

1.5.2 Paragraph 1.5.1 is subject to the further provisions of the Code as to the amendment of

BSC Agent Contracts and modification of BSC Service Descriptions, and subject to the

requirements of Section F3.1.2 being complied with in respect of all BSC Service

Descriptions taken together.

1.6 Interpretation of Code

1.6.1 The Code sets out or describes certain functions of BSC Agents as obligations of those

Agents (to be reflected in the terms of BSC Agent Contracts in accordance with paragraph

2.1.3), but it is acknowledged that (as BSC Agents are not party to the Framework

Agreement) the Code does not of itself directly impose obligations on any person

appointed as BSC Agent.

1.6.2 The failure of a BSC Agent to perform and discharge any of its functions as provided for in

the Code shall not affect the rights and obligations of the Parties in respect of Settlement

under the Code (so far as such rights and obligations are capable of being construed and

determined notwithstanding such failure), but subject to the express provisions of the Code

as to:

(a) the effect of Volume Allocation Runs and Settlement Runs (as provided in

Section U2.6);

(b) the resolution of Trading Disputes;

(c) the consequences of an incorrect determination that a Trading Party is in Credit

Default (as provided in Section M); and

(d) the implementation of Settlement in any case where data is not available or is

invalid or in the case of any omission or error on the part of a BSC Agent;

and to any other provision of the Code which expressly addresses the consequences for

Parties of such a failure.

2. ROLE OF BSCCO

2.1 General

2.1.1 It shall be the responsibility of BSCCo to ensure that there is at all times a person

appointed as BSC Agent for the purposes of providing all of the services under each BSC

Service Description.

2.1.2 BSCCo shall, subject to and in accordance with the further provisions of this Section E:

(a) select the person to be appointed as each BSC Agent;

(b) enter into (or accept an assignment or novation of) a contract with each person

appointed as a BSC Agent;

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(c) perform its obligations under and manage and enforce each BSC Agent

Contract;

(d) monitor, inspect and supervise the performance of the BSC Agent under each

BSC Agent Contract;

(e) amend or vary each BSC Agent Contract as necessary or appropriate for the

purposes of giving effect to the Code or in accordance with paragraph 1.3.5;

(f) where appropriate, exercise any rights of termination of each BSC Agent

Contract; and

(g) upon expiry or termination of a BSC Agent Contract, extend or renew the

contract or (in accordance with paragraphs (a) and (b)) select and appoint a

different person as the BSC Agent.

2.1.3 Without prejudice to anything contained in a BSC Service Description, a BSC Agent

Contract shall require (subject to the application of the change management procedures in

that contract upon any Code Modification or change to a Code Subsidiary Document, and

subject to paragraph 2.1.4):

(a) subject to paragraph 1.5, that the BSC Agent undertake all of the functions and

responsibilities described:

(i) in the Code, and

(ii) any Code Subsidiary Document

as being functions and responsibilities of that BSC Agent;

(b) that the BSC Agent undertake the functions and responsibilities described in the

Code as being functions and responsibilities applicable to BSC Agents

generally; and

(c) to the extent (if any) to which the Code provides any standard for or

requirement as to the quality of such performance, that the BSC Agent performs

its functions and responsibilities in accordance with such standard or

requirement.

2.1.4 If a person proposed to be appointed as BSC Agent does not agree to enter into a BSC

Agent Contract whose terms comply with paragraph 2.1.3, or seeks to introduce into a

proposed BSC Agent Contract a term which in BSCCo’s reasonable opinion would qualify

any such standard or requirement as is referred to in paragraph 2.1.3(c):

(a) BSCCo shall not enter into such BSC Agent Contract with such person without

approval of the Panel;

(b) the Panel shall consult with Parties if and to the extent it considers appropriate

(having regard to the significance of the matter to which the prospective BSC

Agent objects) before giving such approval; and the Panel shall, where it

considers it appropriate, deal with the matter as a modification to the relevant

BSC Service Description;

(c) the Panel shall not in any event give such approval where the prospective BSC

Agent objects to any material term of the proposed BSC Agent Contract

included to comply with paragraph 2.1.3(a)(i).

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2.1.5 Subject to paragraph 1.2.3, a single BSC Agent Contract may relate to services to be

provided (by the person entering into such contract) in the capacity of more than one BSC

Agent.

2.1.6 In accordance with Section C7.1.1, a BSC Agent Contract may be entered into by a

Subsidiary of BSCCo (other than the BSC Clearer, save that this shall not prevent the BSC

Clearer from being a party to a contract with the FAA).

2.1.7 It is acknowledged that there are (or pursuant to the Implementation Scheme will be)

contracts (“initial contracts”) between BSCCo and BSC Agents in place at the Go-live

Date; and

(a) no provision of this Section E as to what is to be contained in a BSC Agent

Contract shall apply in relation to such initial contracts as at the Go-live Date;

(b) the further provisions of this Section E shall not apply in relation to an initial

contract to the extent to which BSCCo is unable (by virtue of anything

contained or not contained in such initial contract, until and unless amended

pursuant to paragraph (c)) to comply with such provisions; and

(c) BSCCo and the Panel shall from time to time consider and agree whether and if

so what amendments should be made to any initial contract with a view to

ensuring its compliance with the provisions of this Section E.

2.1.8 Nothing in this paragraph 2.1 requires that a BSC Agent Contract should prevent the

relevant BSC Agent from sub-contracting the provision of any of the services to be

provided thereunder, but without prejudice to paragraph 2.3.4.

2.2 Management of BSC Agent Contracts

2.2.1 BSCCo shall establish and from time to time amend and shall implement arrangements for

the proper and efficient management of each BSC Agent Contract, and shall provide a copy

of such arrangements (upon establishing or amending the same) to the Panel.

2.2.2 Without prejudice to the generality of paragraph 2.1.2(c), BSCCo shall:

(a) if under a BSC Service Description the BSC Agent may be required to provide

on an ad-hoc or non-routine basis any service to or for the benefit of a Party

individually (rather than Parties or any class of Parties collectively), order the

provision of that service in accordance with the reasonable requests of any such

Party but subject to that Party's compliance with any relevant procedural

requirements, and account for the costs of ordering that service in accordance

with any applicable provisions of Section D;

(b) where it is aware of circumstances in which such right or remedy has arisen, but

only with the approval of the Panel and subject to recovery (from the individual

Party or otherwise) of its costs of so doing on such basis as the Panel may

decide, take reasonable steps to enforce any provision of a BSC Agent Contract

which provides any right or remedy for or for the benefit of a Party individually

(rather than Parties or any class of Parties collectively), keep that Party

reasonably informed as to the steps being taken for such enforcement, and

account to that Party for any amount recovered pursuant to such enforcement.

2.2.3 Nothing in paragraph 2.2.2 shall prevent a Party from ordering the provision of any service

(under a BSC Agent Contract) directly from a BSC Agent in a case in which BSCCo has

with the Panel's approval made arrangements with the BSC Agent under which:

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(a) Parties (or Parties of any class) may directly order such services; and

(b) all of the charges of the BSC Agent referable to the provision of such service

are to be met directly by (or charged as Specified BSC Charges to) the Party

ordering the service.

2.2.4 BSCCo shall consult with the Panel before:

(a) commencing any proceedings or arbitration against a BSC Agent under a BSC

Agent Contract, or

(b) agreeing a settlement in respect of any proceedings or arbitration (whether

brought by BSCCo or the BSC Agent) or any claim by BSCCo or the BSC

Agent which might otherwise lead to such proceedings or arbitration, or

(c) granting any waiver of any such claim against a BSC Agent;

and where the amount subject to such proceedings or arbitration or of such claim exceeds

(or in BSCCo's reasonable opinion is likely to exceed) such threshold amount as the Panel

may from time to time specify for the purposes of this paragraph 2.2.4, BSCCo shall obtain

the approval of the Panel before doing any of the foregoing.

2.2.5 BSCCo shall:

(a) inform the Panel of any proceedings or arbitration commenced or threatened by

a BSC Agent against BSCCo; and

(b) without prejudice to paragraph 2.2.4, keep the Panel informed as to the progress

of and any settlement of any proceedings or arbitration with a BSC Agent

(whether commenced by BSCCo or the BSC Agent);

(c) inform the Panel of any substantial and abnormal occurrences in or

circumstances affecting the performance of any BSC Agent Contract.

2.2.6 BSCCo shall:

(a) in discussion with the Panel, establish and from time to time amend

arrangements for reporting periodically to the Panel in respect of the

management of each BSC Agent Contract and the performance of each BSC

Agent thereunder;

(b) report to the Panel in accordance with such procedures and arrangements.

2.3 Contract Principles

2.3.1 BSCCo shall, in consultation with the Panel or any Panel Committee established for the

purpose, establish and from time to time review and amend, a statement of the principles

("Contract Principles") by which BSCCo is to be guided in setting or agreeing the terms

of BSC Agent Contracts or any amendments thereto.

2.3.2 Particular Contract Principles may apply in relation to one, some or all of the contracts

entered or to be entered into with BSC Agents.

2.3.3 The Contract Principles shall be consistent with the objectives in Section B1.2.1, with

Good Industry Practice and with the further requirements of the Code, and shall include

principles as to at least the following matters:

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(a) consistent with paragraph 2.4.1(a), the capacity of BSCCo (whether as

principal, trustee or agent for the benefit of all or certain Parties, or otherwise)

in entering into the contract, and the extent to which the Contracts (Rights of

Third Parties) Act 1999 is to apply for the benefit of all or certain Parties;

(b) the principles and methods of pricing of services under the contract;

(c) liability and limitations or exclusions of liability for breach of the contract;

(d) the extent to which the BSC Agent is to be relieved from liability for breach

resulting from circumstances beyond its reasonable control;

(e) the extent to which the terms of the contract, and information concerning the

BSC Agent's performance, may be freely disclosed by BSCCo to Parties;

(f) the ownership of Intellectual Property Rights in materials produced by the BSC

Agent pursuant to the contract;

(g) where a single person acts in the capacity of more than one BSC Agent, the

extent to which the processes and systems employed by that person in each

capacity are to be separated or capable of separation from each other;

(h) principles to apply where the BSC Agent sub-contracts performance of its

obligations, and the extent (if any) to which the contract should restrict the

ability of the BSC Agent to do so.

2.3.4 In setting or agreeing the terms of BSC Agent Contracts or any amendments thereto,

BSCCo will seek to apply the applicable Contract Principles, and will obtain the consent of

the Panel before knowingly departing in any material respect from the applicable Contract

Principles.

2.4 Contract requirements

2.4.1 Each BSC Agent Contract shall contain terms which:

(a) give effect to the principle that Trading Parties should have the benefit of the

main obligations of the BSC Agent under the contract, whether:

(i) by express provision to that effect in the contract, in which case the

contract shall not contain provisions which would restrict the

application of the Contracts (Rights of Third Parties) Act 1999 in

relation to the relevant terms of the contract, but subject to paragraph

3.2.4;

(ii) by virtue of BSCCo entering into such contract (inter alia) as trustee

for or agent for the benefit of Trading Parties;

or otherwise;

(b) provide that such contract may be assigned or novated, without consent of the

BSC Agent, to any company acting as successor to BSCCo (and having no

lesser financial standing than BSCCo) for the purposes of the Code;

(c) provide that the BSC Agent shall not make claims under or in respect of

breaches of the BSC Agent Contract against any Party other than BSCCo; and

(d) reflect the requirement in paragraph 3.2.1;

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(e) where such contract includes the supply of services in support of Permissible

Activities pursuant to Sections C10 or C11:

(i) prevent the BSC Agent from terminating any part of a BSC Agent

Contract that relates to the performance of BSC Agent services as a

result solely of any breach by BSCCo of provisions relating to the

supply of services by the BSC Agent in respect of Permissible

Activities; and

(ii) to the fullest extent permitted by law, restrict BSCCo’s liability to

the BSC Agent for any claim in damages or any other claim of a

financial nature relating solely to the supply of services by the BSC

Agent in support of Permissible Activities to the amounts payable

under that BSC Agent Contract for those services.

2.5 Scottish Trading Arrangements

2.5.1 This paragraph 2.5 applies in relation to any BSC Agent Contract where under the terms of

such contract the BSC Agent grants any licence to or otherwise confers any rights on

BSCCo (for itself or for the benefit of Parties or otherwise) in respect of Intellectual

Property Rights ("relevant IPRs") of the BSC Agent.

2.5.2 The BSC Agent Contract shall provide that, upon the request of the Authority, the BSC

Agent will grant an equivalent licence or confer equivalent rights, or that BSCCo may

grant a sub-licence or otherwise confer equivalent rights, in or to the relevant IPRs, to a

designated person (for itself or for the benefit of Scottish Trading Parties) for the approved

purposes in Scotland, on terms (as to payment, duration and otherwise) approved by the

Authority.


(a) "Scottish Trading Parties" are persons who participate (in capacities

equivalent to the capacity of any Party or class of Party under the Code) in any

such arrangements as are described in Section F2.12;

(b) a designated person is a person designated by the Authority as fulfilling, in

relation to such arrangements, a role equivalent to that of the BSC Agent or

BSCCo;

(c) approved purposes are purposes in relation to such arrangements equivalent to

the purposes for which the relevant IPRs are used in connection with the

arrangements provided for in the Code.

2.6 Termination of BSC Agent Contracts

2.6.1 If BSCCo proposes:

(a) to exercise any right or take any other steps to terminate a BSC Agent Contract

before its expiry;

(b) where BSCCo is aware that any such right has arisen, to waive such right;

(c) to give notice of termination of a BSC Agent Contract which continues until

terminated by such notice; or

(d) not, upon the expiry of a BSC Agent Contract, to extend or renew the contract

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BSCCo shall so notify the Panel, and provide an explanation of its reasons for its proposal.

2.6.2 Where the exercise of a right or the taking of steps to terminate a BSC Agent Contract

would, or (in BSCCo’s view, after taking legal advice) might, result in BSCCo being

liable:

(a) to pay any amount (by way of fixed compensation or damages, or increases in

fees or charges, or otherwise) which would not have been payable but for the

exercise of such right or the taking of such steps, and/or

(b) to pay or continue to pay fees, charges or other amounts under the contract in

respect of any period after the effective cessation of the provision of services

thereunder

in an aggregate amount exceeding such threshold amount as the Panel may from time to

time specify for the purposes of this paragraph 2.6.2, BSCCo shall not exercise such right

or take such steps without the approval of the Panel.

2.7 Procurement of BSC Agent Contracts

2.7.1 Before commencing the procurement of a BSC Agent Contract, BSCCo will prepare, in

discussion with the Panel, and obtain the Panel’s approval of a statement ("Tender

Framework Statement") of the approach to be adopted by BSCCo in the procurement and

the criteria (consistent with the applicable Contract Principles) to be applied in

prequalifying and/or shortlisting bidders for the contract and for the selection of a bidder to

whom the contract will be awarded.

2.7.2 The Panel may (and if BSCCo so wishes, will) establish as a Panel Committee, and set

terms of reference (consistent with this paragraph 2.7) for, a committee ("Tender

Committee") to advise BSCCo in connection with the conduct of the procurement and the

prequalification and/or shortlisting of bidders and award of the contract.

2.7.3 BSCCo shall:

(a) not vary the Tender Framework Statement without the approval of the Panel;

(b) conduct the procurement in accordance with the Tender Framework Statement,

and in particular prequalify and/or shortlist bidders and award the contract in

accordance with the criteria in the statement;

(c) where the Panel has established a Tender Committee, keep the committee

informed of the conduct and progress of the procurement (generally and by

reference to the Tender Framework Statement), and consult with and seek the

advice of the committee, at intervals (including before prequalifying and/or

shortlisting bidders and awarding the contract) and otherwise in accordance

with the committee’s terms of reference; and

(d) report to the Panel and (if appointed) Tender Committee in respect of the

selection of a bidder and the award of the contract.

2.7.4 Without prejudice to any Legal Requirement, BSCCo shall not:

(a) enter into a BSC Agent Contract except in compliance with this paragraph 2.7;

or

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(b) make or agree a relevant amendment of a BSC Agent Contract other than

pursuant to a procurement in respect of the relevant services (as described in

paragraph 2.7.5(a)) conducted in compliance with this paragraph 2.7.

2.7.5 For the purposes of paragraph 2.7.4, a relevant amendment is an amendment of a BSC

Agent Contract which in BSCCo’s reasonable opinion:

(a) involves the provision of modified or additional services which it would be

practicable to contract from a person other than the BSC Agent; and

(b) would be likely to result in increases in the amounts payable to the BSC Agent

under such contract in an aggregate amount (over any period) exceeding such

threshold amount (for such period) as the Panel may from time to time specify

for the purposes of this paragraph 2.7.5.

3. RELATIONSHIP BETWEEN PARTIES, BSCCO AND BSC AGENTS

3.1 General

3.1.1 The provisions of this paragraph 3 apply, inter alia, and the Parties agree that such

provisions are desirable and appropriate, for the purposes of enabling BSCCo to conclude

contracts with BSC Agents on reasonable terms and on an efficient basis, and ensuring that

such contracts can be managed and enforced by BSCCo on a co-ordinated basis and in the

interests of Parties collectively.

3.2 Status of BSC Agents

3.2.1 Unless expressly otherwise provided in the Code, a BSC Agent shall not, and BSCCo shall

not authorise a BSC Agent to, act as agent for or make any commitment or incur any

liability binding on any Party.

3.2.2 The rights and obligations of a BSC Agent shall be set out in the relevant BSC Agent

Contract and nothing in the Code or any Code Subsidiary Document shall confer any rights

or entitlements on any BSC Agent.

3.2.3 Without prejudice to the generality of Section H9.4, the Parties (including BSCCo and the

BSC Clearer) do not intend:

(a) that any BSC Agent (or any agent, contractor or servant of a BSC Agent) shall

have any rights, benefits, entitlements or privileges under the Code or any Code

Subsidiary Document; and nothing in the Code or any Code Subsidiary

Document shall be construed as conferring or purporting to confer any such

right, benefit, entitlement or privilege on any such person; or

(b) that any term of the Code or any Code Subsidiary Document shall be

enforceable by any BSC Agent (or any agent, contractor or servant of a BSC

Agent) solely by virtue of the Contracts (Rights of Third Parties) Act 1999.

3.2.4 Each Party agrees that, in any case where by virtue of the Contracts (Rights of Third

Parties) Act 1999 any term of a BSC Agent Contract is enforceable by or for the benefit of

that Party, the consent of such Party shall not be required (and the BSC Agent Contract

may provide that such consent is not required) to an amendment, variation or rescission of

that BSC Agent Contract.

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3.3 Role of BSCCo in contracting with BSC Agents

3.3.1 Where, whether by virtue of the application of the Contracts (Rights of Third Parties) Act

1999, or of BSCCo being party to any BSC Agent Contract as trustee for any Parties or

agent (as to the benefit of such contract) for any Parties, or otherwise, any Party or Parties

have any right, claim or entitlement against a BSC Agent pursuant to or in relation to any

BSC Agent Contract:

(a) each Party hereby appoints and authorises BSCCo to act as its exclusive agent

for the purposes of enforcing all rights, claims or entitlements which such Party

may have pursuant to or in relation to any BSC Agent Contract, and agrees that

BSCCo shall exclusively have the conduct of any proceedings in connection

therewith, but subject to paragraphs 2.2.2(b) and 2.2.4;

(b) each Party agrees and undertakes with BSCCo and each other Party, and

authorises BSCCo to commit as its agent and on its behalf to the BSC Agent,

that such Party will not itself enforce or seek to enforce or take any action with

a view to the enforcement of any such rights, claims or entitlements.

3.3.2 Each Party agrees and undertakes that BSCCo may contract with a BSC Agent on the basis

that such Party waives and will not make or seek to enforce any claim in tort (including

negligence, but not including any claim for fraud or in respect of liability for death or

personal injury resulting from the BSC Agent's negligence) against any BSC Agent in

relation to any BSC Agent Contract or any act or omission of the BSC Agent pursuant to or

in relation to the BSC Agent Contract; provided that (without prejudice to paragraph 3.3.1)

this shall not limit any such claim of a Party in a case in which a BSC Agent Contract is not

made on such basis.

3.3.3 Where, under any provision of the Code, any Party or Parties expressly agree or undertake:

(a) to confer any permission, consent, approval, licence or right upon any BSC

Agent, including without limitation in relation to access to or inspection of

premises or Plant or Apparatus, or access to or the provision, use, copying or

disclosure of any data, document or information; or

(b) (in accordance with paragraph 3.3.2 or pursuant to any other provision of the

Code) to waive or release any BSC Agent from any possible liability (in tort

including negligence or otherwise) to or claim by that Party or Parties

then BSCCo may confer, and is hereby authorised to act as agent of and on behalf of that

Party or Parties in entering into the BSC Agent Contract for the purposes of conferring

(subject to the express provisions of the Code in relation thereto) that permission, consent,

approval, licence or right or waiver or release upon the BSC Agent (but in relation to

paragraph (a), only for the purposes contemplated by the Code and subject to any

restrictions or procedures provided for in or under the Code in relation thereto).

3.3.4 Each Party acknowledges that BSCCo may agree to indemnify a BSC Agent against any

breach by the Party of its agreements and undertakings in paragraphs 3.3.1(b), 3.3.2 and

3.3.3; and each Party shall indemnify BSCCo in respect of any loss, liability, damages,

costs (including legal costs), expenses, claims and proceedings which BSCCo may suffer

or reasonably incur (pursuant to such indemnity or otherwise) by reason of any breach by

that Party of its agreements and undertakings in paragraphs 3.3.1(b), 3.3.2 and 3.3.3.

3.3.5 Without prejudice to paragraph 3.3.1, but subject to the provisions of this Section E, where

BSCCo is party to a BSC Agent Contract as agent for any Parties, BSCCo is hereby

authorised by each Party as its exclusive agent to exercise any right, take any step and do

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any other thing pursuant to such BSC Agent Contract necessary or in BSCCo's opinion

appropriate for the purposes of carrying out its functions (in accordance with this Section

E) in respect of such BSC Agent Contract; provided that BSCCo is not thereby authorised

to make any commitment or incur any liability on behalf of and in the name of such Party

except with the Party's consent or in accordance with any express provision of the Code.

3.3.6 The authorities (to act as agent on behalf of Parties) conferred on BSCCo in this paragraph

3.3 are unconditional and irrevocable.

3.3.7 Without prejudice to paragraph 2.2.2(b), where BSCCo obtains or recovers any amount by

way of damages or otherwise from a BSC Agent in respect of a breach of the BSC Agent

Contract, and the Panel (on the application of any Party or otherwise) determines that it

would be inequitable for all Trading Parties to benefit (by reason of such amount being

applied to reduce BSC Costs in accordance with Section D4.1.1(a)(ii)) therefrom in their

Main Funding Shares, the Panel may direct that such amount shall be applied in payment to

Parties or particular Parties in such proportions as the Panel may determine, and BSCCo

shall make such adjustments (in respect of BSCCo Charges or otherwise, and including

where necessary not applying such amount to reduce BSC Costs) as shall be appropriate to

give effect to the Panel's determination.

4. BSC SERVICES MANAGER

4.1 General

4.1.1 Except as expressly stated in this paragraph 4, the preceding provisions of Section E shall

not apply to the BSC Services Manager or the BSC Services Manager Contract.

4.1.2 In this paragraph 4 references to Parties do not include BSCCo or BSC Clearer.

4.2 Appointment

4.2.1 Subject to paragraph 4.2.8, BSCCo may, from time to time, appoint a person to act as its

agent for the purposes of discharging some or all of BSCCo’s powers, functions and

responsibilities in accordance with Section C1.2 and as otherwise specified in the Code (the

"BSC Services Manager"), provided that (notwithstanding the provisions of Section F)

any amendments to the Code which seek to amend this paragraph 4.2.1 or paragraph 4.2.2

shall require the prior approval of the Board.

4.2.2 Without prejudice to paragraph 4.2.1, the BSC Clearer may discharge any of its powers,

functions and responsibilities under the Code through (and by delegation to) the BSC

Services Manager.

4.2.3 Subject to the provisions of this paragraph 4, BSCCo may do anything necessary for, or

reasonably incidental to, the performance by the BSC Services Manager of the services

under the relevant BSC Agent Contract ("BSC Services Manager Contract"), including

the provision of such guarantees, indemnities or other assurances to or for the benefit of the

BSC Services Manager or others under or in connection with any BSC Services Manager

Contract as BSCCo considers appropriate.

4.2.4 Subject always to paragraphs 4.1.1 and 4.2.1, for the purposes of the Code:

(a) the BSC Services Manager shall be regarded as a BSC Agent;

(b) the BSC Services Manager Contract shall be regarded as a BSC Agent Contract;

(c) no person (or any Relevant Affiliate of such person) may perform the roles of

the BSC Services Manager and any other BSC Agent at the same time; and

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(d) a Party (and any Affiliate thereof) or a BSC Company shall not be appointed as

the BSC Services Manager.

4.2.5 Subject to any contrary provision in the Code, BSCCo or relevant BSC Company (as the

case may be) may in its absolute discretion grant or transfer such rights or interests held by

BSCCo or relevant BSC Company (in their capacity as BSCCo or relevant BSC Company)

on such terms as those entities deem appropriate to the BSC Services Manager (or

otherwise make available the benefit of such rights or interests) to enable the BSC Services

Manager to discharge its powers, functions and responsibilities under the Code.

4.2.6 For the purposes of the Code, each Party, the Panel and Panel Committees acknowledge

and agree that the discharge of BSCCo’s functions and responsibilities or the exercise of

BSCCo’s rights in accordance with the Code by the BSC Services Manager shall be treated

as if such functions and responsibilities or rights had been discharged or exercised by

BSCCo.

4.2.7 BSCCo shall, in its absolute discretion, be entitled to authorise the BSC Services Manager

to act as agent, make any commitment and incur liabilities on behalf of BSCCo (including

without limitation entering into contracts or other arrangements) to enable the BSC

Services Manager to perform its functions and responsibilities subject to and in accordance

with this paragraph 4 and the Code generally and in accordance with the BSC Services

Manager Contract.

4.2.8 For the avoidance of doubt, BSCCo shall not delegate responsibility for the procurement

and management of the BSC Services Manager Contract to a BSC Agent.

4.3 Role of BSCCo

4.3.1 Subject always to, any provision to the contrary in this paragraph 4, paragraph 4.2.1 and

paragraph 4.3.2, the provisions of paragraphs 1.3, 1.5, 1.6 and 2 shall apply to the BSC

Services Manager and the BSC Services Manager Contract.

4.3.2 BSCCo shall ensure that at all times it has sufficient resources (which in this paragraph

4.3.2 does not mean financial resources) to enable it to manage and administer any BSC

Services Manager Contract and where it believes, from time to time, that it requires

additional resources to meet its requirements it shall take such steps and procure such

resources as are necessary as soon as is reasonably practicable.

4.4 Initial BSC Services Manager Contract

4.4.1 It is acknowledged that in respect of any initial contract between BSCCo and the BSC

Services Manager ("Initial BSC Services Manager Contract") the provisions of

paragraphs 2.3 and 2.7 shall not apply, provided that, notwithstanding any provision of

Section F, paragraph 3, the Authority may, in its discretion, approve the creation of any

new BSC Service Description related to the Initial BSC Services Manager Contract and/or

the process to be adopted for such approval.

4.4.2 BSCCo shall, prior to the execution of any Initial BSC Services Manager Contract:

(a) without prejudice to paragraph 4.4.3, establish a statement of contract

principles, to an appropriate level of detail to reasonably inform the Panel and

Parties, by which BSCCo shall be guided in agreeing the terms of any Initial

BSC Services Manager Contract ("the Initial BSC Services Manager

Contract Principles"), provided that in doing so BSCCo shall not be obliged to

disclose confidential information and/or information of a commercially

sensitive nature;

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(b) conduct a consultation with the Panel and Parties on the Initial BSC Services

Manager Contract Principles and it shall have due regard to any representation

made and not withdrawn during such consultation; and

(c) submit the terms of any proposed Initial BSC Services Manager Contract to the

Authority and seek the Authority’s confirmation that it is satisfied that such

terms fulfil all of the BSC Services Manager Criteria, and in the absence of such

confirmation BSCCo shall not execute any Initial BSC Services Manager

Contract.

4.4.3 The Initial BSC Services Manager Contract Principles shall include principles as to at least

the following matters:

(a) the principles governing the pricing of services under the contract;

(b) liability and limitations or exclusions of liability for breach of the contract;

(c) the ownership of Intellectual Property Rights;

(d) the grounds for termination of the contract;

(e) the treatment of assets; and

(f) the principles governing the term of the contract.

4.5 Relationship between Parties and BSC Services Manager

4.5.1 The provisions of paragraphs 3.1.1, 3.2.1 and 3.3 shall apply to the BSC Services Manager

and the BSC Services Manager Contract, subject to, and in accordance with, the BSC

Services Manager Contract.

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F – 1 of 62 Effective Date: 25 June 2020

SECTION F: MODIFICATION PROCEDURES

1. MODIFICATION OF THE CODE

1.1 Modification

1.1.1 Subject to paragraph 1.1.8, the Code may be modified from time to time (and may only be

modified) pursuant to:

(a) the Transmission Licence; and

(b) the Articles 4, 5, 6 and 10 of the Guideline on Electricity Balancing, to the

extent that any provisions of the Code also constitute EBGL Article 18 terms

and conditions.

1.1.2 Upon service by the NETSO to the Modification Secretary of a notice of modification

signed by the NETSO in accordance with a direction of the Authority issued pursuant to

the Transmission Licence (which may, where applicable, incorporate a direction of the

Authority issued pursuant to paragraph 4 of Article 5 of the Guideline on Electricity

Balancing in relation to the EBGL Article 18 terms and conditions):

(a) the Code shall be modified in accordance with the terms of such notice; and

(b) the Modification Secretary shall forthwith copy such notice to:

(i) each Party;


(iii) the Authority;

(iv) each BSC Agent; and

(v) each Core Industry Document Owner and the STC Committee.

1.1.3 Subject to paragraph 2.11.8, a modification of the Code shall take effect from the time and

date specified in the notice referred to in paragraphs 1.1.2 and 6.3.3 or, in the absence of

any such time and date, from 00:00 hours on the day next following the date of service of

such notice to the Modification Secretary (without prejudice to the Implementation Date.

the Self-Governance Implementation Date or the Fast Track Self-Governance

Implementation Date (as the case may be), if different).

1.1.4 If the NETSO is notified by the Authority that the Authority does not intend to direct the

NETSO to make a modification following submission of a Modification Report pursuant to

paragraph 2.7.6, the NETSO shall notify the Modification Secretary and the Modification

Secretary shall notify each of the persons referred to in paragraph 1.1.2(b) accordingly.

1.1.5 Paragraphs 1, 2, 5, 6, 7 and 8 of this Section F set out:

(a) the procedures for modification of the Code as required by the Transmission

Licence; and

(b) the additional requirements for amending the EBGL Article 18 terms and

conditions pursuant to Articles 4, 5, 6 and 10 of the Guideline on Electricity

Balancing.

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1.1.6 A modification made pursuant to and in accordance with paragraph 1.1.2 shall not be

impaired or invalidated in any way by any failure to comply with or give effect to the

succeeding provisions of this paragraph 1 and/or the provisions of paragraph 2.

1.1.7 Not used.

1.1.8 The provisions of this paragraph 1.1 are subject to paragraphs 6.3 and 6.4.6.

1.1.9 Notwithstanding paragraph 2 and subject to paragraph 1.1.10, the following Code

provisions may not be amended without the prior written consent of the Secretary of State:

(a) paragraphs 1.1.9, 1.1.10, 1.6.1B, 1.6.3(e), 1.6.3(f), 1.9.3, 2.1.1(e), 2.1.1(f),

2.1.10(a)(viii), 2.7.6(b)(iii) and paragraph 1(d)(vii) of Annex F-1;

(b) any paragraph in this Section F to the extent only that it makes reference to the

persons referred to in paragraph 1.9.3 or refers to the Capacity Market Rules

and/or the AF Rules;

(c) Sections C1.2.1B, C11, paragraphs 1.1 and 1.2 of Annex C-1, Section D7,

Section K3.1.2A, Section K3.1.8, Sections K3.3.12 to K3.3.14 (inclusive),

Section L7.6.1A, Sections S2.4.1(i), S2.9 , S2.10 and S4.1.1(f), Section V5 and

Section W1.5.3;

(d) all terms and expressions that are defined in Annex X-1 and that are used only

in the Code provisions specified in paragraphs 1.1.9(a), (b) and (c); and

(e) any reference elsewhere in the Code to a CFD Settlement Services Provider, a

CfD Counterparty, a Contract for Difference, a CM Settlement Services

Provider, the CM Settlement Body, the Capacity Market Rules and/or an EMR

Legal Requirement.

1.1.10 Minor modifications (for example, any necessary changes to formatting, paragraph

numbering and references to other paragraphs in the Code) to the Code provisions specified

in paragraph 1.1.9 that are required as a consequence of a Modification Proposal may be

made without the prior written consent of the Secretary of State to the extent necessary to

implement that Modification Proposal.

1.1.11 Where a Modification Proposal includes a proposal to amend the EBGL Article 18 terms

and conditions:

(a) the Modification Procedures set out in this Section F shall also constitute the

procedures for amending or supplementing the EBGL Article 18 terms and

conditions for the purposes of Articles 4, 5, 6 and 10 of the Guideline on

Electricity Balancing (the "EBGL Amendment Procedures");

(b) that Modification Proposal, the Proposed Modification and any Alternative

Modification shall, in accordance with paragraph 2.2.3(d)(iii) or paragraph

2.6.13(b)(iv), constitute proposal(s) to amend the EBGL Article 18 terms and

conditions for the purposes of the EBGL Amendment Procedures;

(c) an Approved Modification shall, to the extent that such modification includes

an amendment to the EBGL Article 18 terms and conditions, also constitute an

amendment to the EBGL Article 18 terms and conditions that has been

approved by the relevant regulatory authority for the purposes of the EBGL

Amendment Procedures;

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(d) any reference to the Code in this Section F shall include, where appropriate, a

reference to the EBGL Article 18 terms and conditions.

1.2 Role of the Panel, BSCCo and the Modification Secretary

1.2.1 The Panel shall be responsible for the operation of the Modification Procedures in

accordance with the provisions of the Code and, in respect of amendments to the EBGL

Article 18 terms and conditions, pursuant to the EBGL Delegation Letter.

1.2.2 Without prejudice to the generality of Section B1.2.1 and to the further provisions of this

Section F, the Panel shall endeavour at all times to operate the Modification Procedures:

(a) in an efficient, economical and expeditious manner, taking account of the

complexity, importance and urgency of particular Modification Proposals;

(b) with a view to ensuring that the Code facilitates achievement of the Applicable

BSC Objective(s);

(c) (subject always to Section H1.5.1) to the extent relevant, in a manner that is

consistent with the Code Administration Code of Practice Principles; and

(d) having had regard to the impact of Modification Proposals which seek to amend

or supplement the EBGL Article 18 terms and conditions on the EBGL

Objectives.

1.2.3 BSCCo shall be responsible for implementing Approved Modifications in accordance with

the provisions of the Code (on the terms set out in this Section F).

1.2.4 Without prejudice to the generality of Section C1.2 and to the further provisions of this

Section F, BSCCo shall implement Approved Modifications in an efficient, economical

and expeditious manner and (subject to paragraph 2.11.8) in accordance with the

Implementation Date contained in the notice referred to in paragraph 1.1.2.

1.2.4A BSCCo shall be responsible for providing assistance in relation to the Modification

Procedures, insofar as is reasonably practicable and on reasonable request, to any of the

persons referred to in paragraph 2.1.1 including assistance with:

(a) drafting a Modification Proposal;

(b) understanding the operation of the Code;

(c) such persons’ involvement in, and representation during, the Modification

Procedures (including, for the avoidance of doubt, Panel and/or Workgroup

meetings); and

(d) accessing information relating to Modification Proposals, Approved

Modifications and/or Code Modifications.

1.2.5 The Panel shall be assisted by a secretary (to be known as the "Modification Secretary"),

who shall be a person nominated and provided by BSCCo (and may but need not be the

same person as the Panel Secretary) and who shall be responsible for the administration of

the Modification Procedures.

1.2.6 In respect of amendments to the EBGL Article 18 terms and conditions, the Panel and

BSCCo shall be responsible for performing the tasks delegated to them by the NETSO

pursuant to the EBGL Delegation Letter, in each case in accordance with the provisions of

the Code.

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1.3 Modification Register

1.3.1 The Panel shall establish and maintain a register (the "Modification Register") which shall

record, in such form as the Panel may determine, the matters set out in paragraph 1.3.3.

1.3.2 The purpose of the Modification Register shall be to assist the Panel in the operation of the

Modification Procedures and to enable Parties and interested third parties to be reasonably

informed of the progress of Modification Proposals and Approved Modifications from time

to time.

1.3.3 The Modification Register shall record in respect of current outstanding Modification

Business:

(a) details of each Modification Proposal (including the name of the Proposer, the

date of the Modification Proposal and a brief description of the Modification

Proposal);

(b) whether each Modification is an Urgent Modification Proposal;

(c) the current status and progress of each Modification Proposal and the

anticipated date for reporting to the Authority in respect thereof;

(d) the current status and progress of each Approved Modification; and

(e) such other matters as the Panel may consider appropriate from time to time in

order to achieve the purposes set out in paragraph 1.3.2; and

(f) whether a Modification Proposal has been assessed pursuant to the Modification

Procedures as amending, or likely to amend, the EBGL Article 18 terms and

conditions.

1.3.4 The Modification Register (as updated from time to time and indicating the revisions since

the previous issue) shall be published on the BSC Website or (in the absence, for whatever

reason, of the BSC Website) in such other manner and with such frequency (being not less

than once per month) as the Panel may decide in order to bring it to the attention of Parties

and interested third parties.

1.3.5 The Modification Register shall include details of:

(a) each Modification Proposal which has been withdrawn pursuant to paragraph

2.1.12(a) or paragraph 2.1.12A or rejected by the Authority;

(b) each Approved Modification which has been implemented; and

(c) each Modification Proposal that:

(i) has been the subject of a notice from the NETSO either pursuant to

paragraphs 1.1.2 or 1.1.4; and

(ii) is the subject of a Relevant Challenge,

for a period of 3 months after such withdrawal, rejection or implementation, (and in the

case of a Modification Proposal as described in sub-paragraph (c) determination of the

relevant appeal or judicial review), or such longer period as the Panel may determine.

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1.4 Monthly Progress Report

1.4.1 The Panel shall prepare and submit to the Authority each month a progress report (to be

known as the "Monthly Progress Report") setting out the matters referred to in paragraph

1.4.2 in respect of the preceding month.

1.4.2 The Monthly Progress Report shall contain:

(a) details of any proposal which has been refused pursuant to paragraph 2.1.3 or

paragraph 2.1.4;

(b) the current version of the Modification Register;

(c) details of:

(i) the priority which the Panel is proposing to accord or is according to

the Modification Proposals contained in the Modification Register

(in accordance with paragraph 2.2.3);

(ii) the scheduling and timetable for consideration of each Modification

Proposal and completion of the Modification Report in respect

thereof in the context of all other current Modification Proposals;

(iii) the impact of the priority accorded to each Modification Proposal by

reference to each other pending Modification Proposal;

(d) details of any decision to amalgamate Modification Proposals in accordance

with paragraph 2.3;

(e) details of any decision to suspend a Definition Procedure or an Assessment

Procedure in relation to a particular Modification Proposal and to proceed

directly to the Report Phase in accordance with paragraph 2.2.11;

(f) details of any circumstances which lead the Panel to believe that the

Implementation Date for an Approved Modification is unlikely to be met or

should be brought forward and, if so, why;

(g) such other matters as the Authority may request to be included from time to

time;

(h) details of any decision of the Panel to recommend a Conditional

Implementation Date in relation to any Modification Proposal as described in

paragraph 1.3.5(c); and

(i) the basis for each of the decisions referred to above (including, where

applicable, the cost and other implications of those decisions).

1.4.3 If, following discussion with the Panel, the Authority issues a notice to the Modification

Secretary requesting the Panel (in relation to developments and changes highlighted in the

Monthly Progress Report):

(a) not to reject a Modification Proposal pursuant to paragraph 2.1.4; and/or

(b) not to amalgamate Modification Proposals as set out in the Monthly Progress

Report; and/or

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(c) to accord a different priority to particular Modification Proposals from that set

out in the Monthly Progress Report; and/or

(d) to amend the timetable for definition and/or assessment and evaluation of a

Modification Proposal,

the Panel shall comply with such notice.

1.4.4 The Modification Secretary shall publish each Monthly Progress Report on the BSC

Website within 7 Business Days after it is sent to the Authority, provided that the

Modification Secretary shall exclude therefrom any matters in respect of which the

Authority issues a notice to the Modification Secretary for the purposes of this paragraph

1.4.4.

1.5 Standing Lists

1.5.1 The Panel shall establish and maintain a list of persons with relevant experience and/or

expertise who may be willing to be members of a Workgroup established pursuant to

paragraph 2.4.

1.5.2 Parties may submit suggestions to the Panel for suitable candidates to be included on such

list (together with details of their relevant experience and/or expertise).

1.5.3 It is expected that Parties shall make available a reasonable level of suitably qualified

personnel to act as members from time to time of Workgroups established by the Panel

pursuant to paragraph 2.4.

1.6 Change Co-ordination

1.6.1 The Panel shall establish (and, where appropriate, revise from time to time) joint working

arrangements, consistent with any IS Policies relating to change co-ordination, with each

Core Industry Document Owner to facilitate the identification, co-ordination, making and

implementation of change to Core Industry Documents consequent on a Code Modification

in a full and timely manner.

1.6.1A The Panel shall establish (and, where appropriate, revise from time to time) joint working

arrangements, consistent with any IS Policies relating to change co-ordination, with the

STC Committee to facilitate the identification, co-ordination, making and implementation

of change to the System Operator-Transmission Owner Code consequent on a Code

Modification in a full and timely manner.

1.6.1B The Panel shall establish (and, where appropriate, revise from time to time) joint working

arrangements, consistent with any IS Policies relating to change co-ordination, with:

(a) the Secretary of State, the CM Settlement Body and any CM Settlement

Services Provider (as applicable) to facilitate the identification of potential

inconsistencies between a Code Modification and the Capacity Market

Documents; and

(b) the Secretary of State to facilitate the identification of potential inconsistencies

between a Code Modification and the CFD Documents,

in each case, in a full and timely manner.

1.6.2 The working arrangements referred to in paragraphs 1.6.1, 1.6.1A and 1.6.1B shall be such

as enable the consideration, development and evaluation of Modification Proposals, and the

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implementation of Approved Modifications, to proceed in a full and timely manner and

enable:

(a) changes to Core Industry Documents and/or the System Operator-Transmission

Owner Code (as applicable) consequent on a Code Modification to be made and

given effect wherever possible (subject to any necessary consent of the

Authority) at the same time as such Code Modification is made and given

effect; and

(b) potential inconsistencies between the Code Modification and the Capacity

Market Documents and/or the CFD Documents (as applicable) to be raised with

the CM Settlement Body, the CM Settlement Services Provider and the

Secretary of State (as applicable).

1.6.3 For the purposes of this Section F:

(a) "Core Industry Documents" shall have the meaning ascribed to such term in

the Transmission Licence;

(b) "Core Industry Document Owner" means, in relation to a Core Industry

Document, the body or entity which is responsible for the management and

operation of procedures for making changes to such document;

(c) "STC Committee" means, in relation to the STC, the body or entity which is

responsible for the management and operation of procedures for making

changes to the STC;

(d) "System Operator-Transmission Owner Code" or "STC" means the code so

called and created, and from time to time modified by the NETSO, in

accordance with the Transmission Licence;

(e) "Capacity Market Documents" means the Capacity Market Rules, The

Electricity Capacity Regulations 2014 and any other regulations made under

Chapter 3 of Part 2 of the Energy Act 2013 which are in force from time to

time; and

(f) "CFD Documents" means the AF Rules, The Contracts for Difference

(Allocation) Regulations 2014, The Contracts for Difference (Definition of

Eligible Generator) Regulations 2014 and The Contracts for Difference

(Supplier Obligation) Regulations 2014 and any other regulations made under

Chapter 2 of Part 2 of the Energy Act 2013 which are in force from time to

time.

1.6.4 The Parties shall comply with the procedures set out in any IS Policies relating to the co-

ordination of change, including ensuring that a person is appointed within their

organisation with overall responsibility for changes to the Code and Code Subsidiary

Documents.

1.7 Role of the NETSO

1.7.1 If the Authority issues a direction to the NETSO pursuant to condition C3 of the

Transmission Licence in the circumstances described in paragraph 1.7.3, the following

provisions shall apply in relation to a particular Modification Proposal or Approved

Modification:

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(a) the NETSO shall be entitled to, and shall, assume responsibility for the

Modification Procedures to the extent, on the terms and for the period set out in

such direction;

(b) the Panel, the Panel Chairman, the Modification Secretary and BSCCo shall

provide such assistance to the NETSO and shall take such steps as the NETSO

may reasonably request to enable the NETSO to comply with such direction

(and, in the case of BSCCo, such assistance shall include the provision at the

cost of BSCCo of all necessary data, facilities, suitably qualified staff and other

support and the exercise and enforcement, at the request of the NETSO, of

relevant rights under the BSC Agent Contracts);

(c) subject to paragraph 1.7.1(b), the powers, functions and duties of the Panel, the

Panel Chairman, the Modification Secretary and BSCCo in relation to the

Modification Procedures shall be suspended to the extent and for the period that

the NETSO is to assume responsibility for the Modification Procedures as set

out in such direction;

(d) the NETSO shall assume (and there are hereby conferred on the NETSO) the

powers, functions and duties of the Panel, the Panel Chairman, the Modification

Secretary and BSCCo in relation to the Modification Procedures to the extent

and for the period that the NETSO is to assume responsibility for the

Modification Procedures as set out in such direction;

(e) the NETSO shall operate the Modification Procedures in accordance with the

provisions mutatis mutandis of this Section F and having regard, wherever

possible, to the provisions of Section B and Section C as they relate to the

Modification Procedures;

(f) the costs and expenses of the NETSO properly incurred in the operation of the

Modification Procedures pursuant to such direction (as approved by the

Authority) shall be paid by BSCCo to the NETSO and recovered by BSCCo

from Trading Parties in accordance with the provisions of Section D;

(g) the benefit of Section B2.9.1 shall be extended to apply to the NETSO, as if

references to a Panel Member were to the NETSO, to the extent that the

NETSO is carrying out the functions of the Panel pursuant to this paragraph 1.7.

1.7.2 The NETSO shall notify the Modification Secretary as soon as possible after receipt of any

direction referred to in paragraph 1.7.1 and the Modification Secretary shall copy such

direction forthwith to:

(a) each Party;

(b) each Panel Member;

(c) the Authority;

(d) each BSC Agent; and

(e) where the Modification Proposal or Approved Modification affects a Core

Industry Document and/or the System Operator-Transmission Owner Code, the

relevant Core Industry Document Owner and/or the STC Committee

respectively.

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1.7.3 The circumstances referred to in paragraph 1.7.1 are that:

(a) in the Authority's opinion, the Panel and/or BSCCo is failing or is likely to fail

in any material respect to comply with the provisions of this Section F as they

relate to the operation of the Modification Procedures and/or the

implementation of Approved Modifications in respect of a particular

Modification Proposal or Approved Modification; and

(b) the Authority has given notice to the Modification Secretary requiring the Panel

or BSCCo (as the case may be) to comply with such provisions within the time

specified in such notice; and

(c) the Panel or BSCCo (as the case may be) fails to do so in any material respect

within the time specified in such notice (or such longer period as the Authority

may agree).

1.7.4 The Modification Secretary shall copy any notice given pursuant to paragraph 1.7.3 to:

(a) each Party; and

(b) each Panel Member.

1.8 Transitional Arrangements

1.8.1 The provisions of this Section F as they relate to modification of the Code shall be

suspended for the period set out in the Implementation Scheme.

1.8.2 If the Code is modified pursuant to the Implementation Scheme, the Panel may following

the Go-live Date or, at the request of any Party, shall order a review of such modification to

be carried out by a Workgroup, on such terms as the Panel may decide, within 3 months

after the Go-live Date in order to assess whether the purpose of the modification could be

achieved more efficiently in another way.

1.8.3 For the purposes of paragraph 1.8.2, the provisions of paragraph 2.4 shall apply mutatis

mutandis to the establishment and conduct of a Workgroup charged with undertaking a

review pursuant to paragraph 1.8.2.

1.8.4 The results of the review referred to in paragraph 1.8.2 shall be sent to the Authority and to

each person referred to in paragraph 1.1.2(b) and published by the Panel in such manner as

the Panel sees fit.

1.9 Interpretation

1.9.1 For the purposes of this Section F, in relation to an Approved Modification, 'implement'

(and derivative terms) shall mean 'bring into operational effect'.

1.9.2 A reference in any provision of the Code to the "Relevant Implementation Date" is to the

Implementation Date of the Approved Modification pursuant to which that provision (in its

current form) applies.

1.9.3 For the purposes of this Section F, in relation to the consultation of interested third parties,

the term ‘interested third parties’ shall include the Secretary of State, a CfD Counterparty,

the CM Settlement Body, a CFD Settlement Services Provider and any CM Settlement

Services Provider.

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2. CODE MODIFICATION PROCEDURES

2.1 Modification Proposals

2.1.1 A proposal to modify the Code may be made by any of the following:

(a) a Party (other than BSCCo or the BSC Clearer);

(b) Citizens Advice and Citizens Advice Scotland;

(c) such other Third Party Proposers as may be designated in writing for this

purpose by the Panel from time to time in accordance with paragraph 2.1A;

(d) the Panel:

(i) on the recommendation of BSCCo in accordance with Section

C3.8.8 or Section H9.8;

(ii) on the recommendation of BSCCo following receipt by BSCCo of a

change request proposing a change to a Core Industry Document

and/or the System Operator-Transmission Owner Code which

would, if made, have an impact on the Code;

(iii) on the recommendation of BSCCo where BSCCo becomes aware of

a change in circumstances, since approval of a Proposed

Modification, which would make the implementation of that

Approved Modification impossible or significantly more costly than

anticipated at the time such Modification was approved or no longer

relevant;

(iv) on the recommendation of BSCCo to rectify manifest errors in or to

correct minor inconsistencies (or make other minor consequential

changes) to the Code;

(v) on the recommendation of the Trading Disputes Committee in

consequence of a Trading Dispute;

(vi) on the recommendation of the Performance Assurance Board in

accordance with Section Z8.2;

(vii) on the recommendation of a report in relation to a VoLL Review in

accordance with Section T1.12;

(viii) on the recommendation of a report in accordance with paragraph

3.1.7 of Annex C-2; or

(ix) in order to address the findings of a review conducted by the Panel

in accordance with Section F2A.1.8,

provided that, where the Panel decides to make a proposal in any of the

circumstances set out in paragraphs (i) to (viii), such proposal shall be without

prejudice to the Panel's decision, pursuant to paragraph 2.7, as to whether or not

to recommend to the Authority that such modification should be made;

(e) a CfD Counterparty to reflect a proposed change to the CFD Arrangements

which would, if made, have an impact on the Code;

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(f) the CM Settlement Body to reflect a proposed change to the CM Arrangements

which would, if made, have an impact on the Code;

(g) the Authority in relation to modifications which it reasonably considers are

necessary to comply with or implement the Electricity Regulation and/or any

relevant legally binding decisions of the European Commission and/or the

Agency; and

(h) the Authority in relation to a Modification Proposal that is in respect of a

Significant Code Review.

2.1.2 A proposal made pursuant to paragraph 2.1.1 shall be submitted in writing in accordance

with BSCP40, and shall contain the following information in relation to such proposal:

(a) the name of the Proposer;

(b) the name of the representative of the Proposer (and his alternate) who shall

represent the Proposer in person for the purposes of this paragraph 2;

(c) a description (in reasonable but not excessive detail) of the issue or defect

which the proposed modification seeks to address;

(d) a description (in reasonable but not excessive detail) of the proposed

modification and of its nature and purpose;

(e) where possible, an indication of those parts of the Code which would require

amendment in order to give effect to (and/or would otherwise be affected by)

the proposed modification and an indication of the nature of those amendments

or effects;

(f) the reasons why the Proposer believes that the proposed modification would

better facilitate achievement of the Applicable BSC Objective(s) as compared

with the then current version of the Code and an indication of the impact of the

proposed modification on greenhouse gas emissions where the Proposer

believes that such impact is likely to be material;

(g) where possible, an indication of the impact of the proposed modification on

Core Industry Documents and/or the System Operator-Transmission Owner

and/or an Industry Code and an indication of potential inconsistencies of the

proposed modification with the Capacity Market Documents and/or the CFD

Documents;

(h) where possible, an indication of the impact of the proposed modification on

BSC Systems and on other relevant computer systems and processes used by

Parties;

(i) where the Proposer has recommended that the proposal should be treated as an

Urgent Modification Proposal in accordance with paragraph 2.9, its reasons

why the proposal should be treated as such;

(j) whether the proposal should be treated as a Self-Governance Modification

Proposal and the Proposer’s reasons why the proposal should be treated as such;

(k) where applicable, whether the proposal should be treated as a SCR Exempt

Modification Proposal and the Proposer’s reasons why the proposal should be

treated as such; and

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(l) where possible, an indication of whether the Modification Proposal seeks to

amend the EBGL Article 18 terms and conditions.

2.1.3 If a submitted proposal fails in any material respect to comply with the requirements of

paragraph 2.1.2 (excluding paragraphs (e), (g) (h) and (l) thereof) and with the exception of

paragraphs 2.1.1(g) and 8.2, the Modification Secretary may refuse to accept such

submission provided that:

(a) the Modification Secretary shall furnish the Proposer with the reasons for such

refusal;

(b) the Modification Secretary shall report such refusal to the Panel at the next

Panel meeting;

(c) if the Panel decides to reverse the Modification Secretary's decision to refuse

the submission, the Modification Secretary shall notify the Proposer

accordingly and the proposal shall be dealt with in accordance with the

succeeding provisions of this paragraph 2; and

(d) nothing in this paragraph 2.1.3 shall prevent a Proposer from submitting a

revised proposal in compliance with the requirements of paragraph 2.1.2 in

respect of the same subject-matter.

2.1.4 Without prejudice to the development of any Alternative Modification pursuant to

paragraph 2.6.2 but subject to paragraph 5.3.2 and 8.5, the Panel may refuse to accept the

submission of a proposal made pursuant to paragraph 2.1.1 (with the exception of

paragraphs 2.1.1(g) and 2.1.10A) if and to the extent that such proposal has, in the opinion

of the Panel, substantially the same effect as:

(a) a Pending Modification Proposal; or

(b) a Rejected Modification Proposal, where such proposal is made at any time

within 2 months after the decision of the Authority not to direct the NETSO to

modify the Code pursuant to the Transmission Licence in the manner set out in

such Modification Proposal.

2.1.5 For the purposes of paragraph 2:

(a) a "Pending Modification Proposal" is a Modification Proposal in respect of

which, at the relevant time, the Authority has not yet made a decision as to

whether to direct such Proposed Modification to be made pursuant to the

Transmission Licence (whether or not a Modification Report has been

submitted in respect of such Modification Proposal); and

(b) a "Rejected Modification Proposal" is a Modification Proposal in respect of

which the Authority has decided not to direct the NETSO to modify the Code

pursuant to the Transmission Licence in the manner set out therein.

2.1.6 The Modification Secretary shall notify the Proposer if the Panel refuses to accept the

submission of a proposal pursuant to paragraph 2.1.4.

2.1.7 A proposal made pursuant to paragraph 2.1.1 and not refused pursuant to paragraph 2.1.3

or 2.1.4 shall be processed as a Modification Proposal as further provided in this

paragraph 2.

2.1.8 Subject to paragraph 2.1.14, with a view to assisting the Panel in its determination pursuant

to paragraph 2.2.3, BSCCo shall prepare an initial written assessment of the implications of

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each Modification Proposal as soon as reasonably practicable after such Modification

Proposal is made including an indication on whether the Modification Proposal seeks to

amend the EBGL Article 18 terms and conditions and shall endeavour to complete such

assessment such that it can be reviewed by the Panel at the Panel meeting at which such

Modification Proposal is first to be considered.

2.1.9 Subject to paragraphs 2.1.14 and 2.9, the Modification Secretary shall place the

Modification Proposal on the agenda of the next Panel meeting in accordance with the

provisions of Section B4.1.

2.1.10 The Modification Secretary shall as soon as reasonably practicable:

(a) send a copy of the Modification Proposal,(if available) the initial assessment

prepared by BSCCo pursuant to paragraph 2.1.8 and (if applicable) notice that

such Modification Proposal has been submitted by a Third Party Proposer to:

(i) each Party;

(ii) each BSC Agent;

(iii) the Authority;

(iv) each Panel Member;

(v) Citizens Advice and Citizens Advice Scotland;

(vi) not used;

(vii) each Core Industry Document Owner and the STC Committee; and

(viii) each person referred to in paragraph 1.9.3;

(b) post a copy of the Modification Proposal on the BSC Website or, failing that,

publish the Modification Proposal in such other manner as may be appropriate

to bring it to the attention of interested third parties.

2.1.10A Where a Modification Proposal is raised by the NETSO in accordance with paragraph 2.1.1

which subsequently the Authority reasonably considers is necessary to comply with or

implement the Electricity Regulation and/or any relevant legally binding decision of the

European Commission and/or the Agency, the Authority shall inform the Panel

accordingly. Such Modification Proposals shall:

(a) be processed by the Panel in accordance with the provisions of the Code;

(b) not be withdrawn by the NETSO and/or the Panel pursuant to paragraph 2.1.12

or 2.1.12A without the Authority’s prior consent and in the event that such

consent is granted shall fall under paragraph 2.1.12B;

(c) not be amalgamated with any other Modification Proposal in accordance with

paragraph 2.3 or otherwise without the Authority’s prior consent; and

(d) proceed in accordance with any timetable(s) directed or amended by the

Authority for the:

(i) completion of each stage of the Modification Procedure; and/or

(ii) implementation of a modification.

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2.1.10B In respect of any Modification Proposal which has been raised pursuant to paragraph

2.1.10A the views of the relevant Workgroup, the voting rights of the Panel or the

recommendation of the Panel in respect of such Modification Proposal shall not be fettered

or restricted notwithstanding that such Modification Proposal has been so raised under

paragraph 2.1.10A.

2.1.11 It shall be a condition to the right to make or adopt a proposal to modify the Code under

this paragraph 2.1 that the Proposer:

(a) assigns fully, irrevocably and unconditionally any and all present and future

rights, IPRs or moral rights it may have in such proposal (as regards use or

application in Great Britain and Offshore) to BSCCo and each Proposer

acknowledges and agrees that any such rights, IPRs and moral rights shall vest

in BSCCo unconditionally; and

(b) warrants that, to the best of its knowledge, information and belief, no other

person has asserted to the Proposer that such person has any IPRs or moral

rights or rights of confidence in such proposal.

2.1.12 Subject to paragraphs 2.2.3(b)(iii), 2.5.9(c), 2.9.4A, 2.7A.9, 2.1.10A, 5.3.1(b) and 8.3, a

Proposer may:

(a) withdraw his Modification Proposal on notice to the Modification Secretary at

any time prior to the final evaluation by the Workgroup (in accordance with its

terms of reference and working practices) of that Modification Proposal and,

subject to paragraph 2.1.12B, any Modification Proposal so withdrawn shall

lapse; or

(b) vary his Modification Proposal on notice (which may be given verbally) to the

chairman of the Workgroup at any time prior to the final evaluation by the

Workgroup (in accordance with its terms of reference and working practices) of

that Modification Proposal provided that such varied Modification Proposal:

(i) shall address the same issue or defect originally identified by the

Proposer in his Modification Proposal; and

(ii) shall be deemed to be the Proposer’s Modification Proposal.

2.1.12A Subject to paragraph 2.1.10A, 5.3.1(b), 5.3.1A(a) and 8.3, the Panel may (but shall not be

obliged to) require a Modification Proposal to be withdrawn at any time if, in the Panel’s

opinion, the Proposer of that Modification Proposal is deliberately and persistently

disrupting or frustrating the work of the Workgroup and that Modification Proposal shall

be deemed to have been so withdrawn. In the event that a Modification Proposal is so

withdrawn, the provisions of paragraphs 2.1.12B and 2.1.12C shall apply in respect of that

Modification Proposal.

2.1.12B In relation to each Modification Proposal that has been withdrawn pursuant to paragraph

2.1.12(a) or 2.1.12A (other than Urgent Modification Proposals and Modification Proposals

withdrawn following a Backstop Direction in accordance with paragraph 5.3B.1 in respect

of which this paragraph shall not apply):

(a) the Modification Secretary shall promptly notify the persons referred to in

paragraph 2.1.10(a);

(b) subject to paragraph 2.1.12B(d), such withdrawn Modification Proposal shall

remain open to be adopted, in accordance with paragraph 2.1.12B(c) for a

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period commencing at 1200 hours on the first Business Day after the date of the

Modification Secretary’s notice and ending at 1200 hours on the 5th Business

Day thereafter;

(c) any of the persons referred to in paragraph 2.1.1 may (subject to paragraph

2.1.12B(e) and, if applicable, the circumstances set out in paragraph 2.1.1(d))

adopt the withdrawn Modification Proposal by notifying the Modification

Secretary during the period set out in paragraph 2.1.12B(b) in which case:

(i) the adopted Modification Proposal shall continue through the

Modification Procedures from the point at which it was withdrawn;

and

(ii) the Proposer of the adopted Modification Proposal shall be entitled,

pursuant to paragraph 2.4.5(a), to appoint a member of the

Workgroup who shall replace any member appointed by the

Proposer of the withdrawn Modification Proposal;

(d) the Modification Proposal shall be adopted by the person whose notice is first

received by the Modification Secretary in accordance with paragraph 2.1.12B;

and

(e) where a Modification Proposal has been withdrawn in accordance with

paragraphs 2.1.12(a) or 2.1.12A, neither the Proposer of that Modification

Proposal, nor any Affiliate of the Proposer that falls within the categories listed

in paragraph 2.1.1, shall be entitled to adopt that Modification Proposal.

2.1.12C In relation to each Modification Proposal that has been withdrawn pursuant to paragraph

2.1.12(a), 2.1.12A, 5.3B.1, or withdrawn and subsequently adopted pursuant to paragraph

2.1.12B, the Modification Secretary shall promptly:

(a) revise the Modification Register; and

(b) notify the persons referred to in paragraph 2.1.10(a).

2.1.12D The changes effected by Modification Proposal P247 (in respect of paragraphs 1.3.5(a),

2.1.11, 2.1.12, 2.1.12A, 2.1.12B, 2.1.12C, 2.1.12D, 2.2.3(b)(iii), 2.2.11, 2.3.2(c), 2.4.5(a),

2.4.5C, 2.4.6, 2.4.9, 2.4.9A, 2.5.9(c), 2.9.4A, paragraph 1(a) of Annex F-1 and the

definition of Proposer in Section X) shall only be effective in respect of any Modification

Proposal raised, pursuant to paragraph 2.1.1, after the Relevant Implementation Date.

2.1.13 The provisions of Section B4 shall apply in relation to the convening and conduct of Panel

meetings for the purposes of Modification Business.

2.1.14 Where there is a proposal made by the Panel to modify the Code pursuant to either

paragraph 2.1.1(d) or Section G1.5, then the initial written assessment for that proposal

may be presented at the same Panel meeting at which that proposal is made and the

provisions of paragraph 2.2 shall apply.

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2.1A Modification Proposals Submitted by Third Party Proposers

2.1A.1 An application by a person to be designated as a Third Party Proposer (such person being a

"Third Party Applicant") shall be submitted in writing in accordance with BSCP40, and

shall contain the following in relation to such request:

(a) a modification proposal that complies with paragraph 2.1.2;

(b) the rationale of the Third Party Applicant for requesting designation as an Third

Party Proposer (including information on what other steps, if any, have been

taken by the Third Party Applicant to have the Code issue or defect addressed);

(c) the reasons why the Third Party Applicant believes that they have an interest in

the Code; and

(d) a letter agreement substantially in the form set out in BSCP40.

2.1A.2 If an application under 2.1A.1 fails in any material respect to comply with the requirements

of that paragraph then the Modification Secretary may refuse to accept such application

and the provisions of paragraph 2.1.3 shall apply mutatis mutandis in respect of such

refused application.

2.1A.3 The Panel:

(a) subject to paragraphs 2.1A.3(b) and (c), shall consider a proposal made by a

Third Party Applicant in accordance with this Section F;

(b) before designating a person as an Third Party Proposer, may conduct such

consultation with Parties and interested third parties as it considers necessary;

and

(c) may refuse to accept an application for designation as a Third Party Proposer in

which case the Modification Secretary shall furnish the Third Party Applicant

with the Panel’s reasons for such refusal.

2.1A.4 Subject to paragraphs 2.1A.5 and 2.1A.6, an application by a Third Party Applicant to be

designated as a Third Party Proposer made pursuant to paragraph 2.1A.1 and not refused

pursuant to paragraph to 2.1.A.2 or 2.1A.3 shall be processed as a Modification Proposal as

further provided in this paragraph 2 and:

(a) for the purposes of this Section F, the Third Party Proposer shall be the

Proposer; and

(b) the Modification Secretary shall promptly notify the persons referred to in

paragraph 2.1.10(a) that such application has been accepted by the Panel.

2.1A.5 Where a Third Party Applicant disagrees with a decision of the Panel not to designate them

as a Third Party Proposer then such person may appeal the decision of the Panel to the

Authority and the Panel shall give effect to any direction of the Authority arising from such

appeal.

2.1A.6 Where a Party disagrees with the decision of the Panel to designate a person as a Third

Party Proposer then such Party may appeal the decision of the Panel to the Authority.

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2.1A.7 In respect of an appeal made under paragraph 2.1A.6:

(a) such appeal must be commenced by submitting to the Authority an outline of

the objections to the designation by no later than 15 Business Days after the

date of the notice pursuant to paragraph 2.1A.4(b);

(b) the Party making such appeal shall promptly notify the Modification Secretary

and the Modification Secretary shall, as soon as reasonably practical after it

becomes aware of an appeal, notify each of the persons referred to in paragraph

2.1.1;

(c) the proposal shall continue to be processed as a Modification Proposal in

accordance with this paragraph 2 pending the outcome of the appeal; and

(d) if such appeal is successful then the Modification Proposal shall be nullified

provided that:

(i) if any subsequent modification proposal is accepted by the Panel that

has, in the opinion of the Panel, substantially the same effect as a

nullified Modification Proposal then the Panel shall have due regard

to any assessment, analysis and consultations already undertaken in

respect of the nullified Modification Proposal when determining

which procedure or phase the proposal should be submitted to and

the timetable to be followed in progressing such proposal; and

(ii) for the avoidance of doubt, a nullified Modification proposal shall

not be a withdrawn Modification Proposal or a Rejected


2.1A.8 The Panel shall keep under review the volume of Modification Proposals being proposed

by Third Party Proposers, the costs incurred by BSCCo in the administration of such

Modification Procedures and the costs incurred by BSCCo in supporting Workgroups

involved in the consideration of issues pursuant to paragraph F2.4.23 which have been

raised by interested third parties pursuant to BSCP40 and:

(a) shall publish its findings on the BSC Website where it determines that there has

been a material increase in volume and cost;

(b) may decide to propose a modification to the Code in order to address the

findings of a review published by it pursuant to this paragraph.

2.2 Panel Proceedings

2.2.1 The provisions of this paragraph 2.2 are subject to paragraph 2.9.

2.2.2 The Proposer's representative shall attend the Panel meeting at which its Modification

Proposal is first to be considered and the Panel may invite the Proposer's representative to

present his Modification Proposal to the Panel.

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2.2.3 In relation to each new Modification Proposal, the Panel shall determine:

(a) whether to amalgamate the Modification Proposal with any other Modification

Proposal in accordance with paragraph 2.3;

(b) whether to:

(i) submit the Modification Proposal to the Definition Procedure

pursuant to paragraph 2.5; or

(ii) submit the Modification Proposal to the Assessment Procedure

pursuant to paragraph 2.6; or

(iii) proceed directly to the Report Phase pursuant to paragraph 2.7 (in

which case the Proposer’s right to withdraw or vary his Modification

Proposal shall lapse);

(c) where the Modification Proposal is to be submitted to the Definition Procedure

or the Assessment Procedure pursuant to paragraph (b):

(i) the composition or identity and terms of reference of the Workgroup

in accordance with the provisions of paragraph 2.4;

(ii) subject to paragraphs 2.2.8 and 2.2.9, the priority to be accorded to

the Modification Proposal (as compared with other Pending

Modification Proposals) and the timetable to apply for completion of

the relevant procedure; and

(d) where the Modification Proposal is to proceed directly to the Report Phase

pursuant to paragraph (b):

(i) whether the draft Modification Report shall contain a

recommendation of the Panel to make the Proposed Modification;

(ii) the proposed Implementation Date for implementation, subject to the

consent of the Authority, of the Proposed Modification (whether or

not the Panel recommends the making of such Proposed

Modification); and

(iii) whether (and the extent to which) the Modification Proposal will

amend or supplement the EBGL Article 18 terms and conditions in

which case:

(A) such Modification Proposal shall also constitute a

proposal to amend or supplement the EBGL Article 18

terms and conditions for the purposes of Article 6(3) of

the Guideline on Electricity Balancing; and

(B) even though such Modification Proposal may not have

been raised by the NETSO, the NETSO hereby agrees

that it shall constitute a proposal to amend the EBGL

Article 18 terms and conditions but such agreement shall

not fetter or restrict the NETSO’s rights under the

Modification Procedures to express its views on that


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2.2.4 For the avoidance of doubt, it is expected that the Panel would usually proceed directly to

the Report Phase pursuant to paragraph 2.2.3(b)(iii) where the Modification Proposal is of

a minor or inconsequential nature and/or where the recommendation which the Panel

should make to the Authority in relation to such Modification Proposal would generally be

considered to be self-evident.

2.2.5 If the Panel considers that there is insufficient information available to it to enable it to take

a decision referred to in paragraph 2.2.3 in respect of a particular Modification Proposal,

the Panel may in exceptional circumstances and having regard always to the requirements

of paragraph 1.2.2 defer consideration of the relevant issue until the next succeeding Panel

meeting provided that, in so doing, the Panel shall prescribe the steps which need to be

taken (by the Modification Secretary, BSCCo or otherwise) to enable the Panel to decide

the matter at such subsequent meeting (including completion, where necessary, of an initial

assessment by BSCCo pursuant to paragraph 2.1.8).

2.2.6 If the Panel determines that a Modification Proposal is to be submitted to the Definition

Procedure or the Assessment Procedure pursuant to paragraph 2.2.3, the Modification

Secretary shall send a notice to that effect to each of the persons listed in paragraph

2.1.10(a) and shall invite them to provide comments to the Workgroup in respect of such


2.2.7 At each Panel meeting, the Panel shall consider in turn and vote (if appropriate) on any

Modification Business which is outstanding at that time (including any new Modification

Proposals, the report of any Workgroup and any draft Modification Reports).

2.2.8 In setting the timetable referred to in paragraph 2.2.3(c)(ii), the Panel shall exercise its

discretion such that, in respect of each Modification Proposal, a Modification Report may

be submitted to the Authority as soon after the Modification Proposal is made as is

consistent with the proper definition and/or assessment and evaluation of such

Modification Proposal, taking due account of its complexity, importance and urgency.

2.2.9 Without prejudice to paragraph 2.2.8, the Panel shall set the timetable referred to in

paragraph 2.2.3(c)(ii) such that:

(a) in respect of a Definition Procedure, it is no longer than 2 months; and

(b) in respect of an Assessment Procedure, it is no longer than 3 months

unless the particular circumstances of the Modification Proposal (taking due account of its

complexity, importance and urgency) justify an extension of such timetable (and provided

that the Authority has not issued a contrary direction in accordance with paragraph 1.4.3 in

respect thereof).

2.2.10 Having regard to the complexity, importance and urgency of particular Modification

Proposals, the Panel may determine the priority of Modification Proposals and may

(subject to paragraph 1.4.3) adjust the relevant modification timetable for each

Modification Proposal accordingly.

2.2.11 The Panel may decide at any time to stop a Definition Procedure and/or an Assessment

Procedure and proceed, in either case, directly to the Report Phase, in which case the

Proposer’s right to withdraw or vary his Modification Proposal shall lapse.

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2.3 Amalgamation

2.3.1 Subject to paragraph 1.4.3, the Panel may decide at any time to amalgamate a Modification

Proposal with one or more other Modification Proposals where the subject-matter of such

Modification Proposals is sufficiently proximate to justify amalgamation on the grounds of

efficiency and/or where such Modification Proposals are logically dependent on each other.

2.3.2 Where Modification Proposals are amalgamated pursuant to paragraph 2.3.1:

(a) such Modification Proposals shall be treated as a single Modification Proposal;

(b) references in this Section F to a Modification Proposal shall include and apply

to a group of two or more Modification Proposals so amalgamated;

(c) without prejudice to each Proposer’s right to withdraw his Modification

Proposal prior to the amalgamation of his Modification Proposal, the Proposers

of each such Modification Proposal shall co-operate in deciding which of them

is to be the Proposer of the amalgamated Modification Proposal and, in default

of agreement, the Panel shall nominate one of the Proposers for that purpose;

and

(d) the Panel shall establish such arrangements as it considers appropriate for the

evaluation of the amalgamated Modification Proposals.

2.4 Establishment of Workgroups

2.4.1 A Workgroup may be a group established in order to carry out a Definition Procedure

pursuant to paragraph 2.5 or a group established in order to carry out an Assessment

Procedure pursuant to paragraph 2.6.

2.4.2 Where the Panel decides to submit a Modification Proposal to the Definition Procedure or

the Assessment Procedure, the Panel shall establish a Workgroup (or designate an existing

Workgroup) to carry out such Procedure in accordance with the provisions of this

paragraph 2.4.

2.4.3 A single Workgroup may be responsible for the definition and/or assessment of more than

one Modification Proposal at the same time and the Panel may establish one or more

Workgroups on a standing basis to carry out definition and assessment of Modification

Proposals (which may from time to time be submitted) whose subject-matter falls into a

particular area or areas.

2.4.4 A Workgroup shall comprise at least 5 members selected by the Panel for their relevant

experience and/or expertise in the areas forming the subject-matter of the Modification

Proposal(s) to be considered by such Workgroup, and in the case of a standing Workgroup,

forming the subject matter of the issues determined by the Panel under the terms of

reference for that standing Workgroup (and the Panel shall ensure, as far as possible, that

an appropriate cross-section of experience, interests and expertise is represented on such

Workgroup).

2.4.5 In addition to the members appointed by the Panel pursuant to paragraph 2.4.4:

(a) the Proposer shall be entitled to appoint its representative as a member of the

Workgroup which is to consider the Proposer's Modification Proposal (and who,

in the case of a standing Workgroup, shall be a member for the purposes of that

Modification Proposal only);

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(b) the NETSO shall be entitled to appoint one member of any Workgroup (unless

the NETSO is the Proposer, in which case paragraph (a) applies); and

(c) unless the Panel otherwise determines, the Panel shall appoint at least one

additional member of each Workgroup who shall be an employee of BSCCo,

and BSCCo shall make appropriately qualified BSCCo staff available for this

purpose.

2.4.5A If, and only if, the Panel is of the view that a particular Modification Proposal may impact

upon the STC, the Panel may invite the STC Committee to appoint a representative to

become a member of any Workgroup formed to carry out a Definition Procedure or

Assessment Procedure in relation to such a Modification Proposal.

2.4.5B In the event that the STC Committee appoints a representative to become a member of a

Workgroup:

(a) the membership of such representative shall not become effective until the

representative has complied with paragraph 2.4.6; and

(b) such representative as a member of the Workgroup shall act in accordance with

paragraphs 2.4.9 and 2.4.14 and shall be subject to all the other provisions of

the Code applicable to a member of a Workgroup.

2.4.5C A Proposer may, pursuant to paragraph 2.4.5(a), appoint a representative of BSCCo as a

member of the Workgroup (provided that BSCCo shall act as an impartial representative of

the Proposer’s views and shall not act as an advocate of the Modification Proposal and,

where the Workgroup’s terms of reference provide for voting, BSCCo shall not have voting

rights when appointed in such capacity). If the Proposer appoints a representative of

BSCCo as a member of Workgroup, the Proposer shall not have the right to vary his

Modification Proposal pursuant to paragraph 2.1.12(b).

2.4.6 Prior to establishing the composition of a Workgroup:

(a) each proposed member of the Workgroup shall be required to confirm to the

Panel that he will be available as required throughout the relevant Definition

Procedure or Assessment Procedure (or, in the case of a standing Workgroup,

during such period as the Panel may specify) to attend Workgroup meetings and

to carry out work to be undertaken outside those meetings as necessary; and

(b) with the exception of a member appointed pursuant to paragraph 2.4.5(a), where

the proposed member is employed, he shall provide to the Modification

Secretary a letter from his employer agreeing that he may act as a member of a

Workgroup, and that the requirements of paragraph 2.4.9 shall prevail over his

duties as an employee.

2.4.7 The Panel shall appoint one of the members of a Workgroup to act as chairman of the

Workgroup, and the Panel may change the chairman of a Workgroup from time to time as

it sees fit.

2.4.8 A Workgroup shall not be a Panel Committee for the purposes of Section B5.

2.4.9 A member of a Workgroup shall act impartially and, subject to paragraph 2.4.9A, shall not

be representative of a particular person or class of persons (and, accordingly, no member

shall agree to follow or be bound by the instructions of any person or body, other than the

Panel pursuant to this Section F, in the exercise of his functions as a member of a

Workgroup).

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2.4.9A The restrictions in paragraph 2.4.9 on a member of a Workgroup not being representative

of a particular person or class of persons shall not apply to a member appointed pursuant to

paragraph 2.4.5(a) insofar as that member shall be entitled to represent the views of the

Proposer.

2.4.10 The Panel may add further members to a Workgroup at any time.

2.4.11 The Panel may (but shall not be obliged to) replace any member of a Workgroup appointed

pursuant to paragraph 2.4.4 at any time if, in the Panel’s opinion, such member is unwilling

or unable for whatever reason to fulfil that function and/or is deliberately and persistently

disrupting or frustrating the work of the Workgroup.

2.4.12 The Panel shall determine the terms of reference of each Workgroup (which in the case of a

standing Workgroup may include standing terms of reference as well as specific terms of

reference for any particular Modification Proposal) and may change those terms of

reference from time to time as it sees fit.

2.4.13 The terms of reference of a Workgroup shall include provision in respect of (among other

things) the following matters:

(a) those areas of a Workgroup's powers or activities which require the prior

approval of the Panel;

(b) the seeking of instructions, clarification or guidance from the Panel;

(c) in the case of a standing Workgroup, the area(s) of subject-matter of

Modification Proposals for which the Group may be designated under


(d) in the case of a standing Workgroup, authorise the Group from time to time to

consider (outwith the context of any particular submitted Modification

Proposal) issues generally related to the relevant area(s) of subject-matter,

designated to the Group by the Panel under 2.4.13(c).

2.4.14 Each Workgroup (and each member of a Workgroup) shall:

(a) act in accordance with its terms of reference as determined (and, if applicable,

changed) pursuant to paragraph 2.4.12;

(b) have due regard to the objectives referred to in paragraph 1.2.2 (as if references

to the Panel were references to the Workgroup); and

(c) if a Workgroup is unable to reach agreement on any matter, the report of the

Workgroup shall instead include a summary of the views of the members of the

Workgroup.

2.4.15 In addition to any staff made available to act as members of a Workgroup pursuant to

paragraph 2.4.5, BSCCo shall provide such staff, facilities and support to each Workgroup

(including the engagement of external consultants and advisers) as such Workgroup may

reasonably require to assist with the administration and operation of the business of such

Workgroup provided that any material expenditure (as determined by the Panel in respect

of a particular Workgroup) shall require the prior approval of the Panel (in consultation

with BSCCo).

2.4.16 The Modification Secretary (or his deputy) shall act as secretary to each Workgroup

meeting.

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2.4.17 The Modification Secretary shall notify the Authority in advance of all Workgroup

meetings and a representative of the Authority may attend and speak at any such meeting

(provided that any observations such representative may make shall not be taken to bind

the Authority in any way in relation to the Modification Proposal being discussed).

2.4.18 Subject to paragraph 2.4.19, any meeting of a Workgroup shall be open to attendance by a

representative of any Party and any other person entitled to receive notice of Modification

Proposals under paragraph 2.1.10; and any person so attending such a meeting may speak if

invited to do so by the chairman of the meeting, but (if the Group’s terms of reference

provide for voting) shall not vote at the meeting.


(a) in the case of a meeting held by telephone conference; or

(b) where it is impractical in the opinion of the chairman of the meeting to hold the

meeting in open session;

2.4.20 Subject to the provisions of this paragraph 2.4 and unless otherwise determined by the

Panel, a Workgroup shall develop and adopt its own internal working procedures for the

conduct of its business and shall provide a copy of such procedures to the Modification

Secretary in respect of each Modification Proposal for which it is responsible.

2.4.21 The Modification Secretary shall ensure that details of the composition, terms of reference,

timetable of meetings and internal working procedures of each Workgroup are published

on the BSC Website.

2.4.22 Without prejudice to paragraph 2.7.8, each report prepared by a Workgroup under this

Section F shall be addressed and furnished to the Panel and none of the facts, opinions or

statements contained in such report may be relied upon by any other person.

2.4.23 With a view to facilitating consideration of whether to propose modifications of the Code

and how to frame such proposals, BSCCo may convene, in accordance with BSCP40, a

group to consider generally issues relating to the Code, its application or implementation,

or any manner in which the Code might be modified provided that, save as specified in

BSCP40, neither the views of the group nor anything done by it in relation to such an issue

shall have any consequence or significance in relation to the Code or its implementation or

operation.

2.5 Definition Procedure

2.5.1 The provisions of this paragraph 2.5 shall apply if the Panel decides to submit a

Modification Proposal to the Definition Procedure pursuant to paragraph 2.2.

2.5.2 The purpose of the Definition Procedure is to define the issues raised by a Modification

Proposal in sufficient detail to enable the Panel to determine which of the options set out in

paragraph 2.5.9 is the most appropriate in all the circumstances.

2.5.3 The Panel shall establish or designate a Workgroup and shall determine its terms of

reference in accordance with the provisions of paragraph 2.4.

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2.5.4 The Workgroup shall review the Modification Proposal for the purpose set out in paragraph

2.5.2 and shall prepare a written report for the Panel (in accordance with the timetable

determined by the Panel pursuant to paragraph 2.2) which shall set out, in relation to the

Modification Proposal, the following matters:

(a) an assessment of the issues raised by the Modification Proposal with supporting

information and data to explain the effect of such issues by reference to the

Applicable BSC Objective(s) and a summary of such assessment;

(b) an analysis of and the views and rationale of the Workgroup as to whether (and,

if so, to what extent) the issues raised by the Modification Proposal warrant

further assessment and evaluation in accordance with paragraph 2.6;

(c) a detailed summary of the representations made by Parties and interested third

parties during the consultation undertaken by the Workgroup (pursuant to

paragraph 2.2.6 and, where applicable, paragraph 2.5.5(b)) and the comments

and views of the Workgroup in respect thereof;

(d) a summary of any analysis prepared by the NETSO and the comments and

views of the Workgroup in respect thereof;

(e) a summary of any analysis prepared by relevant BSC Agents and the comments

and views of the Workgroup in respect thereof;

(f) a copy of the terms of reference and a summary of any report or analysis of

external consultants or advisers; and

(g) such other matters as the Panel may require in the terms of reference of such

Workgroup.

2.5.5 In preparing its report pursuant to paragraph 2.5.4, the Workgroup shall:

(a) analyse the representations made in response to the consultation instigated by

the Modification Secretary pursuant to paragraph 2.2.6;

(b) conduct such further consultation with Parties and interested third parties as

may be required by its terms of reference or, subject to the Panel's prior

approval, as it considers necessary;

(c) where appropriate (and subject to any requirement for Panel approval as set out

in its terms of reference), request BSCCo to commission an analysis from BSC

Agents and/or external consultants and/or advisers with relevant specialist

knowledge;

(d) where such views have been obtained, consider the views expressed by those

referred to in paragraphs (a) to (c) and by those referred to in paragraph 2.5.6(a)

to (c).

2.5.6 In respect of each Definition Procedure, BSCCo shall (after appropriate consultation with

the Workgroup):

(a) commission an analysis from the NETSO in accordance with paragraph 2.8;

(b) if requested by the Workgroup, commission an analysis from relevant BSC

Agents;

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(c) if requested by the Workgroup, commission an analysis from external

consultants and/or advisers with relevant specialist knowledge.

2.5.7 Upon completion of the Workgroup's report prepared in accordance with paragraph 2.5.4,

the Modification Secretary shall promptly:

(a) copy the report to each of the persons referred to in paragraph 2.1.10(a);

(b) place such report on the agenda for the next following Panel meeting in

accordance with Section B4.

2.5.8 The chairman or another member (nominated by the chairman) of the Workgroup shall

attend the next following Panel meeting and may be invited to present the findings of the

Workgroup to the Panel and/or answer the questions of Panel Members in respect thereof;

other members of the Workgroup may also attend such Panel meeting.

2.5.9 Following completion of the Workgroup's report pursuant to paragraph 2.5.7, the Panel

shall consider the Workgroup's report at the next following Panel meeting and shall

determine whether to:

(a) refer the Modification Proposal back to the Workgroup for further analysis (in

which case, the Panel shall determine the timetable and terms of reference to

apply in relation to such further analysis);

(b) submit the Modification Proposal to the Assessment Procedure pursuant to

paragraph 2.6; or

(c) proceed directly to the Report Phase pursuant to paragraph 2.7 (in which case

the Proposer’s right to withdraw or vary his Modification Proposal shall lapse),

and, in the case of paragraphs (a) or (b), the Panel may instruct the Panel Secretary to

initiate a further process of consultation (in accordance with the terms of reference

determined by the Panel).

2.6 Assessment Procedure

2.6.1 The provisions of this paragraph 2.6 shall apply if the Panel decides to submit a

Modification Proposal to the Assessment Procedure pursuant to paragraph 2.2, 2.5.9(b) or

7.3.4(c).

2.6.2 The purpose of the Assessment Procedure is to evaluate whether the Proposed Modification

identified in a Modification Proposal better facilitates achievement of the Applicable BSC

Objective(s) and whether any alternative modification would, as compared with the

Proposed Modification, better facilitate achievement of the Applicable BSC Objective(s) in

relation to the issue or defect identified in the Modification Proposal.

2.6.2A Where a Proposed Modification and any Alternative Modification are likely to have a

material impact on greenhouse gas emissions then the evaluation pursuant to paragraph

2.6.2, in respect of the Applicable BSC Objective(s), shall include an assessment of the

quantifiable impact of the Proposed Modification and any Alternative Modification on

greenhouse gas emissions and such assessment shall be conducted in accordance with the

guidance (on the treatment of carbon costs and evaluation of greenhouse gas emissions)

that may be issued by the Authority from time to time.

2.6.3 The Panel shall establish or designate a Workgroup and shall determine its terms of

reference in accordance with the provisions of paragraph 2.4.

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2.6.4 The Workgroup shall:

(a) evaluate the Modification Proposal for the purpose set out in paragraph 2.6.2;

(b) where appropriate, develop an alternative proposed modification (the

"Alternative Modification") which, as compared with the Proposed

Modification, would better facilitate achievement of the Applicable BSC

Objective(s);

(c) evaluate:

(i) whether, and the extent to which, the Modification Proposal will

amend the EBGL Article 18 terms and conditions; and

(ii) where the Workgroup considers that a Modification Proposal may

amend the EBGL Article 18 terms and conditions, the impact of

those amendments on the EBGL Objectives; and

(d) prepare a report for the Panel (in accordance with the timetable determined by

the Panel pursuant to paragraph 2.2 or 2.5.9(b)) which shall set out, in relation

to the Proposed Modification and any Alternative Modification, the matters

referred to in Annex F-1, to the extent applicable to the proposal in question.

2.6.5 In preparing its report pursuant to paragraph 2.6.4, the Workgroup shall:

(a) analyse the comments made in response to the consultation instigated by the

Modification Secretary pursuant to paragraph 2.2.6;

(b) conduct such further consultation with Parties and interested third parties as

may be required by its terms of reference or, subject to the Panel's prior

approval, as it considers necessary;

(c) where appropriate (and subject to any requirement for Panel approval as set out

in its terms of reference), request BSCCo to commission an analysis from BSC

Agents and/or external consultants and/or advisers with relevant specialist

knowledge;

(d) where such views have been obtained, consider the views expressed by those

referred to in paragraphs (a) to (c) and by those referred to in paragraph 2.6.6(a)

to (c).

2.6.6 In respect of each Assessment Procedure, BSCCo shall (after appropriate consultation with

the Workgroup):

(a) commission an analysis and impact assessment from the NETSO in accordance

with paragraph 2.8;

(b) if requested by the Workgroup, commission an impact assessment from relevant

BSC Agents;

(c) if requested by the Workgroup, commission an analysis from external

consultants and/or advisers with relevant specialist knowledge;

(d) if requested by the Workgroup, commission an analysis from relevant Core

Industry Document Owners and/or the STC Committee; and

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(e) prepare a project brief for the implementation of the Proposed Modification and

any Alternative Modification setting out the proposed steps, timetable and

programme plan for such implementation consistent with the proposed

Implementation Date in accordance with the Code, BSCP40 and the IS Policies.

2.6.7 The preceding provisions of this paragraph 2.6 shall be subject to the provisions of

paragraphs 2.6.8 and 2.6.10 and the requirements of the report to be prepared by the

Workgroup pursuant to paragraph 2.6.4 in respect of a particular Modification Proposal

shall be amended in consequence of any directions issued by the Panel under paragraphs

2.6.8 or 2.6.10.

2.6.8 Prior to the taking of any steps in an Assessment Procedure which would result in the

incurring of significant costs (as determined by the Panel in each case in the relevant terms

of reference) for BSCCo, the Workgroup shall seek the views of the Panel as to whether to

proceed with such steps and, in giving its views, the Panel may consult with the Authority

in respect thereof.

2.6.9 For the purposes of paragraph 2.6.8, the steps include:

(a) the commissioning of detailed impact assessments;

(b) the commissioning of legal text to modify the Code in order to give effect to a

Proposed Modification and/or an Alternative Modification.

2.6.10 At any stage during an Assessment Procedure:

(a) the Panel may request the Workgroup to prepare an interim report setting out its

provisional findings in respect of the matters referred to in paragraph 2.6.4 (or

such of those matters as it has been able by then to evaluate); and

(b) the Panel may seek the views of the Authority as to whether the findings of such

report are consistent with the Authority's provisional thinking in respect thereof;

and

(c) the Panel may issue such directions as it sees fit to the Workgroup in

consequence of the Authority's views.

2.6.11 Upon completion of the Workgroup's report prepared in accordance with paragraph 2.6.4,

the Modification Secretary shall promptly:

(a) copy the report to each of the persons referred to in paragraph 2.1.10(a);

(b) place such report on the agenda for the next following Panel meeting.

2.6.12 The chairman or another member (nominated by the chairman) of the Workgroup shall

attend the next following Panel meeting and may be invited to present the findings of the

Workgroup to the Panel and/or answer the questions of Panel Members in respect thereof;

other members of the Workgroup may also attend such Panel meeting.

2.6.13 The Panel shall consider the Workgroup's report at the next following Panel meeting and

shall determine:

(a) whether to:

(i) submit the Modification Proposal back to the Workgroup for further

analysis (in which case, the Panel shall determine the timetable and

terms of reference of such further analysis); or

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(ii) proceed to the Report Phase in accordance with paragraph 2.7; and

(b) where the Panel decides pursuant to paragraph (a)(ii) to proceed to the Report

Phase:

(i) whether the Panel proposes to recommend (subject to paragraph

2.7.5) to the Authority that the Proposed Modification or any

Alternative Modification should be made;

(ii) the reasons (if different from those contained in the report prepared

by the Workgroup) why the Proposed Modification and any

Alternative Modification would or would not, in the Panel's opinion,

better facilitate achievement of the Applicable BSC Objective(s);

(iii) the proposed Implementation Date to be included in the draft

Modification Report (whether or not the Panel recommends that the

Proposed Modification or any Alternative Modification should be

made); and

(iv) whether (and the extent to which) the Proposed Modification and

any Alternative Modification will amend or supplement the EBGL

Article 18 terms and conditions in which case:

(A) such Proposed Modification and any Alternative

Modification shall also constitute proposals to amend or

supplement the EBGL Article 18 terms and conditions

for the purposes of Article 6(3) of the Guideline on

Electricity Balancing;

(B) even though such Modification Proposal may not have

been raised by the NETSO, the hereby agrees that the

Proposed Modification and any Alternative Modification

shall constitute proposals to amend or supplement the

EBGL Article 18 terms and conditions but NETSO’s

agreement shall not fetter or restrict its rights under the

Modification Procedures to express its views on that

Proposed Modification and any Alternative Modification.

2.7 Report Phase

2.7.1 The provisions of this paragraph 2.7 shall apply where the Panel decides, pursuant to

paragraphs 2.2.3(b)(iii), 2.2.11, 2.5.9(c) or 2.6.13(a)(ii), that a Modification Proposal

should proceed to the Report Phase.

2.7.2 If:

(a) in deciding that a Modification Proposal should proceed to the Report Phase,

the Panel determines that it proposes to recommend to the Authority that the

Proposed Modification or any Alternative Modification should be made; and

(b) no proposed text to modify the Code in order to give effect to such Proposed

Modification or Alternative Modification, was commissioned during any

Assessment Procedure,

the Modification Secretary shall forthwith commission the drafting of proposed text to

modify the Code in order to give effect to such Proposed Modification or Alternative

Modification and shall seek the views of the relevant Workgroup(s) on such text.

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2.7.3 Where the Panel is proposing to recommend to the Authority that a Proposed Modification

or Alternative Modification should not be made and no proposed text to modify the Code

was commissioned during the Assessment Procedure, the Panel shall consult with the

Authority as to whether the Authority would like the Modification Report to include such

text and, if the Authority indicates that it would, the Modification Secretary shall forthwith

commission the drafting of proposed text to modify the Code in order to give effect to such

Proposed Modification or Alternative Modification and shall seek the views of the relevant

Workgroup(s) on such text.

2.7.4 Except where 2.7.4A applies, the Modification Secretary shall:

(a) prepare a draft Modification Report which shall set out the matters referred to in

paragraph 2.7.7 as soon as possible and, in any event, within 15 Business Days

after the Panel decides that the Modification Proposal should proceed to the

Report Phase;

(b) copy such draft report to each of the persons listed in paragraph 2.1.10(a);

(c) publish such draft report in such manner as may be appropriate to bring it to the

attention of other persons who may be affected by such report;

(d) invite representations on the draft report within such period as the Panel may

determine (and, in any event, not more than 15 Business Days);

(e) prepare a summary of the representations received during the consultation

conducted pursuant to paragraph (d); and

(f) put the draft report and the summary referred to in paragraph (e) on the agenda

for the next following Panel meeting.

2.7.4A Where the Panel has determined that a Modification Proposal is amending or

supplementing the EBGL Article 18 terms and conditions, the Modification Secretary shall:

(a) follow the steps set out in paragraphs 2.7.4(a) to (c);

(b) invite representations on the draft report within such period as the Panel may

determine (and, in any event not less than one month), in accordance with the

requirements set out in BSCP40;

(c) provide a copy of the representations received during the consultation

conducted pursuant to paragraph (b); and

(d) either:

(i) where there have been any representations that may require the

Modification Proposal to be amended, submit that Modification

Proposal back to the Workgroup for further analysis and:

(A) the Proposer and (where the Modification Proposal has

been subject to the Assessment Procedure) the

Workgroup may amend the Proposed Modification and

any Alternative Modification respectively provided the

Modification Proposal continues to address the same

issue or defect originally identified by the Proposer in the

Modification Proposal;

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(B) (where the Modification Proposal has been subject to the

Assessment Procedure) the Workgroup shall amend its

report to include sound justifications for including or not

including the views resulting from the consultation

(taking into account the expected impact on the EBGL

Objectives) and may amend any other part of its draft

report to take account of its further analysis and make its

recommendation to the Panel; and

(C) subject to paragraph 2.7.4A(d)(ii)(B) below, follow the

steps set out in paragraph 2.7.4 in relation to any such

amended Proposed Modification, amended Alternative

Modification, and amended report taking into account the

amendments made to the report under paragraph (B); or

(ii) where:

(A) there have been no representations that may require the

Modification Proposal to be amended; or

(B) the Modification Proposal has been submitted to the

Proposer and (where applicable) Workgroup under

paragraph (d)(i) above but they have made no

amendments to the Proposed Modification or any

Alternative Modification,

put the draft report and the representations referred to in paragraph

(c) on the agenda for the next Panel meeting.

2.7.5 The Panel shall consider the draft Modification Report submitted under paragraph 2.7.4 or

paragraph 2.7.4A at the next following Panel meeting and, having taken due account of the

representations contained in the summary referred to in paragraph 2.7.4(e) and 2.7.4A(c),

the Panel shall determine:

(a) whether to recommend to the Authority that the Proposed Modification or any

Alternative Modification should be made;

(b) whether to approve the draft Modification Report or to instruct the Modification

Secretary to make such changes to the report as may be specified by the Panel;

(c) (if applicable) whether to approve the proposed text for modifying the Code in

order to give effect to any Proposed Modification or Alternative Modification

which it is recommending or to instruct the Modification Secretary to make

such changes to the text as may be specified by the Panel;

(d) the proposed Implementation Date for implementation of the Proposed

Modification or any Alternative Modification (whether or not the Panel

recommends the making of such Proposed Modification or Alternative

Modification);

(e) whether to include in the draft Modification Report, where applicable, any

further justifications that the Panel may specify for why the views resulting

from the consultation undertaken under paragraph 2.7.4A(b) were included or

not included.

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2.7.6 Subject to paragraph 6.3.2, within 7 Business Days after the Panel meeting referred to in

paragraph 2.7.4, the Modification Secretary shall finalise the Modification Report and shall

forthwith:

(a) submit such Modification Report to the Authority on behalf of the Panel;

(b) copy such Modification Report to:

(i) each Party;

(ii) each Panel Member; and

(iii) each of the persons specified in paragraph 1.9.3;

(c) simultaneously publish such Modification Report on the BSC Website.

2.7.6A Subject to paragraph 2.7.6B, if the Panel intends to instruct (under paragraph 2.7.5(b))

changes to be made to the draft Modification Report as a result of information obtained by

BSCCo relating to matters (including those specified in paragraph 1(c) of Annex F-1)

which were identified by BSCCo since the draft report was prepared, the Panel may with

the approval of the Authority:

(a) instruct the Modification Secretary to publish, and invite further representations

(from the persons listed in paragraph 2.1.10(a)) on those changes; and

(b) defer to such date as the Authority may approve the submission of the

Modification Report to the Authority, to allow such further consultation to take

place.

2.7.6B Where the Panel intends to instruct (under paragraph 2.7.5(b)) changes to be made to a

draft Modification Report that has been submitted to it under paragraph 2.7.4A(d)(i) as a

result of information obtained by BSCCo relating to matters (including those specified in

paragraph 1(c) of Annex F-1) which were not identified through the consultation conducted

under paragraph 2.7.4A, the Panel shall instruct the Modification Secretary to publish, and

invite further representations (in accordance with BSCP40) on those changes for a period

of not less than one month.

2.7.7 The matters to be included in a Modification Report shall be the following (in respect of

the Modification Proposal):

(a) the recommendation of the Panel as to whether or not the Proposed

Modification or any Alternative Modification should be made;

(b) subject to paragraph 2.11.20, the proposed Implementation Date for

implementation of any Proposed Modification or Alternative Modification;

(c) the other items referred to in Annex F-1, based on the report prepared by the

Workgroup (where the proposal was submitted to a Workgroup prior to the

Report Phase) except to the extent that the Panel has formed a different view as

to any matters contained in such report;

(d) confirmation, where applicable, that the Proposed Modification or any

Alternative Modification proposes to amend the EBGL Article 18 terms and

conditions; and

(e) the conclusions of the NETSO in relation to its findings pursuant to paragraph

2.8.1(a) and (b);

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together with a copy of the representations made by Parties and interested third parties

during the consultation undertaken in respect of the Proposed Modification and any

Alternative Modification.

2.7.8 Each Modification Report shall be addressed and furnished to the Authority and none of

the facts, opinions or statements contained in such Modification Report may be relied upon

by any other person.

2.7A Send Back Process

2.7A.1 Where the Authority considers that it is unable to form an opinion in relation to a

Modification Report submitted to it pursuant to paragraph 2.7.6 or paragraph 5.3A.3 then it

may issue a direction to the Panel:

(a) specifying any additional steps that it requires in order to form such an opinion

including drafting or amending the proposed text to modify the Code, revising

the implementation timetable and/or proposed Implementation Date(s), revising

or providing additional analysis and/or information; and

(b) requiring such Modification Report to be revised and re-submitted to the

Authority,

and the Authority may include in such direction its reasons for why it has been unable to

form an opinion (a "Send Back Direction").

2.7A.2 The Panel shall re-submit the revised Modification Report as soon after the Authority’s

direction pursuant to paragraph 2.7A.1 as is appropriate (taking into account the

complexity, importance and urgency of the Modification Proposal) and the implementation

timetable and the proposed Implementation Date(s) specified in the Modification Report

(but no other aspect of that Modification Report) shall be deemed to be suspended for the

duration of the Send Back Process.

2.7A.3 Subject to paragraph 2.7A.4, in relation to each Send Back Direction BSCCo shall prepare

a draft Send Back Process for approval by the Panel which:

(a) shall include a procedure and timetable for the reconsideration by the Panel of

its recommendation and the re-submission of the revised Modification Report to

the Authority; and

(b) may include such further matters as the Panel considers necessary to address the

Send Back Direction including:

(i) further consultation with Parties and interested third parties;

(ii) revised or additional analysis and/or information;

(iii) drafting or amending proposed text to modify the Code;

(iv) revising the proposed Implementation Date(s) (and, without

prejudice to the generality of paragraph 2.7A.3(b)(i)), the Panel shall

conduct a consultation with Parties and interested third parties in

respect of any revised proposed Implementation Date(s); and

(v) any other steps required by the Panel to address the Send Back

Direction.

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2.7A.4 Where the requirements specified in the Send Back Direction are of a minor nature such

that it would be more appropriate for BSCCo to address the matters contained therein

without preparing a draft Send Back Process then:

(a) BSCCo may take such steps as are necessary to address the requirements of that

Send Back Direction; and

(b) the provisions of paragraphs 2.7A.6(b), 2.7A.6(c), 2.7A.7 and 2.7A.8 shall

apply thereto provided that if the Panel does not approve the revised draft

Modification Report then it may require BSCCo to prepare a draft Send Back

Process in accordance with paragraph 2.7A.3.

2.7A.5 The Panel shall consider the draft Send Back Process and, having considered any

comments made or received by the representative of the Authority, shall determine whether

to approve the draft Send Back Process or to instruct BSCCo to make such changes to the

draft Send Back Process as may be specified by the Panel.

2.7A.6 Following approval by the Panel of the Send Back Process:

(a) BSCCo and (where applicable) the Workgroup shall perform the additional

steps set out in the Send Back Process (including, to the extent necessary, the

revision by the Workgroup of its views and rationale as to whether the Proposed

Modification and any Alternative Modification better facilitate the achievement

of the Applicable BSC Objective(s));

(b) the Modification Secretary shall notify the persons specified in paragraph

2.7.6(b) that the Authority has issued a Send Back Direction, revise the

Modification Report, re-submit that Modification Report to the Panel and take

any further steps in relation to it as are set out in this paragraph 2.7A and the

Send Back Process; and

(c) the Panel shall consider the revised Modification Report in accordance with

paragraph 2.7A.7,

in each case in accordance with the procedure(s) and timetable set out in the Send Back

Process.

2.7A.7 The Panel shall consider the revised Modification Report and determine:

(a) whether to revise the recommendation it made to the Authority pursuant to

paragraph 2.7.5(a):

(b) whether to approve the revised Modification Report or to instruct the

Modification Secretary to make such further changes to the revised report as

may be specified by the Panel;

(c) (if applicable) whether to approve any revised proposed text to modify the Code

or to instruct the Modification Secretary to make any further changes as may be

specified by the Panel; and/or

(d) (if applicable) whether to approve any revised proposed Implementation Date(s)

for implementation of the Proposed Modification or any Alternative

Modification (whether or not the Panel recommends the making of such

Proposed Modification or Alternative Modification).

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2.7A.8 The Modification Secretary shall:

(a) finalise the revised Modification Report which shall, for the purposes of the

Code, be deemed to be the Modification Report as from the date of the Panel’s

determination pursuant to paragraph 2.7A.7; and

(b) submit such Modification Report to the Authority and copy it to the persons

specified in paragraph 2.7.6(b).

2.7A.9 For the avoidance of doubt, a Proposer shall have no right to withdraw or vary his

Modification Proposal during the Send Back Process.

2.7B Amendments Required by the Authority (EBGL)

2.7B.1 In respect of a Modification Proposal which amends or supplements EBGL Article 18

terms and conditions, where the Authority requires an amendment to such Modification

Proposal, in accordance with Article 6(1) of the Guideline on Electricity Balancing, in

order to approve such Modification Proposal it may direct the Panel and BSCCo to make

such amendment in which case BSCCo and the Panel shall comply with such direction and:

(a) BSCCo shall make such amendments to the Proposed Modification and/or any

Alternative Modification as have been directed by the Authority;

(b) BSCCo shall submit such amended Modification Proposal to the Panel;

(c) the Panel may amend its report prepared under paragraph 2.7 to include:

(i) its evaluation of the proposed amendments directed by the

Authority;

(ii) revised recommendations (if any) to the Authority as to whether the

Proposed Modification or any Alternative Modification should be

made;

(iii) its revised rationale (if any) as to why the Proposed Modification or

any Alternative Modification would or would not, in the Panel’s

opinion, better facilitate achievement of the Applicable BSC

Objectives;

(iv) the Panel’s view, together with rationale, as to whether the proposed

Implementation Date needs to be amended and, except to the extent

that the Authority has so directed, the revised proposed

Implementation Date for the Proposed Modification or any

Alternative Modification; and

(d) the Panel shall submit the revised Modification Report to the Authority within 2

months of the Authority’s direction under this paragraph.

2.7B.2 Subject always to paragraph 2.7B.1(d), in performing the steps set out in paragraph 2.7B.1,

BSCCo and/or the Panel may reconvene the Workgroup and/or conduct such consultation

with Parties and interested third parties as it considers necessary.

2.7B.3 Where BSCCo and/or the Panel have been unable to reconvene a Workgroup and/or

conduct a consultation despite considering such steps necessary, the Panel may request in

its Modification Report submitted under paragraph 2.7B.1(d) that the Authority directs the

Panel and/or BSCCo that such further steps are necessary in order for the Authority to

approve the Modification Proposal.

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2.7B.4 Any direction from the Authority pursuant to this paragraph 2.7B shall not fetter the voting

rights of the Panel or the recommendation procedures informing the report described in

2.7B.1.

2.8 Analysis of the NETSO

2.8.1 Subject to paragraph 2.8.1A, at the request of the Panel or BSCCo, the NETSO shall

prepare an analysis of any Modification Proposal with:

(a) an assessment of the impact of the Proposed Modification (and, if applicable,

any Alternative Modification) on the ability of the NETSO to discharge its

obligations efficiently under the Transmission Licence, to discharge its

obligations under the Guideline on Electricity Balancing and on its ability to

operate an efficient, economical and co-ordinated transmission system;

(b) the views and rationale of the NETSO as to

(i) whether the Proposed Modification or any Alternative Modification

would better facilitate achievement of the Applicable BSC

Objective(s); and

(ii) where the Proposed Modification or any Alternative Modification

includes an amendment to the EBGL Article 18 terms and

conditions, whether such amendment proposal should be made;

(c) an assessment (where applicable) of:

(i) the impact of the Proposed Modification and any Alternative

Modification on the computer systems and processes of the NETSO;

(ii) the changes required to such systems and processes in consequence

of the Proposed Modification and any Alternative Modification;

(iii) an estimate of the development, capital and operating costs (broken

down in reasonable detail) which the NETSO anticipates that it

would incur in and as a result of implementing the Proposed

Modification and any Alternative Modification and any

consequential change to Core Industry Documents and/or the System

Operator-Transmission Owner Code;

(d) such other matters as the Panel or BSCCo may reasonably request.

2.8.1A Where a Modification Proposal amends, or is expected to amend, EBGL Article 18 terms

and conditions then the NETSO shall be entitled, in its discretion, to provide the analysis

referred to in paragraphs 2.8.1(a) and (b) notwithstanding that such analysis has not been

requested.

2.8.2 The NETSO shall provide such further explanation of any analysis prepared pursuant to

paragraph 2.8.1 as the Panel may reasonably require and shall attend any meeting of the

Panel or the Workgroup to answer questions or provide clarification in respect thereof.

2.8.3 Subject to the provision by the NETSO of any analysis requested pursuant to paragraph

2.8.1 and any further explanation or clarification requested pursuant to paragraph 2.8.2, the

NETSO shall not be obliged by virtue of any provision of this Section F to disclose or

provide access to any information or data relating to its business which is not otherwise

generally available.

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2.8.4 In formulating its views as to whether a Proposed Modification or any Alternative

Modification would better facilitate achievement of the Applicable BSC Objective(s) (and,

in particular, those Applicable BSC Objective(s) which relate specifically to the NETSO),

the Panel and any Workgroup shall have regard to the analysis provided by the NETSO

under this paragraph 2.8 and to any other information or data which is generally available

in relation to the NETSO or its business.

2.9 Urgent Code Modifications

2.9.1 Where there has been a recommendation of the NETSO and/or BSCCo or a

recommendation of the Proposer (pursuant to paragraph 2.1.2) that a proposal should be

treated as an Urgent Modification Proposal in accordance with this paragraph 2.9, then the

Panel shall make a recommendation to the Authority as to:

(a) whether, in the Panel’s opinion, the proposal should be treated as an Urgent


(b) the procedure and timetable to be followed in the event that the Authority

instructs that the proposal shall be treated as an Urgent Modification Proposal;

and

in making its recommendation under this paragraph 2.9.1 the Panel may consider any

relevant information provided to it by BSCCo and/or the NETSO.

2.9.2 For the avoidance of doubt, in relation to any Modification Business involving an Urgent

Modification Proposal (or a Modification Proposal which the Proposer or BSCCo and/or

the NETSO recommend should be treated as an Urgent Modification Proposal):

(a) the provisions of Section B.4.6 shall apply; and

(b) where the Panel Chairman was unable to contact sufficient Panel Members in

accordance with Section B4.6, the Panel Chairman shall make the

recommendation referred to in paragraph 2.9.1.

2.9.3 The Panel shall:

(a) not treat any Modification Proposal as an Urgent Modification Proposal except

with the prior consent of the Authority;

(b) comply with the procedure and timetable in respect of any Urgent Modification

Proposal approved by the Authority;

(c) comply with any instruction of the Authority not to treat a Modification

Proposal as an Urgent Modification Proposal; and

(d) comply with any instruction of the Authority issued in respect of any

recommendation of the Panel or the Panel Chairman made pursuant to

paragraphs 2.9.1 or 2.9.2.

2.9.4 Subject to paragraph 2.9.4B, for the purposes of this paragraph 2.9, the procedure and

timetable in respect of an Urgent Modification Proposal may (with the approval of the

Authority pursuant to paragraph 2.9.3) deviate from all or part of the Modification

Procedures or follow any other procedure or timetable approved by the Authority. The

Panel must notify the persons listed in paragraph 1.9.3 of any Urgent Modification

Proposal and when approving any alternative procedure or timetable, the Authority must

consider whether or not such procedure and timetable should allow for the persons listed in

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paragraph 1.9.3 to be consulted on the Urgent Modification Proposal and if so how much

time should be allowed.

2.9.4A Where the procedure and timetable approved by the Authority in respect of an Urgent

Modification Proposal does not provide for the establishment (or designation) of a

Workgroup the Proposer’s right to withdraw or vary his Modification Proposal pursuant to

paragraph 2.1.12 shall lapse from the time and date of such approval.

2.9.4B Where the Modification Proposal seeks to amend the EBGL Article 18 terms and

conditions, the procedure and timetable recommended by the Panel under paragraph 2.9.1

in respect of an Urgent Modification Proposal must include a consultation on the

Modification Proposal for a period of not less than one month, due consideration of the

views of stakeholders resulting from such consultation the Panel and the publication of the

Panel’s sound justifications for including or not including the views resulting from that

consultation.

2.9.5 The Modification Report in respect of an Urgent Modification Proposal shall include any

statement provided by the Authority as to why the Authority believes that such

Modification Proposal should be treated as an Urgent Modification Proposal and the extent

to which the procedure followed deviated from the Modification Procedures.

2.9.6 Where an Urgent Modification Proposal results in a modification being made in accordance

with paragraph 1.1, the Panel may or (where it appears to the Panel that there is a

reasonable level of support for a review amongst Parties) shall, following such

modification, submit the modification to review by a Workgroup on terms specified by the

Panel in order to consider and report as to whether any alternative modification could, as

compared with such modification, better facilitate achievement of the Applicable BSC

Objective(s) in respect of the subject matter of such modification.

2.9.7 For the purposes of paragraph 2.9.6, the provisions of paragraph 2.4 shall apply mutatis

mutandis to the establishment and conduct of a Workgroup charged with undertaking a

review pursuant to paragraph 2.9.6.

2.9.8 The Modification Secretary shall copy the report prepared by the Workgroup pursuant to

paragraph 2.9.6 to each of the persons referred to in paragraph 2.1.10(a).

2.9.9 Each Party, each Panel Member, each of the persons referred to in paragraph 1.9.3, BSCCo

and the Modification Secretary shall take all reasonable steps to ensure that an Urgent

Modification Proposal is considered, evaluated and (subject to the approval of the

Authority) implemented as soon as reasonably practicable, having regard to the urgency of

the matter and, for the avoidance of doubt, an Urgent Modification Proposal may (subject

to the Approval of the Authority) result in a Code Modification being made on the day on

which such proposal is submitted.

2.10 Confidentiality

2.10.1 Any representations submitted by a person pursuant to the Modification Procedures shall

be made publicly available save as otherwise expressly requested by such person by notice

in writing to BSCCo.

2.10.2 The Panel and BSCCo shall not be liable for any accidental publication of a representation

which is the subject of a request made under paragraph 2.10.1.

2.10.3 For the avoidance of doubt, all representations (whether or not marked confidential) shall

be sent to the Authority.

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2.10.4 Where any provision of this paragraph 2 provides for data, information or reports to be

published or made available to Parties and/or other persons, the Panel shall exclude

therefrom any matters in respect of which the Authority issues a notice to the Modification

Secretary for the purposes of this paragraph 2.10.4.

2.11 Implementation

2.11.1 BSCCo shall be responsible for implementing the Approved Modification in accordance

with the project brief prepared pursuant to paragraph 2.6.6(e) in relation to that

Modification.

2.11.2 The Panel shall make such modifications to Code Subsidiary Documents (in accordance

with the provisions of paragraph 3) and/or adopt such new Code Subsidiary Documents as

may be necessary to give full and timely effect to an Approved Modification by the

Implementation Date.

2.11.3 BSCCo shall take appropriate steps to secure such amendments to the BSC Agent

Contracts as may be necessary to give full and timely effect to an Approved Modification

by the Implementation Date.

2.11.4 BSCCo shall take appropriate steps to procure changes to BSC Systems and processes in

order to give full and timely effect to an Approved Modification by the Implementation

Date.

2.11.5 BSCCo shall promptly provide a report to the Panel where:

(a) it appears, in BSCCo's reasonable opinion, that problems may arise, or have

arisen, in the implementation of an Approved Modification in accordance with

the project brief prepared pursuant to paragraph 2.6.6(e); and/or

(b) BSCCo has reason to believe that the changes necessary to BSC Systems and

processes will not have been completed by the Implementation Date; and/or

(c) BSCCo becomes aware of any circumstances which might otherwise prevent or

delay the full and timely implementation of the Approved Modification.

2.11.6 In relation to Approved Modifications:

(a) each Party shall use its reasonable endeavours to implement changes made to

Core Industry Documents and/or the System Operator-Transmission Owner

Code in order to give full and timely effect to a Code Modification by the

Implementation Date; and

(b) the NETSO shall make such changes to those of its systems which support the

operation of the Code as may be necessary in order to give effect to a Code

Modification by the Implementation Date.

2.11.7 Without prejudice to the obligations of the Panel and BSCCo under this Section F, the

Implementation Date may be extended or brought forward with the prior approval of, or at

the direction of, the Authority.

2.11.8 The Panel shall apply to the Authority for an extension to the Implementation Date if it

becomes aware of any circumstance which is likely to cause a delay in the implementation

of an Approved Modification.

2.11.9 The Panel may, after consultation with the persons listed in paragraph 2.1.10(a), apply to

the Authority (providing copies of the representations made in such consultation) to bring

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forward the Implementation Date if the Panel is reasonably satisfied that an Approved

Modification is capable of being implemented sooner than the current Implementation Date

and is of the opinion that its implementation should be so brought forward.

2.11.10 Where a Relevant Challenge is made and the Panel considers the Implementation Date or a

"Proposed Implementation Date" (as defined in paragraph 2.11.15) relating to a

Modification Proposal is or may no longer be appropriate or may expire prior to a

determination made in relation to the Relevant Challenge, the Panel shall consult with the

persons listed in paragraph 2.1.10(a) as to the following:

(a) whether a Conditional Implementation Date in replacement of the current

Implementation Date or Proposed Implementation Date is appropriate or

advisable as a result of the Relevant Challenge; and

(b) (if the Panel considers it appropriate) whether the Conditional Implementation

Date should replace the current Implementation Date or Proposed

Implementation Date subject to the condition precedent that it shall be effective

only if the determination of the relevant appeal or judicial review is received on

or before (or not received after) a specified date.

2.11.11 After undertaking a consultation pursuant to paragraph 2.11.10 the Panel may recommend

to the Authority a Conditional Implementation Date which is subject to the condition

precedent that it shall be effective only if the determination in the relevant appeal or

judicial review is received on or before (or not received after) a specified date.

2.11.12 The Panel shall, at the same time as the making of its recommendation under paragraph

2.11.11, provide copies of the representations made in relation to such consultation and any

relevant additional information (including any information or assessment from BSCCo

relating to the BSC Systems and processes) to the Authority.

2.11.13 If the Authority decides to accept the Panel’s recommendation referred to in paragraph

2.11.11, the Conditional Implementation Date so accepted (subject to any conditions

precedent to its effectiveness imposed by the Authority) shall be deemed to replace the:

(a) current Implementation Date which is applicable (or purportedly applicable) by

reason of paragraph 1.1.3; or

(b) Proposed Implementation Date set out in any Modification Report relating to

the relevant Modification Proposal.

2.11.14 Where the Panel considers that:

(a) a Conditional Implementation Date (whether or not subject to any condition

precedent concerning its effectiveness) imposed in accordance with this

paragraph 2.11 is or may no longer be appropriate or may expire prior to a

determination being made in relation to the Relevant Challenge; or

(b) where the Authority has previously rejected a recommendation from the Panel

made pursuant to paragraph 2.11.11 but, as a result of the progress of the appeal

or judicial review or some other relevant circumstance, the Panel considers that

it may be appropriate to make or consider making a new recommendation to the

Authority concerning a Conditional Implementation Date;

paragraphs 2.11.10, 2.11.11, 2.11.12 and 2.11.13 shall apply mutatis mutandis.

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(a) there shall be a Relevant Challenge where any necessary consent or permission

to bring an appeal or seek a judicial review from or of a decision by the

Authority to accept or reject a Modification Proposal is granted and such an

appeal or judicial review is made, brought or proceeded with; and

(b) Proposed Implementation Date means a proposed Implementation Date set out

in a Modification Report in accordance with Annex F-1 in relation to any

Modification Proposal in respect of which a decision has been made (or

purportedly made) by the Authority to approve or reject such Modification

Proposal.

2.11.16 Where, in relation to a Modification Proposal which is the subject of a notice of the

NETSO pursuant to paragraphs 1.1.2 or 1.1.4, a Party either makes:

(a) an application for consent or permission to make or seek an appeal or judicial

review; or

(b) a Relevant Challenge;

the Party must submit written notice of such application and/or Relevant Challenge to the

Modification Secretary no later than 5 Business Days from the date such application and/or

Relevant Challenge is made.

2.11.17 Upon receiving a notice pursuant to paragraph 2.11.16(b) the Modification Secretary shall

send notice of such to the persons listed in paragraph 2.1.10(a).

2.11.18 Where the Authority considers that the proposed Implementation Date specified in a

Modification Report in accordance with paragraph 2.7.7(b) (and in respect of which

notification of the Authority’s decision pursuant to paragraphs 1.1.2 or 1.1.4 has not been

made), is or may no longer be appropriate or might otherwise prevent the Authority from

making such decision by reason of the effluxion of time, the Authority may direct the Panel

to consult with the persons listed in paragraph 2.1.10(a) on a revised proposed

Implementation Date.

2.11.19 Following the completion of a consultation held pursuant to paragraph 2.11.18, the Panel

shall recommend a revised proposed Implementation Date to the Authority.

2.11.20 If the Authority decides to accept the Panel’s recommendation pursuant to paragraph

2.11.19 the Authority shall notify the Panel of its decision and the revised proposed

Implementation Date so accepted shall, for the purposes of the Code, be deemed to have

replaced the proposed Implementation Date specified in the relevant Modification Report.

2.11.21 In respect of any consultation held pursuant to paragraph 2.11.18, the Panel may in

addition consult on any matters relating to the relevant Modification Report which in the

Panel’s opinion have materially changed since the relevant Modification Report was

submitted to the Authority in accordance with paragraph 2.7.6 and where it does so, the

Panel shall report on such matters as part of its recommendation in accordance with

paragraph 2.11.19.

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2.11.22 For the purposes of a direction made pursuant to paragraph 2.11.18, the Authority may:

(a) specify that the revised proposed Implementation Date shall not be prior to a

specified date;

(b) specify a reasonable period (taking into account a reasonable period for

consultation) within which the Panel shall be obliged to make its

recommendation in accordance with paragraph 2.11.19; and/or

(c) provide such reasons as it deems appropriate for such direction including in

respect of those matters referred to in paragraphs 2.11.22(a) and 2.11.22(b),

where applicable.

2.11.23 The provisions of paragraphs 2.11.18, 2.11.19, 2.11.20, 2.11.21 and 2.11.22 shall only be

effective in respect of any Modification Proposals raised pursuant to paragraph 2.1.1 (but

subject always to paragraphs 2.1.7 and 2.1.12) after the Relevant Implementation Date.

2.12 Intentionally left blank

3. CREATION AND MODIFICATION OF CODE SUBSIDIARY DOCUMENTS

3.1 Scope

3.1.1 Subject to the further provisions of this paragraph 3.1, the Panel may modify (whether by

way of amendment, deletion, addition, replacement or otherwise) existing Code Subsidiary

Documents or create additional Code Subsidiary Documents in accordance with the

procedures set out in paragraph 3.2.

3.1.2 The Panel may only make modifications to existing Code Subsidiary Documents or create

additional Code Subsidiary Documents if and to the extent that:

(a) the modified Code Subsidiary Document or additional Code Subsidiary

Document is consistent with, and does not impair, frustrate or invalidate, the

provisions of the Code; and

(b) the modification or addition does not impose new obligations or restrictions of a

material nature on Parties or Party Agents (or classes thereof) which are not

authorised or envisaged by, or subsidiary to, the rights and obligations of the

Parties under, the Code.

3.1.3 The Panel Secretary shall notify:

(a) each Party;

(b) each BSC Agent; and

(c) the Authority,

promptly of any modification to an existing Code Subsidiary Document or the creation of

any new Code Subsidiary Document.

3.1.4 A modification to or the addition of a Code Subsidiary Document pursuant to this

paragraph 3.1 shall take effect on the later of:

(a) the date specified by the Panel; and

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(b) the date of any notice issued pursuant to paragraph 3.1.3.

3.1.5 The Panel may establish a Panel Committee, in accordance with Section B, which shall be

responsible for reviewing, considering and recommending changes to Code Subsidiary

Documents or the establishment of new Code Subsidiary Documents with a view to

ensuring that the Code and the Code Subsidiary Documents together continue to facilitate

achievement of the Applicable BSC Objective(s).

3.1.6 Not used.

3.2 Procedures

3.2.1 The Panel shall, prior to making any modification to a Code Subsidiary Document or to

establishing a new Code Subsidiary Document pursuant to paragraph 3.1.1, consult with

Parties and interested third parties in such manner as it considers appropriate, in the light of

the complexity, importance and urgency of the proposed change and shall have regard to

any representations made and not withdrawn during such consultation.

3.2.2 In complying with paragraph 3.2.1, the Panel shall ensure that the proposed draft changes

are copied to each Party and (subject, to the extent applicable, to Section H1.4.3) otherwise

published in such manner as it sees fit, and Parties and interested third parties shall be

given a reasonable opportunity to comment on the proposed changes, having regard to the

urgency of the matter.

3.2.3 The provisions of BSCP40 shall apply in relation to the modification of any existing or the

establishment of any new Code Subsidiary Document pursuant to this paragraph 3.

3.3 Master Registration Agreement

3.3.1 Without prejudice to the generality of the foregoing, in relation to the Master Registration

Agreement:

(a) where:

(i) changes to the BSC Requirements for the MRA are to be effected

through changes to a Code Subsidiary Document and such changes

are approved by the Panel; and

(ii) the corresponding changes to the Priority Provisions (as defined in

the MRA) are agreed under the Master Registration Agreement,

the Parties shall use their reasonable endeavours to ensure that such changes to

the Code Subsidiary Document and to the MRA are made with effect from the

same date;

(b) without prejudice to the Authority's powers in relation to the Implementation

Date of an Approved Modification, the Panel shall be responsible for liaising

with the relevant forum under the Master Registration Agreement to ensure co-

ordination of the implementation of changes to the BSC Requirements for the

MRA;

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(c) where BSCCo receives a copy of a change request to the Priority Provisions

under the Master Registration Agreement which has been proposed under the

terms of the Master Registration Agreement, BSCCo:

(i) may recommend to the Panel that a proposal to modify the Code

should be made or that a modification should be made to a Code

Subsidiary Document in consequence of such change request; and

(ii) shall consult as it sees fit with Parties; and

(iii) shall, within the timescale indicated in the copy of the change

request, provide the relevant forum under the Master Registration

Agreement with comments, if any, on the change request (having

regard to the views of Parties expressed in response to any

consultation which BSCCo undertakes) and shall indicate whether

an impact assessment may be necessary on the change request.

4. IS POLICIES

4.1 Establishment

4.1.1 The Panel may establish and implement policies addressing, among other things, the

following matters:

(a) the establishment and maintenance of a quality management system;

(b) the establishment of a design authority to oversee changes to BSC Systems;

(c) the establishment of a change co-ordination function to assist in the co-

ordination of changes to the BSC Systems;

(d) the establishment and maintenance of appropriate security arrangements

(covering, for example, confidentiality, system access control and building

access control).

4.1.2 The purpose of the IS Policies shall be to give assurance to Parties that the BSC Systems

meet any requirements associated with quality.

4.1.3 The policies described in paragraph 4.1.1 shall be known as "IS Policies" and shall be

published in such manner as the Panel sees fit.

4.2 Changes to BSC Systems

4.2.1 Where a change is proposed to a BSC System which does not require a Code Modification

or a modification to a Code Subsidiary Document, such change shall be evaluated,

developed and, if approved by the Panel, implemented in accordance with the IS Policies

and with BSCP40.

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5. SIGNIFICANT CODE REVIEW

5.1 Significant Code Review Phase

5.1.1 The Authority may at any time notify Parties of a Significant Code Review.

5.1.2 The notice referred to in paragraph 5.1.1 shall include:

(a) a statement that the Authority’s review shall constitute a Significant Code

Review;

(b) the start date of the Significant Code Review; and

(c) a description of the matters for consideration within the scope of the Significant

Code Review.

5.1.3 Subject to paragraphs 5.1.3A and 5.1.4, a Significant Code Review Phase shall commence

on the date specified by the Authority pursuant to paragraph 5.1.2(b) and shall be deemed

to have ceased for the purposes of the Code on the date that:

(a) the NETSO raises a SCR Modification Proposal in accordance with a direction

from the Authority pursuant to paragraph 5.3.1 arising from the relevant

Significant Code Review;

(aa) the Authority raises a SCR Modification Proposal arising from the relevant

Significant Code Review; or

(b) the Authority issues a statement to Parties to the effect that no direction in

accordance with paragraph 5.1.3(a) or SCR Modification Proposal in

accordance with 5.1.3(aa) will be issued;

provided that the Authority shall issue a direction pursuant to paragraph 5.3.1(a), raise a

SCR Modification Proposal pursuant to 5.1.3(aa) or issue a statement pursuant to

paragraphs 5.1.3(b) or 5.1.3A within 28 days after the Authority publishes its Significant

Code Review Conclusions.

5.1.3A If the Authority issues a statement that it will continue work and/or issue a direction in

accordance with paragraph 5.3B, the Significant Code Review Phase will be deemed to

have ended when;

(a) the Authority issues a statement that the Significant Code Review Phase has

ended;

(b) one of the circumstances in paragraphs 5.1.3(aa) or (b) occurs (irrespective of

whether such circumstance occurs within 28 days after the Authority has

published its Significant Code Review Conclusions); or

(c) the Authority makes a decision consenting or otherwise to the modification of

the BSC following the Panel’s submission of its report under paragraph 5.3A.

5.1.4 Unless the Authority issues a statement in accordance with paragraph 5.1.3A, if any of the

Authority’s direction described in paragraphs 5.3.1(a), a SCR Modification Proposal as

described in paragraph 5.1.3(aa) or the Authority’s statement described in paragraph

5.1.3(b) are not issued within 28 days after the date on which the Authority publishes its

Significant Code Review Conclusions then, for the purposes of the Code, a Significant

Code Review Phase shall be deemed to have ended on the 29th day after publication of the

Significant Code Review Conclusions.

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5.2 Modifications raised during a Significant Code Review Phase

5.2.1 The Authority may notify the Panel at any time of its determination that a Proposed

Modification raised during a Significant Code Review Phase is exempt from the Significant

Code Review (a "SCR Exempt Modification Proposal").

5.2.2 Unless the Authority issues a notification pursuant to paragraph 5.2.1 the Panel shall, as

soon as reasonably practicable after a Modification Proposal is raised during a Significant

Code Review Phase, conduct a SCR Suitability Assessment of the relevant Modification

Proposal and submit a SCR Suitability Assessment Report to the Authority which shall

include the Panel’s assessment of:

(a) whether such Modification Proposal falls within the scope of a Significant Code

Review and its reasons for that assessment;

(b) whether such Modification Proposal is a SCR Modification Proposal; and

(c) any other matters which the Panel considers to be relevant including the

urgency or otherwise of the Modification Proposal.

5.2.3 For the purposes of a SCR Suitability Assessment, the Panel may invite representations

from Parties or conduct a consultation with such of those persons listed in paragraph

2.1.10(a) as it deems fit in its absolute discretion provided that any associated SCR

Suitability Assessment Report shall contain such representations or consultation responses

(as the case may be).

5.2.4 Following receipt of a SCR Suitability Assessment Report the Authority may notify the

Panel of its determination of whether the relevant Modification Proposal falls within the

scope of a relevant Significant Code Review.

5.2.5 Subject to paragraph 5.2.6 but without prejudice to paragraph 2.1.12, a Modification

Proposal raised during a Significant Code Review Phase shall proceed in accordance with

paragraph 2 of this Section F until and unless the Authority notifies the Panel of its

determination that such Modification Proposal falls within the scope of a Significant Code

Review (a "SCR Subsumed Modification Proposal") whereupon the Panel shall, as soon

as reasonably practicable, notify those persons listed at paragraph 2.1.10(a) and the

Proposer that such SCR Subsumed Modification Proposal shall not proceed further in

accordance with paragraph 2 of this Section F until the relevant Significant Code Review

Phase has ended in accordance with paragraph 5.1.3.

5.2.6 Without prejudice to paragraph 5.2.10, the Authority may notify the Panel that,

notwithstanding its determination that a Modification Proposal falls within the scope of the

relevant Significant Code Review, having considered all the relevant circumstances

including the urgency of the subject matter of the Modification Proposal, such

Modification Proposal may proceed in accordance with paragraph 2 of this Section F.

5.2.7 Subject to paragraph 5.2.9, for the avoidance of doubt, if the Authority determines that a

Proposed Modification is a SCR Exempt Modification Proposal then for the purposes of

the Code any associated Alternative Proposal shall be treated as a SCR Exempt


5.2.8 At any time prior to the submission of a Modification Report in respect of a SCR Exempt

Modification Proposal in accordance with paragraph 2.7.6, the Authority may direct that

the Panel re-submit a SCR Suitability Assessment Report in respect of that SCR Exempt

Modification Proposal and/or any associated Alternative Proposal, provided that until and

unless the Authority makes a determination in accordance with paragraph 5.2.9 such SCR

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Exempt Modification Proposal and/or any associated Alternative Proposal shall proceed in

accordance with paragraph 2 of this Section F.

5.2.9 Following the receipt of a SCR Suitability Assessment Report pursuant to paragraph 5.2.8,

if the Authority notifies the Panel of its determination that the relevant Proposed

Modification and/or any associated Alternative Modification shall be treated as a SCR

Subsumed Modification Proposal for the purposes of the Code then such Modification

Proposal shall not proceed further until the relevant Significant Code Review Phase has

ended in accordance with paragraph 5.1.3 and the Modification Secretary shall notify the

Authority’s determination pursuant to this paragraph 5.2.9 to those persons listed in

paragraph 2.1.10(a).

5.2.10 The provisions of paragraph 2.9 shall apply mutatis mutandis to a SCR Subsumed

Modification Proposal as if:

(a) references to a "proposal" and a "Modification Proposal" were references to a

"SCR Subsumed Modification Proposal";

(b) references to BSCCo and/or the NETSO were removed in paragraphs 2.9.1 and

2.9.2, such that the right to make a recommendation to the Panel to treat a SCR

Subsumed Modification Proposal as an Urgent Modification Proposal were

limited to the Proposer; and

(c) the Proposer were obliged to provide reasons for any recommendation to the

Panel pursuant to paragraph 2.9.1.

5.2.11 For the avoidance of doubt, if the Authority consents to treat a SCR Subsumed

Modification Proposal as an Urgent Modification Proposal it shall cease to be treated as a

SCR Subsumed Modification Proposal for the purposes of the Code and shall proceed in

accordance with paragraph 2.9.

5.3 Significant Code Review Modifications

5.3.1 The Authority may direct the NETSO to raise a SCR Modification Proposal and:

(a) the NETSO shall comply with the Authority’s direction (including any

timetable relating thereto);

(b) the NETSO and/or the Panel shall not withdraw the SCR Modification Proposal

pursuant to paragraphs 2.1.12 and 2.1.12A respectively without the prior

consent of the Authority;

(c) the SCR Modification Proposal shall not be amalgamated with any other

Modification Proposal in accordance with paragraph 2.3 or otherwise without

the prior consent of the Authority; and

(d) the Authority’s Significant Code Review Conclusions (if any) or direction in

respect of the SCR Modification Proposal shall not fetter the views of the

relevant Workgroup, the voting rights of the Panel or the recommendation of

the Modification Report in respect of such SCR Modification Proposal.

5.3.1A The Authority may raise a SCR Modification Proposal and:

(a) the Panel shall not withdraw the SCR Modification Proposal pursuant to

paragraphs 2.1.12A without the prior consent of the Authority;

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(b) the SCR Modification Proposal shall not be amalgamated with any other

Modification Proposal in accordance with paragraph 2.3 or otherwise without

the prior consent of the Authority; and

(c) the Authority’s Significant Code Review Conclusions (if any) or direction in

respect of the SCR Modification Proposal shall not fetter the views of the

relevant Workgroup, the voting rights of the Panel or the recommendation of

the Modification Report in respect of such SCR Modification Proposal.

5.3.2 The Panel shall not refuse to accept a SCR Modification Proposal in accordance with

paragraph 2.1.4 or otherwise.

5.3.3 If, pursuant to paragraphs 5.3.1(b) and 5.3.1A(a), the Authority consents to the withdrawal

of a SCR Modification Proposal, the provisions of paragraph 2.1.12B shall apply to such

SCR Modification Proposal.

5.3A Authority Led SCR Modification

5.3A.1 Where the Authority has issued a statement in accordance with paragraph 5.1.3A and/or a

Backstop Direction in accordance with paragraph 5.3B.1, the Authority may submit an

Authority Led SCR Modification Proposal for an Authority Led SCR Modification

directly to the Panel.

5.3A.2 In response to an Authority Led SCR Modification Proposal the Panel shall prepare an

Authority Led SCR Modification Report which shall include;

(a) an evaluation of the proposed Authority Led SCR Modification; and

(b) an assessment of the extent to which the proposed Authority Led SCR

Modification would better facilitate achievement of the applicable BSC

objective(s); and

(c) a detailed explanation of the Panel’s reasons for that assessment (such

assessment to include, where the impact is likely to be material, an assessment

of the proposal on greenhouse gas emissions, to be conducted in accordance

with such guidance on the treatment of carbon costs and evaluation of the

greenhouse gas emissions as may be issued by the Authority from time to time);

and

(d) a timetable for implementation of the Authority Led SCR Modification,

including the date with effect from which such modification could take effect.

5.3A.3 The Authority Led SCR Modification Report shall be submitted to the Authority as soon

after the SCR Modification Proposal is submitted for evaluation as is appropriate (taking

into account the complexity, importance and urgency of the modification).

5.3A.4 The Authority can require the revision and re-submission of the Authority Led SCR

Modification Report in accordance with paragraph 2.7A.1;

5.3A.5 The timetable referred to in paragraph 5.3A.2(d) for implementation of any modification

shall be set by the Authority under paragraph 5.3A.1 or where no timetable has been issued

by the Authority under paragraph 5.3A.1, the timetable shall be such as will enable the

modification to take effect as soon as practicable, account being taken of the complexity,

importance and urgency of the modification with the Authority having discretion to change

the timetable.

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5.3A.6 The timetable for the completion of the procedural steps for a Authority Led SCR

Modification, as outlined in paragraphs 5.3A.2, 5.3A.3 and 5.3A.4, shall be set by the

Authority in its sole discretion.

5.3A.7 Subject to paragraph 5.3A.6 the Panel may conduct such consultation with Parties and

interested third parties as it considers necessary.

5.3A.8 The Significant Code Review Conclusions and Authority Led SCR Modification Proposal

shall not fetter the voting rights of the Panel or the recommendation procedures informing

the report described at paragraph 5.3A.2.

5.3B Backstop Direction

5.3B.1 Where a SCR Modification Proposal has been made in accordance with paragraph 5.3.1 or

5.3.1A and it falls within the scope of paragraph 2.1.1(h), the Authority may issue a

direction (a "Backstop Direction"), which requires such proposal(s) and any alternatives to

be withdrawn and which causes the Significant Code Review phase to recommence.

Paragraph 2.1.12B shall not apply when a Backstop Direction is issued.

5.4 Modifications raised prior to a Significant Code Review

5.4.1 Without prejudice to paragraph 2.1.12(a), the Proposer of a Modification Proposal raised

prior to a Significant Code Review may at any time prior to completion of the

Workgroup’s report prepared in accordance with paragraph 2.6.4, request that the Panel

suspend progress of such Modification Proposal until the relevant Significant Code Review

ceases in accordance with paragraph 5.1.3.

5.4.2 The Proposer shall specify the reasons for a request submitted in accordance with

paragraph 5.4.1.

5.4.3 If the Panel is satisfied that a Modification Proposal should be suspended pursuant to

paragraph 5.4.1 ("a SCR Suspended Modification Proposal"), the Modification Secretary

shall notify those persons listed in paragraph 2.1.10(a).

5.4.4 Upon cessation of the relevant Significant Code Review in accordance with paragraph

5.1.3, the Panel shall, subject to paragraph 2.2.9, revise the timetable for completion of the

Definition Procedure and/or Assessment Procedure (as the case may be) relating to a SCR

Suspended Modification Proposal taking into account the period of suspension.

5.4.5 For the avoidance of doubt, a period of suspension in respect of a SCR Suspended

Modification Proposal shall not be treated as a period of extension of the timetable for the

purposes of paragraph 2.2.9.

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6. SELF-GOVERNANCE

6.1 Determination of Self-Governance

6.1.1 A Modification Proposal shall be treated as suitable for the self-governance route ("a Self-

Governance Modification Proposal") where:

(a) subject to paragraphs 6.1.2, 6.1.3 and 6.1.4, the Panel has submitted (and not

withdrawn) a Self–Governance Statement to the Authority in respect of such

Modification Proposal; or

(b) the Authority notifies the Panel of its determination that such Modification

Proposal satisfies the Self-Governance Criteria and is suitable for the self-

governance route.

6.1.2 The Panel may conduct a consultation of the relevant persons listed in paragraph 2.1.10(a)

prior to submitting a Self-Governance Statement to the Authority but where it does so, it

shall unless otherwise directed by the Authority, submit copies of all consultation

responses received to the Authority at least 7 days prior to the date it intends to make any

determination in accordance with paragraph 6.1.3.

6.1.3 Subject to paragraph 6.1.4, the Panel may determine no earlier than 7 days after submitting

the consultation responses to the Authority in accordance with paragraph 6.1.2 whether or

not a Proposed Self-Governance Modification or any associated Alternative Self-

Governance Modification better facilitates the achievement of the Applicable BSC

Objectives when compared to the existing provisions of the Code.

6.1.4 Where paragraph 6.1.1(a) applies, the Panel may determine a Self-Governance

Modification Proposal in accordance with paragraph 6.1.3 until and unless the Authority

directs the Panel that such Modification Proposal does not satisfy the Self-Governance

Criteria and is not suitable for self-governance provided that such direction occurs no later

than any relevant determination by the Panel in accordance with paragraph 6.1.3.

6.1.5 For the avoidance of doubt, if a Modification Proposal is not suitable for self-governance in

accordance with paragraph 6.1.1 or as otherwise determined by the Authority, it shall be

processed as further provided in paragraph 2 of this Section F.

6.1.6 For the avoidance of doubt (but subject always to the provisions of this paragraph 6) the

provisions of paragraph 2 of this Section F shall apply mutatis mutandis to a Self-

Governance Modification Proposal as if:

(a) references to a "Proposed Modification" were references to a "Proposed Self-

Governance Modification";

(b) references to a "Alternative Modification" were references to a "Alternative

Self-Governance Modification"; and

(c) references to a "Modification Report" were references to a "Self-Governance

Modification Report".

6.1.7 A Self-Governance Statement shall, wherever possible, include the Panel’s proposed date

for the Panel’s determination of a relevant Self-Governance Modification Proposal,

provided that without prejudice to the foregoing the Modification Secretary shall notify the

Authority as soon as reasonably practicable of the proposed date where it is not stated in

the Self-Governance Statement or any revisions to such proposed date.

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6.2 Withdrawal of a Self-Governance Statement

6.2.1 The Panel may, prior to making its determination pursuant to paragraph 6.1.3, withdraw an

associated Self-Governance Statement provided that it notifies those persons listed in

paragraph 2.1.10(a) of its decision and the reasons in respect thereof, and subject to any

determination of the Authority pursuant to paragraph 6.1.1(b), such Modification Proposal

shall be processed as further provided in paragraph 2 of this Section F.

6.3 Implementation of a Self-Governance Modification Proposal

6.3.1 Within the same day as the Panel determines whether or not the Proposed Self-Governance

Modification or any associated Alternative Self-Governance Modification should be

implemented in accordance with paragraph 6.1.3, the Modification Secretary shall notify

the Authority, the NETSO, each of the persons referred to in paragraph 1.9.3 and each

Party of the Panel’s determination.

6.3.2 Within 3 Business Days after the notification pursuant to paragraph 6.3.1, the Modification

Secretary shall finalise the relevant Self-Governance Modification Report and shall

forthwith:

(a) submit such Self-Governance Modification Report to the Authority and the

NETSO; and

(b) copy such Self-Governance Modification Report to:

(i) each Party; and


(iii) each of the persons referred to in paragraph 1.9.3.

6.3.3 Subject always to paragraph 6.4, following receipt of a Self-Governance Modification

Report pursuant to paragraph 6.3.2(a), the NETSO shall serve a notice of modification on

the Modification Secretary signed by the NETSO in accordance with the determination of

the Panel set out in the relevant Self-Governance Modification Report and furthermore:

(a) the Code shall (if applicable) be modified in accordance with the terms of such

notice; and

(b) the Modification Secretary shall send a copy of such notice to all the persons

listed in paragraph 1.1.2(b).

6.3.4 The Self-Governance Modification Report shall not specify a Self-Governance

Implementation Date (if any) earlier than 16 Business Days after the Panel’s determination

pursuant to paragraph 6.1.3.

6.4 Appeal relating to the Panel’s determination of a Self-Governance Modification

Proposal

6.4.1 The Panel’s determination in relation to a Proposed Self-Governance Modification

or any associated Alternative Self-Governance Modification shall be implemented

in accordance with paragraph 6.3.3 unless an appeal is notified by any of the

persons listed in paragraph 2.1.10(a) to the Authority and the Panel in accordance

with paragraphs 6.4.2 and 6.4.10 no later than 15 Business Days after the relevant

Panel determination was notified to Parties pursuant to paragraph 6.3.1.

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6.4.2 Subject to paragraph 6.4.2A, any of the persons listed in paragraph 2.1.10(a) (an

"appealing party") may raise an appeal in relation to a determination of the Panel

pursuant to paragraph 6.3.1 upon the basis that:

(a) the appealing party is, or is likely to be, unfairly prejudiced by the

implementation or non-implementation of a Self-Governance Modification

Proposal;

(b) in the case of an Approved Self-Governance Modification Proposal, the

Proposed Self-Governance Modification or an associated Alternative Self-

Governance Modification (if any) does not better facilitate the achievement of

one or more of the Applicable BSC Objectives; or

(c) in the case of a Rejected Self-Governance Modification Proposal, the Proposed

Self-Governance Modification or an associated Alternative Self-Governance

Modification (if any) better facilitates the achievement of one or more of the

Applicable BSC Objectives.

6.4.2A The Secretary of State, a CFD Settlement Services Provider and a CM Settlement Services

Provider shall not be entitled to raise an appeal under paragraph 6.4.2.

6.4.3 Where an appeal is raised in relation to a determination of the Panel pursuant to paragraph

6.3.1 the Authority may:

(a) refuse permission to appeal where:

(i) the appeal does not comply with paragraphs 6.4.1; and/or

(ii) none of the grounds set out in paragraph 6.4.2 have been specified

by the appealing party as the basis for their appeal; or

(iii) in the opinion of the Authority the appeal has been brought for

reasons which are trivial, vexatious or have no reasonable prospect

of success; or

(b) where permission to appeal has not been refused pursuant to paragraph 6.4.3(a),

consider the appeal and:

(i) reject the appeal where, in the opinion of the Authority, the criterion

set out in paragraph 6.4.2(a) has not been satisfied and/or the

determination of the Panel pursuant to paragraph 6.3.1 was correct;

or

(ii) subject to paragraph 6.4.5, uphold the appeal where, in the opinion

of the Authority, at least one of the criteria for appeal set out in

paragraph 6.4.2 are satisfied.

6.4.4 If permission to appeal is refused in accordance with paragraph 6.4.3(a) or an appeal is

rejected in accordance with paragraph 6.4.3(b)(i), the Panel’s determination pursuant to

paragraph 6.3.1 shall be implemented and (if applicable) the Code shall be modified in

accordance with paragraph 6.3.3(a).

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6.4.5 Without prejudice to paragraph 6.4.9, where the Authority upholds an appeal in accordance

with paragraph 6.4.3(b)(ii), it shall:

(a) quash the relevant Panel determination appealed against and determine whether

or not the relevant Proposed Self-Governance Modification and any associated

Alternative Self-Governance Modification should be implemented, provided

that in such event the relevant Panel determination appealed against shall, for

the purposes of the Code, be treated as a Modification Report containing a

recommendation of the Panel pursuant to paragraph 2.7.7; or

(b) remit the Proposed Self-Governance Modification and any associated

Alternative Self-Governance Modification back to the Panel for re-

consideration and a further determination by the Panel pursuant to paragraph

6.1.3.

6.4.6 Notwithstanding the provisions of paragraph 6.3, a Proposed Self-Governance

Modification and any associated Alternative Self-Governance Modification shall not be

implemented pending the outcome of any appeal in respect of that Self-Governance


6.4.7 For the avoidance of doubt, if the Authority upholds an appeal in accordance with

paragraph 6.4.3(b)(ii) and makes a determination in accordance with paragraph 6.4.5(a),

the provisions of paragraph 2 of this Section F shall apply to the relevant Modification

Proposal.

6.4.8 For the avoidance of doubt, the provisions of paragraphs 6.3 and 6.4 shall apply to any

further determination of the Panel made pursuant to a remittal by the Authority in

accordance with paragraph 6.4.5(b).

6.4.9 For the avoidance of doubt, the Panel shall comply with any decision or direction of the

Authority arising from an appeal under this paragraph 6.4, including the provision of

additional analysis or information.

6.4.10 A notice of appeal issued pursuant to paragraph 6.4.1 shall specify:

(a) the basis for the appeal in accordance with paragraph 6.4.2; and

(b) the reasons for the appeal.

7. FAST TRACK SELF-GOVERNANCE

7.1 Determination of Fast Track Self-Governance

7.1.1 A Modification Proposal shall be treated as suitable for the fast track self-governance route

(a "Fast Track Self-Governance Modification Proposal") where the Panel determines by

unanimous vote that a Modification Proposal meets all of the Fast Track Self-Governance

Criteria.

7.2 Implementation of Fast Track Self-Governance Modification Proposals

7.2.1 A Fast Track Self-Governance Modification Proposal shall only be implemented pursuant

to paragraph 7 where:

(a) the Panel has unanimously determined that the Fast Track Self-Governance

Modification Proposal should be implemented; and

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(b) no objections have been received pursuant to paragraph 7.3.

7.2.2 Within 1 Business Day after the Panel has made its determination under paragraph 7.2.1,

the Modification Secretary shall send the Fast Track Self-Governance Modification Report

to the Authority, the NETSO and each Party and publish it on the BSC Website.

7.2.3 Subject always to paragraph 7.3, following receipt of a Fast Track Self-Governance

Modification Report pursuant to paragraph 7.2.2, the NETSO shall serve a notice of

modification on the Modification Secretary signed by the NETSO in accordance with the

determination of the Panel set out in the relevant Fast Track Self-Governance Modification

Report and:

(a) the Code shall be modified in accordance with the terms of such notice; and

(b) the Modification Secretary shall send a copy of such notice to all the persons

listed in paragraph 1.1.2(b).

7.2.4 The Fast Track Self-Governance Modification Report shall not specify a Fast Track Self-

Governance Implementation Date (if any) earlier than 16 Business Days after the date of

the notice under paragraph 7.2.2.

7.3 Objections to Fast Track Self-Governance Modification Proposals

7.3.1 The Panel’s determination in relation to a Fast Track Self-Governance Modification

Proposal shall be implemented in accordance with paragraph 7.2.3 unless an objection is

raised in accordance with paragraph 7.3.2.

7.3.2 Any of the persons specified in paragraph 7.2.2 may raise an objection to a determination

of the Panel pursuant to paragraph 7.1.1 or 7.2.1 by:

(a) notifying the Modification Secretary of the objection no later than 15 Business

Days after the date of the notice sent under paragraph 7.2.2; and

(b) including in such objection notice an explanation of why the objecting person

objects to the Modification Proposal including, where applicable, rationale for

why the Modification Proposal does not satisfy all of the Fast Track Self-

Governance Criteria.

7.3.3 Within 1 Business Day of receiving an objection notice the Modification Secretary shall

notify each of the persons specified in paragraph 1.1.2 (b) that an objection has been raised

in respect of that Fast Track Self-Governance Modification Proposal.

7.3.4 Where an objection is raised pursuant to paragraph 7.3 the Fast Track Self-Governance

Modification Proposal shall not be implemented under paragraph 7 and the Panel shall:

(a) determine that such Modification Proposal shall be progressed under paragraph

6 in which case:

(i) the Modification Proposal shall be deemed to be a Self-Governance


(ii) the Fast Track Self-Governance Modification Report shall be

deemed to be a Self-Governance Statement; and

(iii) the provisions of paragraphs 6.3, 6.4 and (subject always to the

provisions of paragraph 6) 2.7 shall apply in respect of that

Modification Proposal; or

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(b) determine that such Modification Proposal shall be progressed as further

provided in paragraph 2.7 of this Section F; or

(c) determine that such Modification Proposal shall be progressed as further

provided in paragraph 2.6 of this Section F.

7.3.5 Before making a determination in accordance with paragraphs 7.3.4(a) or 7.3.4(b) the Panel

shall first make a determination as to whether the Modification Proposal better facilitates

the achievement of the Applicable BSC objectives when compared with the existing

provisions of the Code.

8. AUTHORITY RAISED OR DIRECTED MODIFICATION PROPOSALS

8.1 Authority Raised Modification Proposals

8.1.1 Where a Modification Proposal has been raised pursuant to paragraph 2.1.1(g), the Panel

shall comply with any direction(s) issued by the Authority in respect of that Modification

Proposal setting and/or amending a timetable for the;

(a) completion of each stage of the Modification Procedure; and/or

(b) implementation of the modification.

8.2 Authority Directed Modification Proposals

8.2.1 Subject to paragraph 5.3, the Authority may direct the NETSO to raise a Modification

Proposal only in relation to modifications which the Authority reasonably considers are

necessary to comply with or implement the Electricity Regulation and/or any relevant

legally binding decisions of the European Commission and/or the Agency.

8.2.2 The NETSO and the Panel shall comply with any direction(s) issued by the Authority in

accordance with paragraph 8.2.1:

(a) requiring the NETSO to raise a modification proposal; and/or

(b) setting or amending a timetable for the:

(i) completion of each of the proposal steps; and/or

(ii) implementation of a modification.

8.3 Acceptance of Authority Raised or Directed Modification Proposals

8.3.1 The Panel shall not refuse to accept such a Modification Proposal which has been raised

pursuant to paragraphs 8.1 or 8.2 whether in accordance with paragraph 2.1.4 or otherwise.

8.4 Withdrawal of Authority Raised or Directed Modification Proposals

8.4.1 Modification Proposals raised or directed by the Authority in accordance with paragraphs

8.1 or 8.2 shall not be withdrawn by the NETSO and/or the Panel pursuant to paragraphs

2.1.12 and 2.1.12A respectively without the prior consent of the Authority.

8.4.2 If, pursuant to paragraph 8.3.1, the Authority consents to the withdrawal of a Modification

Proposal, the provisions of paragraph 2.1.12B shall apply to such Modification Proposal.

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8.5 Amalgamation of Authority Raised or Directed Modification Proposals

8.5.1 The Modification Proposal which has been raised pursuant to paragraph 8.1 or 8.2 shall not

be amalgamated with any other Modification Proposal in accordance with paragraph 2.3 or

otherwise without the prior consent of the Authority.

8.6 Non-Fettering of Voting Rights

8.6.1 In respect of any Modification Proposal which has been raised pursuant to paragraph 8.1 or

8.2 the views of the relevant Workgroup, the voting rights of the Panel or the

recommendation of the Panel in respect of such Modification Proposal shall not be fettered

or restricted notwithstanding that such Modification Proposal has been so raised under

paragraph 8.1 or 8.2.

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ANNEX F-1: CONTENTS OF REPORTS

1. The matters referred to in paragraph 2.6.4 of Section F are (to the extent applicable to the

proposal in question):

(a) a description of the Proposed Modification including the details of, and the

rationale for, any variations made (or, as the case may be, omitted) by the

Proposer together with the views of the Workgroup, and an analysis of and the

views and rationale of the Workgroup as to whether (and, if so, to what extent)

the Proposed Modification would better facilitate achievement of the Applicable

BSC Objective(s);

(b) a description and analysis of any Alternative Modification developed by the

Workgroup which, as compared with the Proposed Modification, would better

facilitate achievement of the Applicable BSC Objective(s) and the views and

rationale of the Group in respect thereof;

(c) an assessment or estimate (as the case may be) of:


Modification on BSC Systems;

(ii) any changes and/or developments which would be required to BSC

Systems in order to give effect to the Proposed Modification and any

Alternative Modification;

(iii) the total development and capital costs of making the changes and/or

delivering the developments referred to in paragraph (ii);

(iv) the time period required for the design, build and delivery of the

changes and/or developments referred to in paragraph (ii);

(v) the increase or decrease in the payments due under the BSC Agent

Contracts in consequence of the Proposed Modification and any


(vi) the additional payments (if different from those referred to in

paragraph (v)) due in connection with the operation and maintenance

of the changes and/or developments to BSC Systems as a result of

the Proposed Modification and any Alternative Modification;

(vii) any other costs or liabilities associated with BSC Systems

attributable to the Proposed Modification and any Alternative

Modification;

(d) an assessment of:


Modification on the Core Industry Documents and/or the System

Operator-Transmission Owner Code and an indication of potential

inconsistencies the Proposed Modification and any Alternative

Modification have with the Capacity Market Documents and/or the

CFD Documents;

(ii) the changes which would be required to the Core Industry

Documents and/or the System Operator-Transmission Owner Code

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in order to give effect to the Proposed Modification and any


(iii) the mechanism and likely timescale for the making of the changes

referred to in paragraph (ii);

(iv) the changes and/or developments which would be required to central

computer systems and processes used in connection with the

operation of arrangements established under the Core Industry

Documents and/or the System Operator-Transmission Owner Code

and/or the Capacity Market Documents and/or the CFD Documents;

(v) the mechanism and likely timescale for the making of the changes

referred to in paragraph (iv);

(vi) an estimate of the costs associated with making and delivering the

changes referred to in paragraphs (ii) and (iv);

(vii) any potential inconsistencies the Proposed Modification and any

Alternative Modification have with the CFD Arrangements and/or

the CM Arrangements;

(viii) whether (and the extent to which) the Proposed Modification and

any Alternative Modification seeks to amend the EBGL Article 18

terms and conditions;

(ix) where a Proposed Modification or any Alternative Modification

includes an amendment to the Article 18 Terms and Conditions, the

expected impact on the EBGL Objectives,

together with a summary of representations in relation to such matters;

(e) an assessment of:

(i) the likely increase or decrease in BSC Costs (to the extent not

already taken into account in paragraph (c) above) in consequence of

the Proposed Modification and any Alternative Modification;

(ii) the changes required to Systems and processes of BSCCo in order to

give effect to the Proposed Modification and any Alternative

Modification; and

(iii) the BSC Costs which are expected to be attributable to the

implementation of the Proposed Modification and any Alternative

Modification, to the extent not taken into account under any other

provision of this Annex F-1;

(f) to the extent such information is available to the Workgroup, an assessment of

the impact of the Proposed Modification and any Alternative Modification on

Parties in general (or classes of Parties in general) and Party Agents in general,

including the changes which are likely to be required to their internal systems

and processes and an estimate of the development, capital and operating costs

associated with implementing the changes to the Code and to Core Industry

Documents and/or the System Operator-Transmission Owner Code;

(g) an assessment of the Proposed Modification and any Alternative Modification

in the context of the statutory, regulatory and contractual framework within

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which the Code sits (taking account of relevant utilities, competition and

financial services legislation);

(h) a summary of the representations (pursuant to paragraph 2.2.6 or 2.6.5(b) of

Section F) made by Parties and interested third parties during the consultation

undertaken in respect of the Proposed Modification and any Alternative

Modification and the views and comments of the Workgroup in respect thereof;

(i) a summary of the analysis and impact assessment prepared by the NETSO

pursuant to paragraph 2.6.6 or 2.8.1A and, where the Modification Proposal has

been subject to the Assessment Procedure, the views and comments of the

Workgroup in respect thereof;

(j) a summary of the impact assessment prepared by relevant BSC Agents and the

views and comments of the Workgroup in respect thereof;

(k) a summary of any impact assessment prepared by Core Industry Document

Owners and/or the STC Committee, and a summary of any impact assessment

prepared by:

(i) the Secretary of State, the CM Settlement Body and/or a CM

Settlement Services Provider in relation to the Capacity Market

Rules;

(ii) the Secretary of State in relation to the Capacity Market Documents;

(iii) the Secretary of State, any CfD Counterparty and/or any CFD

Settlement Services Provider in relation to the AF Rules; or

(iv) the Secretary of State in respect of the CFD Documents,

and the views and comments of the Workgroup in respect thereof;

(l) a copy of the terms of reference and any report or analysis of external

consultants or advisers engaged in respect thereof;

(m) a list of the key assumptions which the Workgroup has made in formulating its

views;

(n) any other matters required by the terms of reference of such Workgroup;

(o) any other matters which the Workgroup consider should properly be brought to

the attention of the Panel to assist the Panel in forming a view as to whether the

Proposed Modification and any Alternative Modification would better facilitate

achievement of the Applicable BSC Objective(s) including an assessment,

conducted in accordance with paragraph 2.6.2A, of the quantifiable impact of

the Proposed Modification and any Alternative Modification on greenhouse gas

emissions where such impact is likely to be material;

(p) subject to paragraph 2.6.8 and 2.6.9 of the Section F, the proposed text to

modify the Code in order to give effect to the Proposed Modification and any

Alternative Modification, together with a commentary setting out the nature and

effect of such text and of other areas of the Code which would be affected by

the changes;

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(q) subject to paragraph 2.11.20 of Section F, the Workgroup's proposed

Implementation Date(s) for implementation (subject to the consent of the

Authority) of the Proposed Modification and any Alternative Modification;

(r) an executive summary of the project brief prepared by BSCCo pursuant to

paragraph 2.6.6(e);

(s) a recommendation (where applicable) as to whether, if the Proposed

Modification or Alternative Modification is approved, Settlement Runs and

Volume Allocation Runs carried out after the Implementation Date of such

Approved Modification in respect of Settlement Days prior to that date should

be carried out taking account of such Approved Modification or not;

(t) the proposed text (if any) to modify the Memorandum and Articles of

Association of BSCCo and/or the BSC Clearer in order to give effect to the

Proposed Modification and any Alternative Modification, together with a

commentary setting out the nature and effect of such text and of other areas of

the Memorandum and Articles of Association and/or the Code which would be

affected by the changes; and

(u) a summary of any changes which would be required to Code Subsidiary

Documents as a consequence of such Proposed Modification or Alternative

Modification.

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ANNEX F-2: EBGL ARTICLE 18 TERMS AND CONDITIONS

This table identifies those Sections or parts of the Code that constitute EBGL Article 18 terms and

conditions.

The mapping, for the purposes of Article 18 of the Guideline on Electricity Balancing, of the terms

and conditions for balancing services providers and balancing responsible parties to the GB

framework (comprising the Code, the Grid Code, the CUSC and the Standard Contract Terms) was

approved by the Authority on 8 October 2019.

Article EBGL Text BSC Section

18.2

The terms and conditions pursuant to

paragraph 1 shall also include the rules for

suspension and restoration of market

activities pursuant to Article 36 of

Regulation (EU) 2017/2196 and rules for

settlement in case of market suspension

pursuant to Article 39 of Regulation (EU)

2017/2196 once approved in accordance

with Article 4 of Regulation (EU)

2017/2196.

G3

18.4 The terms and conditions for balancing

service providers shall:

18.4.a

define reasonable and justified

requirements for the provisions of

balancing services;

A, H3, H4.2, H4.7, H4.8, H5.5, H6, H10,

J3.3, J3.6, J3.7 and J3.8

18.4.b

allow the aggregation of demand facilities,

energy storage facilities and power

generating facilities in a scheduling area to

offer balancing services subject to

conditions referred to in paragraph 5 (c);

K3.3, K8, S6.2, S6.3 and S11

18.4.c

allow demand facility owners, third parties

and owners of power generating facilities

from conventional and renewable energy

sources as well as owners of energy

storage units to become balancing service

providers;

K3.2, K3.3, K8

18.4.d

require that each balancing energy bid

from a balancing service provider is

assigned to one or more balance

responsible parties to enable the

calculation of an imbalance adjustment

pursuant to Article 49.

T4, Q7.2, Q6.4

18.5 The terms and conditions for balancing

service providers shall contain:

18.5.a

the rules for the qualification process to

become a balancing service provider

pursuant to Article 16;

J3.3, J3.6, J3.7, J3.8, K3.2, K3.3 and K8

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18.5.c

the rules and conditions for the

aggregation of demand facilities, energy

storage facilities and power generating

facilities in a scheduling area to become a

balancing service provider;

K3.3 and K8

18.5.d

the requirements on data and information

to be delivered to the connecting TSO and,

where relevant, to the reserve connecting

DSO during the prequalification process

and operation of the balancing market;

O

18.5.e

the rules and conditions for the assignment

of each balancing energy bid from a

balancing service provider to one or more

balance responsible parties pursuant to

paragraph 4 (d);

T4

18.5.h

the rules for the determination of the

volume of balancing energy to be settled

with the balancing service provider

pursuant to Article 45;

T3

18.5.i

the rules for the settlement of balancing

service providers defined pursuant to

Chapters 2 and 5 of Title V;

T1.14, T3 and U

18.5.j

a maximum period for the finalisation of

the settlement of balancing energy with a

balancing service provider in accordance

with Article 45, for any given imbalance

settlement period;

U2.2

18.5.k

the consequences in case of non-

compliance with the terms and conditions

applicable to balancing service providers.

H3, Z7 and A5.2

18.6 The terms and conditions for balance

responsible parties shall contain: -

18.6.a

the definition of balance responsibility for

each connection in a way that avoids any

gaps or overlaps in the balance

responsibility of different market

participants providing services to that

connection;

K1.2, P3 and T4.5

18.6.b the requirements for becoming a balance

responsible party;

A, H3, H4.2, H4.7, H4.8, H5.5, H6, H10,

J3.3, J3.6, J3.7, J3.8, K2, K3.3 and K8

18.6.c

the requirement that all balance

responsible parties shall be financially

responsible for their imbalances, and that

the imbalances shall be settled with the

connecting TSO;

N2, N6, N8, N12, and T4,

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18.6.d

the requirements on data and information

to be delivered to the connecting TSO to

calculate the imbalances;

O, Q3, Q5.3, Q5.6, Q6.2, Q6.3, Q6.4

18.6.e

the rules for balance responsible parties to

change their schedules prior to and after

the intraday energy gate closure time

pursuant to paragraphs 3 and 4 of Article

17;

P2

18.6.f

the rules for the settlement of balance

responsible parties defined pursuant to

Chapter 4 of Title V;

T4, U2

18.6.g

the delineation of an imbalance area

pursuant to Article 54(2) and an imbalance

price area;

GB constitutes one imbalance area and imbalance price area and they are equal to

the synchronous area

18.6.h

a maximum period for the finalisation of

the settlement of imbalances with balance

responsible parties for any given

imbalance settlement period pursuant to

Article 54;

U2.2

18.6.i

the consequences in case of non-

compliance with the terms and conditions

applicable to balance responsible parties;

H3, Z7 and A5.2

18.6.j

an obligation for balance responsible

parties to submit to the connecting TSO

any modifications of the position;

P2

18.6.k the settlement rules pursuant to Articles

52, 53, 54 and 55; T4, U2

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G – 1 of 16 Effective Date: 28 May 2020

SECTION G: CONTINGENCIES

1. GENERAL

1.1 Provisions in Code

1.1.1 This Section G sets out or refers to provisions of the Code which are to apply in certain

contingencies, and related provisions.

1.1.2 The following provisions of the Code address the possibility of certain emergencies and

other unusual or unexpected events of various kinds:

(a) Section P5, which addresses circumstances in which the ECVAA may be

unable to receive Energy Contract Volume Notifications and Metered Volume

Reallocation Notifications;

(b) Section Q7, which addresses the possibility of manifest errors in the submission

or acceptance of Bids and Offers;

(c) Section Q8, which addresses circumstances in which the NETSO may be unable

to receive Physical Notifications;

(d) paragraph 3, which addresses Black Start Periods; and

(e) paragraph 4, which applies where the Secretary of State exercises certain

emergency powers.

1.1.3 For the avoidance of doubt, paragraph 1.1.2 is not intended to be an exclusive list of

provisions of the Code which address failures or delays or other abnormalities in the

implementation of the Code.

1.1.4 The provisions of the Code referred to in paragraph 1.1.2 are "Contingency Provisions".

1.1.5 Paragraph 5 sets out arrangements for giving effect to the recovery of Exceptional Costs

pursuant to the Fuel Security Code.

1.2 Exclusion of reconciliation

1.2.1 Where, pursuant to any Contingency Provision, any entitlement or liability by way of Ad-

hoc Trading Charge is to be determined in relation to any Settlement Day:

(a) the amount of such Ad-hoc Trading Charge shall be determined on the basis of

data derived from the Initial Settlement Run (or if any Reconciliation

Settlement Run has already been carried out at the time at which the amount of

such charge is to be determined, the latest such Reconciliation Settlement Run);

(b) unless the Panel expressly otherwise decides, no adjustment or reconciliation

shall be made in the determination of such Ad-hoc Trading Charge upon or as a

result of the later carrying out of any Reconciliation Settlement Run or other

adjustment of any such data;

(c) the Ad-hoc Trading Charge itself will have arisen outside any Settlement Run

and accordingly shall be excluded from account (in both paragraphs (a) and (b)

of Section N6.4) by the FAA in carrying out any reconciliation under that

Section.

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1.3 Party Daily Reallocation Proportions

1.3.1 For the purposes of the Code, in relation to any Trading Party and any Settlement Day, the

"Party Daily Reallocation Proportion" is the proportion determined as:

RCRCp / p RCRCp

where p represents the sum over all Trading Parties.

1.3.2 It is acknowledged that in certain circumstances the value of Party Daily Reallocation

Proportion for a Trading Party might be negative, in which case any reference (in any

Contingency Provision) to a liability of that Trading Party as to its Party Daily Reallocation

Proportion of any amount shall be construed as an entitlement.

1.3.3 In accordance with paragraph 1.2.1, in the application of any Contingency Provision the

Party Daily Reallocation Proportions shall be determined by reference to values of Daily

Party Residual Settlement Cashflow determined in the Settlement Run (excluding the

Interim Information Settlement Run) last carried out for the relevant Settlement Day before

such proportions are to be determined, and shall not (unless the Panel decides otherwise)

subsequently be revised.

1.4 Application of Contingency Provisions

1.4.1 For the avoidance of doubt, the Contingency Provisions shall apply (in accordance with

their terms) only in relation to Settlement Periods commencing on or after the Go-live

Date, but an event or circumstance giving rise to the application or operation of such

provisions may occur or prevail before or on or after the Go-live Date.

1.5 Review of emergency arrangements

1.5.1 If at any time the Secretary of State announces his intention to carry out a review of

arrangements which apply or may apply in anticipation of or following the exercise of any

of his powers under Sections 34 and 35 of the Act, Section 96 of the Act, and sections 1 to

4 of the Energy Act 1976 (including the arrangements provided for in the Fuel Security

Code) the provisions of this paragraph 1.5 shall apply.

1.5.2 BSCCo shall participate (as and to the extent requested by or on behalf of the Secretary of

State) in any review of the type referred to in paragraph 1.5.1.

1.5.3 Following any review of the type referred to in paragraph 1.5.1 (or during such review if so

requested by the Secretary of State), the Panel shall propose a modification of the Code

(including the provisions in paragraph 4) which in the opinion of the Panel, on the

recommendation of BSCCo, and after consultation with the Secretary of State and the

Authority, is appropriate to support and/or to reflect any modifications of the arrangements

referred to in that paragraph (including any modifications of the Fuel Security Code), or

any new such arrangements, which may be made or established (by or on behalf of or at the

behest of the Secretary of State) in consequence of such review.

1.5.4 Where the Panel has proposed a modification of the Code under paragraph 1.5.3, the Panel

shall take steps, in consultation with the Authority, to coordinate the application (in relation

to such proposal) of the procedures in Section F with other steps taken in consequence of

such review for the consideration of modifications to (or establishment of) arrangements

referred to in paragraph 1.5.3.

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2. AVOIDABLE COSTS

2.1 General

2.1.1 This paragraph 2 applies for the purposes of determining Avoidable Costs (which are used

in the calculation of compensation claims for certain Contingency Provisions) in relation to

a BM Unit and:

(a) such changes ("relevant changes") in Exports and/or Imports of that BM Unit

during a Settlement Period as are specified in or determined pursuant to the

relevant Contingency Provision; or

(b) where paragraph 3 (Black Start) applies, a BM Unit that is the subject of a black

start instruction (as defined in paragraph 3.3.1C) whether or not relevant

changes occur.

2.1.2 Where any such Contingency Provision applies, the Panel shall determine, in its opinion,

what is the amount of the net costs of operating the BM Unit which would not have been

incurred but for:

(a) the relevant changes in Exports and/or Imports: or

(b) a black start instruction.

2.1.3 For the purposes of the Code, the "Avoidable Costs" shall be the amount determined by

the Panel under paragraph 2.1.2 (which may for the avoidance of doubt be a negative

amount, in a case where net costs were saved or revenues earned).

2.1.4 In determining what are the costs of operating a BM Unit and what such costs would not

have been incurred (as provided in paragraph 2.1.2), the Panel shall have regard to the

following:

(a) costs include lost revenues, and costs saved include revenues earned;

(b) in the case of a BM Unit comprising premises of a Customer, the costs which

are to be counted are the costs incurred by the Customer;

(c) costs are not to be counted unless they are demonstrably:

(i) costs directly incurred in the operation of the Plant and Apparatus

comprised in the BM Unit;

(ii) costs which were reasonably and prudently incurred, and incurred

pursuant to commitments reasonably and prudently made; and

(iii) costs the amount of which would be expected to differ according to

whether there occurred the relevant changes in Exports and/or

Imports or changes in operation to comply with a black start

instruction in the relevant Settlement Period alone;

(d) costs include costs (incurred or saved) of consumption of electricity or fuel;

(e) the following costs are not to be counted:

(i) costs or losses in respect of damage to property (including Plant or

Apparatus) or death or injury to persons;

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(ii) insurance premia; and

(iii) financing costs and overhead costs;

(f) amounts payable (other than by way of rebate of payment for supply), under

any contract or otherwise, by way of compensation for loss of supply or

otherwise in consequence of relevant changes in Exports and/or Imports, by the

Lead Party to the person referred to in paragraph (b), are to be disregarded; and

(g) amounts payable or receivable under the Code in respect of Trading Charges or

BSCCo Charges are to be disregarded.

2.2 Procedures

2.2.1 Where under any Contingency Provision the amount of Avoidable Costs is to be

determined for any Settlement Period or Periods:

(a) the Lead Party shall prepare, consistently with the principles in paragraphs 2.1.3

and 2.1.4, and submit to BSCCo its estimate (for each such Settlement Period)

of the net costs of operating the BM Unit which would not have been incurred:

(i) but for the relevant change in Exports and/or Imports; or

(ii) but for a black start instruction,

together with an explanation of and supporting information for its estimate, and

shall provide to the Panel such further information as the Panel may require for

the purposes of making its determination under paragraph 2.1.2;

(b) if required by the Panel, the Lead Party shall, by such time as the Panel may

reasonably stipulate, submit a statement signed by its (or in the case in

paragraph 2.1.4(b), the Customer's) statutory auditors to the effect that the

Party's estimate of such costs have been prepared on a fair, complete and

reasonable basis and consistent with the principles in paragraphs 2.1.3 and

2.1.4; and

(c) BSCCo shall notify the Panel's determination under paragraph 2.1.2 to the Lead

Party.

2.2.2 If requested by the Authority, the Panel will discuss with the Authority any

determination(s) to be made under paragraph 2.1.2, and will take account of any guidance

from the Authority in making such determination(s); and the Panel will exclude from

account (in such determination(s)) any cost, or a cost of any description, which the

Authority directs the Panel to exclude.

3. BLACK START

3.1 General

3.1.1 This paragraph 3 will apply if and only if the NETSO informs Users pursuant to OC9.4 of

the Grid Code that either a Total Shutdown or a Partial Shutdown exists and that the

NETSO intends to implement a Black Start (the terms 'Users', 'Total Shutdown', 'Partial

Shutdown', 'Black Start' and 'Total System' each having, for the purposes of this paragraph

3, the meanings given thereto in the Grid Code).

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3.1.2 Where this paragraph 3 applies:

(a) BSCCo shall (as soon as is practicable following the NETSO’s notification

under OC9.4 of the Grid Code) notify all Parties and any CM Settlement

Services Provider that a Total Shutdown or Partial Shutdown exists and that the

NETSO intends to implement a Black Start;

(b) the NETSO shall (as soon as is practicable following its notification under

OC9.4 of the Grid Code) determine, in its reasonable opinion, the time and date

with effect from which the Total Shutdown or Partial Shutdown commenced

and inform BSCCo of that time and date;

(c) BSCCo shall determine the Settlement Period that corresponds with the time

and date from which the Total Shutdown or Partial Shutdown commenced (as

determined by the NETSO under paragraph (b));

(d) a Black Start Period shall exist with effect from the start of the Settlement

Period determined by BSCCo under paragraph 3.1.2(c) until either:

(i) the end of the Settlement Period immediately before the Settlement

Period determined by the Panel under paragraph 3.1.8; or

(ii) the end of the Settlement Period determined by BSCCo under

paragraph 3.1.9(c);

(e) BSCCo shall, as soon and so far as is practicable, notify all Parties and any CM

Settlement Services Provider of the Settlement Period from which the Black

Start Period commenced;

(f) BSCCo shall, as soon and so far as is practicable, keep Parties informed of the

operation of BSC Systems and, in so far as it is informed by the NETSO, of the

operation of the Transmission System during a Black Start Period; and

(g) the provisions of paragraph 3.3 shall apply in relation to all Settlement Periods

which fall within a Black Start Period.

3.1.3 Where the NETSO informs Users (pursuant to OC9.4 of the Grid Code) that a Total

Shutdown exists, then:

(a) a Market Suspension Period shall exist, and the provisions of paragraphs 3.1.8

and 3.2 shall apply, with effect from the start of the Settlement Period

determined by BSCCo under paragraph 3.1.2(c) until the end of the Settlement

Period immediately before the Settlement Period determined by the Panel under


(b) BSCCo shall (as soon and so far as is practicable following its determination

under paragraph 3.1.2(c)) notify Parties and any CM Settlement Services

Provider of the Settlement Period from which the Market Suspension Period

commenced.

3.1.4 Where the NETSO informs Users (pursuant to OC9.4 of the Grid Code) that a Partial

Shutdown exists, then the NETSO shall, at least once every 15 minutes from the time and

date that the Partial Shutdown commenced (as determined by the NETSO in accordance

with paragraph 3.1.2(b)), monitor the spot time Initial National Demand Out-Turn against

its spot time National Demand forecast made day-ahead and prior to the commencement of

the Partial Shutdown (the "baseline forecast") until the time at which either:

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(a) the Market Suspension Threshold is met, or deemed to be met, in accordance

with paragraph 3.1.5; or

(b) the NETSO determines (in accordance with paragraph 3.1.9) that the Total

System has returned to normal operation.

3.1.5 Where, at any time during the Partial Shutdown:

(a) the NETSO determines, in its reasonable opinion, that the spot time Initial

National Demand Out-Turn is equal to or lower than 95% of the baseline

forecast (the "Market Suspension Threshold");

(b) no more baseline forecast data is available to the NETSO; or

(c) 72 hours have elapsed since the time and date that the Partial Shutdown

commenced (as determined by the NETSO in accordance with paragraph

3.1.2(b));

then the Market Suspension Threshold shall be met, or in the case of paragraphs 3.1.5(b) or

3.1.5(c) shall be deemed to be met, with effect from that time and date.

3.1.6 The NETSO shall (as soon as is practicable) notify BSCCo of the time and date on which

the Market Suspension Threshold was met in accordance with paragraph 3.1.5(a), or was

deemed to be met in accordance with paragraph 3.1.5(b).

3.1.7 Where the Market Suspension Threshold has been met, or deemed to be met, in accordance

with paragraph 3.1.5 then:

(a) BSCCo shall determine the Settlement Period that corresponds with the time

and date from when the Market Suspension Threshold was met, or deemed to be

met, under paragraph 3.1.5;

(b) a Market Suspension Period shall exist, and the provisions of paragraphs 3.1.8

and 3.2 shall apply, with effect from the start of the Settlement Period

determined by BSCCo under paragraph 3.1.7(a) until the end of the Settlement

Period immediately before the Settlement Period determined by the Panel under


(c) BSCCo shall (as soon and so far as is practicable) notify Parties and any CM

Settlement Services Provider of the Settlement Period from which the Market

Suspension Period commenced.

3.1.8 Where there is a Market Suspension Period under either paragraph 3.1.3 or paragraph 3.1.7,

then:

(a) following the NETSO's determination (under OC9.4.7.9 of the Grid Code) of

the time the Total System could return to normal operation, the Panel shall

determine, after consultation with the NETSO, the Settlement Period with effect

from which the provisions of paragraph 3.2 are to cease to apply, having regard

to the following matters and any other matters or processes set out in the

relevant BSCP:

(i) the time the Total System could return to normal operation under the

Grid Code determined by the NETSO;

(ii) the desirability of a return to normal operation under the Code at the

same time or as soon as practicable thereafter; and

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(iii) the amount of time which (in the opinion of the Panel) it is

reasonable to allow for Parties to recommence operations under or

for the purposes of Sections Q and P;

(b) at any time up until one hour prior to the Settlement Period from which the

provisions of paragraph 3.2 would otherwise cease to apply, the NETSO may

determine (in accordance with OC9.4.7.9 of the Grid Code) that the Total

System could not return to normal operation at that time;

(c) the Panel shall revise its determination under paragraph (a) if the NETSO

determines under paragraph (b) that the Total System could not return to normal

operation at that time; and

(d) BSCCo shall promptly notify all Parties and any CM Settlement Services

Provider of the Panel's determination under paragraph (a) and, where

applicable, paragraph (c).

3.1.9 Where a Partial Shutdown exists but there has been no Market Suspension Period:

(a) the NETSO shall inform BSCCo of its determination and, if applicable, any

revised determination (under OC9.4.7.9 of the Grid Code) of the time the Total

System could return to normal operation;

(b) the NETSO shall inform BSCCo as soon as possible of the time at which (in the

NETSO’s determination) the Total System returned to normal operation; and

(c) BSCCo shall determine the Settlement Period that corresponds with the time

that the Total System returned to normal operation (as determined by the

NETSO under paragraph 3.1.9(b)), and shall promptly notify the Panel, Parties

and any CM Settlement Services Provider of that Settlement Period.

3.2 Variation of rules

3.2.1 In relation to all Settlement Periods which fall within a Market Suspension Period:

(a) the operation of the balancing mechanism shall be suspended in accordance

with Section Q5.4;

(b) Section Q8 shall not apply;

(c) the notification of contract volumes shall be suspended in accordance with

Section P1.6 (and, if otherwise applicable, Section P5 shall not apply);

(d) a single imbalance cash-out price shall apply in accordance with Section T1.7;

(e) the value of Credit Assessment Energy Indebtedness (CEIpj) shall be set to zero

for all Trading Parties for the purposes of Section M;

(f) the value of Metered Energy Indebtedness (MEIpj) shall be set to zero for all

Trading Parties for the purposes of Section M; and

(g) the operation of the TERRE Market shall be suspended in accordance with

paragraph Q5A.2.

3.2.1A In relation to all Settlement Days that fall wholly or partially within a Market Suspension

Period the value of Actual Energy Indebtedness (AEIp) shall be set to zero for all Trading

Parties for the purposes of Section M.

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3.2.2 Where this paragraph 3.2 applies, the Panel may, after consultation with the NETSO, for

the purposes of making arrangements for a return to normal operations under the Code,

determine and notify Parties that:

(a) any data submitted (in accordance with Section Q2, Q3 or Q4) by Lead Parties,

and/or

(b) any Volume Notifications submitted by Volume Notification Agents

during any part or parts (as specified by the Panel in such notification to Parties) of the

Market Suspension Period, shall be disregarded for the purposes of the Code.

3.3 Lead Party compensation

3.3.1 Subject to the provisions of the Code, each Party which:

(a) is the Lead Party of any BM Unit (whether or not comprising Plant or

Apparatus which is comprised in a Black Start Station as defined in the Grid

Code), and

(b) is given a black start instruction as defined in paragraph 3.3.1C,

may, within the period of 20 Business Days after the end of the Black Start Period, submit

to BSCCo a claim for payment of compensation to be determined in accordance with this

paragraph 3.3.

3.3.1A The Panel may approve a period longer than 20 Business Days for the submission of a

claim for compensation under paragraph 3.3.1:

(a) upon application of the Lead Party within the period of 20 Business Days after

the end of the Black Start Period; or

(b) as the Panel deems appropriate in the circumstances.

3.3.1B A claim for payment of compensation submitted under paragraph 3.3.1 shall comprise:

(a) a claim, the form of which shall be prescribed under the relevant BSCP;

(b) a statement detailing the claim in accordance with paragraph 3.3.5(a); and

(c) any additional supporting material in accordance with paragraph 3.3.5(b).

3.3.1C For the purposes of this paragraph 3.3, a "black start instruction" is:

(a) in relation to any Settlement Period(s) which fall within both a Black Start

Period and a Market Suspension Period, an instruction given by the NETSO

pursuant to OC9.4.7.4, BC2.7 or BC2.9 of the Grid Code; or

(b) in relation to any Settlement Period(s) which fall within a Black Start Period but

not within a Market Suspension Period, an instruction given by the NETSO

pursuant to BC2.9.1.2(e)(i) of the Grid Code.

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3.3.2 For the purposes of this paragraph 3.3, in relation to a Settlement Period in the Black Start

Period and a BM Unit:

(a) the "black start compensation amount" shall be an amount determined as:

(A - B)

where

A is the amount of the Avoidable Costs of the Lead Party in relation to

the operation of the BM Unit as determined by the Panel under

paragraphs 3.3.4(a) and 3.3.4(c);

B is an amount determined in accordance with paragraph (b) or (c);

(b) if the Settlement Period falls within a Market Suspension Period, the amount B

shall be determined as:

(BSCQnij * Pn

ij)

where Pnij is the System Sell Price (equal, in accordance with Section T1.7.1, to

the System Buy Price) for that Settlement Period;

(c) if the Settlement Period falls within a Black Start Period but not within a

Market Suspension Period, the amount B shall be determined as:

∑a (BSCAEInaj – BSCAEI(n-1)

aj)

where ∑a is the sum over the Lead Party Energy Account and all Subsidiary

Party Energy Accounts for the BM Unit;

(d) for the purposes of paragraph (c), BSCAEInaj is the Account Energy Imbalance

Cashflow calculated for Energy Account a in accordance with Section T4,

except that:

(i) for the BM Unit i to which the claim relates, the BM Unit Metered

Volume QMij shall be replaced with:

QMij - BSCQnij

(ii) for any BM Unit i' for which the Panel has previously determined a

black start compensation volume BSCQn'i'j for Settlement Period j,

the BM Unit Metered Volume QMi'j shall be replaced with:

QMi'j - BSCQn'i'j

(e) for the purposes of paragraph (c), BSCAEI(n-1)aj is the Account Energy

Imbalance Cashflow calculated for Energy Account a in accordance with

Section T4, except that for any BM Unit i' for which the Panel has previously

determined a black start compensation volume BSCQn'i'j for Settlement Period j,

the BM Unit Metered Volume QMi'j shall be replaced with:

QMi'j - BSCQn'i'j

(f) for the purposes of paragraphs (b) to (e), BSCQnij is the quantity (in MWh)

determined by the Panel under paragraph 3.3.4(b) and shall be called the "black

start compensation volume";

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(g) for the purposes of paragraphs (b) to (e), BSCQnij shall be negative where it

represents an increase in net Imports or a reduction in net Exports, zero (0)

where it represents no change in Exports and/or Imports and otherwise positive.

3.3.3 Where a Party submits a claim under paragraph 3.3.1, each Settlement Period (in the Black

Start Period) in relation to which the Lead Party is given any black start instruction shall be

a "relevant" Settlement Period for the purposes of this paragraph 3.3, and the amounts to

be determined under this paragraph 3.3 shall be determined for all such Settlement Periods.

3.3.4 Where a Party submits a claim under paragraph 3.3.1, the Panel shall determine, in its

opinion:

(a) what changes in Exports and/or Imports of the BM Unit during each relevant

Settlement Period resulted from action taken by the Lead Party for the purposes

of complying (in accordance with the Grid Code) with black start instructions

relating to that Settlement Period; and

(b) what is the net quantity (in MWh) of such changes in Exports or Imports of the

BM Unit for each such Settlement Period; and

(c) what, if any, other changes occurred in the operation of the BM Unit as a result

of a black start instruction.

3.3.5 For the purposes of assisting the Panel to determine a claim for compensation under this

paragraph 3.3:

(a) the Lead Party shall, at the time at which it submits its claim under paragraph

3.3.1, provide a statement to the Panel of the changes which the Lead Party

considers to be the changes described in paragraph 3.3.4(a), the quantity which

the Lead Party considers to be the net quantity described in paragraph 3.3.4(b)

and the changes which the Lead Party considers to be the changes described in

paragraph 3.3.4(c), and shall provide such other information as the Panel may

reasonably request for the purposes of determining the matters in paragraphs

3.3.4(a), (b) and (c), for each relevant Settlement Period;

(b) the Lead Party may at the time at which it submits its claim under paragraph

3.3.1 submit additional supporting material to establish the validity of its claim;

(c) the Lead Party shall comply with the requirements of paragraph 2.2.1 in relation

to determination of Avoidable Costs;

(d) the NETSO and each Distribution System Operator shall provide such

information as the Panel may reasonably request for the purposes of

determining the black start compensation volumes; and

(e) the NETSO shall provide such information as the Panel may reasonably request

for the purposes of determining the changes in operation of a BM Unit

described in paragraph 3.3.4(c).

3.3.6 Where the Lead Party has submitted a claim in accordance with paragraph 3.3.1, subject to

the provisions of the Code:

(a) the Lead Party shall be entitled to be paid by the BSC Clearer the net sum, for

all relevant BM Units and relevant Settlement Periods, of the black start

compensation amounts, together with compound interest calculated by applying

the Base Rate on a daily basis on each compensation amount from (and

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including) the Initial Payment Date for the relevant Settlement Period to (but

not including) the date (if later) when such payment is made;

(b) for the avoidance of doubt, if the net sum for a Lead Party, of the black start

compensation amounts, for all relevant BM Units and relevant Settlement

Periods is a negative sum, the Lead Party shall not be liable to pay for that sum;

(c) each Trading Party (including the Lead Party) shall be liable to pay to the BSC

Clearer its Black Start Reallocation Proportion of the net amount payable to the

Lead Party under paragraph (a);

(d) the amounts of the entitlements and liabilities under paragraphs (a) and (c) shall

be Ad-hoc Trading Charges for the purposes of Section N6.9; and

(e) BSCCo shall give such instructions to the FAA as are necessary to give effect to

the payment of such Ad-hoc Trading Charges.

3.3.6A The Implementation Date for the application of compound interest pursuant to paragraph

3.3.6(a) shall be the Go-live Date.

3.3.7 For the purposes of the Code, in relation to any Trading Party, the Black Start Reallocation

Proportion is the proportion determined as:

d a i QCEiaj / d p i QCEiaj

where

i represents, for each Energy Account a, in Settlement Period j, the sum over all

BM Units i that are in offtaking Trading Units;

a represents the sum over all Energy Accounts a, for Party p;

p represents the sum over all Trading Parties p;

d represents the sum over all Settlement Periods in the seven Settlement Days

immediately preceding the Settlement Day on which the Black Start Period

commenced

provided that, where such seven day period includes any day before the Go-live Date, there

shall (in the above formula) be used, in relation to Settlement Periods in any such day, such

quantities (pursuant to the Pooling and Settlement Agreement or otherwise) as the Panel

shall determine to be appropriate.

4. CIVIL EMERGENCIES AND FUEL SECURITY PERIODS

4.1 Application of emergency powers

4.1.1 This paragraph 4 applies in any case (whether before, on or after the Go-live Date):

(a) where the Secretary of State gives a direction under Section 34(4)(b) of the Act;

or

(b) where:

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(i) any action is taken by or on behalf of Her Majesty's Government

pursuant to and in accordance with the emergency provisions set out

in sections 1 to 4 of the Energy Act 1976, and

(ii) the Secretary of State is of the opinion (in his discretion) that such

action has, or will or is likely to have, a material effect on the ability

of any person or persons to generate, participate in the transmission

of, distribute or supply electricity in pursuance of a Licence or

Exemption; or

(c) where any action is taken by or on behalf of Her Majesty's Government

pursuant to and in accordance with the emergency provisions set out in section

96 of the Act;

and (in any such case) for so long as such direction or action continues in force or effect,

and for such period (if any) thereafter as appears to the Secretary for State to be appropriate

in all the circumstances.

4.1.2 For the avoidance of doubt, where this paragraph 4 applies, directions and notices may

from time to time be given by the Secretary of State under each of paragraphs 4.2, 4.3 and

4.4 independently or together.

4.2 Single Imbalance Price

4.2.1 Where this paragraph 4 applies, if at any time the Secretary of State, in his discretion, after

consultation with the Authority, gives a direction to the Panel that this paragraph 4.2.1 is to

apply, specifying the time of commencement of such direction in accordance with

paragraph 4.2.2(a), a single imbalance cash-out price shall apply in accordance with

Section T1.7 in relation to each relevant Settlement Period.

4.2.2 For the purposes of paragraph 4.2.1, a relevant Settlement Period is a Settlement Period for

which Gate Closure falls within the period:

(a) commencing at the time specified by the Secretary of State (not being earlier

than the time at which his direction is given under paragraph 4.2.1); and

(b) ending at such time as the Secretary of State may (at any time after giving a

direction under paragraph 4.2.1) direct by notice of not less than 48 hours given

to the Panel.

4.2.3 Where the Secretary of State gives a direction to the Panel under paragraph 4.2.1 or

4.2.2(b), BSCCo shall send a copy of such direction to all Parties as soon as possible after

receiving the same.

4.2.4 For the avoidance of doubt, directions under paragraph 4.2.1 may be given by the Secretary

of State on more than one occasion (in relation to the same circumstances giving rise to the

application of this paragraph 4) where, following any one such direction, the period

referred to in paragraph 4.2.2 is to end or has ended.

4.3 Historic limit on balancing mechanism prices



apply, specifying the matters specified in paragraph 4.3.3, historic price limits shall apply

in the Balancing Mechanism in accordance with Section Q5.5 in relation to each relevant

BM Unit and relevant Settlement Period.

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(a) a relevant BM Unit is a BM Unit specified or of a description specified pursuant

to paragraph 4.3.3(b);

(b) a relevant Settlement Period is a Settlement Period for which Gate Closure falls

within the period:

(i) commencing at the time specified by the Secretary of State in

accordance with paragraph 4.3.3(b), and

(ii) ending at such time as the Secretary of State may (at any time after

giving a direction under paragraph 4.3.1) direct by notice of not less

than 48 hours given to the Panel.

4.3.3 The matters to be specified in a direction under paragraph 4.3.1 are:

(a) the time of commencement of such direction (not being earlier than the time at

which his direction is given under paragraph 4.3.1);

(b) either:

(i) that historic price limits (in accordance with Section Q5.5) are to

apply to all BM Units; or

(ii) the description or identity of the BM Units to which such historic

price limits are to apply; and

(c) whether such historic price limits are to be determined by reference to a period

other than that determined under Section Q5.5.2(c)(i), and if so what other

period.

4.3.4 Where the Secretary of State gives a direction to the Panel under paragraph 4.3.1 or

4.3.2(b)(ii), BSCCo shall send a copy of such direction to all Parties as soon as possible

after receiving the same.

4.3.5 For the avoidance of doubt, directions under paragraph 4.3.1 may be given by the Secretary

of State on more than one occasion (in relation to the same circumstances giving rise to the

application of this paragraph 4):

(a) where, following any one such direction, the period referred to in paragraph

4.3.2(b) is to end or has ended, or

(b) for the purposes of changing the BM Units to which historic price limits (in

accordance with Section Q5.5) are to apply or the period by reference to which

such historic price limits are to be determined.

4.3.6 If requested to do so, BSCCo shall assist the Secretary of State or his representative in

formulating any description of BM Units for the purposes of paragraph 4.3.3(b)(ii).

4.4 Revision of Credit Assessment Price



apply, specifying the time of commencement of such direction (in accordance with

paragraph 4.4.2(a)) and the period for which the direction is to apply, the Panel shall

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determine a reduced value of the Credit Assessment Price in accordance with such

principles and/or so as to achieve such objectives as may be specified in such direction.


(a) the reduced value of Credit Assessment Price shall (notwithstanding Section

M1.4.2(b)) be effective from the time specified by the Secretary of State (not

being earlier than the time at which his direction is given under paragraph 4.4.1)

and shall apply for the period so specified;

(b) the Panel may (in accordance with the principles and/or so as to achieve the

objectives so specified) determine different reduced values of Credit

Assessment Price to apply at different times during such period;

(c) the Panel shall not during such period determine a revised value of Credit

Assessment Price other than pursuant to paragraph 4.4.1.

4.4.3 Where the Secretary of State gives a direction to the Panel under paragraph 4.4.1, BSCCo

shall send a copy of such direction to all Parties as soon as possible after receiving the

same.

4.4.4 For the avoidance of doubt, a direction under paragraph 4.4.1 may be given by the

Secretary of State on more than one occasion (in relation to the same circumstances giving

rise to the application of this paragraph 4) and whether or not during the period specified in

an earlier such direction.

5. RECOVERY OF EXCEPTIONAL COSTS BY GENERATORS

5.1 Interpretation

5.1.1 In this paragraph the terms “Auditors”, “Exceptional Cost”, “Generation Business”,

“Generator”, “Licence Holders” and “Security Period” shall have the meanings ascribed to

those terms in the Fuel Security Code and the term “Claimant Customer” shall have the

meaning ascribed to the term “Customer” in the Fuel Security Code.

5.2 Applications For Recovery Of Exceptional Costs

5.2.1 Where a Generator is or has been subject to a direction given by the Secretary of State

under section 34 or section 35 of the Act and it considers that it has incurred Exceptional

Costs in relation to a BM Unit in anticipation of or during a Security Period, the Lead Party

in relation to that BM Unit may apply to the Panel for a determination that, in the opinion

of the Panel:

(a) the Generator has incurred Exceptional Costs in carrying on its Generation

Business as a result of a direction or directions given by the Secretary of State

(whether in anticipation of or during a Security Period) under section 34 or

section 35 of the Act; and

(b) the Generator should receive compensation in respect of those Exceptional

Costs:

(i) in the sum specified by the Generator in accordance with paragraph

5.4.1; or

(ii) in such other sum as the Panel deems appropriate.

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5.3 Timeframe For Applications

5.3.1 An application under paragraph 5.2.1 must be made within sixty days (or such longer

period as the Panel may in any case approve) after:

(a) the end of the period which begins with the date on which a direction under

section 34(4)(b) of the Act is given by the Secretary of State and ends on:

(i) such later date of commencement of a Security Period as may be

specified in that direction; or

(ii) in the case of an application for an interim payment of compensation

in respect of Exceptional Costs incurred, such later date as is

specified in that application where such application is made before

the end of the Security Period; or

(b) the end of the Security Period;

as the case may be during which the Exceptional Costs which are the subject of the

application were incurred.

5.3.2 Double recovery of costs by Generators is not permitted.

5.3.3 The procedure for submitting an application for Exceptional Costs (including the written

statement and any additional information in support of the application submitted under

paragraph 5.4) shall be as set out in the relevant BSCP. The Panel may determine any

additional procedural requirements in relation to the progress and procedure of an

application for Exceptional Costs.

5.4 Statement and Evidence in Support of Application

5.4.1 The Lead Party shall enclose with its application under paragraph 5.2.1 a written statement

(signed by a director of the relevant Generator) of the circumstances in which that

Generator considers that it has incurred Exceptional Costs and the amount of the

Exceptional Costs which that Generator considers that it has incurred and the Lead Party

shall provide a copy of any such application to the Authority.

5.4.2 The Lead Party may submit to the Panel with its application for Exceptional Costs under

paragraph 5.2.1 any additional information or explanation in support of its application


5.5 Provision Of Assistance To The Panel

5.5.1 The Lead Party shall obtain and supply to the Panel any information or explanation (and

shall provide such other assistance) as the Panel may from time to time request for the

purpose of disposing of an application under paragraph 5.2.1.

5.6 Auditor’s Statement

5.6.1 If required to do so by the Panel, the Lead Party shall, within such period as the Panel may

reasonably stipulate, submit a statement signed by:

(a) the Lead Party’s Auditors; and

(b) where the Exceptional Costs which are the subject of the application under

paragraph 5.2.1 relate to a BM Unit comprising the premises of a Claimant

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Customer and include costs incurred by that Claimant Customer, the Claimant

Customer’s Auditors

to the effect that the Generator’s estimate of Exceptional Costs has been prepared on a

basis which is both fair, complete and reasonable and consistent with the definition of the

term Exceptional Cost.

5.7 Discussions With The Authority

5.7.1 If required to do so by the Authority, the Panel will discuss with the Authority any

determinations to be made under paragraph 5.2.1 and, in making any such determinations,

shall take account of any guidance given by the Authority.

5.8 Mechanism For Recovery

5.8.1 When the Panel has made a determination under paragraph 5.2.1, it shall notify the Lead

Party of the determination, and that proportion of the Exceptional Costs allowed by the

Panel shall be settled as a charge upon Suppliers in a manner to be determined by the

Authority.

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H – 1 of 48 Effective Date: 24 June 2021

SECTION H: GENERAL

1. STRUCTURE

1.1 Introduction

1.1.1 This Section H sets out:

(a) arrangements for the establishment and designation of Code Subsidiary

Documents;

(b) the relationship of the Code with other documents;

(c) arrangements for the commencement of trading under the Code;

(d) the events constituting and the consequences resulting from a Default under the

Code;

(e) provisions relating to the ownership, use and disclosure of data;

(f) the limitation of liability of Parties under the Code;

(g) arrangements for the resolution of disputes; and

(h) other provisions defining the legal and contractual relationship between the

Parties.

1.2 Internal structure

1.2.1 The Code comprises:

(a) each of the Sections; and

(b) any Annex attached to a Section.

1.2.2 Not used.

1.2.3 The Code also refers to and creates obligations in respect of Code Subsidiary Documents.

1.2.4 Code Subsidiary Documents comprise each of the following documents:

(a) BSC Procedures;

(b) Codes of Practice;

(c) BSC Service Descriptions;

(d) Party Service Line 100;

(e) Data Catalogues;

(f) Communication Requirements Documents

(g) the Reporting Catalogue; and

(h) the LFM Specification.

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1.2.5 Subject to Section L3.2, a reference in the Code or in any Code Subsidiary Document to a

Code Subsidiary Document shall be to the version of that Code Subsidiary Document then

in force, unless the context otherwise requires.

1.2.6 Code Subsidiary Documents shall have binding effect for the purposes of the Code.

1.2.7 Subject to paragraph 1.2.8:

(a) each Party and each BSC Agent shall comply with (and each Party shall ensure

that its Party Agents comply with) each of the Code Subsidiary Documents in

force from time to time (whether or not such Code Subsidiary Document is

expressly identified or referred to in, or in a particular Section of, the Code) to

the extent such Code Subsidiary Document is applicable to such Party, BSC

Agent or Party Agent;

(b) without prejudice to paragraph 1.5 and other than in Section A, Section F, Section

H and Section X (including Annex X-1 and Annex X-2) references in the Code

to the Code shall be interpreted to include all relevant Code Subsidiary

Documents, unless the context otherwise requires; and

(c) a breach of any Code Subsidiary Document shall be treated as a breach of the

Code for the purposes of paragraph 3.

1.2.8 The provisions of paragraph 1.2.7 shall not apply to the BSC Service Descriptions (but

without prejudice to any obligations of BSC Agents under the BSC Agent Contracts).

1.3 Establishment of Code Subsidiary Documents

1.3.1 The Code Subsidiary Documents in force as at the Code Effective Date shall be those listed

in the Implementation Scheme and they shall be deemed to be adopted by the Panel, for the

purposes of the Code, as at the Code Effective Date (subject to the provisions of the

Implementation Scheme).

1.3.2 BSCCo shall:

(a) maintain an up-to-date list of the Code Subsidiary Documents, indicating the

version number of each Code Subsidiary Document then in force (and the version

numbers of previous versions) together with the date with effect from which each

such version applies or applied;

(b) make a copy of such list available to any person on request; and

(c) maintain a library of all past and current versions of each Code Subsidiary

Document (including, in the case of Codes of Practice, the versions referred to in

Section L3.2.3).

1.3.3 Existing Code Subsidiary Documents may be modified and new Code Subsidiary Documents

may be created in accordance with Section F3.

1.4 Access to Code

1.4.1 BSCCo shall provide a copy of the Code and of any Code Subsidiary Document to any person

on request, subject (other than in the case of the Authority) to payment by such person of an

amount (as approved by the Panel from time to time) not exceeding the reasonable costs of

BSCCo in making and providing such copy.

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1.4.2 In complying with paragraph 1.4.1 (and without prejudice to the requirements of that

paragraph), BSCCo shall, and shall be entitled to, take such steps as it considers appropriate

to protect the IPRs which BSCCo holds in such documents pursuant to paragraph 4.7.

1.4.3 Notwithstanding paragraph 1.4.1, BSCCo may, with the prior approval of the Panel, refuse

to provide a copy of any Code Subsidiary Document (or part of it) to a third party or to third

parties generally (or may make the provision thereof subject to conditions) to the extent only

and for the period that the provision of such Code Subsidiary Document (or part of it) to such

third party or parties would, in the opinion of BSCCo, substantially prejudice the interests of

all Parties collectively or classes of Parties collectively.

1.4.4 Where, with the approval of the Panel, BSCCo determines that a Code Subsidiary Document

(or part of it) should not be made available to a third party or to third parties generally

pursuant to paragraph 1.4.3, BSCCo shall notify Parties and the Authority accordingly.

1.4.5 Subject to any existing confidentiality obligation, each other Party shall be free to disclose

the Code or any Code Subsidiary Document to any third party to the extent that BSCCo

would be entitled to make such document(s) available to that third party pursuant to this

paragraph 1.4 and subject to compliance with any steps BSCCo may prescribe under

paragraph 1.4.2, provided always that, where BSCCo refuses to provide a copy of a Code

Subsidiary Document to a third party or third parties pursuant to paragraph 1.4.3, such Party

shall not disclose that Code Subsidiary Document to such third party or parties.

1.5 Precedence

1.5.1 In the event of any conflict between the provisions of the Code and:

(a) the provisions of any Code Subsidiary Document;

(b) the Code Administration Code of Practice Principles; and/or

(c) the provisions of any other document established or adopted under and pursuant

to the Code or any Code Subsidiary Document,

the provisions of the Code shall prevail.

1.5.2 In the event of any conflict between the provisions of one type of Code Subsidiary Document

and another, or between the provisions of one Code Subsidiary Document and another:

(a) the Codes of Practice shall take precedence over all other types of Code

Subsidiary Document;

(b) subject to paragraph (a), the Panel shall determine which provision is to take

precedence pending modification of the Code Subsidiary Document(s),

and the Panel shall take steps in accordance with Section F3 to remove such conflict.

1.5.3 In the event of any conflict between the provisions of a Code Subsidiary Document and the

provisions of any other document established or adopted under and pursuant to the Code or

any Code Subsidiary Document, the provisions of the Code Subsidiary Document shall

prevail.

1.5.4 The provisions of this paragraph 1.5 shall be subject to any express provision to the contrary

in the Code.

1.5.5 Not used.

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1.6 Relationship with other documents

1.6.1 If at any time there is a conflict between the BSC Requirements for the MRA (as defined in

Section K and as interpreted in the context of the Code) and the Priority Provisions (as

defined in, and interpreted in the context of, the Master Registration Agreement), the Parties

agree that:

(a) if and for so long as a Party complies with the Priority Provisions under the

Master Registration Agreement, it will not be in breach of its obligations under

the BSC Requirements for the MRA in respect of those provisions which are in

conflict with the Priority Provisions; and

(b) until such time as such conflict is resolved through the procedures set out in

clause 9 of the Master Registration Agreement and the applicable procedures

under the Code, the Priority Provisions shall prevail over the BSC Requirements

for the MRA with which they are in conflict,

provided that nothing in this paragraph 1.6.1 or clause 9.2 of the Master Registration

Agreement shall prejudice the form or content of any proposed change to resolve the conflict

and provided that, where such conflict arises as a result of a Code Modification, BSCCo (in

its capacity as MRA BSC Agent) shall propose a change under the MRA to the Priority

Provisions in order to resolve such conflict.

1.6.2 In the event of any conflict between the provisions of the Grid Code and the provisions of

the Code, no Party shall be liable hereunder or under the Grid Code as a result of complying

with its obligations under the Code or under the Grid Code provided that each Party shall

take such steps within its power as may be necessary, subject to and in accordance with the

provisions of the Code and the Grid Code relating to modifications, to resolve such conflict

as soon as possible.

1.6.3 Notwithstanding paragraph 1.6.2, the Parties acknowledge that, depending on the nature of

the conflict between the Grid Code and the Code, it may not be practicable or desirable for

individual Parties to comply with differing and conflicting obligations and, in that event, the

Panel and the NETSO, with the approval of the Authority, may determine which provisions

are to prevail pending modification of the Grid Code and/or the Code to remove such

conflict.

1.6.4 For the avoidance of doubt, a conflict for the purposes of this paragraph 1.6 arises where

compliance with the requirements of one document would necessarily (but for the provisions

of this paragraph 1.6) result in a breach of the other document and, accordingly, the existence

of an additional or supplementary requirement under one or other document in relation to

matters forming the subject of both documents does not, of itself, constitute a conflict for the

purposes of this paragraph 1.6.

1.6.5 In this paragraph 1.6, references to the Code include each of the Code Subsidiary Documents.

1.6.6 BSCCo shall inform the Panel and the NETSO as soon as reasonably practicable where it

becomes aware of any conflict or material inconsistency between the Code and another

applicable Industry Code.

1.7 IPR Litigation Requirements Document

1.7.1 With reference to the arrangements described or referred to in the IPR Litigation

Requirements document referred to in Section A2.2.5, it is agreed that those arrangements

shall take effect in accordance with their terms; and Parties shall be bound by the effect of

those arrangements; and the Panel and BSCCo shall have and discharge their respective

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powers, functions and responsibilities set out in and in accordance with those arrangements;

and all costs, expenses and liabilities incurred by BSCCo in connection with or pursuant to

those arrangements shall (subject as provided therein) be BSC Costs.

2. COMMENCEMENT AND TERM

2.1 Term

2.1.1 Without prejudice to paragraph 2.3, the Code shall come into force and take effect on and

from the Code Effective Date.

2.1.2 The Code shall have no fixed duration.

2.2 Implementation Scheme

2.2.1 Upon execution of or accession to the Framework Agreement, each Party shall execute or

accede to (as the case may be) the Scheme Framework Agreement and shall comply with

such parts of the Implementation Scheme as are expressed in the Implementation Scheme to

be binding in contract to the extent those parts apply to such Party.

2.2.2 The provisions of the Code and the Code Subsidiary Documents are varied or suspended

(and the requirements of the Code and Code Subsidiary Documents are deemed to be

satisfied) by or in accordance with, and for the period and to the extent set out in, the

Implementation Scheme and the Scheme Subsidiary Documents.

2.2.3 In the event of any conflict or inconsistency between the provisions of the Code (or any Code

Subsidiary Document) and the provisions of the Implementation Scheme (or any Scheme

Subsidiary Document), the provisions of the Implementation Scheme (or, as the case may

be, the Scheme Subsidiary Document) shall prevail.

2.2.4 The obligations in paragraph 2.2.1 shall not apply to any person who becomes a Party after

the date notified by the Secretary of State to the Panel for the purposes of this paragraph

2.2.4 provided that such person shall be bound by the effect of the provisions of the

Implementation Scheme and the Scheme Subsidiary Documents (and any steps taken or

arrangements made thereunder) as they apply to or affect the Code or any Code Subsidiary

Documents (and the rights and obligations of the Parties thereunder) to the extent such

provisions, steps or arrangements have an effect beyond that date.

2.2.5 In this Section H, "Scheme Subsidiary Document" has the meaning given to that term in

the Implementation Scheme.

2.3 Go-live Date

2.3.1 The trading of electricity (and settlement of financial obligations in respect thereof) in

accordance with arrangements established by the Code shall not begin until the Go-live Date

and, accordingly, the rights, obligations and liabilities of each Party under the Code in respect

of transactions giving rise to Trading Charges shall apply in respect of the First Settlement

Period and each Settlement Period thereafter (and shall not apply in respect of any period

prior to the First Settlement Period).

2.3.2 The provisions of paragraph 2.3.1 are without prejudice to any other rights, obligations and

liabilities of each Party under the Code (including satisfaction of any requirements applicable

to such Party in order to be able to effect transactions as referred to in paragraph 2.3.1).

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2.3.3 In this paragraph 2.3, the "First Settlement Period" is the Settlement Period commencing

at 00:00 hours on the Go-live Date.

2.4 Not Used

2.5 Effective Dates of Modification Proposal P344

2.5.1 Modification Proposal P344 shall take effect from the P344 Relevant Implementation Date

provided that:

(a) the following modifications to the Code set out in the P344 Legal Text shall take

effect from the time and date specified in the P344 Final Implementation Date

Notice:

(i) each modification to Section N;

(ii) each modification to Section Q;

(iii) the modifications to Sections S10.5 and S11 to the extent such

paragraphs apply to Virtual Lead Parties and/or Secondary BM Units;

(iv) each modification to Annex S-2 to the extent each such modification

applies to Virtual Lead Parties, Secondary BM Units and/or

Replacement Reserve;

(v) each modification to Section T;

(vi) each modification to Section V;

(vii) all terms and expressions that are defined in Section X and that are:

(1) used only in those Code provisions modified by the P344

Legal Text; and

(2) contained in those Sections referred to in paragraphs (a)(i)

to (vi) (inclusive);

(b) BSCP602 shall take effect from the P344 Relevant Implementation Date except

for those rights and obligations in BSCP602 that are authorised or envisaged by,

or subsidiary to, the rights and obligations that will take effect pursuant to

paragraph 2.5.1.(a):

(c) any provisions in BSCP602 that did not take effect on the P344 Relevant

Implementation Date shall take effect from the time and date specified in the P344

Final Implementation Date Notice:


(a) the "P344 Final Implementation Date Notice" means a notice from the NETSO

setting out the time and date from which the Code provisions identified in

paragraph (a) shall take effect;

(b) the "P344 Legal Text" means the legal text included in the P344 Modification

Report (as such legal text may be amended by any process set out in Section F).

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3. DEFAULT

3.1 Events of Default

3.1.1 For the purposes of this paragraph 3, there shall have occurred a "Default" in relation to a

Party (the "Defaulting Party") in any of the following events or circumstances:

(a) where, in respect of the Defaulting Party's liability for amounts in respect of

Trading Charges and in relation to any amount which has become due for

payment by the Defaulting Party under the Code in respect thereof:

(i) the Defaulting Party has not paid the amount in full on the due date

for payment; and

(ii) on or after the due date for payment BSCCo has given notice to the

Defaulting Party requiring payment of such amount; and

(iii) the Defaulting Party has not paid such amount in full by the third

Business Day after the date of BSCCo’s notice under paragraph (ii);

or

(a)(A) where, in respect of the Defaulting Party's liability for amounts in respect of

Trading Charges and in relation to any such amount which has become due for

payment by the Defaulting Party under the Code in respect thereof:

(i) the Defaulting Party has not paid the amount in full by 0900 hours on

the Second Business Day after the Affected Date in accordance with

Section N regardless of whether such sums have otherwise been

recovered from Credit Cover pursuant to Section N;

(ii) such amount exceeds the Advice Note Threshold Limit; and

(iii) the circumstances referred to in paragraphs (a)(A)(i) and (a)(A)(ii)

have occurred on three or more occasions over a 30 calendar day

period or on such other number of occassions and over such period as

may be determined by the Panel in accordance with paragraph 3.1A;

or

(b) where, in respect of the Defaulting Party's liability for any sums under the Code

other than Trading Charges and in relation to any amount which has become due

for payment by the Defaulting Party under the Code in respect thereof:

(i) the Defaulting Party has not paid the amount in full on the due date

for payment; and

(ii) on or after the due date for payment BSCCo has given notice to the

Defaulting Party requiring payment of such amount; and

(iii) the Defaulting Party:

(A) has not paid such amount in full by the fifth Business Day

after the date of BSCCo’s notice under paragraph

(ii) or by such other period as may be determined by the Panel in

accordance with paragraph 3.1A; or

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(B) has paid any amounts to which this paragraph (b) relates

after the due date for payment but before the expiry of the

notice period referred to in paragraph (b)(iii)(A) on three

or more occasions during a period of 12 months or on such

other number of occasions and over such period as may be

determined by the Panel in accordance with paragraph

3.1A; or

(c) where:

(i) a Trading Party is in Level 1 Credit Default for a period that meets or

exceeds the relevant Credit Default Thresholds; or;

(ii) a Trading Party is in Level 2 Credit Default for a period that meets or

exceeds the relevant Credit Default Thresholds; or

(iii) a Trading Party’s Credit Cover Percentage, as determined by the

ECVAA, is not equal to or lower than 90% by the end of the same

numbered Settlement Period on the second to next occurring Working

Day after the Settlement Period during which the Trading Party was

in Level 2 Credit Default and had a Credit Cover Percentage

exceeding 100%; or

(iv) a Trading Party is in Level 1 Credit Default or Level 2 Credit Default

(an instance of "Relevant Credit Default") and such Relevant Credit

Default is followed by a series of further Relevant Credit Defaults that

collectively meet the Relevant Credit Default Series threshold

determined in accordance with paragraph c(A)(ii).

(c)(A) For the purposes of:

(i) paragraphs 3.1.1(c)(i) and (ii) a "Credit Default Threshold" shall be

a period of time determined by the Panel in accordance with paragraph

3.1A which, if met or exceeded by a Party in Level 1 Credit Default

or Level 2 Credit Default, shall constitute a Default. A Credit Default

Threshold may be comprised of continuous and/or intermittent time

periods;

(ii) paragraph 3.1.1(c)(iv) a "Relevant Credit Default Series" shall be a

series of Relevant Credit Defaults that collectively meet or exceed the

values determined by the Panel in accordance with paragraph 3.1A

including with regard to the following:

(A) the minimum number of Relevant Credit Defaults that

must have occured during the time period referred to in

paragraph (B) in order to constitute a Relevant Credit

Default Series;

(B) the time period during which the Relevant Credit Defaults

referred to in paragraph A must have arisen in order to

constitute a Relevant Credit Default Series; and

(C) any further parameters that the Panel considers appropriate

and which it has determined in accordance with paragraph

3.1A; and

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(d) where:

(i) the Defaulting Party is in breach of any material provision of the Code

(other than a provision which is the subject of paragraphs (a), (b) or

(c) above); and

(ii) the breach is capable of remedy by the Defaulting Party; and

(iii) BSCCo has given notice (making reference to this paragraph 3) of

such breach to the Defaulting Party; and

(iv) within 14 days (or such longer period as the Panel may approve) after

BSCCo’s notice under paragraph (iii), the Defaulting Party does not

either:

(1) remedy the breach in all material respects, where the

breach is capable of remedy within such period; or

(2) where the breach is not so capable of remedy, provide to

BSCCo a programme (setting out the steps to be taken by

the Defaulting Party and the timetable for taking such

steps, in each case to be approved by BSCCo) for the

remedy as soon as reasonably practicable of the breach;

and

(v) in the case in paragraph 3.1.1(d)(iv)(2), the Defaulting Party does not

remedy the breach in all material respects with all reasonable

diligence and so far as reasonably practicable in accordance with the

programme provided under that paragraph (or such revised

programme as the Panel may approve); or

(e) where:

(i) the Defaulting Party is in breach of any material provision of the Code

(other than a provision which is the subject of paragraphs (a), (b) or

(c) above); and

(ii) the breach is not capable of remedy; and

(iii) BSCCo has given notice (making reference to this paragraph 3) of the

breach to the Defaulting Party; and

(iv) at any time within the period of 12 months following BSCCo's notice

under paragraph (iii), there occurs a further breach by the Defaulting

Party of the same provision or any other material provision (excluding

a provision which is the subject of paragraphs (a), (b) or (c) above) of

the Code; or

(f) where:

(i) the Defaulting Party is in persistent breach of any provision of the

Code (other than a provision which is the subject of paragraphs (a),

(b) or (c) above) during a period of 6 months; and

(ii) after such 6-month period has elapsed, BSCCo has given notice

(making reference to this paragraph 3) of the persistent breach to the

Defaulting Party; and

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(iii) the Defaulting Party persists in breaching such provision of the Code

for a further period in excess of 3 months; or

(g) where:

(i) the Defaulting Party suspends payment of its debts or admits its

inability to pay its debts as they fall due;

(ii) the Defaulting Party is unable to pay its debts (within the meaning of

Section 123(l) or (2) of the Insolvency Act 1986, but subject to

paragraph 3.1.2), or any voluntary arrangement is proposed in relation

to it or it enters into any composition or scheme of arrangement (other

than for the purpose of a bona fide solvent reconstruction or

amalgamation); or

(iii) the Defaulting Party has a receiver of the whole or any material part

of its assets or undertaking appointed; or

(iv) the Defaulting Party has an administrator appointed or a winding-up

order made in relation to it; or

(v) the Defaulting Party passes any resolution for winding-up (other than

for the purpose of a bona fide solvent reconstruction or

amalgamation); or

(vi) a petition is presented or legal proceedings are commenced for

making an administration order in relation to, or for the winding up or

dissolution of, the Defaulting Party (other than a petition which is

vexatious or frivolous and is, in any event, discharged within 21 days

of presentation and before it is advertised); or

(vii) the Defaulting Party ceases carrying on all of its business and/or

publically announces that it has ceased carrying on all of its business;

or any analogous events occur in respect of the Defaulting Party in any other

jurisdiction;

in any such case for whatever reason and whether or not within the control of the Defaulting

Party.

3.1.2 For the purposes of paragraph 3.1.1(g)(ii), section 123(1)(a) of the Insolvency Act 1986 shall

have effect as if for "£750" there was substituted "£10,000"; and the Defaulting Party shall

not be deemed to be unable to pay its debts for the purposes of that paragraph if any such

demand as is mentioned in that section of the Insolvency Act 1986 is being contested in good

faith by the Defaulting Party with recourse to all appropriate measures and procedures.

3.1.3 Without prejudice to a Party's obligation to make any payments under the Code (including

under Section D, Section N and Annex S-1) in accordance with the requirements of and at

the times and in the manner specified in the Code, a Party shall not be in breach of any other

provision of the Code to the extent that and for so long as it is not possible for that Party to

comply with that provision as a result of Section G4 applying or by reason of a failure of a

BSC Agent and/or BSCCo to perform any obligation under the Code provided that the Party

shall:

(a) promptly notify BSCCo in writing of such impossibility and the reasons why it is

not possible for such Party to comply with the relevant provision of the Code;

and

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(b) discuss with BSCCo whether there is a possible alternative means of complying

with the relevant provision and, if so, take all reasonable steps to do so.

3.1A Default Values or Parameters Established by the Panel

3.1A.1 Where, for the purposes of paragraph 3.1.1, the Panel is required to determine any values or

parameters, the Panel shall:

(a) subject to paragraph (c), establish the initial values or parameters to be applied to

paragraph 3.1.1;

(b) review such values or parameters from time to time and in any event within 1

year after the Relevant Implementation Date of Modification P385, and, subject

to paragraph (c), determine:

(i) any revisions to such values or parameters; and

(ii) the effective date(s) for implementing the revised values or

parameters;

(c) in establishing the initial values or parameters under paragraph (a), or revising

such values or parameters and determining an implementation approach in each

case under paragraph (b), consult with Parties and take due regard of any

representations made and not withdrawn during such consultation,

and for the purposes of paragraph (a), a consultation undertaken prior to the Relevant

Implementation Date of Modification P385, including a consultation undertaken pursuant to

Section F2 that seeks representations from Parties on the initial values or parameters to be

applied to paragraph 3.1.1, shall constitute a consultation for the purposes of paragraph (a).

3.1A.2 BSCCo shall ensure that the values and parameters determined by the Panel pursuant to this

paragraph 3.1A are at all times published on the BSC Website.

3.2 Consequences of Default

3.2.1 Upon the occurrence of a Default by a Defaulting Party, the Panel may take one or more of

the following steps while such Default persists and for the duration of such Default (in each

case at such time as it sees fit and having regard to all the circumstances of the Default):

(a) notify each other Party of such Default;

(b) suspend one or more of the rights or take one or more of the steps referred to in

paragraph 3.2.2 (subject to any prior consultation or approval as specified in

paragraph 3.2.2) in respect of the Defaulting Party, either generally or

progressively and either wholly or partially and for such period as the Panel

considers appropriate;

(c) in the case of a Default by an Interconnector Error Administrator of the type

referred to in paragraph 3.1.1(a), remove the registration of the Interconnector

Error Administrator and require the Interconnected System Operator (with the

prior approval of the Authority or, in the case an Interconnector connected to an

External System outside the National Electricity Transmission System Operator

Area, the Secretary of State) to assume the future responsibilities of such

Interconnector Error Administrator acting in that capacity;

(d) with the prior approval of the Authority, require the Defaulting Party and the

NETSO or the Distribution System Operator (as the case may be) to de-energise

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the Plant or Apparatus comprising one or more of the BM Units (other than

Interconnector BM Units) for which the Defaulting Party is the Lead Party (and

each Party hereby irrevocably and unconditionally consents to such de-

energisation);

(e) expel the Party from the Code subject to and in accordance with Section A5;

and/or

(f) notify the FAA on behalf of the BSC Clearer to treat the Party as a Defaulting

Party for the purposes of Section N.

3.2.2 The rights and steps referred to in paragraph 3.2.1(b) are:

(a) in relation to Energy Contract Volume Notifications (or, in the case of a Default

of the type referred to in paragraph 3.1.1(a) or (b), relevant Energy Contract

Volume Notifications, as defined in Section P2.5.3):

(i) the right to submit such Energy Contract Volume Notifications under

Section P; and/or

(ii) the disapplication (for the purposes of Settlement) of any such Energy

Contract Volume Notifications as have already been submitted at any

time (except to the extent that they relate to Settlement Periods for

which the Submission Deadline has occurred prior to the time when

the Panel notifies the Parties of such disapplication);

(b) in relation to Metered Volume Reallocation Notifications (or, in the case of a

Default of the type referred to in paragraph 3.1.1(a) or (b), relevant Metered

Volume Reallocation Notifications, as defined in Section P3.5.3):

(i) the right to submit such Metered Volume Reallocation Notifications

under Section P; and/or

(ii) the disapplication (for the purposes of Settlement) of any such

Metered Volume Reallocation Notifications as have already been

submitted at any time (except to the extent that they relate to

Settlement Periods for which the Submission Deadline has occurred

prior to the time when the Panel notifies the Parties of such

disapplication);

(c) where the Defaulting Party is an Interconnector User, the rights of such Party to

be allocated BM Unit Metered Volumes (of such kinds as the Panel may specify)

in respect of its Interconnector BM Units;

(d) following consultation with the NETSO;

(i) the right to submit Bid-Offer Pairs under Section Q and/or

(ii) the right to submit Replacement Reserve Bid Data under Section Q;

(e) with the prior approval of the Authority, the right to register further Metering

Systems and BM Units;

(f) the rights to receive reports and data under Section V;

(g) the right to vote pursuant to Annex B-2.

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3.2.3 The taking of any steps by the Panel under this paragraph 3.2 in relation to a Defaulting Party

shall not affect or alter the liabilities of such Defaulting Party under the Code (accrued or

accruing in respect of the period prior to, on or after the date when such step is taken) and,

without prejudice to the generality of the foregoing, a Defaulting Party shall be liable for all

sums (including VAT) which it is required under the Code to pay in respect of Trading

Charges and other sums pending removal, de-energisation or expulsion pursuant to

paragraph 3.2.1.

3.2.4 Each Licensed Distribution System Operator shall ensure that it has the necessary rights to

effect or procure the de-energisation of Plant or Apparatus, following an instruction from the

Panel pursuant to paragraph 3.2.1(d), which is connected to a Distribution System (not being

a Transmission System or the Distribution System of any other Distribution System

Operator) forming part of the Total System and having a connection with such Licensed

Distribution System Operator's Distribution System.

3.2.5 In relation to any instruction to de-energise Plant or Apparatus issued pursuant to paragraph

3.2.1(d):

(a) the NETSO or the relevant Distribution System Operator (as the case may be)

shall use all reasonable endeavours to comply (or procure compliance) as quickly

as practicable with any such instruction;

(b) each Lead Party hereby irrevocably and unconditionally consents to such de-

energisation; and

(c) the Defaulting Party, failing which each Trading Party (but, in the case of a

Trading Party, only in respect of its Annual Funding Share at the time of receipt

of the request for indemnification, calculated on a default basis in relation to the

Defaulting Party) shall indemnify and keep indemnified the NETSO and/or the

Distribution System Operator (as the case may be) on demand against any and all

liability, loss or damage which it may suffer by reason of effecting such de-

energisation.

3.2.6 If, by virtue of any Legal Requirement, another Party is to assume responsibility for the

supply of electricity to Customers through Metering Systems for which the Defaulting Party

is the Registrant, BSCCo shall take such steps (and shall require relevant BSC Agents to take

such steps) as may be necessary to ensure that such other Party assumes responsibility for

such Metering Systems for the purposes of Settlement upon or as soon as reasonably

practicable after such requirement arises.

3.2.7 The provisions of this paragraph 3.2 are without prejudice to any other rights or remedies or

consequences which are expressly provided under the Code to arise in the event of any failure

by a Party to comply with the requirements of the Code.

3.2.8 BSCCo shall, and shall be entitled to, take such steps as may be required by the Panel

(including giving instructions to relevant BSC Agents) in order to give effect to the exercise

by the Panel of any of its powers under this paragraph 3.2.

3.3 Application

3.3.1 This paragraph 3 does not apply to BSCCo or the BSC Clearer and references to a

"Defaulting Party" are to a Party other than BSCCo or the BSC Clearer.

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4. CONFIDENTIALITY AND OTHER INTELLECTUAL PROPERTY RIGHTS

4.1 Interpretation

4.1.1 In this paragraph 4:

(a) "Authorised Recipient" means any Business Person to whom Protected

Information has been divulged in accordance with paragraph 4.4 provided that

such person:

(i) requires access to such Protected Information for the proper

performance of his duties as a Business Person in the course of

Permitted Activities; and

(ii) has been informed of the duties of the NETSO in relation to inter alia

Protected Information under paragraph 4.4;

(b) "Business Person" means any person who is a Main Business Person or a

Corporate Functions Person, and "Business Personnel" shall be construed

accordingly;

(c) "Corporate Functions Person" means any person who:

(i) is an officer of the NETSO; or

(ii) is an employee of the NETSO, carrying out any administrative,

finance or other corporate services of any kind which in part relate to

the Main Business; or

(iii) is engaged by or on behalf of the NETSO as an agent or adviser to or

otherwise to perform work in relation to services for the Main

Business;

(d) "Disclose" means disclose, reveal, report, publish or transfer by any means and

"Disclosure" shall be construed accordingly;

(e) "Main Business" means, in relation to the NETSO, any business of the NETSO

as at the Code Effective Date and any business which the NETSO must carry out

under the Transmission Licence;

(f) "Main Business Person" means any employee of the NETSO who is engaged

solely in the Main Business of the NETSO, and "Main Business Personnel" shall

be construed accordingly;

(g) "Nominated Agreements" means:

(i) the Code;

(ii) the Code Subsidiary Documents;

(iii) the Implementation Scheme;

(iv) the Scheme Subsidiary Documents;

(v) the Settlement Agreement for Scotland;

(vi) the Master Registration Agreement;

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(vii) all Connection Agreements;

(viii) the Data Transfer Service Agreement;

(ix) all Contracts for Difference; and

(x) any other electricity industry agreement or document as may be

specified (or of a type specified) as a Nominated Agreement by the

Panel from time to time (following such consultation with Parties as

the Panel considers appropriate for this purpose);

(h) "Permitted Activities" means activities carried on for the purposes of the Main

Business;

(i) "Protected Information" means any information relating to the affairs of a Party

which is furnished to Business Personnel pursuant to the Code unless, prior to

such information being furnished, such Party has informed the recipient thereof

by notice in writing or by endorsement on such information that the said

information is not to be regarded as Protected Information;

(j) "Relevant Instrument" means any or, as the context may require, a particular

one of the following:

(i) the Act and all subordinate legislation made under the Act;

(ii) the Data Protection Legislation and all subordinate legislation made

under it;

(iii) any Licence and any determination or notice made or issued by the

Authority pursuant to the terms thereof;

(iv) the Capacity Market Rules,

and whether under any of the foregoing or otherwise, all authorisations,

approvals, licences, exemptions, filings, registrations, notarisations, consents,

guidelines and other matters which are required or which a Party acting in

accordance with Good Industry Practice would obtain or comply with for the

purposes of the Code, of or from any Competent Authority.

4.2 Party obligations

4.2.1 The obligations under this paragraph 4.2 apply to each Party (a "Restricted Party") other

than the NETSO.

4.2.2 Each Restricted Party hereby undertakes with each other Party that it shall preserve the

confidentiality of, and shall not directly or indirectly Disclose or use for its own purposes,

Confidential Information, subject to the provisions of paragraph 4.2.3.

4.2.3 A Restricted Party shall be entitled to Disclose or use Confidential Information if and to the

extent that one or more of the following apply:

(a) the Restricted Party is required or permitted to Disclose or use Confidential

Information pursuant to the terms of a Nominated Agreement, to the extent of

such requirement or permission; or

(b) the Restricted Party believes, on reasonable grounds, that market arrangements

set out or contemplated by the Code require or permit it to Disclose Confidential

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Information to another person or to use Confidential Information, to the extent of

such requirement or permission; or

(c) the person to whose affairs the Confidential Information relates gives its prior

written consent to the Disclosure or use, to the extent of such consent; or

(d) the Confidential Information, before it is furnished to the Restricted Party, is in

the public domain; or

(e) the Confidential Information, after it is furnished to the Restricted Party:

(i) is acquired by the Restricted Party in circumstances in which this

paragraph 4.2 does not apply; or

(ii) is acquired by the Restricted Party in circumstances in which this

paragraph 4.2 does apply and thereafter ceases to be subject to the

restrictions imposed by this paragraph 4.2; or

(iii) enters the public domain,

and in any such case otherwise than as a result of either a breach by the Restricted

Party of its obligations in this paragraph 4.2 or a breach by the person who

disclosed that Confidential Information of any confidentiality obligation of that

person where the Restricted Party is aware of such breach by that person; or

(f) the Restricted Party is required or permitted to Disclose to any person

Confidential Information or to use Confidential Information:

(i) in compliance with any provisions of any Relevant Instrument; or

(ii) in compliance with any other Legal Requirement; or

(iii) in response to a requirement of any stock exchange or regulatory

authority or the Panel on Take-overs and Mergers; or

(iv) pursuant to the arbitration rules for the Electricity Arbitration

Association or pursuant to any judicial or other arbitral process or

tribunal having jurisdiction in relation to the Restricted Party

including any disputes committee established under the terms of the

Code, the Settlement Agreement for Scotland or the Master

Registration Agreement; or

(g) the Restricted Party Discloses Confidential Information to its Affiliates or

Related Undertakings or to its employees, directors, agents, consultants and

professional advisers or those of its Affiliates or Related Undertakings or, where

the Restricted Party is a Supplier, to a relevant Exempt Supplier (being an Exempt

Supplier as defined in, and with or to whom the Supplier agrees or offers to

provide exempt supply services pursuant to Condition 8B of, a PES Supplier

Licence or any equivalent condition of another Supply Licence); or

(h) the Restricted Party Discloses Confidential Information to the Authority.

4.2.4 Confidential Information which a Restricted Party is permitted or obliged to Disclose or use

pursuant to this paragraph 4.2 shall not cease to be regarded as Confidential Information by

virtue of such Disclosure or use.

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4.2.5 Each Restricted Party shall adopt procedures within its organisation for ensuring the

confidentiality of all Confidential Information, including the following:

(a) Confidential Information will be disseminated within its organisation on a "need-

to-know" basis;

(b) the persons referred to in paragraph 4.2.3(g) will be made fully aware of the

provisions of this paragraph 4.2; and

(c) any copies of Confidential Information, whether in hard copy, computerised or

other (for example, microfiche) form, will clearly identify the information as

confidential.

4.2.6 Each Restricted Party shall procure that its Affiliates, Related Undertakings and consultants

observe the restrictions set out in this paragraph 4.2 (as if references to "Restricted Party"

were references to such Affiliates, Related Undertakings and consultants) and shall be

responsible under the Code for any failure by such persons to observe such restrictions.

4.2.7 The obligations of BSCCo and the BSC Clearer under this paragraph 4.2 are subject to the

provisions of paragraph 4.3.

4.3 BSCCo and BSC Clearer obligations

4.3.1 BSCCo and the BSC Clearer (and any other BSC Companies) shall be entitled to use

Confidential Information for the purposes of discharging their respective duties and

functions under and pursuant to the Code and the Code Subsidiary Documents.

4.3.2 The provisions of paragraph 4.2.5(a) and (c) shall not apply to BSCCo or the BSC Clearer.

4.3.3 BSCCo and the BSC Clearer undertakes to each of the other Parties that, having regard to

the activities in which any employee of BSCCo or the BSC Clearer is engaged and the nature

and effective life of the Confidential Information divulged to him by virtue of such activities,

BSCCo and BSC Clearer shall not unreasonably continue (taking into account any industrial

relations concerns reasonably held by it) to divulge Confidential Information or permit

Confidential Information to be divulged to any employee of BSCCo or the BSC Clearer who

has notified BSCCo or the BSC Clearer of his intention to become engaged as an employee

or agent of any other person who is:

(a) authorised by Licence or Exemption to generate, participate in the transmission

of, distribute or supply electricity; or

(b) an electricity broker or who is known to be engaged in the writing of electricity

sale and purchase contracts; or

(c) known to be retained as a consultant to any such person who is referred to in

paragraphs (a) or (b),

save where BSCCo and the BSC Clearer could not, in all the circumstances, reasonably be

expected to refrain from divulging to such employee Confidential Information which is

required for the proper performance of his duties.

4.3.4 For the purposes of paragraph 4.2.3(a), where:

(a) a provision of the Code provides that BSCCo shall or may provide or disclose

any data to any person(s) or body(ies); and

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(b) the data to be provided or disclosed is not specifically identified in or readily

identifiable (without the need to exercise any particular judgment as to the content

thereof) from such provision

then BSCCo shall be entitled to provide or disclose data in accordance with the provisions,

mutatis mutandis, of Section B3.3.1 (as if references to the Panel were references to BSCCo)

subject to the further provisions of Section B3.3 (as if references to the fulfilment of the

functions and duties of the Panel were references to the fulfilment of the functions and duties

of BSCCo).

4.3.5 For the avoidance of doubt, paragraph 4.2.4 shall not apply to information which is published

by BSCCo under the Code (where the Code provides that information may be published) but

without prejudice to paragraph 4.7.

4.4 Confidentiality for the NETSO

4.4.1 The NETSO (in each of its capacities under the Code) shall ensure that Protected Information

is not:

(a) divulged by Business Personnel to any person unless that person is an Authorised

Recipient;

(b) used by Business Personnel for the purposes of obtaining for the NETSO or any

of its Affiliates or for any other person:

(i) any Licence; or

(ii) any right to purchase or otherwise acquire, or to distribute, electricity

except as and to the extent permitted under the Transmission Licence;

or

(iii) any contract or arrangement for the supply of electricity to Customers

or Suppliers; or

(iv) any contract for the use of any electrical lines or electrical plant

belonging to or under the control of a Supplier; or

(v) control of any body corporate which, whether directly or indirectly,

has the benefit of any such Licence, contract or arrangement; and

(c) used by Business Personnel for the purpose of carrying on any activities other

than Permitted Activities,

except with the prior consent in writing of the Party to whose affairs such Protected

Information relates.

4.4.2 Nothing in this paragraph 4.4 shall apply to any Protected Information:

(a) which, before it is furnished to Business Personnel, is in the public domain; or

(b) which, after it is furnished to Business Personnel:

(i) is acquired by the NETSO in circumstances in which this paragraph

4.4 does not apply; or

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(ii) is acquired by the NETSO in circumstances in which this paragraph

4.4 does apply and thereafter ceases to be subject to the restrictions

imposed by this paragraph 4.4; or

(iii) enters the public domain,

and in any such case otherwise than as a result of either a breach by the NETSO

of its obligations in this paragraph 4.4 or a breach by the person who disclosed

that Protected Information of any confidentiality obligation of that person where

the NETSO is aware of such breach by that person; and/or

(c) disclosed to any person where the NETSO or any Affiliate of the NETSO is

required or expressly permitted to make such disclosure to such person:

(i) in compliance with the duties of the NETSO under the Act or any

other Legal Requirement; or

(ii) in compliance with the conditions of the Transmission Licence or any

document referred to in the Transmission Licence with which the

NETSO or any Affiliate of the NETSO is required by virtue of the Act

or the Transmission Licence to comply; or

(iii) in compliance with any other Legal Requirement; or

(iv) in response to a requirement of any stock exchange or regulatory

authority or the Panel on Take-overs and Mergers; or

(v) pursuant to the arbitration rules for the Electricity Arbitration

Association or pursuant to any judicial or other arbitral process or

tribunal having jurisdiction in relation to the NETSO or its Affiliates;

or

(vi) pursuant to an EMR Legal Requirement; or

(d) to the extent that the NETSO or any of its Affiliates is expressly permitted or

required to disclose that information under the terms of any agreement or

arrangement (including the Code, the Grid Code, the Distribution Codes and the

Fuel Security Code) with the Party to whose affairs such Protected Information

relates.

4.4.3 The NETSO may use all and any information or data supplied to or acquired by it under the

Code from or in relation to the other Parties to the extent necessary in performing Permitted

Activities including, for the following purposes:

(a) the operation and planning of the Transmission System;

(b) the calculation of charges and preparation of offers of terms for connection to or

use of the Transmission System and for the Transmission Services Activity (as

defined in the Transmission Licence);

(c) the provision of information under the British Grid Systems Agreement and the

EdF Documents,

and may pass the same to Affiliates of the NETSO which carry out such activities and the

Parties agree to provide all information to the NETSO and its Affiliates for such purposes

provided that the NETSO shall procure that such Affiliates observe the restrictions set out in

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this paragraph 4.4 as if the references to NETSO were replaced by references to such

Affiliates.

4.4.4 The NETSO undertakes to each of the other Parties that, having regard to the activities in

which any Business Person is engaged and the nature and effective life of the Protected

Information divulged to him by virtue of such activities, neither the NETSO nor any of its

Affiliates shall unreasonably continue (taking into account any industrial relations concerns

reasonably held by it) to divulge Protected Information or permit Protected Information to

be divulged by any Affiliate of the NETSO to any Business Person who has notified the

NETSO or the relevant Affiliate of his intention to become engaged as an employee or agent

of any other person (other than of the NETSO or any Affiliate thereof) who is:

(a) authorised by Licence or Exemption to generate, participate in the transmission

of, distribute or supply electricity; or

(b) an electricity broker or who is known to be engaged in the writing of electricity

sale and purchase contracts; or

(c) known to be retained as a consultant to any such person who is referred to in

paragraphs (a) and (b),

save where the NETSO or such Affiliate could not, in all the circumstances, reasonably be

expected to refrain from divulging to such Business Person Protected Information which is

required for the proper performance of his duties.

4.4.5 Without prejudice to the other provisions of this paragraph 4.4, the NETSO shall procure

that any additional copies made of the Protected Information, whether in hard copy or

computerised form, will clearly identify the Protected Information as protected.

4.4.6 The NETSO undertakes to use all reasonable endeavours to procure that no employee is a

Corporate Functions Person unless the same is necessary for the proper performance of his

duties.

4.4.7 Without prejudice to paragraph 4.4.3, the NETSO and each of its Affiliates may use and pass

to each other any BM Unit Metered Volumes data supplied to or acquired by it under the

Code for the purposes of its estimation and calculation of system maximum ACS (Average

Cold Spell) demand as required from time to time for the purposes of the Transmission

Licence.

4.5 Additional provisions

4.5.1 The NETSO and BSCCo shall and may pass any relevant information and data relating to

the BM Unit Metered Volumes (including, for the avoidance of doubt, all relevant metered

data) of any of the BM Units comprising Generating Units which are the subject of qualifying

arrangements (as defined in section 33 of the Act) to such person as may be specified from

time to time pursuant to such qualifying arrangements.

4.5.2 The provisions of paragraphs 4.1 to 4.4 shall continue, for a period of 3 years after a Party

ceases to be a Party to the Code irrespective of the reason for such cessation.

4.5.3 Each Party acknowledges and agrees that no Party shall be in breach of any obligation of

confidentiality owed to it pursuant to the Code in reporting under Section U1.3.1 any breach

of the Code or its belief (in good faith) that any such breach has occurred.

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4.6 Data ownership

4.6.1 References in the Code:

(a) to data include any information;

(b) to rights of ownership of data mean all IPRs in data (including IPRs in any

database or other compilation or collection of data) and references to a person

owning data shall be construed accordingly.


(a) "relevant party data" in relation to a Party (other than BSCCo, the BSC Clearer

and any Licensed Distribution System Operator acting in its capacity as a SMRA)

means data which is to be provided to any relevant person by or on behalf of that

Party (including by any Party Agent appointed by that Party) pursuant to any

provision of the Code, including metering data derived (but not estimated, where

such estimation is carried out by a relevant person other than that Party or its

Party Agent) from any Metering System of which such Party is Registrant;

(b) "relevant BSC data" means data, including data derived from any relevant party

data (but excluding any relevant party data), which is created, produced or

acquired:

(i) pursuant to or for the purposes of the Code, or

(ii) pursuant to any process, procedure, calculation or determination

provided for by the Code

by or on behalf of any relevant person;

(c) a "relevant person" is any of:

(i) the Panel, any Panel Committee, any Workgroup, BSCCo, the BSC

Clearer, any other Subsidiary of BSCCo, any BSC Agent and any

SMRA;

(ii) any Party and any Party Agent appointed by any Party;

(d) references to the Code include any Code Subsidiary Document;

(e) any express provision of any other part of the Code as to the ownership of IPRs

in data or to data ownership shall, so far as in conflict with, prevail over the

provisions of this paragraph 4.6.

4.6.3 Each Party grants to each relevant person a non-exclusive licence to use the relevant party

data provided by or on behalf of that Party to the extent necessary and solely for the purposes

contemplated by the Code (including for the avoidance of doubt, pursuant to paragraph 11),

together with the right to sub-license the use of such data as necessary solely for those

purposes.

4.6.4 Each Party other than BSCCo and the BSC Clearer shall (without payment) use all

reasonable endeavours to ensure that, and warrants to BSCCo (for itself and for the benefit

of all other relevant persons), in each case in respect of its relevant party data used or to be

used in Settlement, that:

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(a) the provision to any relevant person pursuant to the Code of all such relevant

party data;

(b) the use and disclosure of all such relevant party data by any relevant person

pursuant to, or as and for the purposes contemplated, by the Code;

(c) the publication of any such relevant party data as provided for by or contemplated

by the Code;

(d) the operation of paragraph 4.6.5 in relation to any such relevant BSC data derived

from relevant party data

will not, as far as it is aware, infringe the IPRs of any person, or be contrary to any obligations

of confidence or be in breach of any obligation or duty to any third party and each Party

hereby indemnifies BSCCo (for itself and for the benefit of each other relevant person (other

than itself)) in respect of any loss, liability, damages, costs (including legal costs), expenses,

claims and proceedings which such relevant person may suffer or incur by reason of any

breach by that Party of its obligations under this paragraph 4.6.4.

4.6.5 So far as there are any IPRs in any relevant BSC data created, produced or acquired by or on

behalf of any relevant person:

(a) all IPRs in the relevant BSC data in Great Britain and in relation to Offshore shall

(as between BSCCo and all other relevant persons but without prejudice to the

provisions of any BSC Agent Contract as to such ownership) be the property of

and vest in BSCCo;

(b) subject to the other provisions of this paragraph 4, to the extent to which such

data is (pursuant to provisions of the Code) provided to or available to any

relevant person, that relevant person is authorised to use and disclose such data

for purposes contemplated by the Code and in connection with its operations

under the Code; and

(c) the other relevant person shall do all such things and sign all documents or

instruments reasonably necessary in the opinion of BSCCo to enable BSCCo to

obtain, perfect and prove its rights in the relevant BSC data.

4.6.6 For the purposes of any warranties, undertakings or assurances given or to be given by a

Party pursuant to any provision of the Code (including paragraph 4.6.4), such warranties,

undertakings and assurances shall be treated as given subject to any matter which is

contained or referred to in the "IPR Litigation Requirements" document referred to in Section

A2.2.5, and accordingly any such matter shall be deemed to be disclosed against any such

warranty, undertaking or assurance.

4.7 Other Intellectual Property Rights

4.7.1 The Intellectual Property Rights in and title to the BSCCo Materials in Great Britain and in

relation to Offshore shall, as between BSCCo and all other Parties, be owned by BSCCo (or

by a Subsidiary of BSCCo on behalf of BSCCo).

4.7.2 Each Party hereby assigns to BSCCo by way of assignment of all present and future rights

all IPRs it may have at any time in the BSCCo Materials in Great Britain and in relation to

Offshore (except to the extent those rights are already owned by BSCCo).

4.7.3 By virtue of this paragraph 4.7, all IPRs in the BSCCo Materials in Great Britain and in

relation to Offshore will vest in BSCCo on their creation or acquisition.

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4.7.4 Each Party shall do all things and sign all documents or instruments reasonably necessary in

the opinion of BSCCo to enable BSCCo to obtain, perfect and prove its rights in the BSCCo

Materials.

4.7.5 Each Party hereby waives, or shall use all reasonable endeavours to procure that the owner

of any moral rights in the BSCCo Materials waives, all such moral rights as may arise in

them.

4.7.6 Insofar as BSCCo (or any Subsidiary of BSCCo which owns BSCCo Materials) is permitted

subject to the rights of any third party in respect thereof, BSCCo hereby grants (and shall

procure that any of its Subsidiaries which own BSCCo Materials shall grant) to each Party a

non-exclusive licence to use the BSCCo Materials to the extent necessary and solely for its

business in connection with the arrangements established under the Code, together with the

right to sub-license the use of such materials as necessary solely for those purposes.

4.8 Data Protection

4.8.1 The words and expressions used in this paragraph and not defined elsewhere in the Code

shall be interpreted in accordance with any meaning given to them in the Data Protection

Legislation.

4.8.2 To the extent that the performance of obligations under Code requires the processing of

personal data, each Party:

(a) warrants that it has effected, and undertakes that it will (while it remains a Party)

effect and maintain all such notifications and registrations as it is required to

effect and maintain under the Data Protection Legislation to enable it lawfully to

perform the obligations imposed on it by the Code, and exercise the rights granted

to it by the Code;

(b) undertakes to comply with the Data Protection Legislation in the performance of

its obligations under the Code, including, where applicable, ensuring that it has a

lawful basis for sharing personal data and that it complies with the Data

Protection Legislation in relation to such sharing of personal data;

(c) undertakes to provide the information required by the Data Protection Legislation

in respect of the processing of personal data under the Code;

(d) undertakes to comply with the Data Protection Legislation as regards the exercise

of rights by data subjects for which the Party is the data controller

(e) without limiting any other basis for processing which may be available in

accordance with the Data Protection Legislation, each Party undertakes that, in

any case where information to be disclosed by it under the Code may lawfully be

disclosed only with the prior consent of the person to whom the information

relates, it will use its reasonable endeavours to obtain such prior valid consent so

as to enable it, or the relevant BSC Agent, as the case may be, to promptly

perform its obligations under or as envisaged by the Code.

4.9 Not used

4.10 Privilege

4.10.1 No Party shall be required to produce documents pursuant to any provision of the Code or

Code Subsidiary Documents which such Party could not be compelled to produce in civil

proceedings in any court in England or Wales or to supply information which such Party

could not be compelled to give in evidence in any such proceedings.

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4.10.2 For the avoidance of doubt, nothing in the Code or any Code Subsidiary Document shall

require the Panel or BSCCo to disclose documents to any person which BSCCo or any other

Party could not be compelled to produce in civil proceedings in any court in England or

Wales or to supply information which BSCCo or any other Party could not be compelled to

give in evidence in any such proceedings.

5. AUDIT

5.1 BSC Audit

5.1.1 The BSC Auditor shall be appointed in order to undertake, subject to paragraph 5.1.6, an

operational audit in relation to each BSC Year (the "Audit Year"), or such other period of

time as the Panel may determine, on behalf of Parties (the "BSC Audit") and such other ad

hoc operational audits as the Panel may direct from time to time.

5.1.2 The objective of the BSC Audit is to provide assurance (to such level as the Panel considers

appropriate) that the provisions of the Code and Code Subsidiary Documents in relation to

Settlement and in relation to the calculation of Funding Shares have been complied with in

the Audit Year.

5.1.3 The scope of the BSC Audit (save to the extent covered by the scope of the audit to be carried

out by the BM Auditor under paragraph 5.1.6) shall include:

(a) the submission and application of standing and periodic data, used in connection

with Settlement, by Parties and Party Agents;

(b) the processes applied to such data pursuant to the Code and Code Subsidiary

Documents;

(c) the determinations and calculations made by Market Index Data Providers in the

provision of Market Index Data (but only to the extent provided in the relevant

Market Index Data Provider Contract);

(d) the determinations and calculations made by BSC Agents and BSCCo where it

provides the Profile Administration Services for the purposes of Settlement;

(e) the systems, processes and procedures used and applied (by BSC Agents and

BSCCo) for the purposes of or in connection with the foregoing,

provided that from the Performance Assurance Effective Date the Panel may determine a

different scope for the BSC Audit with respect to Supplier Volume Allocation.

5.1.4 The scope of the BSC Audit shall not include:

(a) the registration of Metering Systems in accordance with the Master Registration

Agreement;

(b) the application by BSCCo of the compensation provisions under Section M4.

5.1.5 The Panel may also, at any time, request the BSC Auditor to undertake an ad hoc operational

audit, test, review or check, which may include a review of all or any of the Code Subsidiary

Documents for the purposes of determining whether they are appropriate to give effect to the

Code in accordance with the objectives set out in Section B1.2.

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5.1.6 The following matters shall be audited by an independent auditor of internationally

recognised standing appointed by the NETSO (the "BM Auditor"), rather than by the BSC

Auditor, and the provisions of paragraph 5.7 shall apply to the audits to be carried out by the

BM Auditor:

(a) the compiling and submission of Final Physical Notification Data by the NETSO

pursuant to and in accordance with Section Q;

(b) the compiling and submission of Bid-Offer Data by the NETSO pursuant to and

in accordance with Section Q;

(c) the compiling and submission of Acceptance Data by the NETSO pursuant to and

in accordance with Section Q;

(d) the submission of other data by the NETSO pursuant and in accordance with

Section Q6.

5.1.7 For the avoidance of doubt, the BSC Auditor and the BM Auditor may be the same person.

5.2 Terms of reference for BSC Auditor

5.2.1 The terms of reference for the BSC Audit to be carried out by the BSC Auditor shall be set

by the Panel consistent with the BSC Service Description for Audit.

5.2.2 In establishing and amending the terms of the BSC Service Description for Audit from time

to time and in setting the terms of reference from time to time of the BSC Audit to be carried

out by the BSC Auditor, the Panel shall have regard to:

(a) the extent to which other aspects of the performance assurance regime provide

assurance to Parties as to the matters to which the BSC Audit relates;

(b) the extent to which it is more cost-effective to verify such matters centrally; and

(c) the extent to which such matters are capable of being verified by Parties severally

and independently.

5.2.3 The terms of reference shall include:

(a) thresholds of materiality for the purposes of paragraph 5.4.2;

(b) the form and frequency of audit reports and the qualifications permitted to each

investigation; and

(c) any specific matters which the Panel wish the BSC Auditor to address.

5.2.4 The Panel may vary the terms of reference for the BSC Audit to be carried out by the BSC

Auditor from year to year and within the Audit Year.

5.2.5 BSCCo shall provide a copy of the prevailing terms of reference for the BSC Audit to be

carried out by the BSC Auditor to the Authority, each Party and each relevant BSC Agent.

5.3 Required contract terms

5.3.1 The terms of the relevant BSC Agent Contract shall require the BSC Auditor:

(a) to disclose to the Panel the existence and nature of all assignments of the BSC

Auditor with any Party or BSC Agent or Market Index Data Provider or service

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provider of Profile Administration Services referred to in Section C9.3.1 for the

carrying out of financial audits;

(b) to permit the external auditors of each Trading Party and the NETSO to liaise

with the BSC Auditor in accordance with normal professional standards,

including provision of access to working papers;

(c) to require the BSC Auditor to report forthwith any material concerns with respect

to matters forming the subject of a BSC Audit;

(d) as a condition precedent to its appointment, to execute a confidentiality

undertaking, in such form as may be reasonably required from time to time by

the Panel, in favour of:

(i) each BSC Agent;

(ii) each Market Index Data Provider; and

(iii) BSCCo on behalf of each Party;

(e) with (and only with) the consent of the Panel, to execute a confidentiality

undertaking, in such form as may be reasonably required from time to time by

the Panel, in favour of such other person as may request the BSC Auditor to do

so in connection with the BSC Audit.

5.3.2 BSCCo shall take such steps (pursuant to the terms contained in the relevant BSC Agent

Contract pursuant to paragraph 5.3.1(b)) as any Trading Party or the NETSO may reasonably

request to ensure that the BSC Auditor co-operates with such Trading Party's and the

NETSO's external auditors.

5.3.3 The BSC Auditor may be appointed to act as BSCCo's agent (if applicable) in relation to the

Qualification Process (or any part thereof) for the purposes of the Code but shall not

otherwise be appointed to carry out any functions of any other BSC Agent or any Market

Index Data Provider.

5.3.4 If the BSC Auditor is also appointed to act as BSCCo's agent in relation to the Qualification

Process (or any part thereof), the BSC Auditor shall not be required to comply with the

provisions of this paragraph 5.3 in the exercise of its functions and duties as that agent.

5.4 Reporting

5.4.1 Unless otherwise established by the Panel, the results of the BSC Audit to be carried out by

the BSC Auditor will be reported with the delivery of an opinion (the "BSC Audit Report")

at a time set out in the terms of reference for the BSC Auditor.

5.4.2 The BSC Auditor will not be required to report in respect of particular matters with a

potential financial impact below such threshold as the Panel shall from time to time

determine.

5.4.3 The BSC Audit Report shall be addressed to the Panel for and on behalf of Trading Parties

and the NETSO in the Audit Year, and shall include all of the BSC Auditor’s findings and

conclusion.

5.4.4 The BSC Auditor shall deliver the BSC Audit Report to the Panel and shall, , upon request

from the Panel, send copies of the report to the Performance Assurance Board, each Trading

Party, the NETSO and the Authority.

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5.4.5 BSCCo shall procure the production by the BSC Auditor of a version of the BSC Audit

Report that is suitable for publication (having regard to the provisions of paragraph 4.3.4).

5.4.6 BSCCo shall post on the BSC Website the version of the BSC Audit Report referred to in

paragraph 5.4.5 and shall provide a copy thereof to any person upon request, subject to

payment of the reasonable costs of providing such copy.

5.5 Access/co-operation

5.5.1 Without prejudice to any specific rights of access provided for elsewhere, each of the Parties

shall use its reasonable endeavours to procure for the BSC Auditor access to premises,

personnel, data, information and records sufficient to enable the BSC Auditor properly to

undertake the BSC Audit to be carried out by the BSC Auditor in accordance with the terms

of reference and having regard to its purpose as set out in paragraph 5.1.2.

5.5.2 Without prejudice to any specific rights of access provided for elsewhere, each BSC Agent

(other than the BSC Auditor) and any service provider of Profile Administration Services

referred to in Section C9.3.1 shall be required to provide to the BSC Auditor access to:

(a) the systems, system specifications and other systems documents used by that BSC

Agent or service provider in connection with performing its obligations and

functions as BSC Agent or service provider of Profile Administration Services;

and

(b) its premises, personnel, data, information and records,

sufficient to enable the BSC Auditor properly to undertake the BSC Audit in accordance

with its terms of reference.

5.5.3 Upon written request of the BSC Auditor a Party shall promptly provide the BSC Auditor

with a written statement of all disputes under or in connection with the Code which relate to

the subject matter of the BSC Audit to be carried out by the BSC Auditor, which are then

outstanding and which involve such Party or which the relevant Party believes may arise and

are likely to involve such Party, and (subject to any supervening obligations of

confidentiality binding on such Party) such statement shall include reasonable details of each

such dispute.

5.6 Corrective Action

5.6.1 BSCCo shall instruct the relevant BSC Agent(s), Market Index Data Providers and/or service

provider of Profile Administration Services referred to in Section C9.3.1 (as applicable) to

carry out, or shall carry out, such corrective action as may be required by the Panel

consequent on receipt of the BSC Audit Report.

5.6.2 Each relevant BSC Agent, Market Index Data Provider and service provider of Profile

Administration Services referred to in Section C9.3.1 shall promptly take such corrective

action as may be required by BSCCo in accordance with paragraph 5.6.1.

5.7 BM Auditor

5.7.1 The audits to be carried out by the BM Auditor pursuant to paragraph 5.1.6 in relation to the

matters referred to in that paragraph shall:

(a) form part of the BSC Audit for the purposes of the Code;

(b) be carried out to meet the objective set out in paragraph 5.1.2.

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5.7.2 The NETSO shall develop the terms of reference for the BM Auditor in consultation with

the Panel such as to satisfy the requirements of this paragraph 5.7, and may revise such terms

of reference from time to time in consultation with the Panel.

5.7.3 The NETSO shall provide a copy of the terms of reference of the BM Auditor (as revised

from time to time) to BSCCo, and BSCCo shall make a copy thereof available to the

Authority and each Party.

5.7.4 The provisions of paragraph 5.4 shall apply mutatis mutandis to the audits to be carried out

by the BM Auditor (as if references to the BSC Auditor were references to the BM Auditor

and references to the BSC Audit Report were references to the audit report prepared by the

BM Auditor).

5.7.5 As soon as reasonably practicable after the provision of any audit report by the BM Auditor

pursuant to this paragraph 5.7, the NETSO shall propose to the Panel any corrective action

which is necessary as a consequence of the audit report and the NETSO shall take such

corrective action as may be agreed with the Panel.

5.7.6 The costs of carrying out any such audit by the BM Auditor shall, subject to the prior

approval of such costs by the Panel, be charged to BSCCo and shall be treated as BSC Costs

for the purposes of Section D.

6. LIABILITY AND RELATED ISSUES

6.1 Relationship between Parties

6.1.1 Save as otherwise expressly provided in the Code:

(a) the obligations of each Party under the Code are several;

(b) a Party shall not be responsible for the obligations or liabilities of any other Party;

(c) subject to paragraph 3.1.3, the failure of any Party to carry out all or any of its

obligations under the Code shall not relieve any other Party of all or any of its

obligations under the Code.

6.1.2 In respect of those obligations of a Party under the Code which are several, such Party shall

indemnify and keep indemnified each other Party from and against all losses, costs (including

legal costs), claims and expenses which such other Party may suffer or incur as a result of

being held liable by operation of law for the performance or non-performance of all or any

of the obligations of that Party.

6.1.3 In any case where the Code provides for Trading Parties jointly and severally:

(a) to give any indemnity to any person, or

(b) to incur or assume or accept any other liability

then (unless the Code otherwise provides) the Trading Parties shall, as between themselves,

be liable under such indemnity or for such other liability severally in their Annual Funding

Shares applying in relation to the month in which the request for indemnification was made

and shall be entitled to rights of contribution among themselves accordingly.

6.1.4 The rights and obligations of Parties under the Code (as between themselves) are subject to

the further provisions of Section E and this Section H.

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6.2 Limitation of liability

6.2.1 For the purposes of this paragraph 6.2, references to a Party includes any of its officers,

employees or agents.

6.2.2 Subject to the succeeding provisions of this paragraph 6.2, each Party agrees and

acknowledges that:

(a) no Party shall be liable to any other Party for loss arising from any breach of the

Code other than for loss directly resulting from such breach and which at the

Code Effective Date was reasonably foreseeable as not unlikely to occur in the

ordinary course of events from such breach in respect of:

(i) physical damage to the property of any other Party, and/or

(ii) the liability (in law) of any other such Party to any other person for

loss in respect of physical damage to the property of such person;

(b) no Party shall in any circumstances be liable in respect of any breach of the Code

to any other Party for:

(i) any loss of profit, loss of revenue, loss of use, loss of contract, loss of

goodwill, or increased cost of working; or

(ii) any indirect or consequential loss; or

(iii) except as provided in paragraphs 6.2.2(a)(ii) and 6.2.4, loss resulting

from the liability of any other Party to any other person howsoever

and whensoever arising.

6.2.3 Paragraph 6.2.2 is without prejudice to any provision of the Code which provides for an

indemnity, or which provides for any Party to make a payment to another.

6.2.4 Nothing in the Code shall exclude or limit the liability of any Party for death or personal

injury resulting from the negligence of such Party.

6.3 Exclusion of certain rights and remedies

6.3.1 Subject to paragraph 6.3.7, the rights and remedies of the Parties provided under the Code

are exclusive and not cumulative and exclude and are in place of all substantive rights or

remedies express or implied and provided by common law or statute in respect of the subject

matter of the Code, including any rights which any Party may possess in tort (which shall

include actions brought in negligence and/or nuisance) or for breach of trust.

6.3.2 Subject to paragraph 6.3.7 and 6.3.5, each of the Parties hereby waives to the fullest extent

possible all such rights and remedies provided by common law or statute, and releases a

Party which is liable to another (or others), its officers, employees and agents to the same

extent from all duties, liabilities, responsibilities or obligations provided by common law or

statute in respect of the matters dealt with in the Code and undertakes not to enforce any of

the same except as expressly provided herein.

6.3.3 The provisions of paragraphs 6.3.1 and 6.3.2 are without prejudice to a Party's right to any

equitable remedies and/or interim relief which may be available to the Party.

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6.3.4 For the avoidance of doubt, nothing in this paragraph 6.3 shall apply to:

(a) any rights and remedies which one Party may have against another pursuant to

any bilateral agreement entered into in connection with or in consequence of the

arrangements established by the Code; and

(b) the rights and remedies which a Party may have against another Party pursuant

to the Implementation Scheme or any other agreement entered into pursuant to

the Code, provided that a Party shall not be entitled to recover damages or an

account more than once in respect of the same matter.

6.3.5 Without prejudice to paragraph 6.3.1, where any provision of the Code provides for any

amount to be payable by a Party upon or in respect of that Party's breach of any provision of

the Code, each Party agrees and acknowledges that the remedy conferred by such provision

is exclusive of and is in substitution for any remedy in damages or an account in respect of

such breach or the event or circumstance giving rise thereto.

6.3.6 For the avoidance of doubt, nothing in this paragraph 6.3 shall prevent any Party from or

restrict it in enforcing any obligation (including suing for a debt) owed to it under or pursuant

to the Code but without prejudice to the provisions of Section C and Section N in relation to

the enforcement of rights under the Code.

6.3.7 Nothing in this paragraph 6.3 shall constitute a waiver by any Party of any right or remedy

it may have (other than pursuant to the Code) in respect of a breach by any other Party of

any Legal Requirement.


6.4.1 Each Party acknowledges and agrees that each of the other Parties holds the benefit of the

provisions of this paragraph 6 for itself and as trustee and agent for its officers, employees

and agents.

6.4.2 Each provision of this paragraph 6 shall be construed as a separate and severable contract

term, and shall remain in full force and effect and shall continue to bind the Parties even if a

Party ceases to be a Party to the Code or the Code is terminated.

6.4.3 Each Party acknowledges and agrees that the provisions of this paragraph 6 have been the

subject of discussion and are fair and reasonable having regard to the circumstances as at the

Code Effective Date.

6.4.4 Where any provision of the Code provides for any amount to be payable by a Party upon or

in respect of that Party's breach of any provision of the Code, each Party agrees and

acknowledges that such provision has been the subject of discussion, and that the amount

provided to be payable represents no more than a genuine pre-estimate of the loss of the

Party to which such amount is payable.

6.4.5 References in this paragraph 6 to the Code include the Framework Agreement and Code

Subsidiary Documents.

7. DISPUTE RESOLUTION

7.1 Arbitration

7.1.1 Save where expressly stated in the Code to the contrary and subject to any contrary provision

of the Act, any Licence, any EMR Legal Requirement or the rights, powers, duties and

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obligations of the Authority or the Secretary of State under the Act, any Licence or otherwise

howsoever, any dispute or difference of whatever nature howsoever arising under, out of or

in connection with the Code between any one or more Parties shall be and is hereby referred

to arbitration pursuant to the arbitration rules of the Electricity Arbitration Association in

force from time to time.

7.1.2 For the avoidance of doubt, the provisions of paragraph 7.1.1 shall not apply in respect of

any dispute by any Party with the Panel, any Panel Committee or any Workgroup.

7.1.3 Whatever the nationality, residence or domicile of any Party and wherever the dispute or

difference or any part thereof arose the law of England shall be the proper law of any

reference to arbitration hereunder and in particular (but not so as to derogate from the

generality of the foregoing) the seat of any such arbitration shall be England and Wales and

the provisions of the Arbitration Act 1996 shall apply to any such arbitration wherever the

same or any part of it shall be conducted.

7.1.4 Where a dispute is referred to arbitration pursuant to paragraph 7.1.1, the Panel may,

following consultation with Parties, instruct BSCCo to join in such arbitration proceedings

for the purposes of representing, in accordance with terms of reference set by the Panel, the

interests of any Party not party to the arbitration proceedings, or the interests of all or any

class of Parties collectively.

7.1.5 Each Party shall give notice to BSCCo promptly upon referring any dispute or difference to

arbitration pursuant to paragraph 7.1.1.

7.1.6 The decision of the arbitrator pursuant to a reference under paragraph 7.1.1 shall be final and

binding on each of the Parties and the Parties shall comply with such decision provided that

(for the avoidance of doubt) the arbitrator shall not have the power to modify the Code.

7.1.7 The annual overhead costs of the Electricity Arbitration Association shall be borne by

BSCCo and shall be recovered from Parties in the manner and in the proportions set out in

Section D.

7.1.8 The provisions of this paragraph 7.1 are subject to the provisions of Section W.

7.1.9 References in this paragraph 7.1 to the Code include the Framework Agreement and Code

Subsidiary Documents.

7.2 Third Party Claims

7.2.1 Subject always to paragraph 7.2.4, if:

(a) any designated customer (as defined in the Supply Licence) brings any legal

proceedings in any court (as referred to in the Civil Procedure Act 1997) against

one or more persons, any of which is a Party (the "Defendant Contracting

Party"); and

(b) the Defendant Contracting Party wishes to make a Third Party Claim against any

other Party (a "Contracting Party") which would, but for this paragraph 7.2,

have been a dispute or difference referred to arbitration by virtue of paragraph

7.1

then, notwithstanding the provisions of paragraph 7.1 which shall not apply and in lieu of

arbitration, the court in which the legal proceedings have been commenced shall hear and

completely determine and adjudicate upon the legal proceedings and the Third Party Claim

not only between the designated customer and the Defendant Contracting Party but also

between either or both of them and any other Contracting Party whether by way of third party

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proceedings (pursuant to the Civil Procedure Rules 1998) or otherwise as may be ordered by

the court.

7.2.2 Where a Defendant Contracting Party makes a Third Party Claim against any Contracting

Party and such Contracting Party wishes to make a Third Party Claim against a further

Contracting Party, the provisions of paragraph 7.2.1 shall apply mutatis mutandis as if such

Contracting Party had been the Defendant Contracting Party and similarly in relation to any

such further Contracting Party.

7.2.3 For the purposes of this paragraph 7.2, "Third Party Claim" shall mean a counterclaim by

a defendant or any claim for contribution, indemnity or some other remedy.

7.2.4 The provisions of this paragraph 7.2 shall apply only if at the time the legal proceedings are

commenced no arbitration has been commenced between the Defendant Contracting Party

and another Contracting Party raising or involving the same or substantially the same issues

as would be raised by or involved in the Third Party Claim and the tribunal in any arbitration

which has been commenced prior to the commencement of legal proceedings shall determine

the question, in the event of dispute, whether the issues raised or involved are the same or

substantially the same.

8. REFERENCES TO THE AUTHORITY


8.1.1 Where the Code expressly provides that a matter or question may be referred to the Authority

for determination (as provided in Condition C3 of the Transmission Licence), the provisions

of this paragraph 8 shall apply in the event of any such reference (unless and to the extent

otherwise expressly stated).

8.1.2 The NETSO hereby appoints each of the Panel and BSCCo to refer to the Authority on behalf

of the NETSO any question or other matter arising under any provision of the Code which

pursuant to any such provision may be or is to be so referred.

8.1.3 The Authority may decline to determine the matter for whatever reason, in which case (unless

otherwise provided in the Code) the decision of the Panel, Panel Committee or BSCCo (as

the case may be) shall take effect, but without prejudice to the rights of any Party to bring a

claim in respect of the decision of the Panel, Panel Committee or BSCCo (as the case may

be) to the extent permitted in law.

8.1.4 If the Authority agrees to determine the matter:

(a) the Authority may do so in such manner and using such procedures as it considers

fit;

(b) the Authority may undertake such investigations and require such information

and documentation from Parties, Party Applicants, Party Agents, BSC Agents

and Qualified Persons as it considers fit for the purposes of determining the matter

provided a Party shall not be compelled to produce any document or provide any

information which it could not be compelled to produce or provide in evidence

in any civil proceedings in any court in England or Wales;

(c) the decision of the Authority shall be final and binding on the Parties, Party

Applicants, Party Agents, BSC Agents and Qualified Persons.

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8.1.5 The Panel, each Party and each BSC Agent shall co-operate with the Authority and provide

or procure the provision of such information and documentation as the Authority may require

(subject to the proviso in paragraph 8.1.4(b)) for the purposes of determining the matter.

8.1.6 Pending:

(a) any decision of the Authority to accept or decline a reference to it pursuant to the

Code; or

(b) any determination of the matter,

the decision forming the subject of such reference shall be implemented unless and to the

extent that the Authority instructs otherwise and provided that, if the Authority's

determination of such matter is different from such decision, the effect of the decision can

be reversed without undue difficulty or additional material expense and/or without

significant expense incurred in implementing the decision being wasted.

8.1.7 BSCCo shall notify each Party as soon as reasonably practicable of:

(a) the referral of any matter to the Authority under the Code;

(b) any decision of the Authority to decline jurisdiction as envisaged by paragraph

8.1.3;

(c) any instruction given by the Authority as envisaged by paragraph 8.1.6; and

(d) any determination of the Authority in relation to the matter or matters referred to

him.

9. GENERAL

9.1 Assignment

9.1.1 Unless permitted to do so pursuant to Section A2.7 or Section A5.1.6, a Party shall not assign

and/or transfer and shall not purport to assign or transfer any of its rights or obligations under

the Code or the Framework Agreement, provided that a Party may assign, subject to Section

N2.4 to 2.7 (inclusive), by way of security only all or any of its rights over receivables arising

under the Code.

9.2 Notices

9.2.1 Save as otherwise expressly provided in the Code or relevant BSC Procedure(s), any notice

or other communication to be given by one Party to another under or in connection with the

matters contemplated by the Code or the Framework Agreement shall be addressed to the

recipient and sent to the postal address, facsimile number or e-mail address(es) of such other

Party:

(a) in the case of a Party other than BSCCo, previously notified in accordance with

its Party Details; or

(b) in the case of BSCCo, provided on the BSC Website, unless otherwise expressly

provided in the relevant BSC Procedure(s).

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9.2.2 Such notice or other communication, shall be in writing and shall be given by letter delivered

by hand or sent by first class prepaid post (airmail if overseas) or facsimile or by e-mail, and

shall be deemed to have been received:

(a) in the case of delivery by hand, when delivered; or

(b) in the case of first class prepaid post, on the second day following the day of

posting or (if sent airmail overseas or from overseas) on the fifth day following

the day of posting; or

(c) in the case of facsimile, on acknowledgement of the addressee’s facsimile

receiving equipment (where such acknowledgement occurs before 1700 hours on

the day of acknowledgement) and in any other case on the day following the day

of acknowledgement; or

(d) subject to paragraph 9.2.4, in the case of e-mail one hour after being sent, in the

absence of any undeliverable return receipt received by the sender during that

period.

9.2.3 The provisions of this paragraph 9.2:

(a) extend to any notice or other communication to be given by or to the Panel, any

Panel Committee, any Workgroup or any secretary to the Panel, any Panel

Committee or a Workgroup; and

(b) apply, mutatis mutandis, to any notice or communication to be given under any

Code Subsidiary Document; and

(c) are subject to Section O.

9.2.4 Other than in relation to a notice or communication sent by e-mail in respect of an Urgent

Modification Proposal, if the time at which a notice or communication sent by e-mail is

deemed to have been received falls after 1700 hours on a day, the notice or communication

shall be deemed to have been received at 0900 hours on the following day.

9.2.5 Other forms of communication for the election of Industry Panel Members in accordance

with Section B Annex B-2 may be permissible as determined by the Panel from time to time.

9.2.6 Each Party acknowledges and agrees that the recipient of any notice or communication sent

by e-mail in accordance with this paragraph 9.2 shall (on deemed receipt) be entitled to rely

on the contents of such notice or communication, including for the avoidance of doubt, the

identity of the sender.

9.3 Waiver

9.3.1 No delay by or omission of any Party, or the Panel or any Panel Committee in exercising any

right, power, privilege or remedy under the Code, the Framework Agreement or any Code

Subsidiary Document shall operate to impair such right, power, privilege or remedy or be

construed as a waiver thereof.

9.3.2 Any single or partial exercise of any such right, privilege or remedy shall not preclude any

other or future exercise thereof or the exercise of any other right, power, privilege or remedy.

9.3.3 For the avoidance of doubt, the Parties acknowledge and agree that nothing in the Code or

any Code Subsidiary Document shall exclude or restrict or otherwise prejudice or affect any

of the rights, powers, privileges, remedies, duties and obligations of the Secretary of State or

the Authority under the Act or any Licence or otherwise under applicable law.

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9.4 Rights of Third Parties

9.4.1 Subject to paragraphs 6.4.1 and 9.4.4, the Parties do not intend that any third party shall have

any rights, benefits, entitlements or privileges under the Code, the Framework Agreement

and the Code Subsidiary Documents, and nothing in the Code, the Framework Agreement or

any Code Subsidiary Document shall be construed as conferring or purporting to confer any

such right, benefit, entitlement or privilege on any such person.

9.4.2 The Parties do not intend that any term of the Code, the Framework Agreement or any Code

Subsidiary Document shall be enforceable solely by virtue of the Contracts (Rights of Third

Parties) Act 1999 by any person who is not a Party.

9.4.3 Save for the Authority and the Panel as provided in Section F and, in respect of the Secretary

of State, to the extent provided in Section C, no third party consent shall be required to

rescind, vary or modify the Code or any Code Subsidiary Document (but without prejudice

to the rights of BSC Agents under their respective BSC Agent Contracts in respect of any

change to such BSC Agent Contract).

9.4.4 Any person who is not a Party but who is permitted to propose a Modification Proposal

pursuant to Section F shall have the rights, benefits, entitlements and privileges of a Proposer

under Section F from the date when that Modification Proposal is accepted until the earlier

of that Modification Proposal being nullified, withdrawn, rejected or approved and the

provisions of paragraph 9.4.2 shall be interpreted accordingly.

9.5 Language

9.5.1 Every notice or other communication to be given by one Party to another under the Code or

any Code Subsidiary Document shall be in the English language.

9.6 Severance of Terms

9.6.1 If any provision of the Code or any Code Subsidiary Document is or becomes invalid,

unenforceable or illegal, or is declared to be invalid, unenforceable or illegal by any court of

competent jurisdiction or by order of any other Competent Authority, such invalidity,

unenforceability or illegality shall not prejudice or affect the remaining provisions of the

Code and the Code Subsidiary Documents which shall continue in full force and effect

notwithstanding the same.

9.7 Entire Agreement

9.7.1 The Code, the Framework Agreement and the Code Subsidiary Documents (as respects the

Parties thereto) contain or expressly refer to the entire agreement between the Parties with

respect to the subject matter thereof, and supersede all previous agreements or

understandings between the Parties with respect thereto; and any warranty, condition or other

term implied at law or by custom is (to the fullest extent permitted by law) expressly excluded

therefrom.

9.7.2 Each Party acknowledges that in entering into or acceding to the Framework Agreement it

does not rely on any representation, warranty or other understanding not expressly contained

in the Code.

9.7.3 Without prejudice to paragraph 2.2, nothing contained in a document (other than a Code

Subsidiary Document) referred to in the Code, beyond what is expressly contemplated by

the Code as being contained in such document or is necessary for the purposes of giving

effect to a provision of the Code, shall modify or have any effect for the purposes of the Code

or be construed as relevant to the interpretation of the Code.

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9.8 Euro

9.8.1 Unless otherwise prohibited by law, if more than one currency unit are at the same time

recognised by the Bank of England as the lawful currency of the United Kingdom, then:

(a) any reference in the Code or Code Subsidiary Documents to, and obligations

arising thereunder in, the currency of the United Kingdom shall be translated into,

or paid in, the currency or currency unit of the United Kingdom designated by

the Panel following consultation with the Parties;

(b) any translation from one currency or currency unit to another shall be at the

official rate of exchange recognised by the Bank of England for the conversion

of that currency or currency unit into the other, and rounded up or down in

accordance with rounding rules recognised by the Bank of England;

(c) to the extent that, following any designation by the Panel pursuant to paragraph

(a), the provisions of the Code or Code Subsidiary Documents are incompatible

with any generally accepted conventions and market practices in the London

interbank market, BSCCo may recommend to the Panel such modifications to the

Code and/or Code Subsidiary Documents as it sees fit to accommodate the change

in currency.

9.9 Jurisdiction

9.9.1 Subject and without prejudice to paragraph 7, under the Code, all the Parties irrevocably

agree that only the courts of England and Wales and the courts of Scotland are to have

jurisdiction to settle any disputes which may arise out of or in connection with the Code or

any Code Subsidiary Document and that accordingly any suit, action or proceeding

(collectively proceedings) arising out of or in connection with the Code or any Code

Subsidiary Document may be brought (and may only be brought) in such courts.

9.9.2 Each Party irrevocably waives any objection which it may have now or hereafter to the laying

of the venue of any proceedings in any such court as is referred to in paragraph 9.9.1 and any

claim that any such proceedings have been brought in an inconvenient forum and further

irrevocably agrees that a judgment in any proceedings brought in the English or Welsh

courts, or the Scottish courts, shall be conclusive and binding upon such Party and may be

enforced in the courts of any other jurisdiction.

9.9.3 Any Party which is not a company incorporated under the Companies Act 2006 shall

immediately on becoming a Party (or upon ceasing to be a company so incorporated) provide

to BSCCo an address in Great Britain for service of process on its behalf in any proceedings

provided that if any such Party fails at any time to provide such address, such Party shall be

deemed to have appointed BSCCo as its agent to accept service of process on its behalf until

and unless such Party provides BSCCo with an alternative address in Great Britain for these

purposes.

9.9.4 For the avoidance of doubt nothing contained in the foregoing provision of this paragraph

9.9 shall be taken as permitting a Party to commence proceedings in the courts where the

Code otherwise provides for the proceedings to be referred to arbitration or otherwise

determined.

9.10 Governing law

9.10.1 The Code and each Code Subsidiary Document shall be governed by, and construed in all

respects in accordance with, the laws of England and Wales.

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10. BSC SANDBOX

10.1 BSC Derogations

10.1.1 Subject to the provisions of paragraph 10.4.3, the Authority may, in accordance with this

paragraph 10, grant any person, other than a BSC Company, a derogation from one or more

provisions of the Code in which case paragraph 10.4 shall apply (a "BSC Derogation").

10.2 Applications for a BSC Derogation

10.2.1 Any person other than a BSC Company may make a written request for a BSC Derogation

to the Authority pursuant to the Authority’s regulatory sandbox procedures as set by the

Authority from time to time and the Authority shall determine whether to pass such request

to BSCCo for consideration (a "BSC Sandbox Application").

10.2.2 Notwithstanding any other provision of this paragraph 10, the Panel may determine, in its

absolute discretion, the priority and the timetable for any steps proposed to be undertaken by

the Panel or BSCCo in relation to a BSC Sandbox Application.

10.2.3 Without prejudice to the generality of the foregoing, BSCCo shall not be required to conduct

an evaluation of a proposed BSC Derogation or submit a draft Sandbox Report to the Panel

until a Sandbox Applicant has:

(a) provided all of the information that BSCCo reasonably requires in order to

conduct such evaluation and prepare such report; and

(b) paid to BSCCo a fee which represents the reasonable costs to BSCCo of

processing the BSC Sandbox Application, such fee to be approved by the Panel

from time to time.

10.2.4 Following receipt of a BSC Sandbox Application, but subject to paragraph 10.2.3, BSCCo

shall:

(a) evaluate the risks and impacts of the proposed BSC Derogation in accordance

with the BSC Sandbox Procedure;

(b) conduct consultation(s) with:

(i) Parties; and

(ii) such interested third parties as it considers necessary;

(c) publish the responses to such consultation(s) on the BSC Website;

(d) prepare a draft report for the Panel which shall include:

(i) a summary of the representations received during the consultation(s)

conducted pursuant to paragraph 10.2.4(b);

(ii) assessment of whether a proposed BSC Derogation meets the BSC

Sandbox Eligibility Criteria;

(iii) analysis identifying the provisions of the Code (and for the purposes

of this paragraph 10 a reference to the Code shall be deemed to include

a reference to each Code Subsidiary Document) from which a BSC

Derogation may be required;

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(iv) the Trial Period proposed by the Sandbox Applicant, which shall be

the shortest period the Sandbox Applicant considers necessary to test

the Sandbox Applicant’s proposal;

(v) the Trial Period that BSCCo considers is the shortest period necessary

to test the Sandbox Applicant’s proposal;

(vi) the Transition Plan proposed by the Sandbox Applicant, including the

Transition Period proposed by the Sandbox Applicant, which shall be

the shortest period the Sandbox Applicant considers necessary to

allow the Sandbox Applicant to exit from the proposed BSC

Derogation;

(vii) the Transition Period that BSCCo considers is the shortest period

necessary to allow the Sandbox Applicant to exit from the proposed

BSC Derogation;

(viii) BSCCo’s evaluation of the risks and impacts of the proposed BSC

Derogation, pursuant to paragraph (a);

(ix) the fees which BSCCo considers represent the reasonable costs to

BSCCo of monitoring and administering such BSC Derogation;

(x) the reports that BSCCo considers should be provided to BSCCo by

the Sandbox Applicant; and

(xi) such other matters as shall be required by the BSC Sandbox

Procedure,

(the "Sandbox Report").

10.2.5 The Panel shall consider the draft Sandbox Report and, having taken due account of any

representation contained in the summary referred to in paragraph 10.2.4(d)(i), shall

determine:

(a) whether to recommend to the Authority:

(i) that the BSC Sandbox Application should be granted or rejected;

(ii) what, if any, conditions should be set on such proposed BSC

Derogation; and

(iii) that the Trial Period and the Transition Plan should be approved; or

(b) whether to require amendments to:

(i) the draft Sandbox Report; and/or

(ii) the proposed Trial Period and/or Transition Plan,

in which case the Panel shall determine the timetable for making such

amendments and specify its further requirements, BSCCo shall amend and

resubmit the draft Sandbox Report and the Panel shall reconsider the draft

Sandbox Report in accordance with paragraphs 10.2.4 and 10.2.5(a).

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10.2.6 When considering whether to recommend to the Authority that a BSC Derogation be granted

pursuant to paragraph 10.2.5, the Panel shall determine whether such proposed BSC

Derogation would:

(a) better facilitate the achievement of the Applicable BSC Objectives (provided that

the powers, function and duties of the Panel in respect of the Modification

Procedures shall not be fettered or restricted notwithstanding a determination of

the Panel in respect of the BSC Sandbox Eligibility Criteria); and

(b) meet the eligibility criteria set out in the BSC Sandbox Procedure,

collectively the ("BSC Sandbox Eligibility Criteria").

10.2.7 Within 7 Business Days after the Panel meeting at which the draft Sandbox Report has been

approved, BSCCo shall finalise the draft Sandbox Report and shall forthwith:

(a) submit such Sandbox Report to the Authority; and

(b) copy such report to:

(i) each Party and interested third party;


(iii) the Sandbox Applicant.

10.2.8 If, at any time prior to the Derogation Period Commencement Date, the Panel is notified by

the Authority that the Sandbox Applicant intends to withdraw its BSC Sandbox Application,

the application shall lapse, and, in respect of the BSC Sandbox Application:

(a) no BSC Derogation shall commence; and

(b) no fee paid by the Sandbox Applicant shall be refunded to the Sandbox Applicant

for any reason.

10.2.9 The Panel shall establish, and may revise from time to time, a document containing the

processes that the BSC Panel, BSCCo and Sandbox Applicants shall follow with respect to

BSC Sandbox Applications and the monitoring of BSC Derogations (the "BSC Sandbox

Procedure"). BSCCo shall ensure that a copy of the BSC Sandbox Procedure (as revised

from time to time) is published on the BSC Website.

10.3 Sandbox Send Back Process

10.3.1 Where the Authority considers that it is unable to form an opinion in relation to a Sandbox

Report submitted to it pursuant to paragraph 10.2.7, it may issue a direction to the Panel:

(a) specifying any additional steps that it requires in order to form such an opinion

including amending the proposed conditions on the proposed BSC Derogation,

revising the proposed Trial Period or Transition Plan, or providing additional

analysis and/or information; and

(b) requiring such Sandbox Report to be revised and re-submitted to the Authority,

and the Authority may include in such direction its reasons for why it has been unable to

form an opinion (a "Sandbox Send Back Direction").

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10.3.2 The Panel shall re-submit the revised Sandbox Report as soon after the Authority’s direction

pursuant to paragraph 10.3.1 as is appropriate, taking into account the complexity,

importance and urgency of the proposed BSC Derogation.

10.3.3 Subject to paragraph 10.3.4, in relation to each Sandbox Send Back Direction BSCCo shall

prepare a draft Sandbox Send Back Process for approval by the Panel which:

(a) shall include a procedure and timetable for the reconsideration by the Panel of its

recommendation and the re-submission of the revised Sandbox Report to the

Authority; and

(b) may include such further matters as the Panel considers necessary to address the

Sandbox Send Back Direction including:

(i) further consultation with Parties and interested third parties;

(ii) revised or additional analysis and/or information;

(iii) amending the proposed conditions on the proposed BSC Derogation;

(iv) revising the proposed Trial Period or Transition Plan; and

(v) any other steps required by the Panel to address the Sandbox Send

Back Direction.

10.3.4 Where the requirements specified in the Sandbox Send Back Direction are of a minor nature

such that it would be more appropriate for BSCCo to address the matters contained therein

without preparing a draft Sandbox Send Back Process then:

(a) BSCCo may take such steps as are necessary to address the requirements of that

Sandbox Send Back Direction; and

(b) the provisions of paragraphs 10.3.6(b), 10.3.6(c), 10.3.7 and 10.3.8 shall apply

thereto provided that if the Panel does not approve the revised draft Sandbox

Report then it may require BSCCo to prepare a draft Sandbox Send Back Process

in accordance with paragraph 10.3.3.

10.3.5 The Panel shall consider the draft Sandbox Send Back Process and, having considered any

comments made or received by the representative of the Authority, shall determine whether

to approve the draft Sandbox Send Back Process or to instruct BSCCo to make such changes

to the draft Sandbox Send Back Process as may be specified by the Panel.

10.3.6 Following approval by the Panel of the Sandbox Send Back Process:

(a) BSCCo shall perform the additional steps set out in the Sandbox Send Back

Process;

(b) BSCCo shall:

(i) notify the Sandbox Applicant that the Authority has issued a Send

Back Direction;

(ii) revise the Sandbox Report;

(iii) re-submit that Sandbox Report to the Panel; and

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(iv) take any further steps in relation to the Sandbox Report as are set out

in this paragraph 10.3 and the Sandbox Send Back Process; and

(c) the Panel shall consider the revised Sandbox Report in accordance with paragraph

10.3.7,

in each case in accordance with the procedure(s) and timetable set out in the Sandbox Send

Back Process.

10.3.7 The Panel shall consider the revised Sandbox Report and determine:

(a) whether to revise the recommendation it made to the Authority pursuant to

paragraph 10.2.5;

(b) whether to approve the revised Sandbox Report or to instruct BSCCo make such

further changes to the revised report as may be specified by the Panel;

(c) (if applicable) whether to approve any revised proposed conditions on the

proposed BSC Derogation; and/or

(d) (if applicable) whether to approve any revised proposed Trial Period or Transition

Plan.

10.3.8 After the Panel has considered the revised Sandbox Report, BSCCo shall:

(a) finalise the revised Sandbox Report which shall, for the purposes of the Code, be

deemed to be the Sandbox Report as from the date of the Panel’s determination

pursuant to paragraph 10.3.7; and

(b) submit such Sandbox Report to the Authority; and

(c) copy such report to:



(iii) the Sandbox Applicant.

10.4 Impact of BSC Derogation

10.4.1 Subject to paragraph 10.2.8, any BSC Sandbox Application (including the associated Trial

Period and Transition Plan) that has been approved by the Authority shall be a BSC

Derogation and, subject to paragraph 10.7.7, such BSC Derogation shall remain in force for

the relevant Trial Period together with any relevant Transition Period relating to such

Derogation (the "Derogation Period").

10.4.2 Subject to paragraph 10.4.3, for the duration of the Derogation Period:

(a) each Derogation Party shall be relieved of their obligation to comply with the

Code to the extent permitted by a BSC Derogation; and

(b) no act or omission by a Derogation Party that would be a breach or Default of the

Code shall be deemed to be a breach or Default to the extent only that such act or

omission is permitted by a BSC Derogation.

10.4.3 In respect of each BSC Derogation:

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(a) a Derogation Party shall be required to comply with all provisions of the Code

that are relevant to such Party and which are outside the scope of such BSC

Derogation;

(b) a Derogation Party shall be required to comply with any conditions included in

such BSC Derogation;

(c) BSCCo may charge, and a Derogation Party shall pay to BSCCo such fees as

published in the BSC Sandbox Report;

(d) such BSC Derogation shall have no effect to the extent that it purports to derogate

from:

(i) any Licence conditions;

(ii) any other Industry Code (but without prejudice to any other regulatory

sandbox arrangements);

(iii) any Legal Requirement (including, for the avoidance of doubt, any

Relevant European Legal Requirement);

(iv) any provision of the Code identified in Section F1.1.9; or

(v) any provision of this paragraph 10,

and each Derogation Party acknowledges and agrees that it shall be responsible

for its compliance with any such Code provision, Licence condition, Industry

Code or Legal Requirement (for the purposes of this paragraph 10.4.3 a "relevant

legal requirement");

(e) each Party:

(i) (to the fullest extent permitted by law but excluding any claim for

death or personal injury as a result of negligence or any claim for

fraud) hereby waives any claims, demands and proceedings against

BSCCo in respect of all costs (including legal costs), fines, expenses,

damages and other liabilities incurred by such Party (for the purposes

of this paragraph 10.4.3 a "claim") in connection with any claim

related to a Derogation Party’s acts or omissions under a relevant legal

requirement;

(ii) indemnifies and keeps indemnified BSCCo in connection with any

claim related to a Derogation Party’s acts or omissions under a

relevant legal requirement.

10.4.4 With effect from 00:00 on the day following the Derogation Period End Date, such BSC

Derogation shall no longer be in force and the Derogation Party shall comply with the Code

in full from such time and date.

10.4.5 The granting of a BSC Derogation to any Party shall not relieve any other Party of all or any

of its obligations under the Code.

10.4.6 Subject to paragraphs 10.5 and 10.6, no variation to a BSC Derogation shall be permitted.

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10.5 Trial Period Duration

10.5.1 A Trial Period shall take effect from the Derogation Period Commencement Date and,

subject to paragraph 10.5.3, shall remain in effect for such period as has been approved by

the Authority pursuant to paragraph 10.4.1.

10.5.2 The Trial Period, including any extensions approved thereto pursuant to paragraph 10.5.3,

shall on no account exceed a total duration of 2 years from the Derogation Period

Commencement Date.

10.5.3 Subject always to paragraph 10.5.2, the Panel may extend a Trial Period with the approval

of, or at the direction of, the Authority provided that the Panel may only recommend an

extension to a Trial Period in exceptional circumstances.

10.6 BSC Derogation Transition and Exit

10.6.1 In respect of a BSC Derogation:

(a) a Derogation Party shall comply with the relevant Transition Plan approved by

the Authority pursuant to paragraph 10.4.1; and

(b) the applicable Transition Period shall take effect from the end of the Trial Period

relating to that BSC Derogation and shall remain in effect until the earlier of:

(i) the Derogation Period End Date;

(ii) the Implementation Date of a Code Modification relating to such BSC

Derogation; or

(iii) 3 years after the Derogation Period Commencement Date.

10.6.2 The Panel may extend a Transition Period (other than a Transition Period that is being

implemented pursuant to an Early Cessation Report) with the approval of, or at the direction

of, the Authority where a Modification Proposal relating to the BSC Derogation was made

before the conclusion of the Trial Period, and that Modification Proposal:

(a) has not been implemented, rejected or withdrawn at the date of the extension

request; or

(b) has been withdrawn or rejected and the Panel determines that an extension to the

Transition Period is reasonably necessary to allow the Derogation Party to exit

from BSC Derogation,

provided that the Transition Period must end no later than 3 years after the Derogation Period

Commencement Date.

10.6.3 BSCCo may charge, and a Derogation Party shall pay to BSCCo, such additional fees as

BSCCo:

(a) considers represent the reasonable additional costs to BSCCo of monitoring and

administering an extension of the Transition Period in respect of such BSC

Derogation; and

(b) has notified to the Derogation Party prior to the extension of the Transition

Period.

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10.7 Derogation Reporting and Monitoring

10.7.1 A Derogation Party shall provide to BSCCo such reports as may be specified in the Sandbox

Report.

10.7.2 Upon receipt of a report pursuant to paragraph 10.7.1, BSCCo shall:

(a) provide a copy of such report to each Panel Member;

(b) if such report has not already been received by the Authority, provide a copy of

such report to the Authority; and

(c) publish a copy of such report on the BSC Website, redacting such information as

the Derogation Party expressly requests BSCCo keep confidential.

10.7.3 The Panel may recommend to the Authority at any time that a BSC Derogation be removed

if the Panel considers that:

(a) a BSC Derogation no longer meets the BSC Sandbox Eligibility Criteria; or

(b) a Derogation Party is in breach of a BSC Derogation,

in which case it may make a recommendation to the Authority in accordance with paragraph

10.7.4.

10.7.4 Before the Panel makes a recommendation pursuant to paragraph 10.7.3, BSCCo shall

prepare, and submit to the Panel, a draft report which shall include:

(a) rationale on whether:

(i) a BSC Derogation no longer meets the BSC Sandbox Eligibility

Criteria; or

(ii) a Derogation Party is in breach of a BSC Derogation;

(b) an evaluation of the risks and impacts related to the recommendation;

(c) the views of the Derogation Party, if the Derogation Party has provided such

views to BSCCo;

(d) such other matters as shall be required by the BSC Sandbox Procedure,

(the "Early Cessation Report").

10.7.5 The Panel shall consider the draft Early Cessation Report and shall determine whether to:

(a) recommend to the Authority that the BSC Derogation be removed prior to the

scheduled end of the relevant Derogation Period; or

(b) require amendments to the draft Early Cessation Report in which case the Panel

shall determine the timetable for making such amendments and specify its further

requirements, BSCCo shall amend and resubmit the draft report in accordance

with such requirements and the Panel shall reconsider the draft report.

10.7.6 Within 7 Business Days after the Panel meeting at which the Early Cessation Report has

been approved, BSCCo shall:

(a) submit such report to the Authority; and

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(b) copy such report to:



(iii) the Derogation Party.

10.7.7 If the Authority has approved a recommendation to remove a BSC Derogation prior to the

scheduled end of the relevant Derogation Period then the Trial Period relating to that BSC

Derogation, if such Trial Period is still in effect, shall immediately cease and paragraph 10.6

shall apply.

10.8 BSCCo Derogation Reporting

10.8.1 BSCCo shall from time to time and at least annually submit to the Panel for approval a draft

lessons learned report including:

(a) an estimate of the costs incurred by BSCCo in respect of the administration of

this paragraph 10; and

(b) such other matters as shall be required by the BSC Sandbox Procedure.

10.8.2 In respect of each lessons learned report approved by the Panel, BSCCo shall:

(a) submit such report to the Authority; and

(b) publish such report on the BSC Website.

11. OPEN DATA

11.1 The Balancing Mechanism Reporting Service Change Board

11.1.1 The principal function and power of the BCB under Section H (and without prejudice to any

other functions and powers delegated to the BCB by the Panel in relation to the BMRS or

otherwise) is to determine whether, the extent to which, and the terms (if any) on which BSC

Data may be disclosed.

11.1.2 The Panel shall determine terms of reference ("BCB Terms of Reference") for the BCB in

accordance with Section B5 and BSCCo shall publish the BCB Terms of Reference on the

BSC Website.

11.1.3 The BCB Terms of Reference may include a right for the BCB to delegate to BSCCo the

determination of BSC Data disclosure requests in which case:

(a) the provisions of this paragraph 11 shall apply mutatis mutandis to BSCCo as if

references to the BCB were references to BSCCo; and

(b) the BCB shall periodically review whether any such delegated rights remain

appropriate.

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11.2 Data Disclosure Requests


(a) "BSC Data" means data or information held by, or on behalf of, BSCCo

(including BSC Agents) and which is received, produced or sent by or on behalf

of Parties under the Code (including, for the avoidance of doubt, by BSC Agents

and Party Agents) for the purposes of Settlement but excluding any data or

information that the Code explicitly identifies as confidential;

(b) "BSC Data Disclosure Recommendation" means a recommendation made by

BSCCo under paragraph 11.2.4;

(c) "BSC Data Impact Assessment" means an assessment undertaken by BSCCo in

accordance with the BSC Data Request Procedure assessing, in respect of a BSC

Data Request, the time, effort and cost required to disclose that BSC Data, the

impact of implementing the BSC Data Request identified by BSC Agents, the

anticipated benefits of disclosing that BSC Data and the potential impacts on

industry;

(d) "BSC Data Request" means a request to disclose BSC Data made in accordance

with the BSC Data Request Procedure;

(e) "BSC Data Request Procedure" means the document established and

maintained by [the Panel] and published on the BSC Website setting out:

(i) the criteria for assessing BSC Data Requests, the and determining the

extent to which BSC Data may be disclosed, together with the

classification of BSC Data;

(ii) the procedures for processing BSC Data Requests: and

(iii) any requirements in relation to the form and manner in which BSC

Data may be disclosed,

and for the purposes of this paragraph 11, "disclose" shall mean disclose, reveal,

report, publish or transfer with or without restrictions, in each case as may be

determined in accordance with this paragraph.

11.2.2 Any Party and any person may submit to BSCCo a BSC Data Request and BSCCo shall

process such request and, where so approved, disclose that BSC Data in accordance with this

paragraph.

11.2.3 Following receipt of a BSC Data Request, BSCCo shall, in accordance with the BSC Data

Request Procedure:

(a) identify whether there are any issues which might prevent or limit the disclosure

of that BSC Data including whether:

(i) the requested BSC Data includes personal data within the meaning of

Data Protection Legislation, data relating to the private administration

of a business or which is commercially sensitive, and/or data in

respect of which publication is prohibited by a Legal Requirement;

(ii) the BSC Data would, if disclosed have a negative impact on existing

or future consumers;

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(iii) the disclosure of the BSC Data creates incremental security issues

having regard to data that is already openly available, or exacerbates

existing security issues, in each case which cannot be mitigated;

(b) identify whether any mitigations can be put in place to allow the disclosure of

some or all of the requested BSC Data notwithstanding any issues identified

under paragraph 11.2.3(a);

(c) undertake a BSC Data Impact Assessment;

(d) prepare a BSC Data Disclosure Recommendation for the BCB which shall set

out, in relation to the BSC Data, BSCCO’s recommendation on whether the BSC

Data should be disclosed together with the matters determined or established

pursuant to this paragraph 11.2.3; and

(e) consult with Parties and interested third persons for a period of not more than [15

Working Days] on BSCCo’s draft BSC Data Disclosure Recommendation.

11.2.4 Upon completion of the consultation conducted under paragraph 11.2.3(e), BSCCo shall:

(a) finalise its draft BSC Data Disclosure Recommendation taking into account any

consultation responses; and

(b) as soon as reasonably practical thereafter submit its BSC Data Disclosure

Recommendation to the BCB together with copies of the consultation responses.

11.2.5 The BCB shall, in accordance with the BSC Data Disclosure Procedure, consider the BSC

Data Disclosure Recommendation and any consultation responses and shall determine

whether, the extent to which, and the terms (if any) on which the BSC Data shall be disclosed

(including as to the recovery of the reasonable costs incurred by BSCCo of disclosing such

BSC Data). In making such determination, the BCB must take into consideration the

presumption that BSC Data should be openly available, and only refuse disclosure to the

extent that concerns identified through the BSC Data Request Procedure warrant overriding

this presumption.

11.2.6 Following a determination by the BCB, BSCO shall in accordance with the BSC Data

Request Procedure:

(a) inform the Party or person who made the BSC Data Request;

(b) publish the outcome of the BCB’s determination together with the rationale

supporting that determination; and

(c) no earlier than the expiry of the appeal period set out in paragraph 11.3.2, and

subject to paragraph 11.3, implement, or procure the implementation of, the

BCB’s determination.

11.2.7 Each Party hereby consents irrevocably and unconditionally to the disclosure of data

pursuant to this paragraph.

11.2.8 The provisions of paragraph 11.2 shall not apply to the disclosure of BSC Data:

(a) to the Authority, BSCCo, any Panel Committee or (to the extent necessary for the

purposes of the Code) any BSC Agent; or

(b) where the BSC Data is in the public domain; or

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(c) where such BSC Data is permitted or required to be disclosed in compliance with

any Legal Requirement; or

(d) where the disclosure of such BSC Data is expressly required under the Code.

11.2.9 BSCCo shall keep a copy of all determinations made by itself or the BCB pursuant to

paragraph 11.2.5 and shall publish a register of such determinations together with the

disclosure rationale.

11.2.10 BSCCo shall, at least annually, submit a report to the Authority in relation to BSC Data

Requests during the preceding year.

11.3 Appeals

11.3.1 Where a Party or person who has requested the disclosure of BSC Data disagrees with the

determination of the BCB under paragraph 11.2.5, the Party or (as the case may be) person

may refer the matter to the Panel in accordance with the BSC Data Request Procedure.

11.3.2 A reference by a Party to the Panel under paragraph 11.3.1 shall be made no later than [10

Business Days] after the notification given by BSCCo under paragraph 11.2.6(b) in which

case the disclosure of the relevant BSC Data shall be suspended pending the outcome of the

Panel’s determination.

11.3.3 The Panel shall adopt such procedures as it sees fit (having regard generally to the BSC Data

Request Procedure) for the purpose of determining whether such BSC Data should be

disclosed; and the Panel Secretary shall notify the decision of the Panel in respect of such

BSC Data Request to the person making such appeal and publish the Panel’s determination

together with its rationale.

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SECTION J: PARTY AGENTS AND QUALIFICATION UNDER THE CODE

1. GENERAL

1.1 Introduction

1.1.1 This Section J sets out or refers to:

(a) the types of obligations and activities under the Code which Parties are obliged to perform through the use of Party Agents;

(b) the duties of Parties to ensure that Party Agent functions are discharged in accordance with relevant performance levels;

(c) the Qualification Requirements which must be met and the Qualification Process which must be completed by certain Parties and Party Agents under the Code; and

(d) the obligation of Parties to register relevant Party Agents in CMRS or SMRS (as the case may be).

1.1.2 In this Section J, in relation to a SVA Metering System:

(a) references to a Data Collector are to a Half Hourly Data Collector or Non Half Hourly Data Collector; and

(b) references to a Data Aggregator are to a Half Hourly Data Aggregator or a Non Half Hourly Data Aggregator,

in each case as applicable depending on whether the relevant Metering System is a Half Hourly Metering System or a Non Half Hourly Metering System.

1.2 Obligation to use Party Agents

1.2.1 Each Party shall secure that the following Party Agents are appointed and used, subject to and in accordance with the provisions of this Section J, to perform the obligations and carry out the activities of such Party described in paragraph 1.2.2:

(a) in relation to each Metering System for which such Party is or is to be the Registrant (other than a Metering System which relates to an Unmetered Supply), a Meter Operator Agent;

(b) in relation to each SVA Metering System for which such Party is or is to be the Registrant:

(i) a Data Collector; and

(ii) a Data Aggregator;

(c) in relation to each SVA Metering System which relates to an Equivalent Unmetered Supply and for which such Party is or is to be the Registrant, a Meter Administrator.

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1.2.2 In respect of Metering Systems (or SVA Metering Systems, as the case may be) for which a Party is the Registrant, the principal obligations and activities which that Party is required to perform through the use of a Party Agent (and which represent the functions of such Party Agent) are as follows:

(a) in the case of a Meter Operator Agent, to install, commission, test and maintain, rectify faults and provide a sealing service in respect of Metering Equipment (including, if applicable, associated Communications Equipment) in accordance with the provisions of Section L (except to the extent that Section L and the relevant Code of Practice requires the Equipment Owner to perform such activities);

(b) in the case of a Half Hourly Data Collector, to retrieve, validate and process metering data from Half Hourly Meters and Equivalent Meters in respect of SVA Metering Equipment in accordance with the provisions of Section S;

(c) in the case of a Non Half Hourly Data Collector, to retrieve, validate and process metering data from Non Half Hourly Meters in respect of SVA Metering Equipment in accordance with the provisions of Section S;

(d) in the case of a Half Hourly Data Aggregator, to aggregate metering data received from such Party's Half Hourly Data Collectors and provide such aggregated data and the Allocated Metering System Metered Consumption to the SVAA in accordance with the provisions of Section S;

(e) in the case of a Non Half Hourly Data Aggregator, to aggregate metering data received from such Party's Non Half Hourly Data Collectors and provide such aggregated data to the SVAA in accordance with the provisions of Section S;

(f) in the case of a Meter Administrator, to calculate estimated energy consumption for Equivalent Unmetered Supplies and to provide the relevant data to such Party's Half Hourly Data Collector in accordance with the provisions of Section S.

1.2.3 In addition, where a Party wishes to make Energy Contract Volume Notifications or Metered Volume Reallocation Notifications (as the case may be) in accordance with Section P, it may only do so through the following Party Agents who satisfy the requirements of this Section J and are authorised in accordance with the provisions of Section P:

(a) in the case of Energy Contract Volume Notifications, through Energy Contract Volume Notification Agents, the principal functions of which shall be to make Energy Contract Volume Notifications in accordance with Section P and to discharge such other functions, in relation to such Party, as are attributed to an Energy Contract Volume Notification Agent in Section P;

(b) in the case of Metered Volume Reallocation Notifications, through Metered Volume Reallocation Notification Agents, the principal functions of which shall be to make Metered Volume Reallocation Notifications in accordance with Section P and to discharge such other functions, in relation to such Party, as are attributed to a Metered Volume Reallocation Notification Agent in Section P.

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1.2.4 In satisfying the requirements of paragraphs 1.2.1 and 1.2.3, a Party may, instead of appointing another person (whether another Party or a third party) to fulfil the role of a Party Agent, discharge the relevant function or functions itself provided it is and remains Qualified to perform such role and, in that event:

(a) references to Party Agent, Meter Operator Agent, Data Collector, Half Hourly Data Collector, Non Half Hourly Data Collector, Data Aggregator Half Hourly Data Aggregator, Non Half Hourly Data Aggregator, Meter Administrator, Energy Contract Volume Notification Agent and Metered Volume Reallocation Notification Agent (as the case may be) shall be construed as a reference to such Party (acting in its capacity as such Agent); and

(b) the provisions of the Code shall apply and be interpreted on the basis that such Party shall itself perform the obligations in respect of which it would otherwise be required to ensure compliance by another person.

1.2.5 In respect of Party Agents appointed under the Code:

(a) in the case of a Party Agent appointed by a Party pursuant to paragraph 1.2.1, that Party shall be responsible for every act, breach, omission, neglect and failure of such Party Agent (in relation to that Party) and shall itself comply, and shall procure compliance by such Party Agent, with the relevant provisions of the Code and of Code Subsidiary Documents;

(b) in the case of a Party Agent appointed by Contract Trading Parties pursuant to Section P, those Contracting Trading Parties shall be responsible jointly and severally for every act, breach, omission, neglect and failure of such Party Agent (in relation to those Contracting Trading Parties jointly) and shall themselves comply, and shall procure compliance by such Party Agent, with the relevant provisions of the Code and of Code Subsidiary Documents,

and, for the avoidance of doubt, the provisions of this paragraph 1.2.5 are without prejudice to and shall not affect the rights and obligations as between Parties or between Parties and Party Agents in respect of the appointment or performance of Party Agents (which shall be a matter outside the Code).

1.2.6 Each Party shall, in accordance with any relevant Party Service Lines and BSC Procedures, take such actions and provide such information as is reasonably necessary to enable each Party Agent for which it is responsible to discharge its functions in accordance with the relevant provisions of the Code, relevant Party Service Lines and relevant BSC Procedures.

1.2.7 For the avoidance of doubt, the requirement of a Party to perform certain obligations and to carry out certain activities of such Party through a Party Agent in accordance with this Section J is without prejudice to such Party's responsibility to perform those obligations and carry out those activities under the Code.

1.2.8 Each Party shall ensure that the Party Agents for which it is responsible comply with the relevant provisions of Section O.

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1.3 Other Agents under the Code

1.3.1 In addition to the functions to be carried out by the Party Agents referred to in paragraph 1.2 or by the BSC Agents referred to in Section E, the Code requires certain functions to be carried out:

(a) in respect of its Distribution System(s) and Associated Distribution System(s), by the Supplier Meter Registration Agent responsible for such Distribution System(s);

(b) in respect of its Distribution System(s) and Associated Distribution System(s), by a Licensed Distribution System Operator when acting in its capacity as an Unmetered Supplies Operator; and

(c) by a Data Transfer Service Provider.

1.3.2 The principal functions of a Supplier Meter Registration Agent are as follows:

(a) to provide and operate a registration service in respect of those Boundary Points on the Distribution System(s) and Associated Distribution System(s) (if any) of such SMRA which are not registered in the Central Meter Registration Service, in each case in accordance with Section K and Section S and in accordance with the MRA;

(b) to provide data from such registration system to Parties, Party Agents and BSC Agents for the purposes of Settlement in accordance with the requirements of the Code; and

(c) to provide BSCCo with data from such registration system for the purposes of monitoring in accordance with BSCP533.

1.3.3 The principal function of a Data Transfer Service Provider is to provide a Managed Data Network.

1.3.4 The functions of a Licensed Distribution System Operator when acting in its capacity as an Unmetered Supplies Operator are set out in Section S8.2.

2. QUALIFICATION REQUIREMENTS

2.1 Application

2.1.1 For those Party Agents referred to in paragraph 2.1.2, a Party shall only appoint and use persons who are Qualified (in respect of the functions to be carried out by that Party Agent) and each Party shall ensure that its Party Agents comply in full with the relevant Qualification Requirements and Qualification Process.

2.1.2 The following persons shall be subject to the Qualification Requirements of this Section J applicable to that type of person or to the functions of that type of person:

(a) Meter Operator Agents;

(b) Data Collectors;

(c) Data Aggregators;

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(d) Meter Administrators;

(e) Suppliers;

(f) Licensed Distribution System Operators when acting in their capacity as Unmetered Supplies Operators;

(g) Supplier Meter Registration Agents;

(h) Virtual Lead Parties; and

(i) Licensed Distribution System Operators

2.1.3 Each Supplier and each person carrying out any of the functions referred to in paragraphs 1.2.2, 1.3.2 and 1.3.4 is required to be Qualified in accordance with this Section J (and in the case of Suppliers and Meter Operator Agents who are responsible for CVA Metering Equipment they are also required to comply with the testing requirements set out in Section O) before it carries out any of its functions, duties, activities or responsibilities under the Code or any relevant BSCP.

2.1A Transitional Arrangements

2.1A.1 Each Supplier who is already a Party to the Code and has completed the Supplier Entry Process, and each person who has been Accredited and has had their Agency Systems Certified or has completed the SMRS Entry Process, and those persons carrying out those functions referred to in paragraph 1.3.4 pursuant to the Code at the time of the Implementation Date of the Approved Modification that first introduced this paragraph 2.1A.1 ("the relevant Implementation Date") shall automatically be deemed to be Qualified in accordance with this Section J. Such Qualification shall be subject to any relevant conditions applying pursuant to the Code at the relevant Implementation Date.

2.1A.2 Any Party or Party Agent who prior to the relevant Implementation Date has commenced the Accreditation Process, Certification Process, SMRS Entry Process or Supplier Entry Process pursuant to the provisions of the Code or any relevant BSCP which applied prior to the relevant Implementation Date ("the processes") may elect either to remain subject to the processes or to apply for Qualification, provided that if such Party or Party Agent elects to remain subject to the processes and fails to obtain Accreditation or have their Agency Systems Certified or to complete the processes within nine months of the relevant Implementation Date, such Party or Party Agent shall no longer be subject to the processes and shall be obliged to apply for Qualification.

2.1A.3 Any Party or Party Agent who pursuant to paragraph 2.1A.2 elects to remain subject to the processes and subsequently completes the SMRS Entry Process, Supplier Entry Process or is Accredited and their Agency Systems Certified within nine months of the relevant Implementation Date shall automatically be deemed to be Qualified in accordance with this Section J. Such Qualification shall be subject to any relevant conditions applying to such Accreditation, Certification or in relation to the completion of the SMRS Entry Process or Supplier Entry Process.

2.1A.4 For the purposes of paragraph 2.1A, the terms Accreditation Process, Certification Process, SMRS Entry Process, Supplier Entry Process, Accredited, Accreditation, Agency Systems, Certified and Certification shall have the same meanings and applications as those terms or processes had prior to the relevant Implementation Date and shall be enforceable as such. In addition any terms referred to in those terms or processes shall also have the same meanings and applications as such terms had prior to the relevant Implementation Date and shall also be enforceable as such.

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2.1A.5 Each Licensed Distribution System Operator who is already a Party to the Code and carrying out functions in its capacity as a Licensed Distribution System Operator pursuant to the Code at the time of the Implementation Date of the Approved Modification that first introduced paragraph 2.1.2(i) shall automatically be deemed to be Qualified in accordance with this Section J in its capacity as a Licensed Distribution System Operator. Such Qualification shall be subject to any relevant conditions applying pursuant to the Code at the Implementation Date of paragraph 2.1.2(i).

2.2 Establishment of Requirements

2.2.1 The Qualification Requirements provide criteria for assessing:

(a) the ability of persons to discharge the functions in respect of which they are or wish to be appointed under the Code; and

(b) the ability of Suppliers to perform their activities and obligations under the Code; and

(c) the ability of systems and processes used by such persons to support such functions, activities and obligations.

2.2.2 The Qualification Requirements of those persons referred to in paragraph 2.1.2 shall be established by the Panel and recorded in this Section J and BSC Procedures, as modified from time to time in accordance with Section F3.

2.3 Reliance on Qualification

2.3.1 Each Party shall be required to satisfy itself as to the financial condition and prospects and the management and operational ability of any Qualified Person which it intends to appoint as its Party Agent (or as the person carrying out the functions referred to in paragraph 1.3.2 and 1.3.4) and shall not rely on the fact of Qualification (or the lack of Qualification) as, or infer therefrom, any representation, warranty or other statement or indication on the part of the Panel, the Performance Assurance Board, the Performance Assurance Administrator, any Panel Committee or BSCCo, that the Qualified Person has any or any particular financial condition or prospects or level of management or operational ability.

2.4 Additional functions

2.4.1 Where a Person is to carry out those functions referred to in paragraphs 1.2.2, 1.3.2 and 1.3.4 in respect of which it is not Qualified, the Party responsible for that person (if applicable) shall ensure that such person is Qualified in respect of those functions before such person starts to carry out those functions.

2.4.2 Without prejudice to the generality of paragraph 2.4.1:

(a) a Qualified Data Aggregator which is to start aggregating energy values per Supplier BM Unit in accordance with paragraph 3.6 of Annex S-2; or

(b) a Qualified Data Collector or Qualified Data Aggregator which is to start collecting or aggregating data in the circumstances where paragraphs 3.3.4 and 3.5.5, respectively, of Annex S-2 apply, or

(c) a Qualified Data Collector which is to start collecting data in the circumstances where there is a variable supplier as referred to in paragraph 3.5.5 of Annex S-2,

shall be Qualified in respect of those functions before starting to do so.

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3. QUALIFICATION PROCESS

3.1 Performance Assurance Board

3.1.1 The Performance Assurance Board shall be responsible, subject to and in accordance with this Section J and BSCP537, for the Qualification Process relating to those persons referred to in paragraph 2.1.2.

3.1.2 The Performance Assurance Board shall notify BSCCo when a person becomes Qualified.

3.1.3 BSCCo shall maintain an up-to-date list of each person who is Qualified and shall make a copy of such list available to any person on request.

3.2 NOT USED

3.3 Qualification Process

3.3.1 The Qualification Process shall be conducted in accordance with this Section J and BSCP537.

3.3.2 Save where the person which a Party is wishing to or intending to appoint as its Party Agent is already Qualified, each Party shall:

(a) comply with and ensure that its Party Agents (and any person it appoints to perform the functions referred to in paragraphs 1.3.2 and 1.3.4) comply with the relevant Qualification Requirements and the relevant requirements of the Qualification Process such that the Performance Assurance Board can properly determine whether the relevant person should be Qualified; and

(b) if applicable, co-operate with and ensure that its Party Agents (and any person it appoints to perform the functions referred to in paragraphs 1.3.2 and 1.3.4) co-operate with the Performance Assurance Board, the Performance Assurance Administrator, BSCCo, the Panel and/or any Panel Committee in the execution of their duties.

3.3.3 Subject to paragraphs 3.3.4 and 3.3.5, when an Applicant wishes to Qualify under the Code it shall submit the appropriate application to BSCCo. For the avoidance of doubt no such application shall be considered necessary in relation to any testing processes or otherwise that a Supplier or a Meter Operator Agent who is responsible for CVA Metering Equipment is required to complete under Section O.

3.3.4 In the case where an Applicant has applied to become a Party to the Framework Agreement (in accordance with Section A2.1) and intends to have the participation capacity of a Virtual Lead Party and/or Supplier and/or a Licensed Distribution System Operator under the Code, then BSCCo shall treat the Applicant’s application under Section A2.2.1 as an appropriate application for the purposes of paragraph 3.3.3.

3.3.5 In the case where an Applicant has executed the letter agreement referred to in paragraph 3.3.6, then BSCCo shall treat the execution of such letter agreement as an appropriate application for the purposes of paragraph 3.3.3.

3.3.6 The Applicant’s application to Qualify shall not be accepted or considered until the Applicant has agreed to be bound by and to comply with the Code and has executed, in the case of a Party, the Framework Agreement and, in the case of any other Applicant, a letter agreement in the form and content satisfactory to the Performance Assurance Board.

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3.3.7 Following receipt of an Applicant’s application for Qualification pursuant to paragraph 3.3.3 BSCCo shall:

(a) meet or communicate with the Applicant to explain the Qualification Process (including but not limited to the requirement for the Applicant to complete and submit a Qualification Document to BSCCo); and

(b) provide appropriate guidance and support to the Applicant (if requested) during the course of the progress of the application for Qualification, provided that notwithstanding any such guidance or support, the responsibility for the management, progression and completion of the application for Qualification and for establishing the Applicant’s compliance with the Qualification Requirements is that of the Applicant. The amount of guidance and support provided to the Applicant (if any) shall be at the reasonable discretion of BSCCo or as set out in BSCP537.

3.3.8 When the Applicant has submitted its Qualification Document (whether as a fully completed document or in stages), BSCCo shall:

(a) carry out a review and assessment of the Qualification Document (at such level and in such detail as it considers appropriate where the Qualification Document is submitted in stages) and in doing so shall (without limiting the generality of the foregoing) assess any relevant matters including the risk which the Applicant would, if Qualified, pose to Settlement and the operation of the Code and the arrangements described in it; and

(b) review any evidence and verification of the information contained in the Qualification Document (including any test results) and request any tests or further evidence and/or witness any tests which BSCCo may in its reasonable opinion consider it requires in order to assess some or all of the information provided in the Qualification Document.

3.3.9 Where the Applicant is also required to undertake the Entry Assessment under the MRA (as defined in the MRA):

(a) BSCCo may, if it considers appropriate, notify the relevant body in relation to the MRA that an Applicant has applied to become Qualified under the Code; and

(b) BSCCo may, if it considers it appropriate, co-ordinate or combine the meeting referred to in paragraph 3.3.7 (in whole or in part) or any other meeting relating to the Applicant’s application for Qualification with any similar meeting with the equivalent body responsible for explaining or providing guidance to or assessing the Applicant in relation to the Entry Assessment under the MRA; and

(c) where BSCCo or the Performance Assurance Board have been provided, by or on behalf of the Applicant, with any information, self assessment document, documentation and/or evidence or verification relating thereto (including any test results) which the Applicant has produced for or in relation to its Entry Assessment under the MRA (or for any other relevant industry body), BSCCo or the Performance Assurance Board may when considering:

(i) the Qualification Document submitted by the Applicant; or

(ii) whether any further information is required, and if so, the nature of such further information; or

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(iii) whether any evidence or verification (or further evidence or verification) of information contained in the Qualification Document is required including, without limiting the generality of the foregoing, whether any testing or further testing (including systems and communications testing) is required and if so, the nature of such testing or further testing,

take into account such information, self assessment document, documentation and/or evidence or verification relating thereto (including any tests results).

3.3.10 When BSCCo is satisfied that the Applicant has fully completed the Qualification Document and provided all appropriate information, documentation, evidence and verification, BSCCo shall provide the Performance Assurance Board with a report in relation to the Applicant’s application for Qualification and make a recommendation to the Performance Assurance Board in relation to the same. The report may include, where appropriate, a recommendation as to whether the Applicant has fully completed the Qualification Document.

3.3.11 BSCCo shall, at the same time as it provides the Performance Assurance Board with its report and recommendation referred to in paragraph 3.3.10, provide a copy of the same to the Applicant.

3.3.12 The Applicant shall be entitled to:

(a) request the Performance Assurance Board to provide advice or clarification or seek endorsement of the plans described in the Qualification Document; and/or

(b) in the circumstances described in BSCP537, request the Performance Assurance Board to determine its application for Qualification if the Applicant (acting reasonably) considers that it has satisfied the Qualification Requirements and has completed the Qualification Process.

3.3.13 Subject to paragraphs 3.3.6 and 3.3.14, upon receipt of the report and recommendation referred to in paragraph 3.3.10 or the request from the Applicant referred to in paragraph 3.3.12 (b) the Performance Assurance Board, in accordance with the relevant provisions of the Code and BSCP537, shall make a determination as to whether:

(a) the Applicant’s application for Qualification shall be accepted; or

(b) the Applicant’s application for Qualification shall be accepted, but shall also determine that certain matters are to be complied with or addressed including without limitation a requirement that the Applicant shall undergo a technical assurance check; or

(c) the Applicant’s application for Qualification shall be deferred (including so that the Applicant can provide further information, documentation, evidence, verification and/or testing) until such time as the Applicant can establish that it has satisfactorily completed the Qualification Process and met the Qualification Requirements.

3.3.14 Without limiting the generality of paragraph 3.3.13(b), the Performance Assurance Board may, where it considers that the Applicant has sufficiently completed the Qualification Process and met the Qualification Requirements despite there being matters or requirements of an insignificant or non-material nature which may not have been fully completed or met by the Applicant, accept the Applicant’s application for Qualification but shall also determine that the Applicant completes or meets such matters or requirements to

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the satisfaction of the Performance Assurance Board at a later date with such later date being mutually agreed between the Applicant and the Performance Assurance Board.

3.3.15 The Applicant may attend that part of a meeting convened by the Performance Assurance Board at which the Applicant’s application for Qualification is being presented.

3.3.16 The Performance Assurance Board shall ensure that copies of the latest version of this Section J and BSCP537 are made available to the Applicants.

3.3.17 Without limiting the generality of paragraph 3.3.11, the Performance Assurance Board shall:

(a) (unless the Applicant has already been provided with such reports) provide each Applicant with, or arrange for each Applicant to be provided with, a copy of all reports submitted to it by BSCCo in relation to such Applicant's application for Qualification at the same time as the Performance Assurance Board notifies such Applicant whether its application for Qualification has been accepted; and

(b) be under no obligation to provide an Applicant with, or arrange for it to be provided with, a copy of any such report at any time before it gives such notification.

3.3.18 The Performance Assurance Board shall make available to the Authority all information held by the Performance Assurance Board which the Authority reasonably requires for the purposes of making any determination pursuant to paragraph 3.7.

3.3.19 The provisions of Section Z shall apply to proceedings of the Performance Assurance Board concerning Qualification pursuant to this Section J.

3.4 Removal of Qualification

3.4.1 The Performance Assurance Board shall have the right at any time and from time to time in accordance with and in the circumstances set out in this paragraph 3.4 and BSCP537 to remove the Qualification of any Qualified Person (other than a Party acting in its capacity as a Supplier, Virtual Lead Party, Licensed Distribution System Operator, SMRA or UMSO), whereupon such person shall cease to be Qualified.

3.4.2 The Performance Assurance Board may only remove a Qualified Person’s Qualification when that Qualified Person has failed to comply with the requirements and/or standards for performance (as described in the Code or any relevant BSCP) relating to the activities or functions which that Qualified Person undertakes under the Code or any relevant BSCP (including any requirement for the Applicant to re-Qualify within a reasonable period of time).

3.4.3 The Performance Assurance Board shall notify (in accordance with BSCP537) the Qualified Person where it is satisfied that the Qualified Person is failing to comply with the requirements and/or standards for performance referred to in paragraph 3.4.2 such that consideration is being given or is likely to be given to the removal of the Qualification of the Qualified Person.

3.4.4 Upon receipt of the notice referred to in paragraph 3.4.3 the Qualified Person shall submit an appropriate rectification plan to the Performance Assurance Board. This rectification plan shall set out the steps which the Qualified Person shall take in order to ensure compliance with the requirements and/or standards for performance referred to in paragraph 3.4.2 and shall include an appropriate timetable for taking such steps.

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3.4.5 If the Performance Assurance Board (acting reasonably) refuses to approve the rectification plan referred to in paragraph 3.4.4 (or any revision thereof by the Qualified Person) or considers that the Qualified Person is still failing to comply with the requirements and/or standards for performance referred to in paragraph 3.4.2 and/or has not complied with or adequately complied with the steps described in the rectification plan approved by the Performance Assurance Board, the Performance Assurance Board may notify any relevant Parties in accordance with BSCP537 that consideration is being given or is likely to be given to the removal of the Qualification of the Qualified Person.

3.4.6 Where the Performance Assurance Board (acting reasonably) remains of the opinion that it is still unable to approve the rectification plan referred to in paragraph 3.4.4 (or any revision thereof by the Qualified Person) or considers that the Qualified Person is still failing to comply with the requirements and/or standards for performance referred to in paragraph 3.4.2 and/or has not complied with or adequately complied with the steps described in the rectification plan approved by the Performance Assurance Board, the Performance Assurance Board may remove the Qualification of the Qualified Person.

3.4.7 Relevant parties shall be notified as set out in and in accordance with BSCP537 where the Qualification of a Qualified Person has been removed in accordance with this paragraph 3.4.

3.4.8 For the avoidance of doubt, if a Party ceases to be a Party to the Code for whatever reason (including but not limited to by reason of Section A5) then that Party’s Qualification in relation to its role or function as a Supplier, Licensed Distribution System Operator, SMRA or UMSO (as the case may be) shall automatically terminate.

3.4.9 Nothing in this Section J or BSCP537 shall prevent any person whose Qualification has been terminated, removed or surrendered from re-applying for Qualification at any time.

3.5 Re-Qualification

3.5.1 With the exception of a Supplier (in relation to its participation capacity as a Supplier) , a Licensed Distribution System Operator (in relation to its capacity as a Licensed Distribution System Operator) and a Virtual Lead Party (in relation to its participation capacity as a Virtual Lead Party), each Qualified Person shall be required to re-Qualify prior to it being subject to a Material Change. BSCP537 may set out details or criteria as to what events may constitute a Material Change. These details or criteria may include but shall not be limited to.

(a) process, staff or system changes; or

(b) in the case of Party Agents (except Meter Administrators) and SMRAs a significant increase in the number of Metering Systems in relation to which that person performs or intends to perform the relevant functions described under the Code.

3.5.2 A Qualified Person with the exception of a Supplier (in relation to its participation capacity as a Supplier) , a Licensed Distribution System Operator (in relation to its capacity as a Licensed Distribution System Operator) and a Virtual Lead Party (in relation to its participation capacity as a Virtual Lead Party), shall on an annual basis provide to BSCCo a written statement signed by a Board Director of the Qualified Person (or such other authorised person previously approved in accordance with BSCP38) stating whether or not it has been subject to a Material Change (other than such Material Change as may have been previously notified to BSCCo in writing or in respect of which it may have previously re-Qualified).

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3.5.3 When a Qualified Person is required to re-Qualify it shall submit the appropriate application (as described in BSCP537) to BSCCo and paragraphs 3.3.1 to 3.3.19 (inclusive) shall apply as if references therein to "Qualification", "Qualify" and "Qualified" were references to "re-Qualification", "re-Qualify" and "re-Qualified".

3.5.4 Where the Performance Assurance Board is of the opinion (acting reasonably) that a Qualified Person must re-Qualify for whatever reason (including but not being limited to that Qualified Person having a number of non compliances identified in relation to it) then such person must undertake re-Qualification in accordance with this paragraph 3.5.

3.5.5 If any such Qualified Person is not so re-Qualified in accordance with this Section J and/or BSCP537, such Qualified Person’s Qualification shall automatically lapse to the extent that the Qualified Person is only allowed to operate and perform their functions, activities, responsibilities and obligations under the Code (as the case may be) in accordance with and to the level of their most recent previously approved Qualification.

3.6 Fees and expenses

3.6.1 The Performance Assurance Board shall determine and publish to Applicants, Qualified Persons (and such other persons who reasonably request the same) a Menu of Qualification Fees which may be charged by the Performance Assurance Board for the purposes of Qualification (or re-Qualification), and the Performance Assurance Board shall have the right to revise such fees from time to time.

3.6.2 Each Qualified Person shall pay its own costs and expenses incurred in connection with the Qualification Process or re-Qualification Process (as the case may be).

3.7 Referral to the Authority

3.7.1 The sole and exclusive remedy of an Applicant who is dissatisfied with any decision of the Performance Assurance Board in relation to Qualification, re-Qualification or removal of Qualification (as the case may be) (the "Dissatisfied Person") shall be to refer the matter to the Authority in accordance with this paragraph 3.7 for determination.

3.7.2 For a referral to be valid pursuant to paragraph 3.7.1, the Dissatisfied Person must:

(a) refer the matter for determination to the Authority in writing (with a copy to the Panel or the Performance Assurance Board in respect of a decision relating to removal of Qualification) no later than 14 days after receipt by the Dissatisfied Person of the relevant decision of the Performance Assurance Board; and

(b) set out in its referral to the Authority (with reasons in support) the ground or grounds on which the Dissatisfied Person is making its application to the Authority which shall be one or more of the following (and no other):-

(i) that the Performance Assurance Board has not followed the procedures set out in Section J, Section Z and/or BSCP537; or

(ii) that the Performance Assurance Board has given undue weight to particular evidence submitted or to the lack of particular evidence; or

(iii) that the Performance Assurance Board has misinterpreted all or some of the evidence submitted in connection with such application; or

(iv) that, notwithstanding any restrictions that the Panel may place on the Performance Assurance Board in respect of any decision relating to

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the removal of Qualification as to how it is to assess and decide the matter, the Performance Assurance Board should not have taken into account the failure by the Dissatisfied Person to satisfy one or more specified requirements as set out in paragraph 3.4 or BSCP537.

3.7.3 On a valid referral pursuant to paragraph 3.7.1 the Authority may either determine the matter itself or, if it thinks fit, refer the matter for determination by an arbitrator appointed by it and, subject to paragraph 3.7.4, the practice and procedure to be followed in connection with any such determination shall be such as the Authority may consider appropriate.

3.7.4 In connection with any referral pursuant to paragraph 3.7.1 which the Authority determines itself, the Authority shall have:

(a) the right to engage an independent consultant selected by the Authority and to take and rely on the advice of such independent consultant; and

(b) the discretion to make a determination that the Dissatisfied Person should or should not be or remain Qualified notwithstanding that the ground on which the Dissatisfied Person has applied to the Authority is either the wrong ground or has not been proven.

3.7.5 The determination of the Authority or, as the case may be, the arbitrator pursuant to paragraph 3.7.3 shall be final, conclusive and binding on the Dissatisfied Person, the Performance Assurance Board, the Panel and all Parties, and may include a provision as to the payment in respect of the costs and expenses incurred by the person making the determination.

3.7.6 The Dissatisfied Person, the Panel or the Performance Assurance Board (as the case may be) and all Parties shall promptly give effect to any such determination.

3.7.7 For the avoidance of doubt, neither Section H7 nor Section H8 shall apply in the case where a Qualified Person is dissatisfied with any decision of the Performance Assurance Board referred to in paragraph 3.7.1.

3.8 Qualified Persons' Responsibilities

3.8.1 Applicants shall agree to be bound by the Qualification Process, the provisions of Section J, Section Z and/or BSCP537.

3.8.2 Each Applicant and each Qualified Person represents, warrants and undertakes to BSCCo (for itself and as trustee and agent for each other Party, the Panel, the Performance Assurance Board, any Panel Committee and/or the Performance Assurance Administrator) that:

(a) all information supplied by or on behalf of the Applicant or Qualified Person to the Panel, the Performance Assurance Board, any Panel Committee, BSCCo or the Performance Assurance Administrator in connection with the Qualification Process is true, complete and accurate and not misleading because of any omission or ambiguity or for any other reason, subject to disclosure, if any, acceptable to the Performance Assurance Board being made in advance of the provision of the relevant information to the Panel, the Performance Assurance Board, any Panel Committee, BSCCo or the Performance Assurance Administrator;

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(b) completion of all documentation by or on behalf of the Applicant or Qualified Person in connection with the Qualification Process is and will remain the sole responsibility of the Applicant or Qualified Person;

(c) the Applicant or Qualified Person will duly complete all such documentation and provide all the information required by the Qualification Process within the time periods prescribed by BSCP537; and

(d) the Qualified Person has had the opportunity to take its own legal and other professional advice regarding the Qualification Process.

3.8.3 Without prejudice to the generality of paragraph 3.8.2, each Applicant and each Qualified Person shall confirm in writing to BSCCo (for itself and on behalf of the each other Party, the Panel, the Performance Assurance Board, the Performance Assurance Administrator and/or any Panel Committee,) in accordance with BSCP537 that each of the other representations, warranties and undertakings in this paragraph 3.8 are true and have been complied with as at the date on which it has been notified that its application(s) for Qualification will be considered by the Performance Assurance Board.

3.8.4 Each Applicant and each Qualified Person shall co-operate fully with the Panel, BSCCo, the Performance Assurance Board, the Performance Assurance Administrator and/or any Panel Committee, in the Qualification Process and, without prejudice to the generality of the foregoing, shall permit each of them reasonable access to the Applicant’s or Qualified Person’s business records, working papers and employees for the purposes of the Qualification Process upon not less than three Business Days’ advance notice.

3.8.5 Each Applicant and Qualified Person acknowledges and agrees that:

(a) it shall not, and shall not be entitled to, place any reliance on any working papers, opinion, statement, comment, report or other documentation prepared by or for (or any oral or written interpretation of, or any oral or written advice given in relation to, any such working papers, opinion, report or other documentation by or for) BSCCo, the Panel, the Performance Assurance Board, the Performance Assurance Administrator and/or any Panel Committee in connection with the Qualification Process unless such working papers, opinion, statement, comment, report or other documentation is expressly addressed to such Applicant or Qualified Person; and

(b) it shall keep confidential on the terms set out in Section H4.2 any working papers, opinions, statements, reports or other documentation referred to in paragraph (a) unless such working papers, opinions, statements, reports or other documentation is expressly addressed to such Applicant or Qualified Person.

3.8.6 It shall be a condition of any Qualification that the Qualified Party complies with the provisions of this Section J and of BSCP537.

3.9 Derogations

3.9.1 The Panel may issue a derogation, in accordance with BSCP537, to any Qualified Person in respect of the Qualification of such Qualified Person.

3.9.2 A derogation issued pursuant to paragraph 3.9.1 may relieve such Qualified Person from its obligation to comply with one or more specified provisions (a "derogated provision") of the Code and/or of a Code Subsidiary Document on such terms as the Panel may determine and such Qualified Person shall not be in breach of the requirements of the Code insofar as

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it fails to comply with any such derogated provision provided such Qualified Person is otherwise in compliance with the Code and with the terms of any such derogation.

3.9.3 A Qualified Person shall use its best endeavours to comply with the terms and conditions of any applicable derogation for so long as it is in effect.

3.9.4 A Party appointing or using a Qualified Person in respect of whom a derogation has been issued pursuant to this paragraph 3.9 shall have the benefit of such derogation (subject to paragraph 3.9.3) and, accordingly, such Party shall not be in breach of the requirements of the Code insofar as it or its appointed Qualified Person fails to comply with any such derogated provision provided such Party (and such Party's appointed Qualified Person) is otherwise in compliance with the Code and with the terms of any such derogation.

3.9.5 The provisions of this paragraph 3.9 shall not apply to a Qualified Person who is also a Supplier in relation to its participation capacity of a Supplier, or a Licensed Distribution System Operator in relation to its participation capacity as a Licensed Distribution System Operator and/or an Unmetered Supplies Operator and/or a SMRA or a Virtual Lead Party in relation to its participation capacity as a Virtual Lead Party.

3.10 Surrender of Qualification

3.10.1 Subject to paragraph 3.10.2, a Qualified Person shall be entitled to surrender its Qualification by giving notice in writing to BSCCo ("surrender notice") specifying the time and date, being not less than 3 months after the date of the surrender notice, with effect from which the Qualified Person wishes to surrender its Qualification, and such Qualification shall thereafter terminate.

3.10.2 A Qualified Person shall not surrender its Qualification (and any surrender notice given seeking to do so shall be ineffective) if the Performance Assurance Board considers that it would be inappropriate for such surrender to take place including but not limited to reasons such as:

(a) any sums payable under the Code by such Qualified Person (whether or not due for payment and whether or not the subject of a dispute) remain, in whole or in part, to be paid by such Qualified Person; or

(b) the Qualified Person continues to be registered under the SMRS in respect of any Metering Systems or BM Units (as the case may be); or

(c) the Qualified Person has not provided to any relevant Party all relevant information that may be necessary for that Party to continue to comply with its obligations under the Code; or

(d) in the case of a Data Aggregator, that it has not completed processing all of its Settlement Runs for all Metering Systems for which it is responsible.

3.10.3 Where a Qualified Person is no longer trading as a commercial entity for whatever reason then the Performance Assurance Board may after a period of six months remove that person’s Qualification.

3.10.4 The provisions of this paragraph 3.10 shall only apply to those persons referred to in paragraph 1.2.2.

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4. APPOINTMENT AND REPLACEMENT OF PARTY AGENTS

4.1 Appointment

4.1.1 The provisions of this paragraph 4 apply in respect of those Party Agents referred to in paragraph 1.2.1.

4.1.2 The identity of each Party Agent for which a Party is responsible shall be determined by that Party save that:

(a) there must always be one and no more than one effective appointment of the relevant type of Party Agent (as applicable) at any time in relation to a particular Metering System in respect of any particular period;

(b) the provisions of paragraph 4.1.4 shall apply in relation to Shared SVA Metering Systems;

(c) the provisions of paragraphs 4.1.5 and 4.1.6 shall apply in relation to Third Party Generation.

4.1.3 For the avoidance of doubt, the same person may be registered as a Party Agent in respect of more than one Metering System and/or as more than one Party Agent in respect of the same Metering System.

4.1.4 In respect of a Shared SVA Metering System, where the same SVA Metering Equipment measures Export Active Energy in respect of supplies to two or more Suppliers or Import Active Energy in respect of supplies by two or more Suppliers (as the case may be):

(a) the Primary Supplier shall:

(i) nominate a Meter Operator Agent and a Data Collector for that Shared SVA Metering System and inform the Secondary Supplier(s) of that nomination; and

(ii) ensure that the nominated Data Collector is provided with the Allocation Schedule for that Shared SVA Metering System in accordance with BSCP550;

(b) all such Suppliers shall:

(i) secure that the nominated Meter Operator Agent and Data Collector is appointed for that Shared SVA Metering System notwithstanding that the Metering System may have more than one SVA Metering System Number for the purposes of registration in SMRS;

(ii) arrange for the Primary Supplier to notify the nominated Meter Operator Agent and Data Collector of those SVA Metering System Numbers before their respective appointments as Party Agents come into effect;

(iii) notify the nominated Meter Operator Agent of its appointment and the nominated Data Collector of its appointment at least five Business Days before such appointment is to come into effect and (if practicable) give them at least five Business Days' notice of the termination of their respective appointments; and

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(b) each such Supplier shall appoint a Data Aggregator of its choice provided that the Primary Supplier shall in respect of any particular period appoint its Data Aggregator against its related SVA Metering System Number(s) and the Secondary Supplier(s) shall appoint their Data Aggregators against their related SVA Metering System Number(s) for such Shared SVA Metering System.

4.1.5 Where the same SVA Metering Equipment at a Third Party Generating Plant measures both Import Active Energy and Export Active Energy:

(a) the Supplier (or, in the case of a Shared SVA Metering System, the Primary Supplier) which is taking the Export Active Energy shall secure that the same Meter Operator Agent is appointed in respect of the measurement of Export Active Energy as has been appointed in respect of the measurement of Import Active Energy; and

(b) the Supplier (or, in the case of a Shared SVA Metering System, the Primary Supplier) which is supplying the Import Active Energy shall provide the Party (or Primary Supplier, as the case may be) which is taking the Export Active Energy with details of the Meter Operator Agent appointed in respect of the measurement of Import Active Energy,

in accordance with BSCP550.

4.1.6 Where an Outstation or Outstations associated with a SVA Metering System at a Third Party Generating Plant is being used for the purposes of transferring data relating to both Import Active Energy and Export Active Energy:

(a) the Supplier (or, in the case of a Shared SVA Metering System, the Primary Supplier) which is taking the Export Active Energy shall, subject to paragraph (c) secure that the same Data Collector is appointed as is appointed to collect Import Active Energy from such Outstation;

(b) the Supplier (or, in the case of a Shared SVA Metering System, the Primary Supplier) which is supplying the Import Active Energy shall provide the Party (or Primary Supplier, as the case may be) which is taking the Export Active Energy with details of the Data Collector appointed in respect of the collection of data relating to Import Active Energy; and

(c) both Suppliers shall ensure that the Data Collector so appointed is appropriately Qualified.

4.1.7 Where the same Metering Equipment at an Exemptable Generation Plant is comprised both in an SVA Metering System and a CVA Metering System:

(a) the Party which is Registrant of the CVA Metering System shall secure that the same person is appointed as Meter Operator Agent in relation to the CVA Metering System as is appointed in relation to the SVA Metering System;

(b) the Supplier which is Registrant of the SVA Metering System shall provide the Registrant of the CVA Metering System with details of the Meter Operator Agent in relation to the SVA Metering System;

(c) both such Parties shall ensure that the person so appointed as Meter Operator Agent is appropriately Qualified;

(d) both such Parties shall notify the nominated Meter Operator Agent of its appointment at least five Business Days before such appointment is to come

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into effect and (if practicable) give it at least five Business Days' notice of the termination of its appointment.

4.1.8 Where the same Metering Equipment at an Exemptable Generating Plant is comprised in both an SVA Metering System and a CVA Metering System, and the same Outstation(s) are used for the purposes of transferring data relating to both Metering Systems:

(a) the Party which is Registrant of the SVA Metering System shall provide the Registrant of the CVA Metering System with details of the Data Collector appointed in relation to the SVA Metering System;

(b) the Party which is Registrant of the CVA Metering System shall request the CDCA to provide to such Data Collector access (pursuant to Section R1.4.7 and subject to the proviso in Section R1.4.6) to the relevant Communications Equipment.

4.2 Replacement

4.2.1 Each Party may arrange for any Party Agent for which it is responsible to be removed from time to time provided that a replacement Party Agent shall have been appointed and registered in accordance with this Section J with effect from the date of removal of the removed Party Agent.

4.2.2 Each Party shall ensure that the appointment of a Party Agent for which it is responsible shall terminate on the termination, surrender or removal of Qualification of such Party Agent.

4.2.3 Each Party shall ensure that there are appropriate arrangements in place in compliance with the relevant Party Services Lines with each Party Agent for which it is responsible from time to time to enable any replacement Party Agent for which it is responsible to take over the functions of a Party Agent whose appointment has expired or been terminated, including arrangements for the transfer of relevant data to such replacement Party Agent.

4.2.4 Any replacement of a Party Agent shall be undertaken in accordance with the relevant BSC Procedures relating to that Party Agent.

4.2.5 Subject to paragraph 4.2.6, paragraph 4.2.7 applies where:

(a) a Supplier proposes to carry out, on any day, the replacement of any Supplier Agent(s) appointed in relation to Non Half Hourly Metering Systems (an "agent replacement");

(b) the Panel has for the time being determined a threshold number for the purposes of paragraph (c)(i) or of paragraph (c)(ii);

(c) the number of Non Half Hourly Metering Systems subject to the proposed agent replacement, either:

(i) in aggregate, or

(ii) in any one SMRS,

exceeds the applicable threshold number for the time being determined by the Panel.

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4.2.6 Paragraph 4.2.7 shall not apply if:

(a) the appointment of a replacement Supplier Agent(s) is to be made in consequence of the termination of the appointment of the existing Supplier Agent(s) either:

(i) pursuant to paragraph 4.2.2, or

(ii) as a result of the doing by, or occurrence in relation to, the existing Supplier Agent(s) of any of the things or events set out in Section H3.1.1(g) (construed as if references to the Defaulting Party were to the Supplier Agent); and

(b) the Supplier gives notice to the Panel, as much in advance as is reasonably practicable, of the proposed agent replacement, certifying that the case falls within paragraph (a), and specifying the date on which the agent replacement is to be carried out and the SMRSs which are affected.

4.2.7 Where this paragraph applies:

(a) the Supplier shall submit to the Panel, in accordance with BSCP513, an application for approval to carry out the agent replacement, including:

(i) a proposed timetable and methodology for carrying out the agent replacement;

(ii) such confirmation as the Panel may require, from the Supplier, the existing Supplier Agent(s), the proposed replacement Supplier Agent(s) and each relevant SMRA, as to their respective abilities to manage and carry out the agent replacement;

(iii) such further details as may be required in accordance with BSCP513;

and the Supplier shall not carry out the agent replacement without the prior approval of the Panel;

(b) the Supplier shall discuss its application with the Panel, and/or provide such further information to the Panel, as the Panel may require in connection with its consideration of the application;

(c) the Panel may require changes to the proposed timetable (including the day on which the replacement is to be carried out) and methodology and/or may impose additional requirements for the agent replacement as a condition of giving its approval therefor;

(d) the Panel shall consider the application and notify the Supplier whether it is approved as soon as reasonably practicable;

(e) the Panel may (notwithstanding it has already approved the application) require changes or further changes to the proposed timetable or methodology for the agent replacement, if the Panel is subsequently notified that another Supplier will carry out an excepted agent replacement on the same day as the proposed agent replacement;

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(f) if the application is approved, the Supplier (if it decides to proceed) shall so notify BSCCo and shall carry out the agent replacement in accordance with the proposed timetable and methodology with such changes, and in accordance with such other requirements, as the Panel may have required under paragraph (c) or (e).

4.2.8 If a Supplier:

(a) notifies BSCCo under paragraph 4.2.7(f) that it will proceed with an agent replacement, or

(b) notifies the Panel of an excepted agent replacement in accordance with paragraph 4.2.6.

BSCCo shall place on the BSC Website a statement to the effect that an agent replacement within paragraph 4.2.5 is to be carried out, specifying the date on which it is to be carried out and the SMRSs affected.

4.2.9 For the purposes of paragraphs 4.2.5 to 4.2.8:

(a) references to carrying out on a day the replacement of a Supplier Agent are to implementing on that day the procedures under the Code for such replacement, irrespective of the date(s) from which such replacement is to be effective;

(b) an "excepted agent replacement" is an agent replacement in a case falling within paragraph 4.2.6 but in relation to which either test in paragraph 4.2.5(c) is met.

5. PARTY RESPONSIBILITIES

5.1 Parties Responsibilities

5.1.1 Each Supplier shall ensure that it and each of its Supplier Agents who are to be responsible for SVA Metering Systems within a SMRS has satisfied the requirements of the Supplier Qualification Process in accordance with this Section J and BSCP537 before any registration of that Supplier in respect of a SVA Metering System in that SMRS becomes effective.

5.1.2 This paragraph 5 shall apply on a Supplier ID basis and its provisions shall be construed accordingly.

5.2 Not Used

5.3 Qualification

5.3.1 A Party shall only appoint and use as Party Agents persons who have complied with and satisfied the requirements of Section O3.2 in respect of such Party Agent (to the extent applicable to such Party Agent).

5.3.2 If a Party Agent fails to comply in any material respect with the provisions of Section O applicable to such Party Agent:

(a) the Panel may determine that such Party Agent shall no longer be entitled to carry out the functions for which it is responsible until and unless it has remedied such failure;

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(b) if the Panel so determines, each Party which has appointed such Party Agent shall appoint another Party Agent, within a time specified by the Panel, to carry out those functions in its place.

5.3.3 The provisions of paragraph 5.3.2 are without prejudice to a Party's obligations under paragraphs 1.2.5 and 1.2.8.

6. REGISTRATION

6.1 Obligation to register

6.1.1 Where a Party is required, by virtue of paragraph 1.2.1, to appoint and use a Party Agent, such Party shall register the identity of the person(s) appointed by such Party to act as its Party Agent (including where such Party is to discharge the relevant function itself pursuant to paragraph 1.2.4) in accordance with the provisions of this paragraph 6.1.

6.1.2 In respect of each Metering System and each type of Party Agent responsible for functions in relation to that Metering System, no more than one person may be registered at any one time as such Party Agent, subject to paragraph 4.1.4(c).

6.1.3 In respect of each CVA Metering System for which a Party is or is to be the Registrant:

(a) such Party shall register (and ensure that there is registered at all times) in CMRS the identity of the person appointed to act as its Meter Operator Agent with effect from the time when it becomes the Registrant of such CVA Metering System and for so long as it remains the Registrant of such CVA Metering System.

(b) such registration shall not be effective until BSCCo confirms to the CDCA that such person is Qualified.

6.1.4 In respect of each SVA Metering System for which a Supplier is or is to be the Registrant, such Supplier shall register (and ensure that there is registered at all times) in SMRS the identity of the person(s) appointed to act as the following Supplier Agents (as applicable to such SVA Metering System) with effect from the time when it becomes the Registrant of such SVA Metering System and for so long as it remains the Registrant of such Metering System:

(a) Meter Operator Agent;

(b) Data Collector;

(c) Data Aggregator;

(d) Meter Administrator

in each case in accordance with the provisions of BSCP501 and the provisions of the Master Registration Agreement.

6.2 Change of registration

6.2.1 The provisions of paragraph 6.1 shall apply mutatis mutandis in respect of the registration of any replacement Party Agent.

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6.3 ECVNAs and MVRNAs

6.3.1 The provisions of Section P shall apply in relation to the submission of ECVNA Authorisations and MVRNA Authorisations.

6.3.2 No ECVNA Authorisation or MVRNA Authorisation shall become effective until and unless BSCCo has confirmed to the ECVAA that the provisions of this Section J, as they relate to ECVNAs or MVRNAs (as the case may be), have been satisfied in respect of the person forming the subject of such Authorisation.

7. PERFORMANCE ASSURANCE AND QUALIFIED PERSONS

7.1 Performance Assurance

7.1.1 Each Party shall ensure that it and each of its Party Agents comply with the data provision requirements (if any) which relate to the performance of such Party and/or its Party Agents as set out in the Code or any relevant BSC Procedures.

7.1.2 The performance of Party Agents, SMRAs and/or a Licensed Distribution System Operators acting in their capacity as an Unmetered Supplies Operators shall be determined by the Performance Assurance Board in accordance with the process and techniques described in Section Z and any relevant BSC Procedures to the extent applicable to such person.

7.1.3 Those persons referred to in paragraph 7.1.2 shall provide, or procure the provision of, such reports to the Performance Assurance Board as may from time to time be reasonably required in accordance with any relevant BSCP in order to enable the Performance Assurance Board to review the standards of performance of or compliance by that person with the relevant requirements of the Code and any relevant BSCP.

7.1.4 Each person referred to in paragraph 7.1.2. shall provide the Panel and the Performance Assurance Board with access to all of its records, data and other information as may reasonably be required by the Panel or (as the case may be) the Performance Assurance Board in order to carry out their functions in accordance with this paragraph 7 or under the Code and any relevant BSCP, or procure that such access is provided.

7.1.5 Performance Monitoring Reports shall be produced and circulated in accordance with any relevant BSCP.

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K – 1 of 64 Effective Date: 27 February 2020

SECTION K: CLASSIFICATION AND REGISTRATION

OF METERING SYSTEMS AND BM UNITS

1. GENERAL

1.1 Introduction

1.1.1 This Section K sets out the basis for:

(a) identifying the Parties which are responsible (for the purposes of the Code) for

Exports and Imports of electricity at Boundary Points;

(b) the registration in the names of such Parties of the Metering Systems installed

(in accordance with Section L) for the purposes of measuring separately such

Exports and Imports;

(c) such Parties to establish and register Primary BM Units comprising the Plant

and Apparatus for whose Exports and Imports they are responsible, and to

assign those Primary BM Units to Trading Units;

(d) the approval of Line Loss Factors by the Panel; and

(e) Virtual Lead Parties to establish and register Secondary BM Units comprising

the Plant and Apparatus with which such Virtual Lead Parties may provide

Balancing Services.

1.1.1A References to a BM Unit in this Section K, other than in Sections K6 and K8, shall mean a

Primary BM Unit unless expressly stated otherwise.

1.1.2 This Section K also sets out the requirements for Parties to register Metering Systems at

Systems Connection Points for which they are responsible.

1.1.3 In relation to an Interconnector, in the case of any inconsistency between the provisions of

paragraph 5 and the other provisions of this Section K, the provisions of paragraph 5 shall

prevail.


(a) in relation to the terms Export and Import, references to the Plant or Apparatus

of a Party shall be treated as including:

(i) the premises of a Customer supplied by that Party;

(ii) Plant and Apparatus of a Third Party Generator for whose Exports

that Party has elected to be responsible in accordance with paragraph

1.2.2(a)(ii)(2);

(iii) Plant or Apparatus (whether or not owned or operated by that Party),

not forming part of the Total System, by which electricity is

transported from the Total System to premises supplied by the Total

System or (as the case may be) to the Total System from Generating

Plant providing electricity to the Total System;

(iv) an Interconnector in relation to which that Party is an Interconnector

User.

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(b) subject to paragraphs (c), (d), (e) and (f), unless otherwise provided:

(i) "Export" means, in relation to a Party, a flow of electricity at any

instant in time from any Plant or Apparatus (not comprising part of

the Total System) of that Party to the Plant or Apparatus (comprising

part of the Total System) of a Party;

(ii) "Import" means, in relation to a Party, a flow of electricity at any

instant in time to any Plant or Apparatus (not comprising part of the

Total System) of that Party from the Plant or Apparatus (comprising

part of the Total System) of a Party;

and Export and Import, as verbs, shall be construed accordingly;

(c) any Export or Import is to be determined at a single Boundary Point;

(d) for the purposes of paragraph (c), in relation to a Party any flow (under

paragraph b(i) and (ii) respectively) which occurs at a Boundary Point:

(i) to or from Plant or Apparatus of that Party shall be considered to be

a single Export or Import of that Party;

(ii) to or from the Plant or Apparatus of that Party shall be considered to

be a separate Export or Import from any Export or Import of any

other Party.

(e) notwithstanding paragraphs (c) and (d):

(i) the flow to or from each Generating Unit (where such Generating

Unit individually constitutes or is capable of constituting a

Licensable Generating Plant) and is not comprised in a CCGT

Module and to or from the associated unit transformer of that

Generating Unit (if any) shall be combined. Such combined flow

shall be considered to be a single Export or Import and separate from

any Export or Import of any other Plant or Apparatus; and

(ii) the flow to or from a station transformer associated with a

Licensable Generating Plant shall be considered to be a single

Export or Import, and separate from any Export or Import of any

other Plant or Apparatus.

(f) for the purposes of paragraph (b):

(i) an Export includes:

(1) "Active Export", which is a flow of Active Energy at

any instant in time from any Plant or Apparatus (not

comprising part of the Total System) of that Party to the

Plant or Apparatus (comprising part of the Total System)

of a Party; and

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(2) "Active Export Related Reactive Energy", which is any

flow of Reactive Energy which occurs at the same

Boundary Point at the same instant of time as an Active

Export,

and shall be treated as a single flow of electricity, the direction of

such flow being the direction of flow of the Active Energy; and

(ii) an Import includes:

(1) "Active Import", which is a flow of Active Energy at

any instant in time to any Plant or Apparatus (not

comprising part of the Total System) of that Party from

the Plant or Apparatus (comprising part of the Total

System) of a Party; and

(2) "Active Import Related Reactive Energy", which is

any flow of Reactive Energy which occurs at the same

Boundary Point at the same instant of time as an Active

Import,

and shall be treated as a single flow of electricity, the direction of

such flow being the direction of flow of the Active Energy.

1.1.5 Notwithstanding paragraph 1.1.4, the Exports or Imports of electricity from or to an

Offshore Power Park Module(s) comprised in a BM Unit shall be considered to be a single

Export or Import, and (notwithstanding any other provision in the Code) the Party

responsible for such Exports and/or Imports may locate the Metering Equipment which it is

required to install pursuant to this Section K at any location permitted by the relevant Code

of Practice. In the event that the Party does so, such location shall be deemed to be the

relevant Boundary Point for the purposes of the Code and to be the only Boundary Point at

which Metering Equipment relating to such Exports and Imports is required to be installed.

1.1.6 A Party who has located Metering Equipment at a deemed Boundary Point in accordance

with paragraph 1.1.5 shall ensure that appropriate accuracy compensation is applied in

accordance with the relevant Code of Practice.

1.2 Obligations of Parties in relation to Exports and Imports

1.2.1 Subject to the further provisions of this Section K, the Party responsible (in accordance

with paragraph 1.2.2 below) for any Exports or Imports of electricity at a Boundary Point

shall:

(a) install, maintain and operate or secure that there is installed, maintained and

operated, subject to and in accordance with Section L, Metering Equipment by

which (over periods and otherwise in accordance with the further requirements

of the Code) the quantities of such Exports and Imports separately can be

measured, but subject to the provisions of paragraph 1.2.6 and Section S8 as to

Unmetered Supplies;

(b) register the Metering System(s) which result or will result from installation of

such Metering Equipment, in accordance with paragraph 2;

(c) establish and register BM Unit(s) comprising the relevant Plant and Apparatus

in accordance with paragraph 3;

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(d) assign each BM Unit to a Trading Unit established and registered in accordance

with paragraph 4.


(a) the Party "responsible" for an Export:

(i) in the case of an Export from a Generating Plant, subject to

paragraph (ii), shall be the Party which generates electricity at that

Generating Plant;

(ii) in the case of an Export from Exemptable Generating Plant:

(1) where the person which generates electricity at that

Generating Plant is a Party and has elected (by applying

to register Metering System(s) for that Generating Plant

in accordance with paragraph 2) to be responsible for

such Export, shall be that Party;

(2) subject to paragraph 2.5, where the person (whether or

not a Party) which generates electricity at that Generating

Plant has for the time being authorised a Party to accept

responsibility for that Export, and that Party has elected

(by applying to register Metering System(s) for that

Generating Plant in accordance with paragraph 2) to be

so responsible, shall be that Party;

provided that no Party shall be so responsible unless it has so

elected;

(iii) in the case of an Export from an Interconnector, shall be determined

in accordance with paragraph 5;

(iv) in any other case, shall be determined by the Panel after consultation

with the Authority, on application of any Party;

(b) the Party "responsible" for an Import:

(i) in the case of an Import constituting the supply of electricity to

premises connected to the Total System, whether or not for

consumption at those premises, shall be the person who supplies

electricity to those premises;

(ii) in the case of an Import to any Generating Plant at which electricity

is generated by a Party holding a Generation Licence, shall be that

Party;

(iii) in the case of an Import to an Interconnector, shall be determined in

accordance with paragraph 5;

(iv) in the case of an Import (not constituting the supply of electricity to

premises) to a distribution system connected to a Distribution

System, shall be the person recognised under the MRA as

responsible for such Import;

(v) in any other case, shall be determined by the Panel after consultation

with the Authority, on application of any Party;

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(c) Generating Plant is "Exemptable" Generating Plant where the person

generating electricity at that Generating Plant is, or would (if it generated

electricity at no other Generating Plant and/or did not hold a Generation

Licence) be, exempt from the requirement to hold a Generation Licence;

(d) Generating Plant which is not Exemptable is "Licensable" Generating Plant;

(e) in paragraph (b)(i), references to the supply of electricity includes the provision

of electricity to a person (whether or not the same as the person providing the

electricity) at premises connected to the Transmission System.

1.2.3 A Party shall not commence or permit to be commenced any Exports or Imports for which

that Party is to be responsible until that Party has complied with the requirements in

paragraph 1.2.1 and the registrations under paragraphs (b) and (c) thereof have become

effective.

1.2.4 Where a Party has failed for any period to comply with any requirements in paragraph 1.2

in relation to any Plant or Apparatus for which he is responsible, nothing in the Code shall

prevent such Party from being held liable for payment of any amount by way of Trading

Charges in such period, where (on the basis of retrospective application of steps taken to

comply or otherwise) the Code provides for the amount for which the Party is or would

have been so liable to be established or determined for the purposes of Settlement.

1.2.5 The Party responsible for any Exports or Imports at a Boundary Point shall ensure that it

(or the person otherwise required to do so) has entered into and has in full force and effect

all appropriate Connection Agreements with respect to its Exports or Imports at that

Boundary Point.

1.2.6 Subject to paragraph 1.2.7, for the purposes of the Code, the Party responsible (in

accordance with this paragraph 1.2) for any Imports or Exports of electricity at a single

Boundary Point shall ensure that any associated quantities of Active Export Related

Reactive Energy and Active Import Related Reactive Energy are measured separately.

1.2.7 The provisions of paragraph 1.2.6 shall not apply in the following circumstances:

(a) where the Metering Equipment is Non Half Hourly Metering Equipment, except

as required by the relevant Codes of Practice;

(b) where the Metering Equipment at a Boundary Point is comprised only in CVA

Metering Systems, the Registrant of such Metering Systems shall not be

required to measure separately Active Export Related Reactive Energy and

Active Import Related Reactive Energy, except as required by the relevant

Codes of Practice;

(c) where a Metering System:

(i) is not a 100kW Metering System in relation to Imports; and

(ii) does not exceed the Small Scale Third Party Generating Plant Limit

in relation to Exports,

and the requirements set out in the relevant Code of Practice in relation thereto

provide otherwise; and

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(d) the relevant Code of Practice or Metering Dispensation applicable to a Metering

System existed prior to the Relevant Implementation Date,

provided that, for the purposes of this paragraph 1.2.7, the term "relevant Code of Practice"

shall have the same meaning as set out in Section L3.2.2, subject to Section L paragraphs

3.2.5, 3.2.6 and 3.3.

1.3 Obligations of Parties in relation to Systems Connection Points

1.3.1 Subject to the further provisions of this Section K, the Party responsible for any Systems

Connection Point shall:

(a) install, maintain and operate, or secure that there is installed, maintained and

operated, in accordance with Section L, Metering Equipment by which (in

accordance with the further requirements of the Code), at the Systems

Connection Point, the quantities of electricity flowing between the Systems

which are connected at that point can be measured; and

(b) register the Metering System(s) which result or will result from such installation

in accordance with paragraph 2.

1.3.2 For the purposes of paragraph 1.3.1, the Party responsible for a Systems Connection Point

shall be:

(a) in the case of a Grid Supply Point other than an Offshore Transmission

Connection Point, the Distribution System Operator whose System is directly

connected to the Transmission System at that point;

(b) in the case of a Distribution Systems Connection Point, the Distribution System

Operator nominated in accordance with paragraph 1.3.3; and

(c) in the case of an Offshore Transmission Connection Point, the NETSO.

1.3.3 The Distribution System Operators whose Distribution Systems and/or Associated

Distribution Systems are connected at a Distribution Systems Connection Point shall, in

accordance with BSCP20 and BSCP25, agree between themselves and nominate which of

them shall be responsible for such Systems Connection Point.

1.4 Changes in Transmission System Boundary Points and Systems Connection Points

1.4.1 The requirements of this paragraph 1.4 are to be complied with in accordance with

BSCP25 by:

(a) the NETSO, in relation to Transmission System Boundary Points and Grid

Supply Points;

(b) each Distribution System Operator in relation to Distribution Systems

Connection Points and any Distribution Interconnector Boundary Point on its

Distribution System(s) and Associated Distribution System(s) (if any).

1.4.2 The NETSO and each Distribution System Operator (as applicable, in accordance with

paragraph 1.4.1) shall ensure that the CRA is informed of the location of each

Transmission System Boundary Point, Systems Connection Point and Distribution

Interconnector Boundary Point.

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1.4.3 Where there is to be a new Transmission System Boundary Point, Systems Connection

Point, or Distribution Interconnector Boundary Point, as a result of any new connection to

be made to any System, or a decommissioned connection at any Transmission System

Boundary Point, Systems Connection Point or Distribution Interconnector Boundary Point

is to be re-energised:

(a) the NETSO or the relevant Distribution System Operator(s) (as applicable, in

accordance with paragraph 1.4.1) shall inform the CRA of the date from which

and location at which such connection is to be made or (as the case may be) of

the connection which is to be re-energised;

(b) the CRA shall so inform BSCCo; and

(c) the NETSO or the relevant Distribution System Operators shall not energise or

re-energise such connection, or (as the case may be) permit such connection to

be energised or reenergised, until BSCCo has confirmed to it that:

(i) a Party has complied with the requirements referred to in paragraph

1.2 in relation to the Transmission System Boundary Point or

Distribution Interconnector Boundary Point or (as the case may be)

paragraph 1.3 in relation to the Systems Connection Point, and that

the Party’s registrations required pursuant to those paragraphs have

become effective; and

(ii) in the case of a Systems Connection Point, where applicable,

Aggregation Rules have been submitted in accordance with Section

R3.2.3(b) pursuant to which the relevant Distribution System(s) are

included in a GSP Group.

1.4.4 Where a connection to the Transmission System or any Distribution System, constituting a

Transmission System Boundary Point, Distribution Interconnector Boundary Point or

Systems Connection Point, is to be or has been decommissioned:

(a) the NETSO or the relevant Distribution System Operator(s) shall so inform the

CRA;

(b) the CRA shall so inform BSCCo.

1.5 Exemptable Generating Plant

1.5.1 Where any Party which is or is to be responsible for any Generating Plant intends to effect

any registration (other than the making of an election as referred to in paragraph

1.2.2(a)(ii)(2) in the case of an SVA Metering System) or take any other step in pursuance

of any provision of this Section K which applies by reason of that Generating Plant being

Exemptable, that Party shall first provide to BSCCo:

(a) subject to paragraph 1.5.7, details of the Generating Plant and the reasons for

which the Party believes the Generating Plant to be Exemptable; and

(b) in accordance with paragraph 3.5.5, the P/C Status that the Lead Party elects for

each BM Unit that comprises such Generating Plant should the Generating Plant

be determined to be Exemptable.

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1.5.2 Within 20 Business Days after receiving any notification under paragraph 1.5.1 BSCCo

shall:

(a) take such measures as it considers appropriate to verify whether or not the

Generating Plant is Exemptable, and

(b) notify the Party of its conclusions.

1.5.3 The Party shall provide such further details as BSCCo may reasonably request for the

purposes of such verification.

1.5.4 Where the Party disagrees with the conclusions of BSCCo under paragraph 1.5.2(b), that

Party may refer the matter to the Panel, and the Panel shall determine whether (in its

opinion) the Generating Plant is Exemptable, and notify to the Party its determination

which shall be binding for the purposes of the Code subject to paragraph 1.5.5.

1.5.5 Within 20 Business Days after the Panel has notified its determination under paragraph

1.5.4, the Party may, if it wishes the matter to be determined by the Authority, refer to the

Authority the question of whether the Generating Plant is Exemptable.

1.5.6 Wherever pursuant to this Section K the CRA or CDCA receives any application for or

other notification of a registration or step within paragraph 1.5.1, the CRA or CDCA shall

apply to BSCCo for confirmation as to whether the Generating Plant in question is

Exemptable, and shall not validate or accept the same unless BSCCo has given such

confirmation.

1.5.7 In the case of Generating Plant whose Exports are measured by SVA Metering Systems,

BSCCo may:

(a) require the Party to provide (instead of details and reasons as referred to in

paragraph 1.5.1) a certificate, signed by a director of that Party, as to the matters

referred to in that paragraph (and may require the Party pursuant to Section

U1.2.3 to update such certificate from time to time), and

(b) rely on that certificate instead of taking measures under paragraph 1.5.2.

1.5.8 Where:

(a) it has been determined in accordance with the foregoing provisions that

particular Generating Plant is Exemptable, and

(b) at any later time BSCCo becomes aware of any change in relevant

circumstances or otherwise has good reason to believe that the position may be

different,

BSCCo may require that the relevant Party to comply or comply again with paragraph 1.5.1

or 1.5.7(a).

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1.6 Identity of Metering Systems

1.6.1 The composition of Metering Systems shall be determined for the purposes of the Code in

accordance with the following provisions:

(a) subject to paragraphs (b), (c), (d) and (e), in relation to any Site and any Party,

the commissioned Metering Equipment installed for the purposes of measuring

the quantities of Exports and Imports at the Boundary Point(s) (collectively)

associated with that Site for which that Party is responsible is either:

(i) a single Metering System; or

(ii) such greater number of Metering Systems as that Party applies (in

accordance with paragraph 2) to register,

irrespective of whether all or part of the same Metering Equipment is also used

to measure the quantities of Imports and/or Exports for which another Party is

responsible at that Site, but subject to paragraph 2.5;

(b) in relation to any Site with associated Interconnector Boundary Point(s), the

commissioned Metering Equipment installed for the purposes of measuring the

quantities of Exports and Imports at the Interconnector Boundary Point(s)

(collectively) associated with that Site is either:


(ii) such greater number of Metering Systems as the Party who is to be

the Registrant pursuant to paragraph 5.3 applies (in accordance with

paragraph 2) to register;

(c) in relation to any Site with associated Systems Connection Point(s) and any

Party, the commissioned Metering Equipment installed for the purposes of

measuring flows of electricity at the Systems Connection Point(s) (collectively)

associated with that Site for which that Party is responsible is either:


(ii) such greater number of Metering Systems as that Party applies (in

accordance with paragraph 2) to register,

irrespective of whether all or part of the same Metering Equipment is also used

to measure the quantities of Imports and/or Exports for which another Party is

responsible at that Site;

(d) where the Metering System is or is to be registered in SMRS, the commissioned

Metering Equipment installed for the purposes of measuring the quantities of

Exports and Imports for which a Party is responsible at a Metering Point shall

be a single Metering System (but subject to paragraph 2.5);

(e) in relation to an Unmetered Supply, the Equivalent Meter or Profiled

Unmetered Supply for the purposes of calculating the quantities of Imports and

Exports for which a Party is responsible at a Metering Point shall be a single

Metering System.

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1.6.2 For the purposes of paragraphs 1.6.1, 5.7.1 and Annex K-2 1.6.1 a "Site" is:

(a) a location containing one or more Boundary Points (other than Interconnector

Boundary Point(s)) and at which there is situated:

(i) a single Generating Plant; or

(ii) a single set of premises; or

(iii) any combination of one or more Generating Plants and/or sets of

premises which may, in the CDCA's reasonable opinion (having

regard, among other things, to their physical proximity), be

considered to be managed as a single site; or

(iv) any other collection of Plant or Apparatus which the CDCA

approves for these purposes (on a case by case basis) consistent with

the principles in paragraphs (i), (ii) and (iii);

(b) a location containing one or more Interconnector Boundary Points and at which

there is situated a single sub-station; or

(c) a location containing one or more Systems Connection Points and at which

there is situated a single sub-station

provided that a location which satisfies more than one of paragraphs (a), (b) or (c) shall

constitute a Site in respect of each of paragraphs (a), (b) and/or (c) (as the case may be)

individually.

1.6.3 For the avoidance of doubt, the provisions as to the configuration of Metering Systems

contained in this paragraph 1.6 are without prejudice to and shall not affect the rules as to

the configuration of BM Units as set out in paragraph 3.1.

1.7 Line Loss Factors

1.7.1 Line Loss Factors applying in respect of Metering Systems on Distribution System(s) and

Associated Distribution System(s) shall be established in accordance with this paragraph

1.7.

1.7.2 Line Loss Factors may be established for a single Metering System or for a class (of a

description specified by the Licensed Distribution System Operator) of Metering System.

1.7.3 For the avoidance of doubt, a Line Loss Factor relating to a Metering System at a

Boundary Point on a Distribution System where such Distribution System is indirectly

connected to the Transmission System must, when applied to data relating to such Metering

System, converts such data into a value at the Transmission System Boundary, with such

Line Loss Factor to take into account distribution losses both on:

(a) that Distribution System; and

(b) on the Distribution System by which it is indirectly connected to the

Transmission System.

1.7.4 Principles ("LLF methodology principles") pursuant to which each Licensed Distribution

System Operator shall establish a methodology ("LLF methodology") for calculating the

Line Loss Factors applying in respect of each Metering System or any class of Metering

System on its Distribution System(s) (or Associated Distribution System(s) (if applicable))

shall be contained in BSCP128.

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1.7.5 The LLF methodology principles shall seek to balance the requirements for accuracy and

consistency of Line Loss Factors and transparency in the establishment of methodologies

for calculating Line Loss Factors with the requirement for administrative convenience.

1.7.6 Each Licensed Distribution System Operator shall:

(a) prepare a proposed LLF methodology in accordance with BSCP128 and the

LLF methodology principles and submit the proposed LLF methodology to

BSCCo;

(b) where authorised to do so by the Panel take into account market wide issues in

preparing such proposed LLF methodology; and

(c) in accordance with BSCP128, in respect of each BSC Year after the first year

for which such LLF methodology was approved by the Panel pursuant to

paragraph 1.7.7(d), either:

(i) confirm to BSCCo that the prevailing LLF methodology remains

consistent with the LLF methodology principles and has not been

revised; or

(ii) prepare a proposed revised LLF methodology in accordance with the

LLF methodology principles and submit the proposed revised LLF

methodology to BSCCo.

1.7.7 In relation to each BSC Year, in accordance with BSCP128:

(a) BSCCo shall review each proposed LLF methodology (which term in this

paragraph 1.7.7 shall include a proposed revised LLF methodology) submitted

pursuant to paragraph 1.7.6, as to its compliance with the LLF methodology

principles;

(b) BSCCo when carrying out the review in accordance with paragraph 1.7.7(a)

shall identify:

(i) any non-compliance in the proposed LLF methodology with the LLF

methodology principles; or

(ii) a failure by the Licensed Distribution System Operator to submit a

proposed LLF methodology or the confirmation referred to in

paragraph 1.7.6(c)(i) within the required time and in accordance with

the requirements of BSCP128,

and thereafter BSCCo shall so inform the Licensed Distribution System

Operator and may allow the Licensed Distribution System Operator to amend or

submit its proposed LLF methodology or confirmation (as applicable) within

the further timescales provided in BSCP128;

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(c) BSCCo shall prepare and issue to the Panel a final report that shall:

(i) recommend the approval of each proposed LLF methodology where

no non-compliance with the LLF methodology principles was

identified or where a non-compliance that was identified has been

corrected; or

(ii) state if any continuing non-compliance(s) were identified in the

proposed LLF methodologies with the LLF methodology principles;

or

(iii) state that the Licensed Distribution System Operator has failed (by

the required time and in accordance with the requirements of

BSCP128) to submit a proposed LLF methodology or (as the case

may be) give the confirmation required under paragraph 1.7.6(c)(i);

(d) the Panel shall upon receipt of the report referred to in paragraph 1.7.7(c):

(i) consider whether the proposed LLF methodology complies with the

LLF methodology principles and, if it does so comply, approve the

proposed LLF methodology; or

(ii) note any non-compliance(s) in respect of each proposed LLF

methodology with the LLF methodology principles; or

(iii) note that the Licensed Distribution System Operator failed by the

required time and in accordance with the requirements of BSCP128

to submit a proposed LLF methodology or (as the case may be) give

the confirmation required under paragraph 1.7.6(c)(i);

(e) BSCCo shall prepare and issue to each Licensed Distribution System Operator a

report relating to paragraph 1.7.7(d) which shall, in respect of that Licensed

Distribution System Operator:

(i) state whether their proposed LLF methodology has been approved

by the Panel; or

(ii) identify any non-compliance(s) in their proposed LLF methodology

with the LLF methodology principles that were noted by the Panel;

or

(iii) confirm that the Panel has noted that the Licensed Distribution

System Operator failed by the required time and in accordance with

the requirements of BSCP128 to submit a proposed LLF

methodology or (as the case may be) give the confirmation required

under paragraph 1.7.6(c)(i); and

(f) BSCCo shall prepare and provide to the Performance Assurance Board a report

giving details of all non-compliance(s) noted by the Panel in accordance with

paragraph 1.7.7(d)(ii) and any failure referred to in paragraph 1.7.7(d)(iii).

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1.7.8 In accordance with BSCP128 each Licensed Distribution System Operator shall:

(a) calculate Line Loss Factors in accordance with its relevant LLF methodology as

approved by the Panel under paragraph 1.7.7(d); and

(b) submit to BSCCo such Line Loss Factors in relation to each BSC Year;

in respect of each Metering System or class of Metering System on its Distribution

System(s) (or Associated Distribution System(s) (if applicable)).

1.7.9 BSCCo shall, in relation to each BSC Year, in accordance with BSCP128:

(a) carry out an audit, on the basis (including as to representative samples) provided

in BSCP128, and in respect of the Line Loss Factors submitted by each

Licensed Distribution System Operator, as to their compliance with the

applicable approved LLF methodology and other requirements of the Code;

(b) where it identifies any non-compliance by any Line Loss Factor(s) with the

applicable approved LLF methodology or any other requirement of the Code,

inform the Licensed Distribution System Operator of such non-compliance and

allow the Licensed Distribution System Operator to amend the relevant Line

Loss Factor(s) within the timescales provided in BSCP128;

(c) prepare and issue to the Panel a final report that shall specify:

(i) the Line Loss Factor(s) (including any Line Loss Factor amended

under paragraph (b)) for which the audit did; and

(ii) the Line Loss Factor(s) (including any Line Loss Factor amended

under paragraph (b)) for which the audit did not,

identify a non-compliance with the applicable approved LLF methodology and

other requirements of the Code;

(d) provide to the Performance Assurance Board a copy of such report referred to in

paragraph 1.7.9(c) giving details of all non-compliance(s) so identified; and

(e) prepare and issue to each Licensed Distribution System Operator a final report

which shall specify in respect of that Licensed Distribution System Operator

those matters set out in paragraphs 1.7.9(c).

1.7.10 The Line Loss Factors for which no non-compliance was identified in BSCCo's report

under paragraph 1.7.9(c) shall be subject to the final approval of the Panel.

1.7.11 Each Licensed Distribution System Operator shall correct any non-compliances identified

in BSCCo's report under paragraph 1.7.9(c), and report to the Panel in respect of such

correction. The Panel may approve the use of a corrected Line Loss Factor(s) for the

remainder of the relevant BSC Year with effect from the date of such approval, and shall

notify the Performance Assurance Board and BSCCo of such approval.

1.7.12 In relation to any newly established Metering System(s) for which (in relation to a given

BSC Year) Line Loss Factor(s) were not submitted in the annual process under paragraph

1.7.8, and which do not belong to a class of Line Loss Factor approved under paragraph

1.7.10 or 1.7.11, the procedure in paragraphs 1.7.8 to 1.7.11 shall apply but in accordance

with the separate timescales set out in BSCP128.

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1.7.13 Where and for so long as:

(a) a Licensed Distribution System Operator fails to submit a proposed LLF

methodology or the relevant confirmation under paragraph 1.7.6 or the

proposed LLF methodology is not approved by the Panel; or

(b) the Line Loss Factor(s) in respect of any Metering System(s) are not approved

by the Panel under paragraph 1.7.10 or 1.7.11;

then default values for the Line Loss Factor(s) for the relevant Metering Systems shall be

determined and applied in accordance with BSCP128.

1.7.14 An approved Line Loss Factor shall not be revised in the BSC Year for which it is

approved except:

(a) for a Site Specific Line Loss Factor which may be revised to apply

prospectively in accordance with BSCP128. The Panel may approve such

revised Site Specific Line Loss Factor in accordance with BSCP128; or

(b) for a Site Specific Line Loss Factor and/or a Generic Line Loss Factor which

may be revised with retrospective effect, where such revision is required to

correct material manifest errors. The Panel may approve such a revised Site

Specific Line Loss Factor and/or a Generic Line Loss Factor in accordance with

BSCP128. A Site Specific Line Loss Factor and/or a Generic Line Loss Factor

may be retrospectively revised to apply from the beginning of the BSC Year in

which the applicable material manifest error was raised, but may also be revised

to apply for a lesser extent of time within the BSC Year, in accordance with

BSCP128. This paragraph shall allow revisions to Site Specific Line Loss

Factors and/or Generic Line Loss Factors with effect from 1 April 2010 onward,

in accordance with BSCP128. For the avoidance of doubt, Site Specific Line

Loss Factors and/or Generic Line Loss Factors may be revised with effect from

1 April 2010 to correct material manifest errors raised in the BSC Year

commencing 1 April 2010.

1.7.15 BSCCo shall submit the applicable values (approved or default, in accordance with

paragraphs 1.7.10, 1.7.11 or 1.7.13) of Line Loss Factors in respect of CVA Metering

Systems to the CDCA and in respect of SVA Metering Systems to the SVAA and

thereafter publish them on the BSC Website.

1.7.16 In addition to the matters specified in paragraph 1.7.9, BSCCo shall audit (with such audit

forming part of the audit under paragraph 1.7.9), on the basis (including as to

representative samples) provided in BSCP128, as to whether each Licensed Distribution

System Operator has assigned to its Metering Systems the correct Line Loss Factor Class,

and shall report its findings to the Panel.

1.7.17 BSCCo shall in accordance with BSCP128 provide to the Performance Assurance Board a

copy of the report giving details of any non-compliance(s) identified in paragraph 1.7.16.

1.7.18 BSCCo may contract with another suitably qualified person (not being a Party or Affiliate)

to undertake the review under paragraph 1.7.7 and/or audit under paragraph 1.7.9.

1.7.19 A Licensed Distribution System Operator may, with the approval of the Panel, delegate the

carrying out of its functions under this paragraph 1.7 in relation to any Metering System(s)

to another person.

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1.8 Establishment of Groups of GSPs

1.8.1 The Grid Supply Point(s) which are comprised in a Group of GSPs shall be:

(a) both

(i) subject to paragraph (b), the Grid Supply Point(s) by reference to

which the relevant GSP Group was established as at 1 August 2003;

and

(ii) subject to paragraph (b), from the BETTA Effective Date, the Grid

Supply Points which were known as Bulk Supply Points under the

SAS and fell into groups of Bulk Supply Points known as,

respectively, North Scotland _P and South Scotland _N and which

have been registered pursuant to BSCP25; or

(b) such other Grid Supply Point(s) as the Panel may determine in accordance with

the further provisions of this paragraph 1.8.

1.8.2 The Panel may determine a revision of the Grid Supply Points comprised in a Group of

GSPs (including the establishment of a new Group of GSPs) in accordance with BSCP25:

(a) where there is a new Grid Supply Point or an existing Grid Supply Point is

decommissioned; or

(b) where, in the Panel's opinion, it is appropriate (having regard, among other

things, to the matters in paragraph 1.8.3) to do so:

(i) as a result of developments of or in relation to the Distribution

Systems for the time being comprised in any GSP Group, and/or the

associated Distribution Systems Connection Points;

(ii) in other circumstances in the Panel's sole discretion.

1.8.3 In determining any revision of the Grid Supply Points to be comprised in a Group of GSPs

the Panel shall have regard, among other things, to:

(a) the effect of geographic factors taken into account in establishing Daily Profile

Coefficients in relation to a GSP Group for the purposes of Supplier Volume

Allocation;

(b) the effect of the size of a GSP Group (that is, the numbers of Half Hourly and

Non Half Hourly Metering Systems at Boundary Points in the GSP Group) on

GSP Group Correction Factors for the purposes of Supplier Volume Allocation;

(c) the effect of the proximity (in terms of electrical connection) of Boundary

Points on the value to the NETSO (in the operation of the NETSO) of Physical

Notifications and Bid-Offer Pairs submitted in relation to Supplier BM Units.

1.8.4 Before making any revision of the Grid Supply Points to be comprised in a Group of GSPs

the Panel shall consult with the Authority, the NETSO, the Distribution System Operators

of all Distribution Systems comprised or to be comprised in relevant GSP Groups, and all

Suppliers.

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2. REGISTRATION OF METERING SYSTEMS

2.1 Registration in CMRS

2.1.1 A Boundary Point Metering System shall be registered in CMRS where:

(a) the Metering Equipment measures quantities of Imports to or Exports from

Plant or Apparatus which is directly connected to the Transmission System; or

(b) the Metering Equipment measures quantities of Imports to or Exports from a

Licensable Generating Plant; or

(c) the Metering Equipment measures quantities of Imports to or Exports from an

Interconnector; or

(d) the Panel has determined, upon the application of any Party, that there are

special circumstances by reason of which such Metering System should be

registered in CMRS.

2.1.2 Without prejudice to paragraph 2.1.1, a Boundary Point Metering System may be

registered in CMRS where the Metering Equipment measures quantities of Exports, or

Exports and Imports, at the Site of an Exemptable Generating Plant.

2.1.3 A Systems Connection Point Metering System shall be registered in CMRS.

2.1.4 A Metering System may not be registered in CMRS except pursuant to paragraph 2.1.1,

2.1.2 or 2.1.3.

2.1.5 A Metering System may not be registered in CMRS and SMRS at the same time.

2.1.6 There may only be one Registrant of a CVA Metering System at any one time.

2.2 Registration requirements

2.2.1 A Party may apply to register a Metering System in CMRS by submitting a registration

application to the CRA specifying:

(a) the identity of the applicant Party;

(b) the Metering System;

(c) the Meter Operator Agent appointed or to be appointed in accordance with

Section J6.1; and

(d) the date with effective from which the applicant wishes the registration to be

effective.

2.2.2 An application to register a Metering System in CMRS shall be made in accordance with

and subject to BSCP20.

2.2.3 The CRA will validate and process the registration application in accordance with

BSCP20.

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2.2.4 The following requirements are conditions to a registration of a Metering System in CMRS

being effective:

(a) the CRA has been informed of the relevant Boundary Point or Systems

Connection Point under paragraph 1.4;

(b) the Metering Equipment has been installed and commissioned in accordance

with Section L;

(c) a Meter Operator Agent has been appointed and registered in accordance with

Section J;

(d) Meter Technical Details and Aggregation Rules have been submitted to and

validated by the CDCA under Section R;

(e) in the case of a Distribution Systems Connection Point, one of the Distribution

System Operators has been nominated in accordance with paragraph 1.3.3;

(f) in the case of an Interconnector, an Interconnector Administrator and

Interconnector Error Administrator have been appointed in accordance with

paragraph 5;

(g) where the applicant is not the Equipment Owner, the consent of the Equipment

Owner has been obtained;

(h) (subject to paragraph 5 in relation to Interconnector BM Units) the registrations

pursuant to paragraph 3 by the Party of the BM Unit(s) associated with such

Metering System (and cancellation or reconfiguration of any existing BM Units

by any other Party pursuant to paragraph 3.6.3) are, but for satisfaction of any

condition in paragraph 3 as to the effective registration of such Metering

System, effective.

2.2.5 Registration of a Metering System in CMRS will become effective on and from the later

of:

(a) the date specified by the applicant pursuant to paragraph 2.2.1(d); and

(b) the day following that on which (in accordance with BSCP20):

(i) the CRA has confirmation that all the requirements listed in

paragraph 2.2.4 have been satisfied (and, for these purposes, the

CDCA shall provide the CRA with the necessary confirmation,

where applicable); and

(ii) the Registrant's Party Registration Data have been registered in

accordance with Section A.

2.2.6 The Registrant of a CVA Metering System shall, in accordance with BSCP20, keep its

registration up-to-date, by notifying the CRA or CDCA (as applicable) of any change in

any of the details contained in the registration, promptly upon any such change occurring.

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2.3 Withdrawal of registration in CMRS

2.3.1 The Registrant of a CVA Metering System shall continue to be the Registrant until and

unless:

(a) the associated Plant and Apparatus is disconnected in accordance with the

relevant Connection Agreement and the Metering System is de-registered in

accordance with BSCP20;

(b) where permitted under paragraph 2.1, the Metering System becomes registered

in SMRS in accordance with paragraph 2.4; or

(c) the Registrant withdraws from the registration in accordance with the further

provisions of this paragraph 2.3.

2.3.2 A Party may withdraw as Registrant of a CVA Metering System if and only if another

Party (the "new registrant"), which is or will (at the effective date of withdrawal) be

responsible for Imports and/or Exports to or from the relevant Plant and Apparatus, applies

(in accordance with paragraph 2.2) for registration and becomes the Registrant of the CVA

Metering System.

2.3.3 The new registrant shall comply with the provisions of paragraph 2.2 in respect of

registration and with the further provisions of BSCP20 in respect of a change of registrant.

2.3.4 Where a Registrant ceases or will cease to be the Party responsible for Exports or Imports

measured by a CVA Metering System, it shall (subject to paragraph 2.3.2) withdraw from,

and consent to the new registrant’s application for, registration in respect of the Metering

System.

2.3.5 A change of registrant shall be effective, and the withdrawing Party shall cease to be

Registrant of the CVA Metering System, conditional upon, and with effect on and from,

the new registrant's registration becoming effective in accordance with paragraph 2.2 and

the withdrawing Party’s cancellation or reconfiguration of BM Units pursuant to paragraph

3.6.2 becoming effective.

2.3.6 A Party shall not be released, by reason of ceasing to be Registrant of a CVA Metering

System, from any accrued liabilities as Registrant or (as Lead Party in respect of the

associated BM Unit) in Settlement.

2.4 Registration in SMRS

2.4.1 Subject to paragraph 2.4.2, where a Boundary Point Metering System is not permitted to

be, or (if it is permitted, but not obliged) is not, registered in CMRS, the Metering System

shall be registered in SMRS; and the responsible Party shall be deemed to comply with the

requirement in paragraph 1.2.1(b) by complying with the further requirements of this

paragraph 2.4 and of the Code relating to registration in SMRS.

2.4.2 Only a Supplier may comply with the requirement in paragraph 1.2.1(b) pursuant to

paragraph 2.4.1.

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2.4.3 Where a Supplier intends:

(a) to supply electricity, or

(b) to receive Export Active Energy from a Third Party Generator,

measured by a Metering System which is or is to be registered in SMRS, the Supplier shall,

in accordance with BSCP501:

(i) inform that SMRA of its intention;

(ii) provide that SMRA with the appropriate information; and

(iii) inform that SMRA from time to time of any changes to that

information.

2.4.4 Section S sets out further requirements applying to each SMRA in relation to SMRS.

2.4.5 The provisions of Annex K-1 (as to the Master Registration Agreement) shall apply.

2.4.6 Where a Supplier is to be the first Registrant in SMRS of a Non Half Hourly Metering

System at a new Boundary Point, and the Supplier is not the Equipment Owner, the

Supplier shall obtain (directly, or indirectly through its authorised Meter Operator Agent)

the consent of the Equipment Owner to such registration.

2.5 Shared SVA Meter Arrangements

2.5.1 Subject to and in accordance with this paragraph 2.5 and the further provisions of the Code,

two or more Suppliers may make an arrangement (a "Shared SVA Meter Arrangement")

under which there is a single SVA Metering System for Exports or Imports (from or to the

same Plant and Apparatus) for which the two or more Suppliers are responsible.

2.5.2 A Shared SVA Meter Arrangement may be made only:

(a) in relation to a SVA Metering System comprising Half Hourly Metering

Equipment; and

(b) in relation to Exports or (as the case may be) Imports for which the two or more

Suppliers are responsible (and not in relation to a combination of Exports and

Imports but without prejudice to paragraph 2.5.4(c)(ii)); and

(c) between no more than the maximum number of Suppliers in relation to a SVA

Metering System as may from time to time be determined and published by

BSCCo in accordance with the procedures set out in BSCP550 (and, where a

maximum number is so specified, references in the Code to two or more

Suppliers under a Shared SVA Meter Arrangement are subject to such

maximum limit).

2.5.3 A Shared SVA Meter Arrangement shall be made, and related information submitted,

maintained and updated, in accordance with and subject to the provisions of BSCP550.

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2.5.4 Where Suppliers make a Shared SVA Meter Arrangement:

(a) the Suppliers shall ensure that each is informed of each other's identity by the

SVA Customer or (as the case may be) SVA Generator;

(b) the Suppliers shall agree which of them is to act as primary Supplier for the

purposes of the Code, failing which the Panel shall nominate one of them to act

as primary Supplier;

(c) each Supplier shall:

(i) register the Shared SVA Metering System in the SMRS with a

different SVA Metering System Number, for which each Supplier

shall be respectively responsible;

(ii) where the Supplier is the variable supplier as referred to in paragraph

3.5.5 of Annex S-2, register the Shared SVA Metering System in the

SMRS with two different SVA Metering System Numbers (one

classed as import and the other as export in accordance with

BSCP550), for which such Supplier is responsible;

(iii) inform the SMRA if at any time it ceases to be responsible for the

Shared SVA Metering System, provided that:

(1) all such Suppliers may not cease to be so responsible at

the same time unless the relevant SVA Metering System

is disconnected at that time or another Supplier or

Suppliers assume responsibility for that Metering System

in accordance with the provisions of the Code with effect

from the time when all such Suppliers cease to be so

responsible; and

(2) where a Supplier ceases to be so responsible as a result of

another Supplier assuming such responsibility, that other

Supplier (rather than the Supplier ceasing to be so

responsible) shall inform the SMRA;

(iv) maintain and update the information in that SMRS for which it is

responsible;

(d) the Primary Supplier shall ensure that an Allocation Schedule and the associated

rules for application and maintenance of the Allocation Schedule are established

and submitted in accordance with BSCP550.

2.5.5 In connection with any Shared SVA Meter Arrangement, the Primary Supplier shall:

(a) ensure (in accordance with Section J4.1.4) that only one Meter Operator Agent

and one Data Collector is appointed for the Shared SVA Metering System;

(b) request the SMRA to provide (for the purposes of paragraph 2.5.4(c)(i)) and,

where applicable, paragraph 2.5.4(c)(ii)) SVA Metering System Number(s) for

the Shared SVA Metering System;

(c) notify the Secondary Supplier(s) of their SVA Metering System Number(s);

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(d) promptly inform the Secondary Supplier(s) of any changes to information for

which the Primary Supplier is solely responsible in relation to the Shared SVA

Metering System;

(e) ensure that each Secondary Supplier has equal access, for so long as the

Secondary Supplier remains a Secondary Supplier in respect of the Shared SVA

Metering System, to the data recorded by the relevant Metering Equipment;

(f) be the Party responsible for submitting the initial Allocation Schedule and any

subsequent Allocation Schedules to the Half Hourly Data Collector and the

Secondary Supplier(s);

(g) where the initial or any subsequent Allocation Schedule specifies an amount of

energy to be employed by way of fixed block or multiple fixed block in

accordance with BSCP550, estimate and notify to the Half Hourly Data

Collector the maximum output or consumption capacity (as the case may be) of

the Plant or Apparatus associated with the Shared SVA Metering System

(expressed in MWh per Settlement Period), and revise such estimate from time

to time, in each case in accordance with BSCP550.

2.5.6 Where a Secondary Supplier ceases to be a Secondary Supplier in respect of a Shared SVA

Metering System and is not replaced by a new Secondary Supplier in accordance with

BSCP550 and no other Secondary Suppliers form part of the Shared SVA Meter

Arrangement:

(a) the SVA Metering System shall cease to be the subject of a Shared SVA Meter

Arrangement;

(b) the Primary Supplier shall assume sole responsibility for such Metering System;

and

(c) the SMRA shall be requested to mark the SVA Metering System Number of the

Secondary Supplier as disconnected.

2.5.7 Where a Secondary Supplier ceases to be a Secondary Supplier in respect of a Shared SVA

Metering System and is not replaced by a new Secondary Supplier in accordance with

BSCP550 but other Secondary Suppliers still form part of the Shared SVA Meter

Arrangement:

(a) the Primary Supplier shall ensure that a subsequent Allocation Schedule is

submitted; and

(b) the SMRA shall be requested to mark the relevant SVA Metering System

Number(s) of the Secondary Supplier as disconnected.

2.5.8 Where the Primary Supplier ceases to be the Primary Supplier and is not replaced by a new

Primary Supplier in accordance with BSCP550 and there is only one Secondary Supplier

which forms part of the Shared SVA Meter Arrangement:

(a) the SVA Metering System shall cease to be the subject of a Shared SVA Meter

Arrangement;

(b) the Secondary Supplier shall assume sole responsibility for such Metering

System; and

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(c) the Secondary Supplier shall request the SMRA to mark its SVA Metering

System Number as disconnected and to register the Secondary Supplier as the

Registrant of such Metering System with the SVA Metering System Number

previously assigned to such Primary Supplier.

2.5.9 Where the Primary Supplier ceases to be the Primary Supplier and is not replaced by a new

Primary Supplier in accordance with BSCP550 and there is more than one Secondary

Supplier which form part of the Shared SVA Meter Arrangement:

(a) the SVA Metering System shall continue to be the subject of a Shared SVA

Meter Arrangement;

(b) the Secondary Suppliers shall agree which of them is to act as Primary Supplier,

failing which the Panel shall nominate one of them to act as Primary Supplier;

(c) the Secondary Supplier which assumes the role of Primary Supplier shall:

(i) ensure that a subsequent Allocation Schedule is submitted; and

(ii) request the SMRA to mark its Secondary SVA Metering System

Number(s) as disconnected and to register it with the SVA Metering

System Number previously assigned to the Primary Supplier.

2.5.10 This paragraph 2.5 shall apply on a Supplier ID basis (and a Supplier may be party to a

Shared SVA Meter Arrangement in the capacities of its Supplier IDs) and its provisions

shall be construed accordingly.

2.6 Transfer of Registration between CMRS and SMRS

2.6.1 A Party which is or is to be the Registrant of a Metering System in CMRS may transfer the

registration to SMRS, and a Party which is or is to be the Registrant of a SVA Metering

System in SMRS may transfer the registration to CMRS, subject to and in accordance with

this paragraph 2.6; and in this paragraph such a transfer is referred to as a "Registration

Transfer".

2.6.2 A Registration Transfer:

(a) may only be made where the Metering System is eligible (in accordance with

this paragraph 2) to be registered in both CMRS and SMRS;

(b) shall be made by (and effective from) registration in CMRS or (as the case may

be) SMRS at the same time as withdrawal from registration in the other.

2.6.3 A Registration Transfer shall be made in accordance with and subject to BSCP68.

2.6.4 For the avoidance of doubt, a Registration Transfer may be made in parallel with an

application for a change of Registrant and, subject to compliance with this paragraph 2.6

and with paragraphs 2.3 and 2.4, a Registration Transfer may become effective on the same

day as a change of Registrant.

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3. CONFIGURATION AND REGISTRATION OF PRIMARY BM UNITS

3.1 Configuration of Primary BM Units

3.1.1 Subject to paragraph 3.3 (Supplier BM Units) and paragraph 5 (Interconnectors), a BM

Unit shall comprise Plant or Apparatus or a combination of Plant and/or Apparatus for

whose Exports and/or Imports a Party is responsible.

3.1.2 Save as provided in paragraph 3.1.4, a BM Unit must satisfy the following registration

criteria:

(a) subject to paragraph 3.1.3A only one Party is responsible for the Exports and/or

Imports from or to the Plant and/or Apparatus which is comprised in the BM

Unit;

(b) subject to paragraph 3.3.9A, the Exports and/or Imports of electricity from and

to the Plant and/or Apparatus comprised in the BM Unit are capable of being

controlled independently of the Exports or Imports of electricity from or to any

Plant or Apparatus which is not comprised in the BM Unit;

(c) on the basis of:

(i) the provisions of the Code as to Volume Allocation, and any options

or entitlements which the responsible Party has exercised or intends

to exercise pursuant to those provisions; and

(ii) the Metering Equipment which is or is to be installed pursuant to

Section L

the quantities (in aggregate) of electricity Exported and Imported in each

Settlement Period from or to the Plant and/or Apparatus comprised in the BM

Unit are or will be determined (in accordance with the provisions of the Code as

to Volume Allocation) and submitted to the SAA for the purposes of Settlement

separately from any quantities Exported or Imported from or to any Plant and/or

Apparatus which is not comprised in the BM Unit;

(d) subject to paragraph 3.1.3A, the BM Unit does not comprise Plant and

Apparatus whose Imports and Exports are measured by both CVA Metering

System(s) and SVA Metering System(s); and

(e) subject to 3.1.2B there are no smaller aggregations of the Plant and Apparatus

comprised in the BM Unit, for each of which the conditions in paragraphs (a),

(b) and (c) would be satisfied.

3.1.2A A BM Unit (other than a Supplier BM Unit or Interconnector BM Unit) comprised of EII

Assets shall not be comprised of any:

(a) Plant or Apparatus that are not EII Assets; and/or

(b) EII Assets with a different Exemption Proportion.

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3.1.2B A collection of smaller aggregations of Plant and Apparatus may be registered as a single

BM Unit, provided:

(a) the Registered Capacity of that collection of Plant/or Apparatus is no larger than

that specified in respect of a Small Power Station; and

(b) the Exports from that collection of Plant and/or Apparatus are subject to

common control as a single BM Unit.

3.1.3 Subject to paragraphs 3.1.4B and 3.1.4C, the same Plant and Apparatus may be comprised

in more than one BM Unit only to the extent that different persons are responsible for the

Exports from and the Imports to such Plant and Apparatus or as permitted in paragraph

3.1.3A.

3.1.3A Plant and/or Apparatus comprised in a BM Unit, whose Exports and/or Imports are

measured by CVA Metering System(s), may also be comprised in another BM Unit,

Imports to which are measured by a Metering System, which may be registered by a

different person, in the SMRS, provided that:

(a) there are measures in place to prevent Exports from that Plant and/or Apparatus

to the SVA Metering System associated with that Plant and/or Apparatus;

(b) the SVA connection is equal to or less than the limit determined by the Panel

from time to time; and

(c) there are measures in place to prevent instantaneous flow through of electricity:

(i) from the Metering System registered in CMRS to the Metering System

registered in SMRS; and/or

(ii) between different Systems.

3.1.4 Each of the following shall be a single BM Unit, and shall be deemed to satisfy the

requirements in paragraph 3.1.2:

(a) any CCGT Module or Power Park Module for whose Exports the Metering

System(s) is or are registered in CMRS;

(b) the Plant and Apparatus which comprises part of, and which Imports electricity

through the station transformer(s) of, a Generating Plant, where the Metering

System(s) for such Imports is or are registered in CMRS;

(c) premises (of a Customer supplied by a Party) which are directly connected to

the Transmission System, provided that such premises are so connected at one

Boundary Point only;

(cc) premises (of a Customer supplied by a Party) which are directly connected to

the Transmission System at more than one Boundary Point, provided that the

total Imports to the Plant and/or Apparatus comprised in the BM Unit are equal

to or less than the value limits prescribed in respect of a Small Power Station;

(d) an Interconnector BM Unit, in accordance with paragraph 5;

(e) a Base BM Unit or an Additional BM Unit, in accordance with paragraph 3.3;

(f) any configuration of Plant and Apparatus that was determined as part of the

transitional arrangements for the implementation of BETTA; and

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(g) any two or more Offshore Power Park Modules (for whose Exports the

Metering System(s) is or are registered in CMRS), where the responsible Party

wishes to combine these as a single BM Unit and the NETSO in its absolute

discretion determines that such a configuration is suitable to constitute a single

BM Unit (a "Combined Offshore BM Unit"); and

(h) an Offshore Power Park Module together with any related Plant and Apparatus

used to Import electricity to that Offshore Power Park Module and which are

connected to the Transmission System at separate Transmission System

Boundary Points; and

(i) a Combined Offshore Power Park Module together with any related Plant and

Apparatus used to Import electricity to that Combined Offshore Power Park

Module and which are connected to the Transmission System at separate

Transmission System Boundary Points.

3.1.4A A combination of Power Park Modules (including any Power Park Module(s) comprised in

a BM Unit located Offshore), with the same Lead Party, may be identified as a "Switching

Group" in accordance with this paragraph 3, in which case each such BM Unit shall be

described as "belonging" to that Switching Group.

3.1.4B Power Park Modules may belong to a Switching Group on the basis that Plant and

Apparatus can be selected to run in any of the BM Units belonging to that Switching

Group.

3.1.4C Subject to Section R3, Plant and Apparatus comprised in Power Park Modules belonging to

a Switching Group shall be deemed to be comprised in the BM Unit in which the Plant and

Apparatus is selected to run at any given time.

3.1.4D A Power Park Module may not belong to more than one Switching Group at any given

time.

3.1.5 Paragraph 3.1.6 applies in any case where (pursuant to this Section K) one or more BM

Units are required to be established, comprising particular Plant and/or Apparatus (the

"relevant" Plant and Apparatus), if the relevant Plant and Apparatus does not fall into a

category listed in paragraph 3.1.4 and:

(a) a Party’s application to register a BM Unit has been rejected by the CRA for not

satisfying the registration criteria set out in paragraph 3.1.2, and the Party

wishes to refer the question of application of the registration criteria to the

Panel; or

(b) the CRA considers that there is a reasonable doubt as to whether a Party’s

application to register a BM Unit satisfies the registration criteria set out in

paragraph 3.1.2, and the CRA wishes to refer the question of application of the

registration criteria to the Panel.

3.1.6 In any case where this paragraph 3.1.6 applies:

(a) the responsible Party and/or the CRA shall refer the question of the

establishment of the BM Unit(s) to the Panel;

(b) the Panel shall determine, taking into account any representations of the Party

responsible for the relevant Exports and/or Imports, and after consulting the

NETSO, whether the proposed configuration of the relevant Plant and

Apparatus into BM Unit(s) satisfies the criteria in paragraph 3.1.2;

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(c) where the Panel considers that the proposed configuration will not satisfy the

criteria in paragraph 3.1.2, the Panel may determine a configuration of the

relevant Plant and Apparatus into BM Unit(s) which in the Panel's opinion most

nearly achieves the objectives which are reflected in the criteria in paragraph

3.1.2;

(d) the determination of the Panel under this paragraph shall be final and binding.

3.1.7 BSCCo shall keep a copy of all determinations made by the Panel pursuant to paragraph

3.1.6 and any decision regarding a BM Unit that was determined as part of the transitional

arrangements for the implementation of BETTA and shall make such determinations and

/or decisions available to any Party upon request.

3.1.8 A BM Unit comprised of CFD Assets shall be comprised solely of the CFD Assets

specified in the Contract for Difference relating to that BM Unit and shall not include any

other Plant or Apparatus (the "Relevant CFD Assets").

3.1.9 Any change in any of the details contained in the registration of a BM Unit must meet the

criteria for registration set out in this section K and the Lead Party for the BM Unit shall

notify the CRA promptly upon any such change occurring, in accordance with paragraph

3.6 and BSCP15.

3.2 Registration of BM Units

3.2.1 Each Party shall ensure that all Plant and Apparatus, for whose Exports and/or Imports it is

responsible, is comprised in BM Units established and registered by it in compliance with

this paragraph 3.

3.2.2 The further provisions of this paragraph 3.2 shall only apply to BM Units comprising Plant

and/or Apparatus, for whose Exports and/or Imports a Party is responsible, measured by

CVA Metering Systems.

3.2.3 A Party may apply to register a BM Unit by submitting a registration application to the

CRA specifying:

(a) the identity of the applicant Party;

(b) the date from which the applicant wishes the registration to be effective;

(c) the estimated amounts referred to in paragraph 3.4.1 (for the purposes of

establishing the Generation Capacity and the Demand Capacity) for the

proposed BM Unit;

(d) the CVA Metering Systems associated with the proposed BM Unit; and

(e) the Switching Group to which the BM Unit belongs (if any).

3.2.4 An application to register a BM Unit shall be made in accordance with and subject to

BSCP15.

3.2.5 The CRA (after consultation with BSCCo and the CDCA) will validate (as to compliance

with paragraph 3.2.6 and otherwise) and process the registration application in accordance

with BSCP15.

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3.2.6 The following requirements are conditions to a registration of a BM Unit being effective:

(a) the BM Unit is configured in accordance with the requirements of paragraph

3.1;

(b) subject to paragraph 5 (in relation to Interconnector BM Units), the

registration(s) pursuant to paragraph 2 of the CVA Metering System(s)

associated with such BM Unit are, but for satisfaction (where applicable) of any

condition in paragraph 2 as to the effective registration of such BM Unit,

effective;

(c) the estimated amounts (for the purposes of establishing the Generation Capacity

and Demand Capacity) for the BM Unit have been notified to the CRA in

accordance with paragraph 3.4.2(a);

(d) Aggregation Rules for such BM Unit have been submitted to and validated by

the CDCA under Section R; and

(e) a Credit Assessment Load Factor has been allocated to the BM Unit in

accordance with Section M1.5.

3.2.7 Registration of a BM Unit will become effective, and the applicant will become the Lead

Party of that BM Unit, on and from the later of:

(a) the date specified by the applicant pursuant to paragraph 3.2.3(b); and

(b) the day following that on which (in accordance with BSCP15) BSCCo confirms

to the CRA that all of the requirements (including those in paragraph 3.2.6)

specified for such effectiveness in that BSC Procedure have been satisfied.

3.2.8 The Lead Party for a BM Unit shall, keep its registration up-to-date in accordance with

paragraph 3.1.9.

3.3 Supplier BM Units

3.3.1 Each Supplier shall:

(a) automatically be registered as holding one BM Unit for each GSP Group,

irrespective of whether it has any Registered SVA Metering Systems in the GSP

Group (and, for the purposes of this paragraph (a), a Party shall be deemed to

have applied for such registrations upon applying to register itself as a Supplier

pursuant to Section A4); and

(b) notify the estimated amounts (for the purposes of establishing the Generation

Capacity and Demand Capacity) for each such BM Unit in accordance with

paragraph 3.4.2(a) at or before the registration of such BM Unit, provided that if

such Supplier fails to notify such amounts as required by this paragraph (b), it

shall be deemed to have notified a value of zero for each such amount (but

without prejudice to paragraph 3.4.2(c)).

3.3.2 In addition, a Supplier may apply to register a BM Unit associated with a GSP Group by

giving notice to the CRA specifying:

(a) the identity of the Supplier;

(b) the GSP Group with which the BM Unit is to be associated;

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(c) the date with effect from which the BM Unit is to be established;

(d) the estimated amounts referred to in paragraph 3.4.1 (for the purposes of

establishing the Generation Capacity and the Demand Capacity) for the

proposed BM Unit.

3.3.3 Application for registration of a BM Unit pursuant to paragraph 3.3.2 shall be made in

accordance with and subject to BSCP15, and the registration shall be effective, and the

Supplier will become the Lead Party of that BM Unit, on the later of:

(a) the date specified by the applicant pursuant to paragraph 3.3.2(c); and

(b) the date when registration is confirmed by BSCCo to the CRA in accordance

with BSCP15.

3.3.4 The CRA shall validate and process applications for registration of a Supplier BM Unit in

accordance with and subject to BSCP15.

3.3.5 For any Supplier and any GSP Group, the "Base BM Unit" is the Supplier BM Unit which

was registered for the Supplier pursuant to paragraph 3.3.1, and each other Supplier BM

Unit is an "Additional BM Unit".

3.3.6 A Supplier may not cancel or withdraw from the registration of a Base BM Unit while he

remains a Supplier.

3.3.7 A Supplier may assign the Plant and Apparatus associated with particular SVA Metering

Systems (of which it is Registrant) in any GSP Group to any Additional BM Unit

registered by it for that GSP Group, subject to the conditions set out in and in accordance

with the provisions of Section S6.

3.3.8 All of the Plant and Apparatus associated with a Supplier's Registered SVA Metering

Systems in a GSP Group which are not for the time being assigned to an Additional BM

Unit shall be comprised in its Base BM Unit for that GSP Group.

3.3.9 Not used.

3.3.9A Paragraph 3.1.2(b) shall not apply to the extent to which Imports of electricity to the Plant

and/or Apparatus comprised in a BM Unit are measured by Metering Systems which are

part of a Teleswitch Group.

3.3.10 The Lead Party for a Supplier BM Unit shall, in accordance with BSCP15, keep its

registration up-to-date, by notifying the CRA of any change in any of the details contained

in the registration, promptly upon any such change occurring.

3.3.11 This paragraph 3.3 shall apply on a Supplier ID basis and its provisions shall be construed

accordingly, and:

(a) a Supplier will be registered under paragraph 3.3.1 in respect of each of its

Supplier IDs as holding one BM Unit for each GSP Group (and accordingly will

hold a set of Base BM Units for each of its Supplier IDs); and

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(b) a Supplier:

(i) holding one Supplier ID may not cancel or withdraw from the

registration of a Base BM Unit relating to that Supplier ID while the

Supplier remains a Supplier;

(ii) holding more than one Supplier ID may cancel and withdraw from

the registration of the set of Base BM Units relating to an additional

Supplier ID:

(A) provided the Supplier has no Registered SVA Metering

Systems with the additional Supplier ID in any GSP

Group;

(B) following which cancellation and withdrawal the

Supplier shall no longer hold, for the purposes of the

Code, the additional Supplier ID.

3.3.12 Where a Supplier is the Registrant of SVA Metering System(s) associated with CFD

Assets, the Supplier shall in respect of those CFD Assets:

(a) ensure that Additional BM Unit(s) have been registered in accordance with this

Section K; and

(b) assign only the Relevant CFD Assets to such Additional BM Unit(s).

3.3.13 If at any time BSCCo receives a notice from an EMR Settlement Services Provider in

respect of CFD Assets to register or de-register Additional BM Units in a GSP Group then

BSCCo shall:

(a) in respect of the GSP Group to which those CFD Assets are connected, register

Additional BM Units for each Supplier identified by BSCCo under paragraph

3.3.14; or

(b) de-register any Additional BM Unit in that GSP Group which were registered

under paragraph 3.3.13(a) and which are connected to those CFD Assets but

which are no longer required,

in each case in accordance with BSCP15.

3.3.14 In respect of each GSP Group BSCCo shall establish and maintain a list identifying:

(a) Active Power Purchasing Suppliers in that GSP Group; and

(b) any other Qualified Half Hourly Supplier that has requested to be included on

that list.

3.3A Exempt Export BM Units

3.3A.1 A Supplier BM Unit shall not be classified as an Exempt Export BM Unit unless

(disregarding paragraph 3.1.4(e)) the BM Unit would, if the Metering System(s) comprised

in the BM Unit were CVA Metering Systems, satisfy the requirements in paragraph 3.1.2,

for which purposes paragraph 3.1.6 shall apply as if the question referred to therein were

whether the configuration of Plant and Apparatus comprised in the BM Unit satisfies (or

best satisfies) those requirements.

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3.4 Demand Capacity and Generation Capacity

3.4.1 The Lead Party of a BM Unit shall estimate and notify to the CRA, in relation to each BSC

Season in each year (the "relevant" BSC Season), from time to time in accordance with

paragraph 3.4.2, in good faith and as accurately as it reasonably can, what will be:

(a) the positive value of QMij with the maximum magnitude (subject to paragraph

3.4.4) for the BM Unit in the relevant BSC Season; and

(b) the negative value of QMij with the maximum magnitude (subject to paragraph

3.4.4) for the BM Unit in the relevant BSC Season,

provided that (in either case) if there is none, the value shall be the most recent declared

value of the preceding BSC Season. Where no preceding BSC Season value is available the

value shall be zero.

3.4.2 The Lead Party shall estimate and notify to the CRA amounts under paragraph 3.4.1:

(a) initially, at the time of registration of the BM Unit under paragraph 3.2 or 3.3;

(b) not later than the time specified in BSCP15 in the BSC Season preceding the

relevant BSC Season; and

(c) within such period after the criteria set out in paragraph 3.4.3 have been met as

is specified in paragraph 3.4.5, provided that the Lead Party shall have no

obligation to submit a revised estimate of any such amount in circumstances

where such criteria have been met as a result of the CRA notifying the Lead

Party that the CRA has identified that either or both of the GC and DC Breach

Monitoring Criteria have been met, pursuant to paragraph 3.5.7D(b)(ii).

3.4.2A The Lead Party of a Supplier BM Unit may, up to twice in each BSC Season, (subject to

paragraph 3.4.4), also estimate and notify to the CRA increases in the negative value of

QMij with the maximum magnitude divided by SPD where the Lead Party becomes aware

of or believes in good faith that such value will become greater than DC for the remainder

of the BSC Season.

3.4.3 The criteria referred to in paragraph 3.4.2(c) are that, for any Settlement Period in the

relevant BSC Season, or (as the case may be) the remainder of the relevant BSC Season

following a revised estimate notified in accordance with paragraph 3.4.2A:

(a) the positive value of QMij (subject to paragraph 3.4.4) for the BM Unit divided

by SPD exceeds or the Lead Party becomes aware or believes in good faith that

such value will exceed GC by the GC Limits;

(b) the negative value of QMij (subject to paragraph 3.4.4) with the maximum

magnitude for the BM Unit divided by SPD is less than or the Lead Party

becomes aware or believes in good faith that such value will be less than DC by

the DC Limits.

3.4.3A For the purposes of the Code the GC Limits and DC Limits shall be such values as

determined by the Panel from time to time after consultation with BSC Parties and in

accordance with the published guidance described in 3.4.3B.

3.4.3B The Panel will establish guidance for the determination and review of the GC Limits and

DC Limits.

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3.4.3C BSCCo will publish GC Limits and DC Limits described in in 3.4.3A and the guidance

described 3.4.3B on the BSC Website.

3.4.4 For the purposes of paragraphs 3.4.1(a) and (b), 3.4.2A and 3.4.3(a) and (b), any part of the

BM Unit Metered Volume which is delivered or taken or which the Lead Party reasonably

believes will be delivered or taken by the Plant or Apparatus associated with that BM Unit

in response to an Emergency Instruction (issued pursuant to Balancing Code 2.9 of the

Grid Code) shall be disregarded.

3.4.5 In respect of a relevant BSC Season, a revised estimate of the amount referred to in

paragraph 3.4.1(a) or (b), shall be notified pursuant to paragraph 3.4.2(c) as soon as

reasonably practicable after the Lead Party becomes aware that, or ought reasonably to

have become aware that the criteria referred in paragraphs 3.4.3(a) or 3.4.3(b) (as the case

may be) have been met, provided that the Lead Party shall have no obligation to submit a

revised estimate of any such amount more than 20 Business Days after the Initial

Settlement Run in respect of the last Settlement Period in that BSC Season has occurred.

3.4.6 In relation to a BM Unit, any revised estimates notified pursuant to paragraph 3.4.2(c) and

3.4.2A shall take effect in accordance with and from the time specified in BSCP15 and, for

the avoidance of doubt, any such revision shall:

(a) in relation to the calculations undertaken by the SAA:

(i) not affect or result in the redetermination or recalculation of any

values determined or calculated by the SAA under the Code which

are determined or calculated in relation to Settlement Periods which

fell in the period prior to the effective date of such revision;

(ii) be used in the determination or calculation of values determined or

calculated by the SAA under the Code which are determined or

calculated in relation to Settlement Periods which fall in the period

on and after the effective date of such revision,

and paragraph 3.5 shall be construed accordingly;

(b) in relation to the contribution to the calculation of Energy Indebtedness for such

BM Unit undertaken by the ECVAA:

(i) not result in the recalculation of Energy Indebtedness calculated in

relation to Settlement Periods which fell in the period prior to the

effective date of such revision;

(ii) be used in the calculation of Energy Indebtedness calculated in

relation to Settlement Periods which fall in the period on and after

the effective date of such revision,

and in either case, without prejudice to Section H3, the failure by a Party to notify any

revised amounts in accordance with paragraph 3.4.2(c) may not give rise to any Trading

Dispute.

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3.4.7 The Panel may, and upon the reasonable request of the NETSO will, review any estimate

made by a Party under paragraph 3.4.1; and if so requested by the Panel in connection with

any such review:

(a) the NETSO or any Distribution System Operator will provide reasonable

information to the Panel relevant to a review of any estimate under paragraph

3.4.1, and

(b) the Lead Party will:

(i) provide to the Panel reasonable information to justify its prevailing

estimates of the amounts under paragraph 3.4.1, and

(ii) re-estimate such amounts after discussion with the Panel.

3.4.7A The CRA shall carry out periodic monitoring ("GC and DC Breach Monitoring") of

Metered Volumes in respect of each BM Unit, to identify whether, for any Settlement

Period in the relevant BSC Season, or (as the case may be) the remainder of the relevant

BSC Season following a revised estimate made in accordance with this paragraph 3.4:

(a) the positive value of QMij (subject to paragraph 3.4.7C) for the BM Unit

divided by SPD has exceeded GC by the GC Limits; ("GC Breach Monitoring

Criterion") or

(b) the negative value of QMij (subject to paragraph 3.4.7C) with the maximum

magnitude for the BM Unit divided by SPD has been less than DC by the DC

Limits, ("DC Breach Monitoring Criterion")

(together the "GC and DC Breach Monitoring Criteria").

3.4.7B GC and DC Monitoring shall take place at a time and frequency determined by BSCCo.

3.4.7C For the purposes of GC and DC Breach Monitoring, any part of the BM Unit Metered

Volume which is delivered or taken by the Plant or Apparatus associated with that BM

Unit in response to an Emergency Instruction (issued pursuant to Balancing Code 2.9 of the

Grid Code) shall be disregarded.

3.4.7D If the CRA identifies that either or both of the GC and DC Breach Monitoring Criteria have

been met in respect of a BM Unit, the CRA shall:

(a) estimate for the BM Unit, in accordance with the BM Unit Volume Estimation

Methodology, what will be:

(i) if the GC Breach Monitoring Criterion is met, the positive value of

QMij with the maximum magnitude for the BM Unit in the relevant

BSC Season; and

(ii) if the DC Breach Monitoring Criterion is met, the negative value of

QMij with the maximum magnitude for the BM Unit in the relevant

BSC Season,

(together, the "CRA-Estimated GC or DC Amounts")

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(b) notify the Lead Party of the BM Unit, BSCCo, the CM Settlement Services

Provider and the CFD Settlement Services Provider of the following in respect

of the BM Unit:

(i) that the CRA has identified that either or both of the GC and DC

Breach Monitoring Criteria have been met;

(ii) the Settlement Day and Settlement Period on which the criterion or

criteria were met;

(iii) the CRA-Estimated GC or DC Amounts;

(iv) the date on which the CRA-Estimated GC or DC Amounts will take

effect in accordance with BSCP15;

(v) that, pursuant to paragraph 3.4.7M, the CRA will publish a notice

relating to the relevant BM Unit; and

(vi) any other information specified pursuant to paragraph 3.4.7P; and

(together the "GC or DC Breach Notification")

(c) publish a notice pursuant to paragraph 3.4.7M, in relation to the BM Unit.

3.4.7E For the purposes of estimating the CRA-Estimated GC or DC Amounts, the Panel shall

establish and may from time to time revise, and shall provide to BSCCo and make

available to all Trading Parties, a methodology for estimating BM Unit Metered Volumes

(the "BM Unit Volume Estimation Methodology").

3.4.7F BSCCo shall post the BM Unit Volume Estimation Methodology on the BSC website.

3.4.7G Within two (2) Working Days following the day after a GC or DC Breach Notification is

deemed to have been received by the Lead Party of the relevant BM Unit, the Lead Party

may:

(a) notify BSCCo that the Lead Party challenges the CRA-Estimated GC or DC

Amounts (a "GC or DC Estimation Challenge");

(b) provide evidence that the CRA-Estimated GC or DC Amounts are not correct;

and

(c) propose alternative amounts, for what will be, for the BM Unit:

(i) if the GC or DC Breach Notification identified that the GC Breach

Monitoring Criterion is met, the positive value of QMij with the

maximum magnitude for the BM Unit in the relevant BSC Season;

and

(ii) if the GC or DC Breach Notification identified that the DC Breach

Monitoring Criterion is met, the negative value of QMij with the

maximum magnitude for the BM Unit in the relevant BSC Season,

estimated in accordance with the BM Unit Volume Estimation Methodology or,

if the Lead Party considers another methodology is more appropriate, that other

methodology.

(together the "Challenger-Proposed GC or DC Estimates")

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3.4.7H After receiving a GC or DC Estimation Challenge, BSCCo:

(a) shall notify the CRA of the GC or DC Estimation Challenge;

(b) shall promptly consider whether BSCCo has substantial evidence that, or other

reasons to believe that, there is (in accordance with the GC or DC Estimation

Challenge Guidance) a material doubt as to whether the CRA-Estimated GC or

DC Amounts for the BM Unit are correct;

(c) may, but shall not be required to make any enquiry of the Lead Party of the BM

Unit or any other person, but will take into account any information already

provided by the Lead Party pursuant to paragraph 3.4.7G.

(d) shall, within two (2) Working Days:

(i) decide whether to uphold the GC or DC Estimation Challenge,

having regard to the matters considered pursuant to paragraphs (b)

and (c); and

(ii) notify:

(A) the Lead Party; and

(B) the CRA,

of BSCCo’s decision.

3.4.7I The CRA shall suspend ongoing GC and DC Breach Monitoring in respect of a BM Unit

from such time as BSCCo has notified the CRA of a GC or DC Estimation Challenge in

respect of that BM Unit, pursuant to paragraph 3.4.7H(a), until:

(a) if BSCCo decides to uphold the GC or DC Estimation Challenge, the date on

which the BSCCo-Determined GC or DC Estimates take effect in respect of that

BM Unit, in accordance with BSCP15; or

(b) if BSCCo decides not to uphold the GC or DC Estimation Challenge, such time

as BSCCo notifies the CRA of that decision, pursuant to paragraph

3.4.7H(d)(ii)(B).

3.4.7J If BSCCo decides to uphold a GC or DC Estimation Challenge pursuant to paragraph

3.4.7H, BSCCo shall notify to the CRA such amounts for:

(a) if the GC or DC Breach Notification identified that the GC Breach Monitoring

Criterion is met, the positive value of QMij with the maximum magnitude for

the BM Unit in the relevant BSC Season; and

(b) if the GC or DC Breach Notification identified that the DC Breach Monitoring

Criterion is met, the negative value of QMij with the maximum magnitude for

the BM Unit in the relevant BSC Season,

as BSCCo considers appropriate, having regard to the Challenger-Proposed GC or DC

Estimates and the matters considered pursuant to paragraphs 3.4.7H(b) and 3.4.7H(c).

(together, the "BSCCo-Determined GC or DC Estimates")

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3.4.7K For the avoidance of doubt, if BSCCo decides not to uphold a GC or DC Estimation

Challenge, the CRA-Estimated GC or DC Amounts shall remain in place for the purposes

of the relevant BM Unit Registration.

3.4.7L For the purposes of paragraph 3.4.7H(b), the Panel shall establish, and may from time to

time revise, and shall provide to BSCCo and shall make available to all Trading Parties,

principles or guidance as to the basis on which the existence or absence of material doubt is

to be established by BSCCo (the "GC or DC Estimation Challenge Guidance").

3.4.7M For the purposes of paragraph 3.4.7D, the Panel shall establish, and may from time to time

revise, and shall provide to BSCCo and shall make available to all Trading Parties, a

document setting out, in relation to a notice published by the CRA:

(a) the contents of such publication; and

(b) where such publication shall be made.

3.4.7N If, for the purposes of updating the registration details of a particular BM Unit to take

effect on a particular day, multiple different amounts for what will be:

(a) the positive value of QMij with the maximum magnitude for the BM Unit in the

relevant BSC Season; and

(b) the negative value of QMij with the maximum magnitude for the BM Unit in the

relevant BSC Season,

have been estimated by or notified to the CRA pursuant to the Code, the CRA must use the

amounts with the highest priority pursuant to the GC or DC Conflict Resolution Priority

Order.

3.4.7O For the purposes of paragraph 3.4.7N, the order of priority for the amounts, from highest

priority to lowest priority, is as follows:

(a) the BSCCo-Determined GC or DC Estimates most recently notified to the CRA

by BSCCo pursuant to paragraph 3.4.7J;

(b) CRA-Estimated GC or DC Amounts; and

(c) amounts most recently notified to the CRA by the Lead Party pursuant to

paragraph 3.4.2 or 3.4.2A,

(together the "GC or DC Conflict Resolution Priority Order").

3.4.7P For the purposes of paragraph 3.4.7D(b)(vi), the Panel shall establish, and may from time

to time revise, and shall provide to BSCCo and shall make available to all Trading Parties,

a document specifying any additional information to be included in a GC or DC Breach

Notification.

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3.4.8 Subject to paragraph 5.6, for each BM Unit, at any time:

(a) the "Generation Capacity" or "GC" shall be the amount determined as:

G / SPD

where G is the value under paragraph 3.4.1(a) most recently notified in relation

to the relevant BSC Season under paragraph 3.4.2, or (if another value has been

estimated by or notified to the CRA pursuant to the Code) the value determined

pursuant to paragraph 3.4.7N;

(b) the "Demand Capacity" or "DC" shall be the amount determined as:

D / SPD

where D is the value under paragraph 3.4.1(b) most recently notified in relation

to the BSC Season under paragraphs 3.4.2 or 3.4.2A (as the case may be) , or (if

another value has been estimated by or notified to the CRA pursuant to the

Code) the value determined pursuant to paragraph 3.4.7N;

(c) the "Relevant Capacity" is:

(i) if GCi + DCi is greater than zero, GCi ;

(ii) otherwise, DCi .


(a) a "BSC Season" shall be as follows:

(i) BSC Spring shall be 1st March to 31st May inclusive;

(ii) BSC Summer shall be 1st June to 31st August inclusive;

(iii) BSC Autumn shall be 1st September to 30th November inclusive;

and

(iv) BSC Winter shall be 1st December to 28th (or 29th, as the case may

be) February inclusive

provided that the first relevant BSC Season shall be the period from the Go-live

Date to the end of the next following BSC Season;

(b) a year means any period of 12 months.

3.5 Trading Units and Production and Consumption BM Units

3.5.1 A BM Unit shall be classified as a "Production" or a "Consumption" BM Unit (the

applicable such classification at any time being referred to as the "P/C Status" of a BM

Unit).

3.5.2 Subject to paragraph 3.5.4, 3.5.5 and 3.5.7, a BM Unit shall be a Production BM Unit

where it belongs to a Trading Unit for which the sum of the Relevant Capacities, for all

BM Units which belong to that Trading Unit, is positive and greater than zero; and

otherwise shall be a Consumption BM Unit.

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3.5.3 The P/C Status of a BM Unit shall be redetermined on each occasion on which:

(a) the BM Unit joins or leaves a Trading Unit;

(b) another BM Unit joins or leaves the Trading Unit to which the BM Unit

belongs; or

(c) there is any change in the Demand Capacity or Generation Capacity of any of

the BM Units which belong to that Trading Unit.

3.5.4 In accordance with paragraph 5, the P/C Status of an Interconnector BM Unit will not

change at any time.

3.5.5 In the case of an Exempt Export BM Unit, irrespective of the Trading Unit to which the BM

Unit belongs, the Lead Party shall elect, by notice to BSCCo and the CRA in accordance

with BSCP15, whether the P/C Status of the BM Unit is to be Production or Consumption:

(a) upon notification to BSCCo pursuant to paragraph 1.5.1 that the Generating

Plant which is comprised by the relevant BM Unit is Exemptable; and

(b) from time to time should the Lead Party wish to change its P/C Status election

for the Exempt Export BM Unit.

3.5.5A BSCCo and the CRA shall ensure that an Exempt Export BM Unit has in effect at all times

a P/C Status elected by the Lead Party.

3.5.6 Not used.

3.5.7 Subject to paragraph 3.5.5, a BM Unit that belongs to a Base Trading Unit shall be a

Consumption BM Unit irrespective of the sum of the Relevant Capacities for all BM Units

which belong to that Base Trading Unit.

3.6 Changes in BM Unit registration

3.6.1 A Party may from time to time change the configurations of the BM Units which comprise

the Plant and Apparatus for whose Exports and Imports he is responsible, by registering

different BM Units comprising such Plant and Apparatus, subject to and in accordance with

paragraph 3.2.

3.6.2 Where a Party ceases to be the Registrant of a CVA Metering System associated with a BM

Unit for which he is the Lead Party:

(a) the Plant and Apparatus (whose Exports or Imports are measured by that

Metering System) shall cease to be comprised in that BM Unit; and

(b) the Party shall take such steps (in accordance with BSCP15) as are necessary to

give effect to paragraph (a), by cancelling the registration of that BM Unit or

reconfiguring the BM Unit in accordance with paragraph 3.6.1 so as to include

any remaining Plant and Apparatus for whose Exports or Imports he remains

responsible,

with effect from the effective date of registration of the new registrant or (as the case may

be) date on which the Party otherwise ceases to be Registrant in accordance with paragraph

2.3.1.

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3.6.3 A Supplier may cancel its registration of an Additional BM Unit in accordance with

BSCP15 provided that any Plant or Apparatus associated with SVA Metering Systems (of

which it is Registrant) in a GSP Group which are assigned to such Additional BM Unit

shall automatically be assigned with effect from the date of cancellation of the Additional

BM Unit to such Supplier's Base BM Unit for that GSP Group, in accordance with

paragraph 3.3.8.

3.6.4 Where a Supplier ceases to be the Registrant of any SVA Metering System in all GSP

Groups (and, accordingly, ceases to be a Supplier for the purposes of the Code), it shall

notify the CRA in accordance with BSCP15 and the CRA shall upon application by the

Supplier to the CRA cancel the registration of each Base BM Unit for which such Supplier

is the Lead Party in accordance with BSCP15.

3.7 Credit Qualifying BM Unit

3.7.1 A BM Unit shall be classified as a "Credit Qualifying BM Unit" if:

(a) it is a BM Unit in respect of which Section Q3 applies; and

(b) it is not an Interconnector BM Unit; and

(c) one of the requirements in paragraph 3.7.2 is satisfied in respect of the BM

Unit;

and a BM Unit shall cease to be classified as a Credit Qualifying BM Unit if it ceases to

meet the requirements in paragraphs (a), (b) and (c) above.

3.7.2 The requirements referred to in paragraph 3.7.1(c) are that:

(a) the BM Unit is a Production BM Unit; or

(b) the BM Unit is an Exempt Export BM Unit;

4. TRADING UNITS

4.1 General

4.1.1 A combination of BM Units, with the same or different Lead Parties, may be identified as a

Trading Unit in accordance with this paragraph 4 and Annex K-2, in which case each such

BM Unit shall be described as 'belonging' to that Trading Unit.

4.1.2 The basis on which BM Units belong to Trading Units shall be determined:

(a) in relation to a Supplier BM Unit which is not an Exempt Export BM Unit, in

accordance with paragraph 4.7;

(b) in relation to an Exempt Export BM Unit, in accordance with paragraph 4.7 or

paragraphs 4.2 to 4.6 as the Lead Party shall (in accordance with paragraph

4.7.3) determine;

(c) in relation to any other BM Unit (subject to paragraph 5.7), in accordance with

paragraphs 4.2 to 4.6;

and references to a "relevant" BM Unit in paragraphs 4.2 to 4.6 (and in this paragraph 4.1)


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4.1.3 A relevant BM Unit shall belong to a Trading Unit with effect from the registration of the

Trading Unit pursuant to paragraph 4.5.

4.1.4 Where a relevant BM Unit does not belong, or ceases to belong, to a Trading Unit

comprising one or more other BM Units, that BM Unit shall itself constitute a Trading

Unit.

4.1.5 A BM Unit may not belong to more than one Trading Unit at any given time.

4.2 Application

4.2.1 A Party may apply to the Panel for a combination of relevant BM Units (the "nominated"

BM Units) to be treated as a Trading Unit by sending to the Panel a written application

("Trading Unit Application") stating the class of application and containing the other

information and supported by the documents and other matters referred to in BSCP31 and

signed by or on behalf of the Lead Parties for each of the BM Units concerned.

4.2.2 A Trading Unit Application shall be made in accordance with and subject to BSCP31.

4.2.3 A Trading Unit Application may be made in advance of registration of the relevant BM

Units in accordance with BSCP31.

4.2.4 Annex K-2 shall apply in respect of any Trading Unit Application.

4.3 Decision

4.3.1 The Panel shall consider any Trading Unit Application in accordance with Annex K-2 and

BSCP31, and shall make a determination as to whether the nominated BM Units may be

treated as a single Trading Unit and shall promptly notify the Trading Unit Applicants and,

where the Trading Unit Application is approved, the CRA of its determination.

4.4 Not used

4.5 Registration of Trading Units

4.5.1 Where a Trading Unit Application has been approved, the Trading Unit Applicants may, at

any time after the Panel notified its determination under paragraph 4.3 (but subject to

paragraph 4.6.6), register the Trading Unit by giving notice to the CRA:

(a) referring to the Panel's determination, and

(b) specifying:

(i) the identity of the Trading Unit Applicants;

(ii) for each such applicant, the relevant BM Unit(s) for which it is Lead

Party which are to belong to the Trading Unit;

(iii) the class (in accordance with Annex K-2) of Trading Unit; and

(iv) the date with effect from which the Trading Unit is to be registered.

4.5.2 An application to register a Trading Unit shall be made in accordance with and subject to

BSCP31.

4.5.3 The CRA shall in accordance with BSCP31 validate and process an application to register a

Trading Unit.

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4.5.4 Registration of a Trading Unit will be effective on and from the later of:

(a) the date specified by the applicants pursuant to paragraph 4.5.1(b)(iv), and

(b) the date on which all of the requirements specified for such effectiveness in

BSCP31 have been satisfied.

4.6 Withdrawal

4.6.1 The Lead Party of any relevant BM Unit which belongs to a Trading Unit (other than a

Sole Trading Unit) may terminate the registration of the Trading Unit by giving notice to

the CRA and each of the Lead Parties for other relevant BM Units belonging to the Trading

Unit, specifying the Trading Unit and the date with effect from which such registration is to

be terminated.

4.6.2 Notice of termination of the registration of the Trading Unit shall be given in accordance

with and subject to BSCP31.

4.6.3 Termination of the registration of the Trading Unit shall be effective from later of the date

specified in the notice of termination and the date (in accordance with BSCP31) on which

the CRA processes the notice.

4.6.4 With effect from the termination of the registration of a Trading Unit, each of the BM

Units belonging to the Trading Unit shall belong to a Sole Trading Unit, except to the

extent to which one or more different Trading Units, including any of such relevant BM

Units, have been established and registered in accordance with this paragraph 4.

4.6.5 Where a relevant BM Unit belongs to a Sole Trading Unit, it shall automatically cease to

do so upon the registration of any other Trading Unit to which it belongs.

4.6.6 If at any time the Panel determines that the relevant BM Units belonging to a Trading Unit

no longer satisfy the requirements on the basis of which the Trading Unit was accepted by

the Panel, the registration of the Trading Unit shall be terminated.

4.6.7 The Lead Party of each BM Unit belonging to a Trading Unit shall forthwith notify the

Panel if the BM Units belonging to a Trading Unit no longer satisfy the requirements


4.7 Base Trading Units

4.7.1 There shall automatically be established a Trading Unit (a "Base Trading Unit") in respect

of each GSP Group.


(a) each Supplier BM Unit shall automatically belong to the Base Trading Unit for

the relevant GSP Group; and

(b) each Exempt Export BM Unit in a GSP Group shall automatically belong to the

Base Trading Unit for that GSP Group.

4.7.3 The Lead Party of an Exempt Export BM Unit may, by notice in writing to the CRA and

BSCCo in accordance with (and with effect as specified in) BSCP31, elect that the BM

Unit shall not belong to the applicable Base Trading Unit, in which case the Trading Unit

to which such BM Unit belongs shall be determined in accordance with paragraphs 4.2 to

4.6 (or where applicable paragraph 4.1.3).

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4.7.4 The Lead Party of an Exempt Export BM Unit may, by notice in writing to the CRA and

BSCCo in accordance with (and with effect as specified in) BSCP31, withdraw an election


5. INTERCONNECTORS

5.1 General

5.1.1 The provisions of this paragraph 5 apply in relation to each Interconnector, in addition to

and (to the extent in conflict with) in substitution for the other provisions of this Section K.

5.1.2 In accordance with paragraph 1.4, the Interconnected System Operator shall inform the

CRA and the CRA will maintain a record of the Interconnector Boundary Point(s) for each

Interconnector.

5.2 Derogation

5.2.1 If, in relation to a Distribution Interconnector:

(a) a Party other than the relevant Distribution System Operator has made a request

to the Panel to be treated as responsible for Exports and Imports at such

Interconnector;

(b) the Panel, after making reasonable enquiries of the circumstances giving rise to

such request, has approved such request and has not withdrawn its approval;

(c) that Party has complied with the requirements of paragraph 1.2.1,

then for so long as that Party continues to be the Registrant of the relevant CVA Metering

System(s), and until and unless the approval of the Panel is withdrawn, the further

provisions of this paragraph 5 (other than paragraphs 5.2.2 and 5.2.3) shall not apply in

relation to that Interconnector, and such Party shall be allocated a single BM Unit in

respect of such CVA Metering System(s) (which shall not be an Interconnector BM Unit).

5.2.2 Where and for so long as the further provisions of this paragraph 5 do not apply to a

Distribution Interconnector by virtue of paragraph 5.2.1, the provisions of Section R shall

apply to that Interconnector as if it were a BM Unit as referred to in Section R1.1.1(a) and

not an Interconnector.

5.2.3 Any Party may:

(a) at any time request the Panel to consider whether to withdraw its approval of a

request under paragraph 5.2.1(a); and

(b) where (following such request) the Panel decides not to withdraw such

approval, if such Party wishes the matter to be determined by the Authority,

refer to the Authority the question whether the provisions of this paragraph 5

should apply in relation to that Interconnector.

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5.3 Registration of Metering Systems

5.3.1 For each Interconnector, the Interconnected System Operator shall be required:

(a) to install, maintain and operate (or procure the same) Metering Equipment

pursuant to paragraph 1.2.1(a), and

(b) to register Metering System(s) pursuant to paragraph 1.2.1(b),

and accordingly (subject to its complying with those requirements) shall be the Registrant

of such Metering System.

5.3.2 Accordingly, but only to the extent of the obligations under paragraphs 1.2.1(a) and (b), the

Interconnected System Operator shall be treated as the Party responsible for Exports and

Imports at an Interconnector Boundary Point.

5.3.3 Paragraph 2.2 (excluding paragraph 2.2.4(h)) shall apply in relation to the registration of

the related Metering Systems in CMRS.

5.4 Appointment of Interconnector Administrator and Interconnector Error

Administrator

5.4.1 No Party may Export or Import at an Interconnector Boundary Point unless there is an

Interconnector Error Administrator appointed and registered in CRS in relation to the

Interconnector.

5.4.2 The Interconnected System Operator shall not energise a new Interconnector until an

Interconnector Administrator and an Interconnector Error Administrator is appointed and

registered in CRS.

5.4.3 Subject to the requirements of any Licence, a Party shall be appointed as Interconnector

Administrator and/or Interconnector Error Administrator in relation to an Interconnector by

notice given by the Interconnected System Operator to BSCCo and the CRA, accompanied

by that Party’s consent to act and application to be registered as such; and such

appointment and registration shall be effective from the later of:

(a) the effective date specified in such notice, and

(b) the day following that on which BSCCo confirms to the CRA that such notice

and consent have been given.

5.4.4 In relation to any Interconnector:

(a) without prejudice to Section H3, a Party may not resign or withdraw its consent

to act as Interconnector Administrator or Interconnector Error Administrator,

and

(b) the Interconnected System Operator may not withdraw or terminate the

appointment of a Party as Interconnector Administrator or Interconnector Error

Administrator,

unless and until another Party has been appointed and registered as such in its place.

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5.4.5 If, in relation to an Interconnector, for any reason:

(a) the Party for the time being appointed as Interconnector Error Administrator

ceases to be a Party, or the registration of the Party appointed as Interconnector

Error Administrator is removed pursuant to Section H3.2, or

(b) otherwise at any time there is no Party so appointed,

the Interconnected System Operator shall:

(c) within 30 days thereafter, either:

(i) appoint itself as Interconnector Error Administrator; or

(ii) subject to paragraph 5.4.8, de-energise the Interconnector; and

(d) pending one or other of the steps referred to in paragraph (c), assume the

responsibilities of the Interconnector Error Administrator for the purposes of the

Code.

5.4.6 If, in relation to an Interconnector, for any reason:

(a) the Party for the time being appointed as Interconnector Administrator ceases to

be a Party, or

(b) otherwise at any time there is no Party so appointed, or

(c) the Interconnector Administrator is in Default (as defined in Section H3.1), or

(d) the Interconnected System Operator becomes the Interconnector Error

Administrator pursuant to paragraph 5.4.5,

the BM Unit Metered Volumes for the Interconnector BM Units of any relevant

Interconnector User shall be set to zero by the SAA (and, accordingly, the Interconnector

Metered Volume shall be attributed to the relevant Interconnector BM Unit of the

Interconnector Error Administrator in accordance with Section T4.1) until and unless a

replacement Interconnector Administrator or Interconnector Error Administrator (as the

case may be) is appointed and registered in accordance with the provisions of paragraph

5.4.3 or (as the case may be) the Interconnector Administrator ceases to be in Default.

5.4.7 BSCCo shall notify the SAA if and when any of the circumstances described in paragraph

5.4.6 occur.

5.4.8 In relation to paragraph 5.4.5(c)(ii):

(a) the NETSO may only de-energise the Interconnector with the approval of the

Panel and with the approval, in relation to an Interconnector connected to an

External System in the National Electricity Transmission System Operator

Area, of the Authority or, in relation to an Interconnector connected to an

External System outside the National Electricity Transmission System Operator

Area, of the Secretary of State;

(b) subject to paragraph (a), each Party hereby consents to such de-energisation;

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(c) each relevant Interconnector User shall indemnify and keep indemnified the

Interconnected System Operator on demand against any and all liability, loss or

damage which it may suffer by reason of effecting such de-energisation (but

without prejudice to any agreement or arrangement between the relevant

Interconnector Users and the Interconnected System Operator outside the terms

of the Code in respect of such matters).

5.4.9 For the purposes of this paragraph 5.4, a "relevant Interconnector User" means an

Interconnector User with Interconnector BM Units associated with the Interconnector in

question.

5.5 Interconnector BM Units

5.5.1 For the purposes of the Code, an "Interconnector BM Unit" is a notional BM Unit

associated with an Interconnector; and (except in paragraph 3.1 and unless otherwise

provided or the context otherwise requires) an Interconnector BM Unit shall be treated as a

BM Unit for all purposes of the Code.

5.5.2 The Interconnector Error Administrator shall, upon its appointment as such becoming

effective, automatically be allocated (and registered in respect of) two Interconnector BM

Units in accordance with paragraph 5.5.5.

5.5.3 Any Trading Party may apply to register Interconnector BM Units in relation to an

Interconnector, and paragraphs 3.2.3 to 3.2.8 shall apply in relation to such application and

registration, subject as follows:

(a) the Party shall identify the Interconnector in its registration application;

(b) the requirement (to identify the associated Metering Systems) in paragraph

3.2.3(d) shall not apply;

(c) the requirements referred to in paragraph 3.2.6 shall be replaced by the

requirements in paragraph 5.5.4.

5.5.4 The requirements are that:

(a) the Interconnected System Operator is Registrant of the related Metering

Systems (and such registration is effective in accordance with paragraph 2.2.5);

(b) a Party or Parties are registered as Interconnector Administrator and

Interconnector Error Administrator and such registrations are effective in

accordance with paragraph 5.4.3.

5.5.5 Each Party who registers Interconnector BM Units in relation to any Interconnector will be

allocated (and registered in respect of) two Interconnector BM Units designated as a

Production BM Unit and a Consumption BM Unit respectively.

5.5.6 In relation to the NETSO:

(a) where the NETSO is appointed (other than pursuant to Section K5.4.5) as

Interconnector Error Administrator in respect of an Interconnector, the

Interconnector BM Units allocated to the NETSO pursuant to paragraph 5.5.2

for that Interconnector shall be associated with the corresponding TC (IEA)

Energy Accounts for that Interconnector;

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(b) any other BM Units allocated to the NETSO (under paragraph 5.5.2 or Section

R7.5.2) shall be associated with the corresponding TC (Non-IEA) Energy

Accounts,

and, for the avoidance of doubt, the NETSO shall apply for and hold the TC (Non-IEA)

Energy Accounts in accordance with Section A.

5.6 Demand Capacity and Generation Capacity

5.6.1 In relation to a Production Interconnector BM Unit, Generation Capacity shall be

determined under paragraph 3.4.8(a) and the value of Demand Capacity shall at all times be

zero.

5.6.2 In relation to a Consumption Interconnector BM Unit, Demand Capacity shall be

determined under paragraph 3.4.8(b) and the value of Generation Capacity shall at all times

be zero.

5.7 Trading Units

5.7.1 An Interconnector BM Unit that is associated with an Interconnector that has Boundary

Points at more than one Site may not belong to a Trading Unit other than a Sole Trading

Unit.

6. REGISTRATION

6.1 Central Registration Service

6.1.1 The CRA shall:

(a) establish, maintain and operate the CRS;

(b) receive (from Parties, Party Agents, other BSC Agents, BSCCo or others),

validate and (if required) process:

(i) applications for registration in CRS, and

(ii) data which is required to be maintained in the CRS, including data

relating to Parties, Party Agents, Qualified Persons, BM Units and

Trading Units;

and maintain and from time to time update and amend such registrations and

data; and

(c) send data from the CRS to Parties, Party Agents, other BSC Agents, BSCCo

and others

subject to and in accordance with the requirements of the Code and applicable BSC

Procedures.

6.1.2 The CRA shall provide or make available registration data from CRS as follows:

(a) the CRA shall provide each day to the SAA, FAA, ECVAA, NETSO, each

Interconnector Administrator and BSCCo, the full registration data in CRS;

(b) the CRA shall provide each day to the BMRA BM Unit registration data;

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(c) the CRA shall notify to the SVAA in accordance with BSCP15 details of the

Supplier BM Units registered by each Supplier;

(d) the CRA shall notify to the SVAA in accordance with BSCP15 details of the

Secondary BM Units registered by each Virtual Lead Party;

(e) the CRA shall make available to each Party in accordance with BSCP65 details

of that Party’s registrations in CRS.

6.2 Central Meter Registration Service

6.2.1 In relation to the CMRS:

(a) the CRA and the CDCA shall establish, maintain and operate the CMRS;

(b) the CRA shall receive (from Parties or Party Agents), validate and process

applications for registration of Metering Systems in CMRS and allocate an

identification number to each such Metering System, and maintain and from

time to time update and amend such registrations and data;

(c) the CDCA shall receive (from Parties or Party Agents), validate and process

applications for registration of data relating to Metering Systems which is

required to be maintained by the CDCA in CMRS, and maintain and from time

to time update and amend such registrations and data;

(d) the CRA and the CDCA shall send data from the CMRS to Parties, Party

Agents, other BSC Agents, BSCCo and others

subject to and in accordance with the requirements of the Code and applicable BSC

Procedures.

6.2.2 The CRA shall provide or make available registration data from CMRS as follows:

(a) the CRA shall provide each day to the NETSO and BSCCo the identity of each

Metering System registered in CMRS and its Registrant;

(b) the CRA shall make available to each Party in accordance with BSCP65 details

of that Party’s registrations in CMRS.

7. FAILING SUPPLIER PROCESS

7.1 Transfer of responsibility


(a) "Supplier of Last Resort" means, in relation to a BM Unit comprising or

including premises of one or more Customers, the Trading Party to which a last

resort direction is issued by the Authority in respect of those premises;

(b) "last resort direction" has the meaning given to that term in each Supply

Licence;

(c) "Transferee" means, in relation to a BM Unit, the Trading Party identified as

the transferee for that BM Unit in a notice which is given and takes effect

pursuant to and in accordance with paragraph 7.2;

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(d) the "Affected BM Units" are:

(i) in relation to a Supplier of Last Resort, the BM Unit(s) comprising

or including premises in respect of which the last resort direction is

made and, where applicable, any related BM Units referred to in

paragraph 7.3.3;

(ii) in relation to a Transferee, the BM Unit(s) specified in the notice

given pursuant to paragraph 7.2 in respect of that Transferee and,

where applicable, any related BM Units referred to in paragraph

7.3.3;

and, in each case, an "Affected BM Unit" shall be a particular one of them.

(e) "Replacement Supplier" means, in relation to an Affected BM Unit:

(i) the Supplier of Last Resort; or

(ii) the Transferee,

as the case may be;

(f) "failing Supplier" means:

(i) in relation to a Supplier of Last Resort, the other supplier (as defined

in the Supply Licence of the Supplier of Last Resort); and

(ii) in relation to a Transferee, the Lead Party giving (and entitled to

give) the notice referred to in paragraph 7.2.1;

(g) the "Appointment Day" means:

(i) in relation to a Supplier of Last Resort (and, where applicable, an

Affected BM Unit), the day when the relevant last resort direction

takes effect pursuant to the Supply Licence of the Supplier of Last

Resort;

(ii) in relation to a Transferee (and, where applicable, an Affected BM

Unit), the day next following the day on which the relevant notice

referred to in paragraph 7.2 is received by BSCCo; and

(h) references to the 'appointment' of a Replacement Supplier are:

(i) in the case of a Supplier of Last Resort, to the issue of a last resort

direction to the relevant Trading Party;

(ii) in the case of a Transferee, to the giving of a notice to BSCCo

pursuant to paragraph 7.2 identifying the relevant Trading Party as

the transferee,

and derivative terms shall be construed accordingly.

7.1.2 The provisions of this paragraph 7 apply on the appointment of a Replacement Supplier for

the purposes of recognising and giving effect, under the Code, to the transfer of

responsibility for Exports and Imports of Plant and Apparatus comprised in Affected BM

Unit(s) from the failing Supplier to the Replacement Supplier.

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7.1.3 Without prejudice to Section N6.10, where a Replacement Supplier is appointed, then in

respect of each Affected BM Unit:

(a) such Replacement Supplier shall be treated for the purposes of the Code

(notwithstanding any other provision of this Section K but subject to the further

provisions of this paragraph 7) as becoming:

(i) responsible for Exports and Imports of the Plant and Apparatus

comprised in that BM Unit;

(ii) the Registrant in respect of all Metering Systems associated with that

BM Unit (and, for the purposes only of the Code, as having

appointed and registered the Party Agents of the failing Supplier in

respect of such Metering Systems, and otherwise as having complied

with any conditions to the appointment or registration thereof, in

accordance with the provisions of the Code); and

(iii) subject to the obligations and liabilities and entitled to the rights and

benefits (including in respect of Trading Charges and BSCCo

Charges) related to or connected with those Metering Systems and

Exports and Imports of that Plant and Apparatus; and

(b) the relevant failing Supplier shall be treated for the purposes of the Code

(notwithstanding any other provision of this Section K but subject to the further

provisions of this paragraph 7) as ceasing to be:

(i) responsible for Exports and Imports of the Plant and Apparatus

comprised in that BM Unit;

(ii) the Registrant in respect of all Metering Systems comprised in that

BM Unit; and



Charges) related to or connected with those Metering Systems and

Exports and Imports of that Plant and Apparatus,

in each case, with effect from the time and date when the transfer of responsibility resulting

from such appointment is deemed to take effect in accordance with paragraph 7.1.4 and in

respect of each Settlement Period on and after such time, and the provisions of the Code


7.1.4 The transfer of responsibility resulting from the appointment of a Replacement Supplier

shall be deemed to take effect, for the purposes of the Code:

(a) in the case of a Supplier of Last Resort, from 00.00 hours on the Appointment

Day;

(b) in the case of a Transferee, from the time and date specified in the relevant

notice given pursuant to paragraph 7.2.1 and in accordance with the further

provisions of paragraph 7.2,

(such time and date being referred to in the Code as the "Replacement Supplier Transfer

Date").

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7.1.5 The transfer of responsibility in respect of Exports and Imports of Plant and Apparatus

comprised in Affected BM Units from the failing Supplier to the Replacement Supplier

pursuant to this paragraph 7.1 shall be without prejudice to and shall not affect:

(a) the rights and liabilities of the failing Supplier under the Code relating to or

connected with such BM Units (or Metering Systems associated with such BM

Units), including in respect of Trading Charges (including Reconciliation

Charges and Ad-hoc Trading Charges) and BSCCo Charges, accrued or

accruing in respect of the period prior to the Replacement Supplier Transfer

Date;

(b) the rights and liabilities of the failing Supplier under the Code relating to or

connected with any other BM Units or Metering Systems for which the failing

Supplier is responsible, including in respect of Trading Charges (including

Reconciliation Charges and Ad-hoc Trading Charges) and BSCCo Charges,

accrued or accruing in respect of the period on, before or after the Replacement

Supplier Transfer Date.

7.1.6 For the avoidance of doubt, nothing in this paragraph 7 shall affect:

(a) any Energy Contract Volume Notifications for which the failing Supplier is a

Contract Trading Party;

(b) any Metered Volume Reallocation Notifications for which the failing Supplier

is the Subsidiary Party,

whether submitted or submitted in respect of a period on, before or after the Replacement

Supplier Transfer Date, and any such Energy Contract Volume Notifications or Metered

Volume Reallocation Notifications validly submitted in accordance with Section P shall

apply and be taken into account in Settlement, subject to and in accordance with the other

provisions of the Code, for the purposes of determining any liability or entitlement of the

failing Supplier in respect of Trading Charges.

7.1.7 The provisions of paragraph 7.1.3 are without prejudice to the obligations of the

Replacement Supplier and the failing Supplier contained in paragraph 7.6.

7.1.8 The provisions of this paragraph 7.1 shall apply for the purposes of Settlement under the

Code notwithstanding any other provisions in any Core Industry Document.

7.1.9 Where a last resort direction is issued to a Trading Party, such Trading Party shall forthwith

send a copy of the last resort direction to BSCCo, and BSCCo shall send a copy thereof to

each other Party.

7.1.10 Until and unless each Supply Licence requires the holder of that Supply Licence to comply

with a direction of the Authority to supply electricity to customers of the holder of another

Supply Licence upon revocation of that other Supply Licence:

(a) references in this paragraph 7 to a Supplier of Last Resort shall be to the

Trading Party which has consented, at the request of the Authority, to supply

electricity to customers at premises upon revocation of the Supply Licence of

another Trading Party which was supplying such customers immediately prior

to revocation; and

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(b) in relation to the Supplier of Last Resort, references in this paragraph 7:

(i) to the Affected BM Unit(s) are to the BM Unit(s) comprising or

including the premises in respect of which such Trading Party so

consents to supply electricity and, where applicable, any related BM

Units referred to in paragraph 7.3.3;

(ii) to the Appointment Day are to the day when such Trading Party

commences that supply of electricity (under a contract made or

deemed, by virtue of schedule 6A of the Act, to have been made

with the relevant customer(s)); and

(iii) to the failing Supplier are to the Trading Party which was

responsible for the supply of electricity in respect of such premises

immediately prior to such day and whose Supply Licence is revoked.

7.2 Trade Sales

7.2.1 Where, in relation to a Lead Party:

(a) one or more of the events referred to in Section H3.1.1(g)(iii), (iv), (v) or (vi)

occurs; or

(b) BSCCo determines that one or more of the events referred to in Section

H3.1.1(g)(i) or (ii) has occurred,

such Lead Party may give notice to BSCCo that it intends to transfer to another Trading

Party its interests in respect of the provision of electrical power to Customers and/or the

receipt of electrical power from Generating Plant (such transfer being referred to as the

"relevant transfer").

7.2.2 A notice given pursuant to paragraph 7.2.1 shall:

(a) be in writing;

(b) identify:

(i) subject to paragraph 7.2.3, the BM Unit(s) of the Lead Party in

respect of which the relevant transfer is to take place;

(ii) the transferee, being the Trading Party to which the relevant transfer

is to be made;

(iii) subject to paragraph 7.2.4, the date with effect from which the

relevant transfer is to be made;

(iv) subject to paragraph 7.2.5, the time with effect from which the

relevant transfer is to be made; and

(c) be signed by or on behalf of both the Lead Party issuing such notice and the

Trading Party identified in such notice as the transferee.

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7.2.3 A relevant transfer:

(a) may relate to Plant and Apparatus (of the relevant Customer(s) and/or

generator(s), as the case may be) associated with one or more BM Units but

may not relate to part only of the Plant and Apparatus associated with a BM

Unit;

(b) may not include BM Units comprising only Generating Plant (except where the

Generating Plant is owned or operated by a SVA Generator) or associated only

with an Interconnector.

7.2.4 For the purposes of the Code, the date with effect from which a relevant transfer is to take

effect:

(a) may not be earlier than the date of a Settlement Day to be determined at the

time by BSCCo such that the transfer of responsibility pursuant to this

paragraph 7 can be taken into account for the purposes of the Initial Settlement

Run to be carried out for that Settlement Day;

(b) may not be later than the Appointment Day.

7.2.5 Unless otherwise agreed in advance by BSCCo, the time with effect from which a relevant

transfer is to take effect, for the purposes of the Code, is 00.00 hours on the date with effect

from which such relevant transfer is to take effect in accordance with paragraph 7.2.4.

7.2.6 Without prejudice to the provisions of paragraphs 7.2.3, 7.2.4 and 7.2.5 as they apply for

the purposes of the Code, those provisions shall not affect or limit the terms and conditions

upon which a relevant transfer is to be made as between the parties to the relevant transfer.

7.2.7 For the avoidance of doubt:

(a) a notice may not be given pursuant to paragraph 7.2.1 (and any notice given

shall not take effect) in respect of premises for which a Trading Party is

appointed as the Supplier of Last Resort (in the same set of circumstances);

(b) where a Lead Party intends to transfer its interests to more than one Trading

Party, a separate notice shall be required under paragraph 7.2.1 for each relevant

transfer.

7.2.8 BSCCo shall send a copy of any notice given pursuant to paragraph 7.2.1 to the Authority,

each Party and the CRA.

7.3 Establishment of BM Units

7.3.1 The provisions of this paragraph 7.3 apply in relation to an Affected BM Unit where a

Trading Party becomes, for the purposes of the Code, the Replacement Supplier in respect

of that BM Unit.

7.3.2 Where this paragraph 7.3 applies, the CRA shall establish a BM Unit (a "Replacement

Supplier BM Unit") for which the Replacement Supplier is the Lead Party corresponding

to each Affected BM Unit in respect of which the relevant Trading Party becomes the

Replacement Supplier as soon as reasonably practicable after the appointment of such

Replacement Supplier.

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7.3.3 Where a Replacement Supplier is appointed in respect of an Affected BM Unit which is a

Base BM Unit of the failing Supplier, such Replacement Supplier shall also assume

responsibility for the Generating Plant comprised in any BM Unit of the failing Supplier in

the same GSP Group which comprises only Generating Plant of a SVA Generator, unless

responsibility for such Generating Plant is otherwise assumed at the time by another

Replacement Supplier.

7.3.4 Unless the context otherwise requires, references to BM Units in the Code shall include

Replacement Supplier BM Units.

7.3.5 The establishment of Replacement Supplier BM Unit(s) pursuant to paragraph 7.3.2 shall

take effect on and from the Replacement Supplier Transfer Date.

7.3.6 Each Replacement Supplier BM Unit established pursuant to paragraph 7.3.2 shall be

configured in the same way and have the same attributes as the Affected BM Unit of the

failing Supplier to which it corresponds, including:

(a) the Generation Capacity and the Demand Capacity;

(b) the Credit Assessment Load Factor;

(c) (where applicable) the CVA Metering Systems associated with that BM Unit;

(d) (where applicable) the GSP Group in which that BM Unit is situated;

(e) (where applicable) the status of that BM Unit as a Base BM Unit or an

Additional BM Unit;

(f) (where applicable) the SVA Metering Systems associated with that BM Unit;

(g) the P/C Status;

(h) (where applicable) the Aggregation Rules;

(i) the Trading Unit to which that BM Unit belongs;

(j) not used;

(k) whether that BM Unit is considered a relevant BM Unit for the purposes of

Section Q,

but without prejudice to the Replacement Supplier's rights and obligations to revise such

configuration and attributes, or otherwise to the revision of such configuration and

attributes, from time to time pursuant to any other provision of the Code.

7.3.7 Where a Replacement Supplier is appointed in respect of Plant or Apparatus which is

subject to a Shared SVA Meter Arrangement, then notwithstanding any provisions to the

contrary in paragraph 2.5:

(a) references in this paragraph 7 to Metering Systems associated with a BM Unit

shall include the Shared SVA Metering System;

(b) the transfer of responsibility under this paragraph 7 shall apply in respect of

Exports and Imports associated with the SVA Metering System Number(s) of

the failing Supplier;

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(c) the Allocation Schedule prevailing immediately prior to the Appointment Day

shall continue to apply and to bind the Replacement Supplier and the other

Supplier(s) (not being the failing Supplier) to the Shared SVA Meter

Arrangement;

(d) the Replacement Supplier shall assume the status previously held by the failing

Supplier as the Primary Supplier or a Secondary Supplier (as the case may be);

(e) the provisions of paragraph 7.6.7 shall apply.

7.4 Effect of establishment of Replacement Supplier BM Units

7.4.1 The establishment of a Replacement Supplier BM Unit pursuant to paragraph 7.3 shall be

treated, for the purposes of the Code, as if:

(a) that new BM Unit had been registered (comprising the same Metering Systems

as those comprised in the corresponding BM Unit of the failing Supplier) by the

Replacement Supplier with effect from the Replacement Supplier Transfer

Date; and

(b) the registration of the corresponding BM Unit of the failing Supplier had been

cancelled by the failing Supplier with effect from such date.

7.4.2 Without prejudice to the generality of paragraph 7.4.1 and subject to the further provisions

of this paragraph 7, in respect of each Settlement Period on and after the Replacement

Supplier Transfer Date:

(a) the BM Unit Metered Volumes of the Affected BM Unit to which a

Replacement Supplier BM Unit corresponds shall be allocated to the

Replacement Supplier BM Unit; and

(b) such BM Unit Metered Volumes shall not be allocated or treated as allocated to

the Affected BM Unit to which such Replacement Supplier BM Unit

corresponds,

for the purposes of Section T.

7.4.3 Notwithstanding paragraph 7.4.1, in respect of each Settlement Period during the period (if

any) between the Replacement Supplier Transfer Date and the Appointment Day:

(a) each MVRNA Authorisation of the failing Supplier relating to an Affected BM

Unit, which is effective for such period in accordance with Section P, shall be

treated as effective for that period in relation to the Replacement Supplier and

the Replacement Supplier BM Unit to which the Affected BM Unit

corresponds;

(b) each Metered Volume Reallocation Notification of the failing Supplier (as Lead

Party) relating to an Affected BM Unit shall be treated as relating to the

Replacement Supplier BM Unit to which it corresponds and to the Replacement

Supplier (as Lead Party) instead, and shall be taken into account for the

purposes of Settlement accordingly;

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(c) each data item submitted by the failing Supplier or established by the NETSO

under, and each action taken in pursuance of and as contemplated by Section Q,

in relation to an Affected BM Unit shall be treated as applying to or taken in

relation to the Replacement Supplier BM Unit to which the Affected BM Unit

corresponds and (where applicable) submitted by the Replacement Supplier

instead, and shall be taken into account for the purposes of Settlement

accordingly,

provided that (for the avoidance of doubt) any Metered Volume Reallocation Notifications

and any data item as referred to in paragraph (c) submitted or purportedly submitted by or

on behalf of the failing Supplier (as Lead Party) relating to the Affected BM Units in

respect of any period on or after the Appointment Day (whether submitted before, on or

after the date when the registration of such Affected BM Units is treated as cancelled

pursuant to paragraph 7.4.1) shall, by virtue of paragraph 7.4.1, be void and of no effect

and shall not be applied to the Replacement Supplier BM Units to which they correspond.

7.4.4 The provisions of Section M3.4.6 shall apply.

7.4.5 Without prejudice to the obligations of the Replacement Supplier in paragraph 7.6, a

Replacement Supplier shall not be considered to be in breach of any provision of the Code

relating to Metering Systems (and/or Party Agents deemed to be appointed and registered

by it pursuant to paragraph 7.1.3(a)(ii)) to the extent that, during the period between the

Replacement Supplier Transfer Date and the relevant Replacement Supplier Registration

Date, the Replacement Supplier is unable to comply or take steps to comply with such

provision by reason (only) of the fact that it is not formally registered in CMRS or SMRS

(as the case may be) as the Registrant of Metering System(s) for which it is deemed to be

the Registrant by virtue of paragraph 7.1.3(a)(ii), including the provisions of:

(a) Section J5; and

(b) Section O3.2

provided that this paragraph 7.4.5 shall not relieve the Replacement Supplier of liability

under Section S3.2 and Annex S-1 in relation to such Metering Systems.

7.4.6 The Replacement Supplier shall not be entitled to:

(a) allocate SVA Metering Systems comprised in a Replacement Supplier BM Unit

to Additional BM Units, in accordance with Section S6, or otherwise change the

allocation of a SVA Metering System to a Replacement Supplier BM Unit until

the relevant Replacement Supplier Registration Date for that Metering System;

(b) change the status (as a Base BM Unit or Additional BM Unit) of Replacement

Supplier BM Units with which SVA Metering Systems are associated.

7.4.7 Without prejudice to paragraph 7.1.3, the failing Supplier shall remain registered in CMRS

or SMRS (as the case may be) in respect of each Metering System associated with the

Replacement Supplier BM Unit until the earlier of the relevant Replacement Supplier

Registration Date and the date when another Trading Party becomes registered, for the

purposes of and in accordance with the Code, in respect of such Metering System.

7.4.8 For the avoidance of doubt, the deemed appointment and registration of Party Agents

pursuant to paragraph 7.1.3(a)(ii) applies for the purposes of the Code only and shall not

create, affect or change any relationship between the failing Supplier or the Replacement

Supplier and those (or any other) Party Agents.

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7.5 Data

7.5.1 For the purposes of any provisions in the Code relating to the ownership and use of data

(including Section L5), the rights of the failing Supplier in respect thereof, as they relate to

the Affected BM Units for which a Trading Party becomes the Replacement Supplier, shall

apply to the Replacement Supplier as if it were the actual Registrant of the relevant

Metering Systems with effect from the Replacement Supplier Transfer Date, and:

(a) any such rights shall automatically be assigned by the failing Supplier to the

Replacement Supplier with effect from and in respect of the period on and after

the Replacement Supplier Transfer Date; or

(b) to the extent that it is not possible legally to assign such rights as provided in

paragraph (a), the failing Supplier shall make such data available to the

Replacement Supplier at all times on terms such that the Replacement Supplier

is free to use such data as if the data had been so assigned to it.

7.5.2 The failing Supplier shall take all reasonable steps to co-operate with the Replacement

Supplier to give effect to the transfer of responsibility contemplated by this paragraph 7

and to enable the Replacement Supplier to comply with its obligations hereunder.

7.5.3 Without prejudice to the generality of paragraph 7.5.2, the failing Supplier shall provide the

Replacement Supplier with such records, data and information and otherwise take such

steps as if, in relation to each Metering System associated with the Affected BM Units, a

change of Registrant (from the failing Supplier to the Replacement Supplier) had occurred

on the Replacement Supplier Transfer Date.

7.5.4 The failing Supplier shall have a right of access to any records, data and information

referred to in this paragraph 7.5 to the extent required by the failing Supplier for the

purposes of the Code in relation to any period prior to the Replacement Supplier Transfer

Date.

7.6 Obligation to register Metering Systems

7.6.1 Subject to paragraph 7.6.6, each Replacement Supplier shall take such steps as may be

necessary:

(a) to effect, in accordance with the provisions of paragraph 2, the registration of

Metering Systems (or, in the case of a Shared SVA Meter Arrangement, the

Shared SVA Metering System with the relevant SVA Metering System

Number) treated, for the purposes of this paragraph 7, as associated with its

Replacement Supplier BM Unit(s);

(b) to effect the appointment and registration of Party Agents in relation to those

Metering Systems; and

(c) otherwise to comply with the provisions of the Code, including Section J,

Section L, Section R and Section S, relating to the registration of Metering

Systems and Party Agents.

7.6.2 The Replacement Supplier shall take the steps referred to in paragraph 7.6.1 as soon as

reasonably practicable after the Appointment Day and, in any event, within 3 months after

the Appointment Day.

7.6.3 The failing Supplier shall take such steps as may be required under the Code in order to

permit the Replacement Supplier to become registered as the Registrant in respect of the

Metering Systems referred to in paragraph 7.6.1.

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7.6.4 For the purposes of the Code, in respect of a Metering System associated with Plant or

Apparatus comprised in an Affected BM Unit for which the Replacement Supplier

becomes responsible pursuant to this paragraph 7, the date when the Replacement Supplier

becomes registered in CMRS or SMRS (as the case may be) as the Registrant in respect of

that Metering System shall be referred to as the "Replacement Supplier Registration

Date".

7.6.5 In the case of each SVA Metering System in a GSP Group comprised in a Replacement

Supplier BM Unit, such Metering System shall with effect from the relevant Replacement

Supplier Registration Date be associated with and comprised in the Base BM Unit of the

Replacement Supplier (not being the Replacement Supplier BM Unit) for that GSP Group,

subject to paragraph 7.6.6 and without prejudice to the rights of the Supplier under Section

S6 from that date.

7.6.6 The obligation of the Replacement Supplier under paragraph 7.6.1 to become registered in

respect of each Metering System associated with its Replacement Supplier BM Units is

without prejudice and subject to the rights and obligations of another Trading Party under

the Code to become registered in respect of any such Metering System, in accordance with

the provisions of the Code and, where applicable, the MRA, if such other Trading Party

becomes responsible for Exports and Imports associated with such Metering System prior

to the relevant Replacement Supplier Registration Date, in which case such Metering

System shall cease to be associated with such Replacement Supplier BM Unit with effect

from the effective date of registration by such other Trading Party.

7.6.7 In relation to a Shared SVA Meter Arrangement, if the Replacement Supplier and the other

Supplier(s) (not being the failing Supplier) fail to reach agreement, prior to the deadline

provided in paragraph 7.6.2, on the arrangements which are to apply as between themselves

for the purposes of the Shared SVA Meter Arrangement, the provisions of paragraph 2.5.6

shall apply as if a Secondary Supplier had ceased to be the Secondary Supplier.

7.6.8 In the case of a relevant transfer made pursuant to paragraph 7.2, where the Lead Party

transfers its interests in relation to all its BM Units (subject to paragraph 7.2.3) to a single

Transferee:

(a) the provisions of this paragraph 7.6 shall not apply; and

(b) in relation to a Metering System associated with the relevant Replacement

Supplier BM Unit:

(i) the reference in paragraphs 7.4.5 and 7.4.7 to the relevant

Replacement Supplier Registration Date shall be to the date (if any)

with effect from which the Transferee becomes registered, for the

purposes of and in accordance with the provisions of paragraph 2, in

respect of such Metering System; and

(ii) the provisions of paragraph 7.4.6 shall not apply.

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8. CONFIGURATION AND REGISTRATION OF SECONDARY BM UNITS

8.1 Configuration of Secondary BM Units

8.1.1 A Secondary BM Unit shall comprise of Plant and Apparatus with which the Lead Party of

that Secondary BM Unit may provide Balancing Services.

8.1.2 A Secondary BM Unit must satisfy the following conditions:

(a) the Secondary BM Unit does not comprise of Plant and Apparatus whose

Imports and Exports are measured by CVA Metering System(s);

(b) the Secondary BM Unit may only comprise of Plant and Apparatus whose

Imports and Exports are measured by Half Hourly SVA Metering System(s);

(c) a Half Hourly SVA Metering System may not be allocated to more than one

Secondary BM Unit; and

(d) the Secondary BM Unit does not comprise of Plant and Apparatus associated

with Half Hourly SVA Metering Systems that are in more than one GSP Group.

8.1.3 A Secondary BM Unit shall be classified as a "Production" or a "Consumption" Secondary

BM Unit (the applicable such classification at any time being referred to as the "P/C

Status" of a Secondary BM Unit).

8.1.4 The Lead Party of a Secondary BM Unit shall make an election as to whether the P/C

Status of that Secondary BM Unit is to be Production or Consumption:

(a) upon application to register the Secondary BM Unit pursuant to paragraph 8.2;

and/or

(b) from time to time where the Virtual Lead Party wishes to change the P/C Status

for such Secondary BM Unit,

in each case in accordance with BSCP15.8.2 Registration of Secondary BM Units

8.2.1 Each Virtual Lead Party shall ensure that all Plant and Apparatus with which it intends to

provide Balancing Services are comprised in Secondary BM Units established and

registered by it in compliance with this paragraph 8.2.

8.2.2 A Virtual Lead Party may apply to register a Secondary BM Unit by submitting a

registration application to the CRA specifying:

(a) the identity of the applicant Virtual Lead Party;

(b) the GSP Group with which the Secondary BM Unit is to be associated;

(c) the date from which the applicant wishes the registration to be effective.

8.2.3 An application to register a Secondary BM Unit shall be made in accordance with and

subject to BSCP15.

8.2.4 Registration of a Secondary BM Unit will become effective, and the applicant will become

the Lead Party of that Secondary BM Unit, on and from the later of:

(a) the date specified by the applicant pursuant to paragraph 8.2.2(c); and

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(b) the date when registration is confirmed by BSCCo to the CRA in accordance

with BSCP15.

8.2.5 The CRA shall validate and process applications for registration of a Secondary BM Unit

in accordance with and subject to BSCP15.

8.2.6 The Lead Party of a Secondary BM Unit shall, in accordance with BSCP15, keep its

registration up-to-date, by notifying the CRA of any change in any of the details contained

in the registration, promptly upon any such change occurring.

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ANNEX K-1

MASTER REGISTRATION AGREEMENT

1. MRA BSC AGENT

1.1 Appointment

1.1.1 BSCCo (or a Subsidiary of BSCCo nominated by BSCCo) shall act and is hereby

appointed by the Panel pursuant to the Code as the MRA BSC Agent for the purposes of

the Master Registration Agreement.

1.1.2 References in this Annex K-1 to the MRA BSC Agent are to BSCCo (or such Subsidiary of

BSCCo) acting in its capacity as MRA BSC Agent.

1.1.3 Where a Subsidiary of BSCCo is appointed to act as the MRA BSC Agent, BSCCo shall be

responsible for procuring performance by such Subsidiary of its duties and responsibilities

as MRA BSC Agent under this Annex K-1.

1.2 Role of the Panel

1.2.1 The Panel shall have the right to instruct the MRA BSC Agent in relation to the Master

Registration Agreement, and shall supervise the MRA BSC Agent in the performance of its

functions as 'BSC Agent' under the Master Registration Agreement (as defined therein).

1.2.2 The Panel shall have all powers necessary to enable the Panel to exercise its rights and

responsibilities under this paragraph 1.2.

1.3 Responsibilities of MRA BSC Agent

1.3.1 The MRA BSC Agent is hereby authorised to become a party to the Master Registration

Agreement with, inter alia, the duties, rights and responsibilities set out in the Master

Registration Agreement for the 'BSC Agent' (as defined therein), subject to paragraph 1.2.

1.3.2 The MRA BSC Agent shall be entitled to rely on all instructions given to it by the Panel in

connection with the exercise of all such duties, rights and responsibilities.

1.3.3 Subject to paragraph 1.2.1, the MRA BSC Agent shall exercise and discharge its duties,

rights and responsibilities under the Master Registration Agreement with a view to

ensuring that the Code is given effect in accordance with its terms and otherwise with a

view to achieving the objectives in Section B1.2.

1.4 Costs of MRA BSC Agent

1.4.1 If and to the extent that the costs, fees, expenses, liabilities and losses of the MRA BSC

Agent incurred in the performance of its duties, rights and responsibilities referred to in

paragraph 1.3 are not capable of being, or are not, recovered pursuant to the Master

Registration Agreement, the same shall be BSC Costs for the purposes of Section D.

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2. SUPPLIERS' OBLIGATIONS

2.1 Obligation to become party

2.1.1 Each Supplier requiring Services under and as defined in the Master Registration

Agreement shall become a party to the Master Registration Agreement and shall use its

reasonable endeavours to fulfil the conditions precedent set out in the Master Registration

Agreement applicable to it as soon as reasonably practicable after it has become a party to

the Master Registration Agreement.

3. QUALIFICATION REQUIREMENTS

3.1 Qualification Requirements

3.1.1 Each Licensed Distribution System Operator shall ensure that it (or any person performing

the relevant functions of a SMRA on its behalf) is Qualified to perform the functions of a

SMRA in accordance with Section J and BSCP537 before it (or any person performing the

relevant functions on its behalf) provides the services of a SMRA in relation to Supplier

Volume Allocation.

3.2 Assistance to Suppliers

3.2.1 Each Licensed Distribution System Operator shall provide all reasonable assistance to each

Supplier and its Supplier Agents in accordance with Section J and BSCP537 as may be

required by the relevant Supplier and/or its Supplier Agents for it or them to satisfy the

requirements of the Qualification Process.

4. BSC REQUIREMENTS FOR THE MRA

4.1 The BSC Requirements for the MRA are set out or referred to in the Appendix to this

Annex.

4.2 Subject to Section H1.6, each Party shall comply with the BSC Requirements for the MRA

to the extent applicable to it.

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APPENDIX

to Annex K-1

BSC Requirements for the MRA

1. BSCP501 (Supplier Meter Registration Service).

2. Party Service Line 100 (Non Functional Requirements for Licensed Distribution System

Operators and Party Agents).

3. BSCP502 (Half Hourly Data Collection for Metering Systems Registered in SMRS).

4. BSCP504 (Non Half Hourly Data Collection for Metering Systems Registered in SMRS).

5. Paragraphs 2, 3.3 and 4.3 of Annex S-2.

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ANNEX K-2

TRADING UNIT APPLICATIONS

1 CONFIGURATION OF TRADING UNITS

1.1 Introduction

1.1.1 The Classes of Trading Unit Application shall be as specified in BSCP31.

1.1.2 Every Trading Unit Application shall state whether it is a Class 1, Class 2, Class 3, Class 4

or Class 5 application and the Panel shall consider a Trading Unit Application by reference

to the provisions set out in this Annex K-2 for the stated class (or, in the case of paragraph

1.6, as provided therein).

1.1.3 For the purposes of this Annex K-2:

(a) references to Exports and Imports are to Exports and Imports of the nominated

BM Units;

(b) references to a Trading Unit shall not include a Sole Trading Unit.

1.2 Class 1

1.2.1 If the Trading Unit Application shall state that it is a Class 1 application then the Panel

shall determine from the Trading Unit Application and supporting documentation and other

matters (and any further evidence provided in accordance with paragraph 1.7) if the

nominated BM Units are or are to be electrically configured in the same manner as is

prescribed in one of the line diagrams contained in BSCP31 and fulfil or will fulfil all the

conditions specified in such BSC Procedure applicable to a Class 1 application, in which

event the nominated combination of BM Units shall be treated as belonging to a single

Trading Unit.

1.3 Class 2




nominated BM Units are or are to be electrically connected solely by Dedicated Assets, in

which event the BM Units shall be treated as belonging to a single Trading Unit.

1.3.2 In this paragraph 1.3, "Dedicated Assets" means assets and equipment which are used

solely to connect electrically (a) the location at which the Exports originate with (b) the

location at which the Imports are taken (and no other), and additionally satisfy one of the

diagrammatic representations of Dedicated Assets contained in BSCP31.

1.4 Class 3




nominated BM Units are or are to be electrically connected by Contiguous Assets, in which

event the nominated BM Units shall be treated as a single Trading Unit.

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1.4.2 In this paragraph 1.4:

(a) "Contiguous Assets" means those Specified Assets and Equipment at a location

which connect by one continuous electrical connection the location at which the

Exports originates with the location at which the Imports are taken, which

Specified Assets and Equipment are all owned by the Trading Unit Applicants

and/or are Specified Assets and Equipment in respect of which a contribution is

or will be made by the Trading Unit Applicants to the provision and installation

or maintenance and repair costs thereof or where such Specified Assets and

Equipment are already provided and installed, the maintenance and repair costs

thereof; and

(b) "Specified Assets and Equipment" means:

(i) assets and equipment identified and quoted in the Connection

Agreement of any Trading Unit Applicant where such assets and

equipment include assets and equipment identified and quoted in the

Connection Agreements relating to all Trading Unit Applicants

which form part of the continuous electrical connection for the

purposes of (a) above; and/or

(ii) assets and equipment owned by a person other than the Trading Unit

Applicant and any other Trading Party which is responsible for BM

Unit(s) associated with the Trading Unit Application, and which

form part of the continuous electrical connection for the purposes of

(a) above.

1.5 Class 4



matters (and any further evidence provided in accordance with paragraph 1.7) if all of the

nominated BM Units are Exempt Export BM Units and are located in the same GSP Group,

in which event the nominated BM Units shall be treated as belonging to a single Trading

Unit.

1.6 Class 5



matters (and any other evidence provided in accordance with paragraph 1.8) if the

nominated BM Units are or are to be:

(a) Interconnector BM Units associated with the same Interconnector where such

Interconnector is located at one Site only;

(b) a combination of BM Units falling within paragraph 1.6.1(a) and either of the

following:

(i) BM Units that are or are to be electrically connected solely by

Dedicated Assets, to one or more Boundary Points of that

Interconnector; or

(ii) BM Units that are or are to be electrically connected by Contiguous

Assets, to one or more Boundary Points of that Interconnector.

1.6.2 In this paragraph 1.6 "Site" shall have the meaning as set out in Section K1.6.2.

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(a) "Contiguous Assets" shall have the meaning as set out in paragraph 1.4.2; and

(b) "Dedicated Assets" shall have the meaning as set out in paragraph 1.3.2.

1.7 Class 6

1.7.1 If the Trading Unit Application shall state that it is a Class 6 application or if the Panel

shall determine that the nominated BM Units the subject of a Class 1, Class 2, Class 3,

Class 4 or Class 5 Trading Unit Application do not satisfy the conditions specified in

paragraphs 1.2, 1.3, 1.4, 1.5 or (as the case may be) 1.6, the Panel shall determine from the

Trading Unit Application and supporting documentation and other matters (and any further

evidence provided in accordance with paragraph 1.8) if the nominated BM Units shall be

treated as a Trading Unit having regard to the criteria set out in paragraph 1.7.2.

1.7.2 The criteria referred to in paragraph 1.7.1 are:

(a) whether, although not satisfying the conditions applicable to a Class 1, Class 2,

Class 3, Class 4 or Class 5 Trading Unit Application, the Trading Unit

Application demonstrates (to the reasonable satisfaction of the Panel) sufficient

similarities with sites which would satisfy those conditions such that it would be

unreasonable not to treat the nominated BM Units as a single Trading Unit;

(b) whether there are any other facts or evidence in support of the Trading Unit

Application that in the reasonable opinion of the Panel demonstrate that the

nominated BM Units ought to be treated as a single Trading Unit.

1.8 Further evidence

1.8.1 The Panel may request a Trading Unit Applicant to produce such further evidence as the

Panel may reasonably require in support of its Trading Unit Application before the Panel

makes any determination as to whether the nominated BM Units are to be treated as a

Trading Unit, and the Panel shall not be bound to make any determination on the issue of

whether the nominated BM Units are a Trading Unit pending receipt of such further

evidence.

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L – 1 of 21 Effective Date: 27 February 2020

SECTION L: METERING

1. INTRODUCTION

1.1 General

1.1.1 This Section L sets out:

(a) requirements for the installation, commissioning, operation and maintenance of

Metering Equipment for the measurement of quantities of Active Energy and

where relevant Reactive Energy (subject to Section K1.2.6); and

(b) the functions of the TAA in connection with such Metering Equipment.

1.1.2 For the purposes of the Code, subject to paragraph 1.1.3, the quantities of Active Energy

and, where relevant, Reactive Energy Exported or Imported by any Party at a Boundary

Point or flowing between Systems at a Systems Connection Point shall be measured and

recorded through Metering Equipment installed, commissioned, operated and maintained

and otherwise provided for as set out in this Section L.

1.1.3 There is no requirement to install, commission, operate and maintain Metering Equipment

or measure and record a flow of Active Energy or Reactive Energy through Metering

Equipment in respect of any Import relating to an Unmetered Supply; and nothing in this

Section L applies in relation to an Unmetered Supply (or any Metering System in respect of

an Unmetered Supply).

1.1.4 In this Section L:

(a) in relation to any Metering System, references to requirements under any Code

of Practice shall be construed as requirements in relation to all of the Metering

Equipment comprised or required to be comprised in that Metering System;

(b) references to a Metering System include a Metering System which is to

comprise Metering Equipment which a Party is or will be required to install, and

references to the Registrant of a Metering System include a Party required to be

the Registrant of such Metering System;

(c) references to Metering Equipment in the context of a Metering System or its

Registrant are to all of the Metering Equipment which is or is to be comprised

in such Metering System;

(d) "commission" means commission for the purposes of Settlement in accordance

with the relevant Codes of Practice and "commissioned" and other derivative

terms shall be construed accordingly.

1.1.5 Where the same Metering Equipment at an Exemptable Generating Plant is comprised in

both an SVA Metering System and a CVA Metering System:

(a) the Registrant of each such Metering System shall so inform BSCCo and shall

provide to BSCCo details of, and BSCCo shall maintain a record of, such

Metering Systems and the identities of the Registrants;

(b) where there is any conflict or inconsistency between the requirements applying

(pursuant to this Section L) to such Metering Equipment as CVA Metering

Equipment and as SVA Metering Equipment, then the requirements applying to

CVA Metering Equipment shall apply.

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1.2 Meter Operator Agents

1.2.1 Of the obligations (under this Section L) of the Registrant of a Metering System, those

specified in Party Service Line 100 and the relevant BSC Procedures are to be performed,

subject to and in accordance with the provisions of Section J, by a Meter Operator Agent

appointed by such Registrant in accordance with Section J.

1.2.2 In accordance with Section J, the Registrant of any Metering System shall appoint, and

secure that at all times while he is Registrant there is appointed, a Meter Operator Agent in

respect of such Metering System.

1.2.3 The principal functions of a Meter Operator Agent shall be to install, commission, test,

maintain, rectify faults and provide a sealing service in respect of Metering Equipment

(including if applicable associated Communications Equipment), in accordance with Party

Service Line 100 and the relevant BSC Procedures and Codes of Practice.

1.2.4 The Registrant of each Metering System shall comply with or (as appropriate) procure that

the relevant Meter Operator Agent complies with the requirements of Party Service Line

100 and the relevant BSC Procedures.

1.3 Limitation

1.3.1 The provisions of paragraphs 2.5.4(a), 3.7, 6 and 7 shall only apply to, and in respect of,

Metering Systems which are not at Domestic Premises and all visiting, access, inspection,

audits, testing and similar rights in such provisions shall be read and construed accordingly.

1.4 Third Party Generating Plant

1.4.1 Where a Party is responsible for the Exports of a Third Party Generating Plant, that Party,

as Registrant of the relevant Metering System, shall be responsible for obtaining such

rights in relation to property of the Third Party Generator as will enable the Party to

provide (pursuant to this Section L) such access and other rights as would be required to be

provided by the Third Party Generator if it were itself a Party and the Registrant.

1.5 Small Scale Third Party Generating Plant Limit

1.5.1 For the purpose of the Code the “Small Scale Third Party Generating Plant Limit” shall be

an amount determined by the Panel and approved by the Authority.

1.5.2 The Panel may revise the amount of the Small Scale Third Party Generating Plant Limit

from time to time subject to the approval of the Authority.

1.5.3 In revising the amount of the Small Scale Third Party Generating Plant Limit from time to

time the Panel shall consult with Parties and consider the views expressed in the course of

such consultation prior to making its determination (and shall provide a detailed summary

of such views to the Authority).

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2. METERING EQUIPMENT – BASIC REQUIREMENTS

2.1 Registrant responsibilities

2.1.1 The Registrant of each Metering System shall ensure that Metering Equipment is:

(a) installed and commissioned (if not already installed and commissioned), and

(b) maintained and operated,

for the purposes described in paragraph 1.1.2 in accordance with and subject to the

provisions of this Section L and in accordance with the relevant Code of Practice.

2.2 Type of Metering Equipment

2.2.1 The Metering Equipment to be installed:

(a) in the case of a CVA Metering System, shall be Half Hourly Metering

Equipment;

(b) in the case of a SVA Metering System which is 100kW Metering System, shall

be Half Hourly Metering Equipment;

(c) in the case of a SVA Metering System associated with any Third Party

Generating Plant, except in the case of a Small Scale Third Party Generating

Plant, shall be Half Hourly Metering Equipment;

(d) in the case of a SVA Metering System other than as provided in paragraphs (b),

(c) and 2.2.2 shall be Half Hourly Metering Equipment or Non-Half Hourly

Metering Equipment as the Registrant shall choose.

2.2.2 Where a Supplier is under an obligation in its Supply Licence to install an Advanced Meter

at a premises and/or supply electricity to a premises through an Advanced Meter then:

(a) prior to 5 November 2015 the Advanced Meter shall, for the purposes of the

Code, be deemed to be either Half Hourly Metering Equipment or Non-Half

Hourly Metering Equipment as the Registrant shall choose (subject always to

paragraph 2.2.1(b));

(b) subject always to paragraph 2.2.2(c), as from 5 November 2015:

(i) within 45 Business Days of the effective date of either a change of

Supplier or a Contract Renewal (subject to the approval of the

Performance Assurance Board pursuant to Section Z8.3), the

Advanced Meter shall be Half Hourly Metering Equipment;

(ii) in all other cases, the Advanced Meter shall, for the purposes of the

Code, be deemed to be either Half Hourly Metering Equipment or

Non-Half Hourly Metering Equipment as the Registrant shall choose

(subject always to paragraph 2.2.1(b) and Section Z8.3);

(c) as from the P272 Implementation Date the Advanced Meter shall be Half

Hourly Metering Equipment.

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2.2.3 For the purposes of paragraph 2.2.2(b)(i), the "effective date" of a change of Supplier or a

Contract Renewal shall be:

(a) in respect of a change of Supplier, the date from which the new Supplier

commences the supply of electricity to a Customer; and

(b) in respect of a Contract Renewal, the date from which the terms of a Contract

Renewal come into operational effect.

2.3 New Metering Systems

2.3.1 In relation to any new CVA Metering System:

(a) the Registrant shall ensure that Metering Equipment is installed and

commissioned in accordance with paragraph 2.1.1(a) and that a proving test in

accordance with BSCP02 has been successfully completed before the

registration of the Metering System becomes effective;

(b) accordingly, in accordance with Section K1.4.3(c), the relevant connection will

not be energised until the Registrant has complied with paragraph 2.1.1(a).

2.3.2 In relation to any new SVA Metering System, the Registrant shall use all reasonable

endeavours to ensure that Metering Equipment is installed and commissioned in

accordance with paragraph 2.1.1(a) before the registration of the Metering System becomes

effective.

2.3.3 Without prejudice to any other right of other Parties, if the Registrant of a new SVA

Metering System within paragraphs 2.2.1(b), (c) or 2.2.2 fails to ensure that Metering

Equipment is installed and commissioned in accordance with paragraph 2.1.1(a) before the

registration of the Metering System becomes effective, he shall be liable to a charge to be

determined and payable in accordance with Annex S-1.

2.3.4 For the purposes of this paragraph 2.3, a "new" Metering System is a Metering System

which is to comprise Metering Equipment which has not (at the relevant time) been

installed and commissioned in accordance with the requirements of paragraphs 2.1 and 2.2

and, for the avoidance of doubt, a Metering System shall not be considered a new Metering

System for the purposes of this paragraph 2.3 by virtue only of a Registration Transfer (as

defined in Section K2.6) in respect of such Metering System.

2.4 Meter Technical Details

2.4.1 The Registrant of each Metering System shall, in accordance with the relevant BSC

Procedures:

(a) establish and maintain Meter Technical Details in respect of the Metering

Equipment;

(b) ensure that such Meter Technical Details are true, complete and accurate;

(c) provide such Meter Technical Details to the CDCA or (as the case may be) to

the relevant Data Collector.

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2.5 Information and records

2.5.1 The Registrant of each Metering System shall:

(a) comply with the requirements of Party Service Line 100 and the relevant BSC

Procedures (as applicable) as to the provision, to the CDCA or (as the case may

be) the relevant Data Collector and others, of information relating to the

Metering Equipment; and

(b) give to the BSC Auditor all such information regarding the Metering Equipment

as the BSC Auditor shall reasonably require for the purposes of carrying out the

BSC Audit.

2.5.2 The information to be provided under paragraphs 2.5.1(a) and (b) includes information

regarding the dates and time periods for installation of new Metering Equipment and the

dates and periods when such Metering Equipment is out of service.


(a) prepare and maintain for the life of the relevant item of Metering Equipment,

complete and accurate records as required by the relevant Code of Practice or

the Act (including in relation to the calibration of the Metering Equipment, the

dates and results of any tests, readings, adjustments, audits or inspections

carried out and the dates on which any seal was applied or broken, the reason

for any seal being broken and the persons attending any such tests, readings,

inspections or sealings);

(b) provide a copy of such records to the BSC Auditor upon request;

(c) pass such records or copies of the same to the Meter Operator Agent appointed

by its successor as Registrant.

2.5.4 The Registrant of each Metering System shall permit the BSC Auditor unrestricted access

(subject to paragraphs 6.5 and 6.6) to:

(a) the Metering Equipment, and

(b) all data used, information held and records kept by it or its agents in operating

that Metering Equipment;

and shall make available members of its staff or its Meter Operator Agent to explain the

operation of that Metering Equipment and such other issues as the BSC Auditor considers

relevant.

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3. METERING EQUIPMENT – DETAILED REQUIREMENTS

3.1 General Obligation

3.1.1 The Registrant of each Metering System shall ensure that the Metering Equipment:

(a) complies with the provisions of this Section L; and

(b) meets the applicable levels of accuracy referred to in paragraph 3.5.

3.1.2 To the extent that the levels of accuracy referred to in paragraph 3.1.1(b) depend upon

associated current and voltage transformers which are not in the ownership or control of the

Registrant:

(a) the Registrant shall:

(i) where paragraph 1.4 applies, obtain; or

(ii) in any other case, use all reasonable endeavours to obtain

the agreement of the Equipment Owner to assist the Registrant; and

(b) where the Equipment Owner is a Party he shall:

(i) in respect of the calibration, commissioning and testing of

measurement transformers, comply with any requirements in the

relevant Code of Practice for which the Equipment Owner is

explicitly responsible under that Code of Practice; and

(ii) subject as hereinafter provided, be required to provide reasonable

assistance to the Registrant (but without prejudice to any rights of

such Party to charge for such services),

in complying with the Registrant’s obligations under paragraph 3.1.1 by the maintenance

and repair of such current and voltage transformers in accordance with the provisions of

this Section L, provided that the Equipment Owner shall not be required by this paragraph

3.1.2 or otherwise by the Registrant to take steps which would cause it to be in breach of its

obligations under the Act, its Licence, any Nuclear Site Licence (as defined in paragraph

6.7.1), the Grid Code or Distribution Code.

3.2 Compliance with Codes of Practice

3.2.1 All Metering Equipment shall comply with or exceed the requirements referred to or set out

in any relevant Code of Practice (or where no Code of Practice applies, comply with

Schedule 7 of the Act) or shall be the subject of and comply with a Metering Dispensation

in accordance with paragraph 3.4.

3.2.2 Subject to paragraphs 3.2.5, 3.2.6 and 3.3, the relevant Code of Practice in respect of any

Metering Equipment shall be the version of the Code of Practice which is expressed to be

applicable to that Metering Equipment at the time that the Metering System comprising

that Metering Equipment is first registered pursuant to Section K for the purposes of

Settlement, and such Metering Equipment shall only be required to comply with that

version of the Code of Practice, and not with any Code of Practice which in any respect

later amends, modifies or supersedes that version of the Code of Practice; and references to

the relevant Code of Practice in this Section L shall be construed accordingly.

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3.2.3 In relation to Metering Equipment comprised in a Metering System which was registered

for the purposes of settlement under:

(a) the Pooling and Settlement Agreement before the Go-live Date, paragraph 3.2.2

shall apply on the basis that references to Codes of Practice (and versions

thereof) include a reference to the version of the "Code of Practice" (as defined

in and for the purposes of the Pooling and Settlement Agreement) with which

such Metering Equipment was, immediately before the Go-live Date, required

to comply by virtue of the provisions of the Pooling and Settlement Agreement

(including provisions equivalent to paragraph 3.2.2 and any savings to those

provisions); or

(b) the Settlement Agreement for Scotland before the BETTA Effective Date,

paragraph 3.2.2 shall apply on the basis that references to Codes of Practice

(and versions thereof) include a reference to the version of the "Code of

Practice" (as defined in and for the purposes of the Settlement Agreement for

Scotland) with which such Metering Equipment was, immediately before the

BETTA Effective Date, required to comply by virtue of the provisions of the

Settlement Agreement for Scotland (including provisions equivalent to

paragraph 3.2.2 and any savings to those provisions).

3.2.4 For the avoidance of doubt, where a Metering System is transferred for the purposes of

Settlement from one registration system to another in accordance with the provisions of

Section K, such transfer shall not be treated as:

(a) a new installation of the Metering Equipment comprised in that Metering

System and, accordingly, does not need to be re-commissioned (but without

prejudice to the requirement to undertake proving tests with the CDCA or the

relevant Half Hourly Data Collector); nor

(b) (for the purposes of this paragraph 3.2 only) as a new registration of that

Metering System.

3.2.5 In relation to the calibration, testing and commissioning of any Metering Equipment at any

time, the relevant Code of Practice shall be the latest version of the applicable Code of

Practice prevailing at that time.

3.2.6 Where a Registrant is required by its Supply Licence to install, or arrange to install,

Metering Equipment that, at a minimum, is capable of providing:

(a) measured electricity consumption data for multiple periods, and at least half-

hourly; and

(b) the Registrant remote access to such data,

the relevant Code of Practice shall be the latest version of the applicable Code of Practice

at the date at which such Metering Equipment is installed.

3.3 Material change

3.3.1 Notwithstanding paragraph 3.2, where any material change is made to any Metering

Equipment, the version of the Code of Practice current at the time of that material change

shall, from that time, be the relevant Code of Practice in respect of that Metering

Equipment as so changed as if that date was the date of that Metering System’s first

commissioning.

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3.3.2 In this paragraph 3.3, "material change" means a change to the Metering Equipment other

than a change by way of repair, modification or replacement of any component which is

not, in the judgement of the Meter Operator Agent acting in accordance with Good

Industry Practice, a substantial part of the Metering Equipment even where an enhanced or

equivalent component is used for the repair, modification or replacement rather than an

identical component.

3.4 Metering Dispensations

3.4.1 If, for financial reasons or reasons of practicality, Metering Equipment to which a Code of

Practice applies will not or does not comply with some or all of the requirements of that

Code of Practice, the Registrant of such Metering System may make an application to the

Panel for a Metering Dispensation from such requirements.

3.4.2 The Panel shall consider and may agree, on such conditions (if any) as it shall deem fit, or

dismiss, such application in accordance with BSCP32.

3.4.3 Before agreeing a Metering Dispensation under paragraph 3.4.1, the Panel shall consult

with:

(a) where the relevant Metering Equipment is connected to the Transmission

System, the NETSO;

(b) where the relevant Metering Equipment is connected to a Distribution System,

the Distribution System Operator and, where applicable, the NETSO;

(c) where any Aggregation Rules submitted by any Party (other than the Registrant)

relate to the Metering System which comprises such Metering Equipment, such

Party; and

(d) such other persons if any as the Panel shall consider appropriate.

3.4.4 The Panel may, of its own initiative or upon the application of a Party, establish from time

to time, in accordance with BSCP32, Metering Dispensations from the requirements of any

relevant Code of Practice, on such conditions (if any) as it shall deem fit, attaching

generally to any item of Metering Equipment.

3.4.5 Before agreeing a Metering Dispensation under paragraph 3.4.4, the Panel shall consult

with all Parties, and with such other persons if any as the Panel shall consider appropriate.

3.4.6 BSCCo shall maintain an up-to-date record of all Metering Dispensations agreed or

established pursuant to this paragraph 3.4, and those established as part of the transitional

arrangements for the implementation of BETTA, and shall provide to the TAA a copy of

such record and (promptly following making any such amendment) a copy of each

amendment made to such record.

3.4.7 Any dispensations agreed or deemed to have been agreed (pursuant to those provisions of

the Pooling and Settlement Agreement equivalent to this paragraph 3.4) by the Pool

Executive Committee before the Go-live Date shall be deemed, with effect from the date at

which they were so agreed or applied, to have been effectively agreed or established as

Metering Dispensations in accordance with the provisions of this paragraph 3.4.

3.4.8 The obligations under this Section L of the Registrant of any Metering System shall be

construed subject to the terms and any conditions of any applicable Metering Dispensation.

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3.5 Calibration And Accuracy Of Metering Equipment

3.5.1 Non Half Hourly Metering Equipment shall be accurate to within the prescribed limits for

such Metering Equipment referred to or set out in any relevant Code of Practice or, if no

Code of Practice applies, the prescribed limits established under Schedule 7 of the Act.

3.5.2 Half Hourly Metering Equipment shall be accurate to within the prescribed limits for such

Metering Equipment referred to or set out in the relevant Code of Practice.

3.5.3 The limits of accuracy referred to in the relevant Code of Practice shall be applied in any

case after adjustments have been made to the Metering Equipment to compensate for any

errors attributable to measuring transformers and connections thereto.

3.5.4 Beyond the ranges specified in the relevant Code of Practice, and/or at power factors other

than unity or zero (as the case may be):

(a) limits of accuracy will depend on the characteristics of the individual meters

and measuring transformers specified for such Metering Equipment;

(b) in the event of uncertainty or dispute such limits of accuracy will be determined

by the Panel; provided that Metering Equipment which has been commissioned

will be required to comply with such levels of accuracy under any determination

by the Panel prevailing at the date of its commissioning, and not under any later

determination.

3.5.5 In this Section L a reference to the applicable limits of accuracy in relation to any Metering

Equipment is to the prescribed limits applicable to that Metering Equipment in accordance

with and subject to paragraphs 3.5.1 or 3.5.2 as the case may be.

3.5.6 Without prejudice to the generality of paragraph 3.2, the Registrant of each Metering

System shall ensure that the Metering Equipment shall be calibrated (in accordance with

any applicable Code of Practice) in order to meet the applicable limits of accuracy.

3.6 Commissioning and maintenance of Metering Equipment

3.6.1 The Registrant of each Metering System shall ensure

(a) in the case of Half Hourly Metering Systems, that the Metering Equipment shall

be commissioned (including, where any issues are identified during the

commissioning of that Metering Equipment, notifying and consulting with the

Distribution System Operator and/or the NETSO, as applicable) in accordance

with the relevant issue of Code of Practice Four; or

(b) in the case of Non Half Hourly Metering Systems, that the Metering Equipment

shall be commissioned in accordance with the relevant issue of the Code of

Practice (if any) relating to the commissioning of Non Half Hourly Metering

Systems.

3.6.2 The Registrant of each Metering System shall at its own cost and expense (but without

prejudice to its rights to charge any other person for such service pursuant to another

agreement or arrangement) ensure that the Metering Equipment is kept in good working

order, repair and condition to the extent necessary to allow the correct registration,

recording and transmission of the requisite details of the quantities of Active Energy and/or

Reactive Energy measured by the relevant Metering System.

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3.7 Testing and Inspection

3.7.1 Not less frequently than may be specified in the relevant Code of Practice or as may be

required by statute, the Registrant of each Metering System shall ensure that routine testing

is carried out to confirm the accuracy of the Metering Equipment.

3.7.2 The Registrant shall ensure that a test of the accuracy of all Metering Equipment which

replaces defective or inaccurate Metering Equipment is carried out as soon as is reasonably

practicable after its installation.

3.7.3 The Registrant shall:

(a) in relation to any CVA Metering System, and

(b) if and to the extent so required by the Panel, in relation to any SVA Metering

System

give BSCCo reasonable prior notice of the date, time, place and nature of every test

pursuant to paragraphs 3.7.1 or 3.7.2; and BSCCo (or, if BSCCo so requires in relation to

CVA Metering Systems, the CDCA) shall have the right to attend such test.

3.7.4 If the Registrant of any Metering System or any other Party or (in the case of a CVA

Metering System) the CDCA has reason to believe that the Metering Equipment is not

performing within the applicable limits of accuracy, or otherwise for any reason is

incorrectly recording data, the Registrant or such other Party or the CDCA shall so notify:

(a) BSCCo;

(b) (in the case of another Party or the CDCA), the Registrant; and

(c) the relevant Distribution System Operator and/or the NETSO as appropriate.

3.7.5 If BSCCo is notified (under paragraph 3.7.4(a)) or otherwise has reason to believe that any

Metering Equipment is not performing within the applicable limits of accuracy:

(a) BSCCo may require the Registrant to inspect and then test the accuracy of such

Metering Equipment within a reasonable time after receiving notification of

such requirement pursuant to this paragraph 3.7.5, whereupon the Registrant

shall carry out such test in the presence of a representative of BSCCo; or

(b) BSCCo may, without giving notice to the relevant Registrant, arrange for the

inspection of such Metering Equipment by a person (which may be the CDCA

in the case of CVA Metering Equipment) or persons who is/are suitably

qualified in the operation of Metering Equipment within a reasonable time, and

for such person(s) to make such tests as such person(s) shall deem necessary to

determine its accuracy; and the Registrant shall co-operate with such person(s)

in carrying out such tests.

3.7.6 Subject to paragraph 3.7.7, the costs of any such test referred to in paragraph 3.7.5 shall be

borne by the Registrant (but without prejudice to its right to charge any other person for

such service pursuant to another agreement or arrangement), save that BSCCo shall bear

the costs of attendance of any person pursuant to paragraph 3.7.5(b).

3.7.7 Where any Metering Equipment passes all inspections and tests required pursuant to

paragraph 3.7.5, the costs reasonably incurred by the Registrant in carrying out such

inspections and tests shall be borne by BSCCo.

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3.7.8 Any test carried out pursuant to this paragraph 3.7 shall comply with the relevant Code of

Practice.

3.7.9 In this paragraph 3.7, reference to testing shall include the use and installation of a check

meter, if appropriate.

3.8 Sealing and Security

3.8.1 The Registrant of each Metering System shall procure that the Metering Equipment shall

be sealed in accordance with the relevant Code of Practice and, if applicable, the Act.

3.8.2 The Registrant shall procure that the Metering Equipment shall be as secure as is

practicable in all the circumstances.

3.8.3 Each Licensed Distribution System Operator shall, with respect to a Half Hourly Metering

System registered in SMRS in relation to which data is required to be submitted for

Settlement before the Initial Volume Allocation Run, notify the relevant Supplier registered

in its SMRS system if any seal relating to that Metering System has been, or is likely to be

broken by that Licensed Distribution System Operator for more than 24 hours or which is,

or is due to be, remade, in all cases as soon as reasonably practicable (including, if

reasonably practicable, before breaking or remaking such seal) stating, in the case of a

notification of the breaking of a seal, the reason for breaking such seal.

3.9 Defective Metering Equipment

3.9.1 If at any time any Metering Equipment is destroyed or damaged or otherwise ceases to

function, or is or is found to be outside the applicable limits of accuracy, the Registrant

shall, subject to compliance with its obligations under paragraph 3.8, adjust, renew or

repair the same or replace any defective component so as to ensure that such Metering

Equipment is back in service and the Metering Equipment is operating within the

applicable limits of accuracy as quickly as is reasonably practicable in all the

circumstances.

4. DISPUTES

4.1 Tests in support of disputes

4.1.1 Any testing of Metering Equipment required (in accordance with Section W) to resolve any

Trading Dispute shall be carried out or procured by the Registrant:

(a) on the relevant Metering Equipment mounted in its operational position; and

(b) in the presence:

(i) if BSCCo so requires, of a representative of BSCCo or (in the case

of CVA Metering Equipment) the CDCA, and

(ii) the relevant Distribution System Operator and/or the NETSO as

appropriate.

4.1.2 All such testing will be carried out in accordance with the relevant Code of Practice

including, where applicable, any relevant Metering Dispensation.

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4.2 Comparison of test performance

4.2.1 The test performance of any Metering Equipment shall be compared with calibrated test

equipment by one of the following methods:

(a) injecting into the measuring circuits (excluding the primary current and voltage

transformers) and comparing the readings or records over such period as may be

required by the relevant Code of Practice including, where applicable, any

relevant Metering Dispensation to ensure a reliable comparison; or

(b) where practicable, operating the calibrated test equipment from the same

primary current and voltage transformers as the Metering Equipment under

operating conditions and comparing the readings or recordings of the Metering

Equipment and the calibrated test equipment over such period as may be

required by the relevant Code of Practice including, where applicable, any

relevant Metering Dispensation; or

(c) in exceptional circumstances, such other method as may be specified by the

Panel.

4.3 Laboratory testing

4.3.1 If the Panel so requires, Metering Equipment which fails any test whilst in its operational

position shall be tested under laboratory conditions in accordance with the relevant Code of

Practice, and the Registrant shall procure such test.

4.4 Witnessing tests

4.4.1 In addition to any persons attending pursuant, where applicable, to paragraph 4.1.1(b), if

the Panel so determines, up to two persons nominated by BSCCo and representing all

Parties who have an interest in the Trading Dispute, and in addition (unless otherwise

attending pursuant to paragraph 4.1.1(b)) the relevant Distribution System Operator or the

NETSO, as appropriate, shall be entitled to witness tests taken as a result of a Trading

Dispute, including tests confirming the calibration of test equipment, or inspect evidence of

valid calibration, or valid calibration certificates, as appropriate.

4.5 Costs of testing

4.5.1 Except as otherwise provided in Section W, the costs reasonably incurred by the Registrant

in carrying out any such test as referred to in paragraph 4.1, and the costs of attendance of

BSCCo and any person nominated by it under paragraph 4.4, shall be borne by BSCCo.

5. METERING DATA

5.1 Ownership of Metering Data

5.1.1 Subject to paragraphs 5.1.2 and 5.1.3, and without prejudice to Section H4.6, the Registrant

of a Metering System shall own the metering data acquired from such Metering System,

and may provide to any person access to and use of such data.

5.1.2 Subject to paragraph 5.1.3, the Customer (in relation to a Metering System at any premises)

or Third Party Generator (in relation to a Metering System at Third Party Generating Plant)

shall be entitled to access, obtain and use metering data relating to that Metering System

without charge.

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5.1.3 The Registrant shall not exercise any rights in relation to, or provide to any person use of or

access to, metering data in a manner which would interfere with Settlement or would

otherwise be inconsistent with giving effect to the Code.

5.2 Access to and Use of Metering Data

5.2.1 Without prejudice to Section H4.6, the Registrant of each Metering System shall provide

access to, and hereby authorises the use of, metering data, to and by:

(a) the Panel, any Panel Committee, BSCCo and each BSC Agent; and

(b) in the case of an Interconnector, the relevant Interconnector Administrator,

Interconnector Error Administrator and Interconnector Users

(each a "data recipient", which term shall include any officer, director, employee, agent or

adviser of the same), without charge, for all purposes for which each such data recipient

requires such access and use pursuant to or in order to give effect to the Code, but not for

any other purposes.

5.2.2 A data recipient may release metering data (which is provided, or access to which is

provided, to it pursuant to paragraph 5.2.1) to another person only to the extent to which:

(a) that other person is authorised to have access to and use of such data pursuant to

paragraph 5.2.1, or

(b) that other person is entitled to access and use of such data pursuant to any other

provision of the Code, or

(c) the Code expressly provides for such release (including pursuant to Section V).

5.2.3 The Registrant of each Metering System shall provide metering data to:

(a) each other Party; and

(b) any other person,

who (in either case) is entitled to receive such data in accordance with the Code.

5.2.4 The Registrant of each Metering System (or, as the case may be and as provided for

elsewhere in the Code, the SVAA or the CDCA) shall without charge provide relevant

metering data to, and authorises the use of such data by:

(a) the relevant Distribution System Operator for the purposes only of the operation

of the relevant Distribution System and the calculation of charges for use of and

connection to such Distribution System;

(b) the NETSO for the purposes only of the operation of the Transmission System,

and the calculation of charges for use of and connection to the Transmission

System.

5.2.5 For the purposes of paragraph 5.2.4, "relevant metering data" means:

(a) in the case of SVA Metering Systems, the metering data specified in BSCP502,

BSCP508 and BSCP520;

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(b) in the case of CVA Metering Systems, the metering data specified as being sent

to the NETSO and/or the relevant Distribution System Operator in Table 5 of

Section V.

5.2.6 Each Party agrees to the release and use of data referred to in paragraph 5.2.4 on the terms

and conditions of such paragraphs, and confirms that it will not have the right to charge the

relevant Distribution System Operator or NETSO for such release or use.

6. ACCESS TO PROPERTY

6.1 Grant and procurement of rights

6.1.1 Each Party hereby grants to the Invitees specified in paragraph 6.1.4 the rights specified in

that paragraph in relation to any part of the relevant property.


(a) where paragraph 1.4 applies, procure,

(b) in any other case, use all reasonable endeavours to procure

for the benefit of the Invitees specified in paragraph 6.1.4 the rights specified in that

paragraph in relation to any part of the relevant property.

6.1.3 In this paragraph 6 the "relevant property" is:

(a) for the purposes of rights to be granted by a Party under paragraph 6.1.1, the

property of that Party;

(b) for the purposes of rights to be procured by the Registrant of a Metering System

under paragraph 6.1.2, the property:

(i) of each Customer in respect of which the Registrant is the supplier;

(ii) of the Third Party Generator at each Third Party Generating Plant for

whose Exports the Registrant is responsible in accordance with

Section K1.2.2;

(iii) of any other person who is not a Party (a "Third Party") the

exercise of whose rights would prevent the Registrant or any Invitee

or any other Party from performing its obligations under this Section

L or the Code and the existence of whose rights is known, or ought

reasonably be known, to that Registrant.

6.1.4 The rights referred to in paragraphs 6.1.1 and 6.1.2 are:

(a) for any Invitee, full right to enter upon and through and remain upon, or do any

other act contemplated by this Section L or Section R or Section S which would

otherwise constitute a trespass upon, any part of the relevant property;

(b) for the BSC Auditor, full right to perform such tasks and to do all such acts and

things as are necessary for the purpose of performing audits, tests, reviews and

checks for the purposes of the BSC Audit, including full right to carry out such

tests on Metering Equipment, provided that the person or persons allocated to

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carry out such tests by the BSC Auditor is or are suitably qualified in the

operation of Metering Equipment;

(c) for the CDCA, full right to undertake on-site inspections, tests, checks and

readings on Metering Equipment in connection with the validation of

Aggregation Rules pursuant to Section R3.4 and in connection with Meter

Advance Reconciliation obligations pursuant to Section R6.2, and

(d) for the TAA(s), full right to undertake on-site tests and checks and to report on

Metering Systems in relation to their compliance with the relevant Code of

Practice and this Section L;

but in each case only to the extent such rights are necessary for the purposes of the Code,

and subject to the other provisions of this paragraph 6.

6.1.5 For the avoidance of doubt, the Registrant of any Metering System will need to procure

(and is responsible for procuring) appropriate rights of access for its Meter Operator Agent;

and this paragraph 6 does not address such rights of access.

6.2 Invitees

6.2.1 For the purposes of the Code, each of the following shall be an Invitee:

(a) the Panel and any Panel Committee acting through any reasonably nominated

employee, agent or contractor of BSCCo;

(b) BSCCo acting through any reasonably nominated employee, agent or

contractor;

(c) the TAA and the CDCA, acting through any reasonably nominated employee,

agent or contractor;

(d) the BSC Auditor acting through any partner or employee;

(e) the NETSO, acting through any reasonably nominated employee, agent or

contractor; and

(f) any CfD Counterparty, any CFD Settlement Services Provider, the CM

Settlement Body and/or any CM Settlement Services Provider, in each case

acting through any reasonably nominated employee, agent or contractor.

6.3 Failure to procure access

6.3.1 If, after having used all such reasonable endeavours to procure access rights in accordance

with paragraph 6.1.2, the Registrant of a Metering System has been unable to procure any

such rights, the Registrant shall so notify the Panel and the Authority.

6.3.2 Each Invitee shall be entitled to assume that the consents of any Customer, Third Party

Generator or Third Party shall have been obtained in accordance with the provisions of

paragraph 6.1.2 until such time as it is fixed with notice to the contrary.

6.4 Further provisions as to access

6.4.1 The rights of access provided for in paragraph 6.1 shall include, but not be limited to, the

right to bring on to the relevant property such vehicles, plant, machinery and maintenance

or other materials and such persons as shall be reasonably necessary for the purposes of the

Code.

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6.4.2 Each Party shall ensure, and the Registrant of each Metering System shall use all

reasonable endeavours to ensure, that any particular authorisation or clearance which is

required to be given to ensure access to any Invitee, in accordance with paragraph 6.1.1 or

(as the case may be) 6.1.2, is available on arrival of the Invitee.

6.5 Safe access

6.5.1 Subject to the right of BSCCo to require inspection without notice pursuant to paragraph

3.7.5(b), the Registrant of each Metering System shall use all reasonable endeavours to

procure that all reasonable arrangements and provisions are made, and revised from time to

time, as and when necessary or desirable to facilitate the safe exercise by any Invitee of any

right of access granted pursuant to paragraph 6.1 with the minimum of disruption,

disturbance and inconvenience.

6.5.2 Such arrangements and provisions may, to the extent that the same are reasonable, limit or

restrict the exercise of such right of access and/or provide for the Registrant to make

directions or regulations from time to time in relation to a specified matter.

6.5.3 Matters to be covered by such arrangements and/or provisions include:

(a) the identification of any relevant Metering Equipment;

(b) the particular access routes applicable to the land in question having particular

regard to the weight and size limits on those routes;

(c) any limitations on times of exercise of the right of access;

(d) any requirements as to prior notification and as to authorisation or security

clearance of individuals exercising such right of access and procedures for

obtaining the same;

(e) the means of communication by the Registrant (to all persons, agents,

employees and/or contractors who may be authorised from time to time to

exercise such right of access) of any relevant directions or regulations made by

the Registrant;

(f) the identification of and arrangements applicable to personnel exercising the

right of access granted under paragraph 6.1;

(g) where relevant, compliance with any code of practice on procedures with

respect to site access approved by the Authority pursuant to any Licence; and

(h) disclosure of any known hazards on the site.

6.5.4 BSCCo shall take all reasonable steps to secure that any Invitee agrees to observe and

perform any such arrangements and all provisions (or directions or regulations issued

pursuant thereto), failing which in any particular case the Registrant may take reasonable

steps to ensure that, as a condition of exercising any right of access pursuant to paragraph

6.1, each Invitee shall agree to observe and perform the same.

6.6 Damage

6.6.1 BSCCo shall take all reasonable steps to secure that each Invitee takes all reasonable steps

(or, where the NETSO is the Invitee, the NETSO shall take all reasonable steps), in the

exercise of any right of access under paragraph 6.1, to:

(a) avoid or minimise damage in relation to any relevant property; and

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(b) cause as little disturbance and inconvenience as possible to any other Party,

Customer, Third Party Generator, Third Party or other occupier of any relevant

property;

and shall make good any damage caused to such property in the course of the exercise of

such rights as soon as may be practicable.

6.6.2 Subject to paragraph 6.6.1, all such rights of access shall be exercisable free of any charge

or payment of any kind.

6.7 Licence restricted parties

6.7.1 This paragraph 6.7 shall apply to any area owned or occupied by any Party, Customer,

Third Party Generator or Third Party (in this Section L, each a "Licence Restricted

Party") which is the holder of or is subject to a licence granted under the Nuclear

Installations Act 1965 (in this paragraph 6.7, a "Nuclear Site Licence") or is subject to

restrictions in relation to a Nuclear Site Licence, where such area is subject to that Nuclear

Site Licence.

6.7.2 This paragraph 6.7 shall take precedence over any contrary provisions of this Section L.

6.7.3 No Party or Invitee shall enter or attempt to enter or permit or suffer any person to enter or

attempt to enter any area owned or occupied by the Licence Restricted Party to which a

Nuclear Site Licence applies except strictly in accordance with the provisions, restrictions

and conditions of the Nuclear Site Licence.

6.7.4 The Licence Restricted Party shall be entitled to take reasonable action of any kind

whatsoever relating to or affecting access to its property as it considers on reasonable

grounds to be necessary in order to enable the Licence Restricted Party to comply with the

provisions, restrictions and conditions of a Nuclear Site Licence or avert or minimise any

reasonably anticipated breaches thereof.

6.8 Denial of access

6.8.1 The Panel, any Panel Committee, BSCCo and any BSC Agent shall not be held in breach

of any duty or obligation under the Code to the extent that it is unable to perform such duty

or obligation by reason of its being denied necessary access to Metering Equipment.

7. TECHNICAL ASSURANCE OF METERING SYSTEMS

7.1. General

7.1.1 The role of the TAA is to monitor compliance by Parties with the requirements, in relation

to Half Hourly Metering Systems, of this Section L, Codes of Practice and BSC

Procedures, and identify cases where such requirements are not being complied with

("non-compliance").

7.1.2 For the purposes described in paragraph 7.1.1 and as instructed by BSCCo from time to

time pursuant to paragraph 7.3.1, the TAA shall make arrangements for:

(a) On-Site Inspections by suitably qualified inspectors at the sites where Metering

Equipment is installed; or

(b) Desktop Audits conducted by suitably qualified inspectors remotely.

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7.1.3 In this paragraph 7 references to Metering Systems are to Half Hourly Metering Systems.

7.2 Provision of information

7.2.1 Each SMRA and the CDCA shall submit to BSCCo details of the Half Hourly Metering

Systems and the associated Registrants respectively registered in SMRS or CMRS in

accordance with BSCP27 or (as respects SVA Metering Systems) the relevant provisions of

the MRA.

7.2.2 BSCCo shall periodically submit to the TAA, in accordance with BSCP27, a list of the

Metering Systems and the associated Registrants, from which sample On-Site Inspections

and Desktop Audits shall be selected in accordance with paragraph 7.3.

7.2.3 The Registrant of each Metering System shall provide the TAA with records, data and

other information in accordance with BSCP27, and each Party irrevocably agrees to the

release to and use by the TAA of all such records, data and other information in the

circumstances described in this Section L.

7.2.4 The CDCA shall provide the TAA with such Meter Technical Details in relation to CVA

Metering Systems as the TAA may request in accordance with BSCP27.

7.3 Site Selection

7.3.1 BSCCo shall determine and instruct to the TAA, in relation to each BSC Year, consistent

with any guidance or instructions from the Panel, and in accordance with BSCP27:

(a) the total number of Metering Systems to be audited by On-Site Inspection;

(b) the total number of Metering Systems to be audited by Desktop Audit; and

(c) the criteria for assessing which Metering Systems shall be selected for an On-

Site Inspection and which Metering Systems shall be selected for a Desktop

Audit.

7.3.2 The TAA shall select the sample of Metering Systems to be audited by On-Site Inspection

or Desktop Audit in each BSC Year in accordance with BSCCo’s instructions under

paragraph 7.3.1 and consistent with the further provisions of this paragraph 7.3 and in

accordance with BSCP27.

7.3.3 Until the Performance Assurance Effective Date, the sample selected shall be consistent

with the following principles:

(a) the sample shall allow for:

(i) audit ("targeted audit") of a number of Metering Systems in

relation to which non-compliance is suspected, as notified by

BSCCo to the TAA or on the basis of the information provided to

the TAA by other persons; and/or

(ii) audit ("re-audit") of a number of Metering Systems in relation to

which non-compliance was previously identified and has

subsequently been reported to have been rectified by the Registrant;

(b) the sample shall be representative of the Metering Systems respectively

registered in CMRS and each SMRS;

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(c) the sample shall be representative of:

(i) Meter Operator Agent;

(ii) type of Metering Equipment;

(iii) Code of Practice;

(iv) Registrant;

(v) GSP Group (for SVA Metering Systems);

(vi) previous inspection(s);

and shall not be biased towards any one Registrant, Meter Operator Agent, GSP

Group or type of Metering Equipment.

7.3.4 From the Performance Assurance Effective Date the Panel may determine with respect to

the sample of Metering Systems to be selected by the TAA under paragraph 7.3.2:

(a) which of the principles set out in paragraph 7.3.3 shall apply; and/or

(b) such further principles as are appropriate which shall apply,

provided that unless the Panel decides otherwise with respect to paragraph 7.3.3(c) the

sample shall not be biased towards any one Registrant, Meter Operator Agent, GSP Group

or type of Metering Equipment.

7.4 Site Visits

7.4.1 The TAA shall notify the Registrant whose Metering System(s) are selected for inspection,

giving the Registrant such period of notice prior to the inspection as may be required in


7.4.2 The TAA shall invite the Registrant or a nominated representative to attend the inspection,

and the Registrant shall ensure that the Meter Operator Agent attends (by a suitably

competent person).

7.4.3 The Registrant shall confirm to the TAA in accordance with BSCP27:

(a) the attendance of the Meter Operator Agent; and

(b) the identity of other attendees who will be present.

7.4.4 The Registrant shall, in accordance with BSCP27, make appropriate arrangements to

ensure access to all elements of the Metering Equipment being inspected in accordance

with the requirements of paragraph 6.

7.4.5 The Registrant shall bear all costs of its and its Meter Operator Agent’s attending an

inspection (but without prejudice to its right to charge any other person for such service

pursuant to another agreement or arrangement).

7.4A Desktop Audit

7.4A.1 The TAA shall notify the Registrant whose Metering System(s) are selected for a Desktop

Audit, giving the Registrant such period of notice prior to the Desktop Audit as may be

required in accordance with BSCP27.

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7.4A.2 The Registrant or a nominated representative shall submit the documentation in the format

and timescales required under BSCP27.

7.4A.3 The Registrant shall bear all costs of its and its nominated representative’s submission.

7.5 Non-Compliance

7.5.1 The TAA shall determine in respect of those matters or things (including those associated

with or connected to a Metering System) which it has been requested to audit, that such

matter or thing is non-compliant if, after taking account of any applicable Metering

Dispensations, the requirements of the Code and the relevant Code(s) of Practice are not

being adhered to and/or if configurable meter parameters are not consistent with the Meter

Technical Details supplied by the Registrant.

7.5.2 Where a non-compliance has been determined in accordance with paragraph 7.5.1 the

Registrant shall:

(a) ensure that the non-compliance is rectified, to the extent to which it can be

rectified directly by the Meter Operator Agent;

(b) otherwise, take all reasonable steps to ensure that a person which can directly

rectify the non-compliance does so.

7.5.3 Following the rectification of a non-compliance (as determined in accordance with

paragraph 7.5.1) which is materially non-compliant, BSCCo shall, where in its discretion it

considers it appropriate to do so having regard to the nature of such rectification, require

the Registrant to carry out the relevant Code of Practice Four tests and validation testing in

accordance with the relevant BSC Procedures and the TAA may attend and/or request

details of any such testing carried out.

7.5.4 For the purposes of paragraph 7.5.3, a non-compliance (as determined in accordance with

paragraph 7.5.1) is "materially non-compliant" if the TAA considers that the non-

compliance is likely to affect the quality of data used in Settlement.

7.5.5 The Registrant of a Metering System determined by the TAA to be non-compliant (or of a

Metering System in respect of which a matter or thing has been determined to be non-

compliant in accordance with paragraph 7.5.1) following an On-Site Inspection or Desktop

Audit may refer to the Panel the question of whether the requirements referred to in

paragraph 7.5.1 are being adhered to in relation to the Metering System.

7.6 Reporting

7.6.1 On completion of an On-Site Inspection or Desktop Audit, the TAA shall issue notices of

compliance or non-compliance to the Registrant and BSCCo by the date required under

BSCP27.

7.6.1A Where BSCCo becomes aware of a non-compliance that has impacted metered volumes

then it shall, as soon as reasonably practicable thereafter, notify any CFD Settlement

Services Provider and any CM Settlement Services Provider and include in that notice at

least the following:

(a) the MSID(s) (if known) relating to the applicable SVA Metering System or

CVA Metering System; and

(b) the nature of the non-compliance.

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7.6.2 Where a non-compliance has been determined in accordance with paragraph 7.5.1, the

TAA shall provide the Registrant with a report detailing the areas of non-compliance.

7.6.3 The TAA shall provide the Registrant with a reminder, in the form of a re-issued non-

compliance report, if the Registrant has failed to rectify the non-compliance by the date

required under BSCP27.

7.6.4 In relation to each month the TAA shall, by the date required under BSCP27:

(a) submit a report (in a format approved by BSCCo) summarising all On-Site

Inspections or Desktop Audits falling due within that month; and

(b) after amending the report to take account of any comments of BSCCo, submit

the report to the Panel, the Performance Assurance Board and the BSC Auditor.

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M – 1 of 31 Effective Date: 27 February 2020

SECTION M: CREDIT COVER AND CREDIT DEFAULT

1. GENERAL

1.1 Introduction

1.1.1 This Section sets out:

(a) the basis on which Energy Indebtedness of an Imbalance Party will be

calculated;

(b) the basis on which Imbalance Parties may provide Credit Cover in respect of

their Energy Indebtedness;

(c) the basis on which an Imbalance Party's Energy Credit Cover will be

determined;

(d) circumstances which will constitute Credit Default in relation to an Imbalance

Party, and the consequences of such Credit Default;

(e) arrangements for payment of compensation to Imbalance Parties in certain

circumstances where errors have been made in calculations under this Section M.

1.2 Energy Indebtedness


(a) in relation to a Settlement Period j the "Energy Indebtedness" (EIpj, in MWh)

of an Imbalance Party p shall be the algebraic sum of:

(i) the algebraic sum of Actual Energy Indebtedness for Imbalance

Party p for those Settlement Days d within the 29 day period for

which (at the Submission Deadline for Settlement Period j), the

Submission Deadline has passed for the first Settlement Period of

the Settlement Day following that on which the Settlement Calendar

specifies that the Interim Information Settlement Run for Settlement

Day d is to take place (but excluding those days for which, as a

result of a delay in the Interim Information Settlement Run in

accordance with Section T1.4, the ECVAA does not receive the

Interim Information Settlement Run data from the SAA by the

Submission Deadline for the first Settlement Period of the

Settlement Day containing Settlement Period j);

(ii) the algebraic sum of Metered Energy Indebtedness for Imbalance

Party p in relation to those Settlement Days d within the 29 day

period for which paragraph 1.2.1(a)(i) does not apply, and for which

(at the Submission Deadline for Settlement Period j), the Submission

Deadline has passed for the first Settlement Period of the Settlement

Day following that on which the Settlement Calendar specifies that

the Credit Cover Volume Allocation Run for Settlement Day d is to

take place; and

(iii) the algebraic sum of Credit Assessment Energy Indebtedness for

Imbalance Party p in relation to that Settlement Period and all prior

Settlement Periods in days falling within the 29 day period for which

neither paragraphs 1.2.1(a)(i) or 1.2.1(a)(ii) applies;

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(b) a reference to an Imbalance Party's Energy Indebtedness at any time is to its

Energy Indebtedness in relation to the latest Settlement Period for which the

Submission Deadline occurred before such time;

(c) in relation to a Settlement Period, the 29 day period means the period of 29

Settlement Days expiring on (and including) the Settlement Day which includes

that Settlement Period;

(d) for the purposes of paragraph 1.2.1(a)(i), where (by the Submission Deadline

for the first Settlement Period of the Settlement Day containing the Settlement

Period j), the ECVAA has not received the Interim Information Settlement Run

data from the SAA in accordance with Section T5.3.5 for any Settlement Day d

within the 29 day period to which paragraph 1.2.1(a)(i) applies (other than as a

result of a delay in the Interim Information Settlement Run in accordance with

Section T1.4), the ECVAA shall use the Metered Energy Indebtedness for the

Settlement Periods in that Settlement Day d but without prejudice to

paragraph 4;

(e) for the purposes of paragraph 1.2.1(a)(ii), where (by the Submission Deadline

for the first Settlement Period of the Settlement Day containing the Settlement

Period j), the ECVAA has not received the Credit Cover Volume Allocation

Run data from the CDCA in accordance with Section R5.7.1(d) for any

Settlement Day d within the 29 day period to which paragraph 1.2.1(a)(ii)

applies, the ECVAA shall use the Credit Assessment Energy Indebtedness for

the Settlement Periods in that Settlement Day d but without prejudice to

paragraph 4;

(f) in relation to an Imbalance Party and Settlement Day, where BSCCo:

(i) is aware that the ECVAA has not received relevant Interim

Information Settlement Run data from the SAA in accordance with

Section T5.3.5; or

(ii) is aware that the ECVAA has not received relevant Credit Cover

Volume Allocation Run data from the CDCA in accordance with

Section R5.7.1(d); or

(iii) has substantial evidence or other reasons to believe that the data to

be derived from the Initial Settlement Run for that Imbalance Party

and that Settlement Day are likely to be significantly different (in the

context of that particular Imbalance Party) from the corresponding

Interim Information Settlement Run data received by the ECVAA

from the SAA in accordance with Section T5.3.5; or

(iv) has substantial evidence or other reasons to believe that the data to

be derived from the Initial Volume Allocation Run for that

Imbalance Party and that Settlement Day are likely to be

significantly different (in the context of that particular Imbalance

Party) from the corresponding Credit Cover Volume Allocation Run

data received from the CDCA in accordance with Section R5.7.1(d);

the absence of such data or the likelihood of such a significant difference (as the

case may be) may, if BSCCo so decides and to the extent that it materially

affects matters, constitute a material doubt for the purposes of paragraph

3.4.3(a); and

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(g) where an Imbalance Party elects to submit, to BSCCo, such evidence as is

referred to in paragraph 1.2.1(f), BSCCo must review that evidence as soon as

practicable after receiving it, but must verify any opinion formed in relation to

such evidence as soon as practicable after receiving a level 1 default notice (in

accordance with paragraph 3.2.1(a)(ii)) in relation to that Imbalance Party.

1.2.2 For the purposes of paragraph 1.2.1, the Credit Assessment Energy Indebtedness (CEIpj, in

MWh) of a Trading Party p in relation to a Settlement Period shall be determined as

follows:

CEIpj = – ( a,i CAQCEiaj – a QABCaj )

where:

(a) summation on 'a' extends to the Production Energy Account and Consumption

Energy Account of the Trading Party, and

(b) CAQCEiaj is the Credit Assessment Credited Energy Volume in accordance

with paragraph 1.2.3.

1.2.2A For the purposes of paragraph 1.2.1, the Credit Assessment Energy Indebtedness (CEIpj, in

MWh) of a Virtual Lead Party p that holds a Virtual Balancing Account in relation to a

Settlement Period shall be determined as follows:

CEIpj = 0

1.2.3 The Credit Assessment Credited Energy Volume (CAQCEiaj, in MWh) shall be

determined:

(a) for each BM Unit which is:

(i) a Consumption BM Unit; or

(ii) a Production BM Unit whose Relevant Capacity is not greater than

zero,

and in either case is:

(iii) not a Supplier BM Unit whose Demand Capacity is zero and whose

Generation Capacity is greater than zero;

(iv) not an Interconnector BM Unit;

(v) not a Credit Qualifying BM Unit; and

(vi) not a Secondary BM Unit,

and for each Energy Account which is a Subsidiary Energy Account for such

BM Unit, as follows:

CAQCEiaj = (SPD * BMCAICi) * (QMPRiaj/100) + QMFRiaj

(b) for each BM Unit which is:

(i) a Production BM Unit whose Relevant Capacity is greater than zero;

or

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(ii) a Supplier BM Unit whose Demand Capacity is zero and whose

Generation Capacity is greater than zero,


(iii) not an Interconnector BM Unit;

(iv) not a Credit Qualifying BM Unit; and

(v) not a Secondary BM Unit,

and for each Energy Account which is a Subsidiary Energy Account for such

BM Unit, as follows:

CAQCEiaj = (SPD * BMCAECi) * (QMPRiaj/100) + QMFRiaj

(c) for each BM Unit which is:

(i) a Consumption BM Unit; or

(ii) a Production BM Unit whose Relevant Capacity is not greater than

zero ,


(iii) not a Supplier BM Unit whose Demand Capacity is zero and whose

Generation Capacity is greater than zero;

(iv) not an Interconnector BM Unit;

(v) not a Credit Qualifying BM Unit; and

(vi) not a Secondary BM Unit,

and for the Energy Account which is the Lead Energy Account for such BM

Unit, as follows:

CAQCEiaj = (SPD * BMCAICi) – a CAQCEiaj

(d) for each BM Unit which is:

(i) a Production BM Unit whose Relevant Capacity is greater than zero;

or

(ii) a Supplier BM Unit whose Demand Capacity is zero and whose

Generation Capacity is greater than zero,


(iii) not an Interconnector BM Unit;

(iv) not a Credit Qualifying BM Unit; and

(v) not a Secondary BM Unit,

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and for the Energy Account which is the Lead Energy Account for such BM

Unit, as follows:

CAQCEiaj = (SPD * BMCAECi) – a CAQCEiaj

(e) for each Subsidiary Energy Account for each Interconnector BM Unit and for

each Credit Qualifying BM Unit, as follows:

CAQCEiaj = FPNij * (QMPRiaj/100) + QMFRiaj

(f) for the Lead Energy Account for each Interconnector BM Unit and for each

Credit Qualifying BM Unit, as follows:

CAQCEiaj = FPNij - a CAQCEiaj

where, for the purposes of paragraphs 1.2.3(c), 1.2.3(d) and 1.2.3(f) only, a represents the

sum over all Energy Accounts other than the Lead Energy Account.

1.2.3A For the purposes of paragraph 1.2.3, FPNij for any Settlement Period shall be calculated

using the data received by the ECVAA for that Settlement Period in accordance with

paragraph Q6.1A.1. Where such data is not so received or calculated, the value of FPNij

shall be that which was applied in the previous Settlement Period.

1.2.4 A change in the value of BM Unit Credit Assessment Export Capability or BM Unit Credit

Assessment Import Capability for a BM Unit shall apply for the purposes of the

determination of values of Credit Assessment Credited Energy Volume (for relevant

Imbalance Parties) in respect of Settlement Periods from and including the first Settlement

Period of the day on which, in accordance with paragraph 1.6, the change becomes

effective.

1.2.4A For the purposes of paragraph 1.2.1, the Metered Energy Indebtedness (MEIpj, in MWh) of

a Trading Party p in relation to a Settlement Period shall be determined as follows:

MEIpj = – ( a,i MAQCEiaj – a QABCaj)

where:

(a) summation on 'a' extends to the Production Energy Account and Consumption

Energy Account of the Trading Party; and

(b) MAQCEiaj is the Metered Credit Assessment Credited Energy Volume

determined in accordance with paragraph 1.2.4B.

1.2.4B The Metered Credit Assessment Credited Energy Volume (MAQCEiaj in MWh) shall be

determined:

(a) for each BM Unit which meets all the requirements in paragraph 1.2.4C, and for

each Energy Account which is a Subsidiary Energy Account for such BM Unit,

as follows:

MAQCEiaj = QMij * (QMPRiaj/100) + QMFRiaj

(b) for each BM Unit which meets all the requirements in paragraph 1.2.4C, and for

the Energy Account which is the Lead Energy Account for such BM Unit, as

follows:

MAQCEiaj = QMij - a MAQCEiaj

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(c) for each BM Unit which does not meet all of the requirements in paragraph

1.2.4C, and for each Energy Account, as follows:

MAQCEiaj = CAQCEiaj

where, for the purpose of paragraph 1.2.4B(b), a represents the sum over all Energy

Accounts other than the Lead Energy Account.

1.2.4C The requirements referred to in paragraph 1.2.4B are that:

(a) the BM Unit is a Credit Qualifying BM Unit;

(b) the BM Unit is not a Supplier BM Unit;

(c) the BM Unit is not a Secondary BM Unit; and

(d) Metered Volumes were determined by the CDCA for the BM Unit in the Credit

Cover Volume Allocation Run for Settlement Period j.

1.2.4D For the purposes of paragraph 1.2.1, the Metered Energy Indebtedness (MEIpj, in MWh) of

a Virtual Lead Party p that holds a Virtual Balancing Account in relation to a Settlement

Period shall be determined as follows:

MEIpj = 0

1.2.5 For the purposes of paragraph 1.2.1, in relation to a Settlement Day d, the Actual Energy

Indebtedness of Imbalance Party p (AEIp, expressed in MWh) shall be determined as

follows:

AEIp = Trading Charges / CAP

where:

(a) CAP is the Credit Assessment Price in accordance with paragraph 1.4

prevailing at the time the relevant calculation is to be made by the ECVAA; and

(b) The Trading Charges are the single net credit or debit amount (expressed in £)

for that Imbalance Party, determined by the Interim Information Settlement

Run, for Settlement Day d as referred to in paragraph T5.3.3(c).

1.2.6 The ECVAA shall determine each Imbalance Party's Energy Indebtedness in relation to

each Settlement Period as soon as reasonably practicable after the Submission Deadline for

that Settlement Period.

1.3 Authority for steps under Sections M and P

1.3.1 In relation to the provisions of this Section M and Section P (and without prejudice to the

generality of Section U2.6, but without prejudice to the ability of an Imbalance Party to

raise a Trading Dispute), each Imbalance Party:

(a) acknowledges that the calculation of Energy Indebtedness and other matters to

be calculated under this Section M involves the possibility of error;

(b) agrees that (subject to paragraph 3.2.4) the steps provided for in paragraph 3

and Sections P2.5 and P3.5 are to be taken notwithstanding any such error;

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(c) acknowledges that such Imbalance Party may avoid any such steps being taken,

including by providing additional Credit Cover (on the basis that it may

withdraw such additional Credit Cover in accordance with paragraph 2.3.3

following resolution of such error).

1.3.2 Each Imbalance Party:

(a) hereby authorises the Panel, any Panel Committee, BSCCo, the ECVAA and

the SAA to take any step contemplated by paragraph 3 and Sections P2.5 and

P3.5; and

(b) agrees that (without prejudice to the generality of any other provision of the

Code which limits or excludes liability), the Panel, each Panel Committee,

BSCCo, and each BSC Agent shall have no liability (in contract or tort

including negligence or otherwise) to such Imbalance Party for the taking of

any such step, except as provided in paragraph 4, and waives any such liability

that any such body or person might otherwise have.

1.3.3 Nothing in paragraph 1.3.2(b) shall exclude or limit the liability of any person for death or

personal injury resulting from that person's negligence.

1.4 Credit Assessment Price

1.4.1 For the purposes of the Code the "Credit Assessment Price" shall be such amount (in

£/MWh) as the Panel shall from time to time determine, after consultation with Imbalance

Parties, as the price which it would be appropriate to use to determine the equivalent

financial amount of Imbalance Parties' Energy Indebtedness for the purposes of this

Section M.

1.4.2 Whenever the Panel determines to revise the Credit Assessment Price:

(a) the Panel shall notify the revised Credit Assessment Price to each Imbalance

Party, the FAA and the ECVAA;

(b) the revised Credit Assessment Price shall be effective for the purposes of the

Code from the date determined by the Panel pursuant to paragraph (c), which

shall not be earlier than the 10th Business Day following the date of notification

by the Panel under paragraph (a);

(c) subject to paragraph (b), the notice period for implementing revisions to the

Credit Assessment Price shall be specified by the Panel from time to time after

consultation with Imbalance Parties.

1.5 Credit Assessment Load Factor

1.5.1 The Panel shall establish and may from time to time revise, and shall provide to BSCCo

and make available to all Trading Parties, principles or guidance as to the basis on which

values of Credit Assessment Load Factor are to be assigned to BM Units of different types

(of such descriptions as the Panel shall decide).

1.5.2 Where (in accordance with Section K3) a Party applies to register a Primary BM Unit or a

Supplier is to be registered as holding Base BM Units:

(a) the CRA shall so notify BSCCo;

(b) BSCCo shall (in accordance with the prevailing principles or guidance

established by the Panel under paragraph 1.5.1) determine and notify to the

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CRA and to the Party a value of Credit Assessment Load Factor for such (or

each such) Primary BM Unit.

1.5.3 BSCCo may from time to time determine (in accordance with the prevailing principles or

guidance established by the Panel under paragraph 1.5.1) and notify to the CRA and the

Lead Party a revised value of Credit Assessment Load Factor for a Primary BM Unit,

together with the date (not sooner than 20 Business Days after such notification, unless the

Lead Party agrees otherwise) with effect from which such value is to become effective.

1.5.4 A Party shall, if requested by BSCCo, provide to BSCCo such information as BSCCo may

reasonably so request for the purposes of determining a value or revised value of Credit

Assessment Load Factor for any Primary BM Unit of which that Party is or has applied to

be Lead Party.

1.5.5 Any value of Credit Assessment Load Factor determined and notified pursuant to

paragraph 1.5.2(b) or 1.5.3 by BSCCo shall be the Credit Assessment Load Factor for the

BM Unit upon its registration or (as the case may be) the effective date notified under

paragraph 1.5.3, and shall be binding on all Parties for that purpose, but without prejudice

to paragraph 1.5.6.

1.5.6 The Lead Party in respect of a Primary BM Unit may, within a period of two months

following:

(a) the determination by BSCCo of a value or revised value of Credit Assessment

Load Factor, or

(b) any revision by the Panel of the principles or guidance under paragraph 1.5.1

by notice to the Panel Secretary request the Panel to re-determine the value of Credit

Assessment Load Factor for the time being applying in respect of the Primary BM Unit.

1.5.7 The Panel will consider any request of a Party pursuant to paragraph 1.5.6, wherever

practicable at the next meeting of the Panel, and will either confirm the prevailing value or

determine a new value of Credit Assessment Load Factor, and BSCCo shall notify the

decision of the Panel to the Party and the CRA.

1.5.8 Where the Panel is requested to redetermine the value of Credit Assessment Load Factor

for a Primary BM Unit, the Panel may do so without reference to the principles and

guidance for the time being established under paragraph 1.5.1 if it considers it appropriate

to do so.

1.5.9 Where the Panel determines (pursuant to paragraph 1.5.7) a new value of Credit

Assessment Load Factor, that value shall become the Credit Assessment Load Factor for

the Primary BM Unit with effect from the third Business Day (or such later day as the

Panel may decide) after the meeting of the Panel at which it was decided.

1.5A Annual Holiday Periods

For purposes associated with the Credit Assessment Load Factor the "Annual Holiday

Periods" for any BSC Year shall be the periods:

(a) commencing on the Thursday immediately prior to Good Friday and concluding

on the Tuesday next following Easter Monday (inclusive); and

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(b) commencing on the relevant commencement day and concluding on the

relevant conclusion day (inclusive) in accordance with the following table:

Christmas Eve falls:

commencement day:

New Years Day falls:

conclusion day:

Sunday preceding Saturday Sunday following Tuesday

Monday preceding Saturday Monday following Tuesday

Tuesday preceding Saturday Tuesday following Wednesday

Wednesday that day Wednesday following Thursday

Thursday that day Thursday following Sunday

Friday that day Friday following Sunday

Saturday that day Saturday following Tuesday

1.6 Import and Export Capabilities


(a) the BM Unit Credit Assessment Export Capability (BMCAECi) for a Primary

BM Unit on a CALF Working Day shall be the quantity (in MW) determined as

follows:

BMCAECi = WDCALFi * GCi

(b) the BM Unit Credit Assessment Export Capability (BMCAECi) for a Primary

BM Unit on a CALF Non-Working Day shall be the quantity (in MW)

determined as follows:

BMCAECi = NWD CALFi * GCi

(c) the BM Unit Credit Assessment Import Capability (BMCAICi) for a Primary

BM Unit on a CALF Working Day shall be the quantity (in MW) determined as

follows:

BMCAICi = WDCALFi * DCi

(d) the BM Unit Credit Assessment Import Capability (BMCAICi) for a BM Unit

on a CALF Non-Working Day shall be the quantity (in MW) determined as

follows:

BMCAICi = NWD CALFi * DCi

where:

WDCALFi is the Credit Assessment Load Factor applying in relation to the

relevant Primary BM Unit on a CALF Working Day;

NWDCALFi is the Credit Assessment Load Factor applying in relation to the

relevant Primary BM Unit on a CALF Non-Working Day;

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GCi is the Generation Capacity of the Primary BM Unit; and

DCi is the Demand Capacity of the Primary BM Unit.

1.6.2 For each Primary BM Unit the CRA shall:

(a) upon the registration of the Primary BM Unit, and

(b) thereafter upon any change in the Credit Assessment Load Factor, Generation

Capacity or (as the case may be) Demand Capacity of the Primary BM Unit

determine and record in the CRS the BM Unit Credit Assessment Export Capability or (as

the case may be) BM Unit Credit Assessment Import Capability for that Primary BM Unit.

1.7 Material Doubt Guidance

1.7.1 The Panel shall establish, and may from time to time revise, and shall provide to BSCCo

and shall make available to all Imbalance Parties, principles or guidance as to the basis on

which the existence or absence of material doubt is to be established by BSCCo for the

purposes of paragraph 3.4.3(a)(ii).

1.8 Final Physical Notification Data Review

1.8.1 The Panel may review a Lead Party’s compliance with Section Q3.2 and in connection

with any such review:

(a) the NETSO or the applicable Distribution System Operator shall provide to the

Panel such information reasonably requested by the Panel that is relevant to a

review of any submission of Final Physical Notification Data; and

(b) the Lead Party shall provide to the Panel such information reasonably requested

by the Panel to justify the Lead Party’s submission of Final Physical

Notification Data under Section Q3.2.

2. CREDIT COVER AND ENERGY CREDIT COVER

2.1 Provision of Credit Cover

2.1.1 An Imbalance Party may on any Business Day provide Credit Cover by delivering to the

FAA on behalf of the BSC Clearer:

(a) a Letter of Credit or Approved Insurance Product valid for an initial period of

not less than 3 months, and/or

(b) cash which will be credited by the FAA on behalf of the BSC Clearer to the

Reserve Account.

2.1.2 An Imbalance Party may from time to time (by giving notice to the FAA) alter the amounts

provided (as Credit Cover) between different Letters of Credit and/or Approved Insurance

Products and/or by way of Letter of Credit, Approved Insurance Product and cash,

provided that (but without prejudice to paragraph 2.3.1) the amount of the Credit Cover

provided by the Imbalance Party is not thereby reduced.

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2.1.3 The amount of an Imbalance Party's Credit Cover at any time shall be:

(a) the sum of:

(i) the maximum undrawn amount for the time being of any Letter of

Credit or Approved Insurance Product delivered by it, and

(ii) the principal amount of any cash paid by it (for value not later than

that time) and credited to the Reserve Account by the FAA on behalf

of the BSC Clearer;

less

(b) the sum of any amounts payable by the Imbalance Party in respect of Trading

Charges which:

(i) have become due for payment and have not been paid by the

Imbalance Party on the relevant Payment Date in accordance with

Section N, and

(ii) remain unpaid at such time.

Provided that if the amount so determined is negative, the amount of the Credit Cover shall

be zero.

2.1.4 The forms of the Letter of Credit (as provided in the definition thereof) are set out in

Annex M-1, Annex M-2 and Annex M-3.

2.1.5 The requirements for any Approved Insurance Product (as provided in the definition

thereof) are set out in Annex M-4.

2.2 Letter of Credit and Approved Insurance Product

2.2.1 Without prejudice to paragraphs 2.1.2 and 2.3, where an Imbalance Party has delivered a

Letter of Credit and/or an Approved Insurance Product (the "current" Letter of Credit or

the "current" Approved Insurance Product) by way of providing Credit Cover:

(a) not later than 10 Business Days before the current Letter of Credit or the current

Approved Insurance Product is due to expire, the Imbalance Party shall:

(i) provide to the FAA confirmation from the issuing bank or regulated

insurance company that the validity of the current Letter of Credit or

the current Approved Insurance Product will be extended by a

further period of not less than 3 months, or

(ii) provide to the FAA a new Letter of Credit or a new Approved

Insurance Product, valid for a period of not less than 3 months

commencing not later than the expiry of the current Letter of Credit

and/or the current Approved Insurance Product and for an amount

not less than that of the current Letter of Credit and/or current

Approved Insurance Product;

(b) if at any time the issuing bank or regulated insurance company ceases to have

the required credit rating specified in the definition of Letter of Credit or in the

definition of Approved Insurance Product, the Imbalance Party shall forthwith

and in any event within 3 Business Days after notice from the FAA, either:

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(i) provide to the FAA a new Letter of Credit or Approved Insurance

Product, issued by a bank or a regulated insurance company which

has such required credit rating, valid for a period of not less than 3

months; and/or

(ii) deliver cash to the FAA on behalf of the BSC Clearer in accordance

with paragraph 2.1.1

and the amount of any new Letter of Credit and/or an Approved Insurance

Product plus cash so delivered shall not be less than that of the current Letter of

Credit or the current Approved Insurance Product;

(c) where paragraph (b) applies, the current Letter of Credit or current Approved

Insurance Product shall continue to be counted in determining the Imbalance

Party's Credit Cover during the period (of up to 3 Business Days) until the

Imbalance Party provides a new Letter of Credit or Approved Insurance Product

as referred to in that paragraph.

2.2.2 If in relation to a Letter of Credit or Approved Insurance Product an Imbalance Party fails

to comply (by the time therein required) with paragraph 2.2.1(a) or (b), the FAA on behalf

of the BSC Clearer shall immediately, without notice to the Imbalance Party, demand

payment of the entire amount of the Letter of Credit or Approved Insurance Product and

credit the Reserve Account with the proceeds.

2.2.3 Where an Imbalance Party has provided a Letter of Credit or an Approved Insurance

Product, the FAA shall notify the Imbalance Party of the date on which it is due to expire,

not less than 20 Business Days before that date (but any failure of the FAA to do so shall

not prejudice the application of paragraphs 2.2.1 and 2.2.2).

2.3 Reduction of Credit Cover

2.3.1 If an Imbalance Party wishes at any time to reduce the amount of its Credit Cover:

(a) the Imbalance Party shall give notice to that effect to the ECVAA;

(b) the ECVAA shall determine and notify to the FAA and the Imbalance Party, on

the first Business Day after the expiry of the waiting period, the minimum

eligible amount;

(c) the Imbalance Party may, not later than the second Business Day following the

ECVAA's notification under paragraph (b), by notice to the FAA request, and

the FAA on behalf of the BSC Clearer shall consent to:

(i) a reduction in the amount of a Letter of Credit or Approved

Insurance Product provided by the Imbalance Party, and/or

(ii) a withdrawal of cash deposited by the Imbalance Party

provided that the amount of the Imbalance Party's Credit Cover following such

reduction and/or withdrawal is not less than the minimum eligible amount and

that that Imbalance Party is not in default of any obligation to make a payment

to the BSC Clearer and (subject to paragraph 2.3.1(A) and 2.3A) is not a

Defaulting Party (as defined in Section H3).

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2.3.1A Where at any time an Imbalance Party:

(a) is in Default solely by virtue of Section H 3.1.1(g); and

(b) has given a Withdrawal Notice pursuant to Section A5.1 which remains

effective; and

(c) is not prevented from withdrawing from the Code or ceasing to be a party to the

Framework Agreement by virtue of Section A5.1.3,

then such Imbalance Party shall not be precluded from being entitled to:

(1) a reduction in the amount of a Letter of Credit or an Approved Insurance

Product provided by it; and/or

(2) a withdrawal of cash deposited by it.


(a) the "waiting period" is the period of 10 Settlement Days commencing with the

Settlement Day on which the Imbalance Party's notice under paragraph 2.3.1(a)

was received by the ECVAA;

(b) the "minimum eligible amount" is the lowest amount for which the Imbalance

Party's Credit Cover Percentage, if it were redetermined for each Settlement

Period in the waiting period on the assumption that the Imbalance Party's Credit

Cover were equal to that amount, would be not greater than 75% in relation to

any such Settlement Period.


(a) the ECVAA has given to an Imbalance Party a level 1 default notice which was

not cancelled pursuant to paragraph 3.2.4, or notified an Imbalance Party that it

is in Credit Default;

(b) following such notice or notification the Imbalance Party provided additional

Credit Cover; and

(c) after the Imbalance Party provided additional Credit Cover, the ECVAA

established that, or it is determined pursuant to Section W that, the level 1

default notice should not have been given or that the Imbalance Party was not in

Credit Default.

then paragraph 2.3.4 shall apply.

2.3.4 In the circumstances described in paragraph 2.3.3:

(a) the Imbalance Party may reduce the amount of its Credit Cover, by an amount

not exceeding the amount of the additional Credit Cover provided by it as

referred to in paragraph 2.3.3(b), in accordance with paragraph 2.3, but on the

basis that:

(i) the waiting period is a period of one Settlement Day;

(ii) the figure of 80% is substituted for 75% in paragraph 2.3.2(b);

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(b) except as provided in paragraph 4, the Imbalance Party shall have no other

claim or remedy for having so provided additional Credit Cover.

2.3A Reduction of Credit Cover for Non-Supplier Trading Party

2.3A.1 Where a Non-Supplier Trading Party or a Virtual Lead Party which is in Default solely by

virtue of Section H 3.1.1(g) wishes to reduce the amount of its Credit Cover it shall make a

submission in writing.

2.3A.2 Following a request submitted in accordance with paragraph 2.3A.1, at the next Panel

meeting following confirmation by BSCCo that the Non-Supplier Trading Party or a

Virtual Lead Party meets the conditions set out in paragraph 2.3A.5 the Panel shall

consider and take a decision as to whether there is any reason why the Non-Supplier

Trading Party or a Virtual Lead Party should not be entitled to:

(a) a reduction in the amount of a Letter of Credit or Approved Insurance Product

provided by the Non-Supplier Trading Party or a Virtual Lead Party; and/or

(b) a withdrawal of cash deposited by the Non-Supplier Trading Party or a Virtual

Lead Party.

2.3A.3 At the time the Panel makes its decision:

(a) the amount of the Non-Supplier Trading Party or a Virtual Lead Party's Credit

Cover following such reduction and/or withdrawal shall be the amount

calculated in accordance with paragraph 2.3.A.6; and

(b) the Non-Supplier Trading Party is a Trading Party or a Virtual Lead Party

which is in Default solely by virtue of Section H.3.1.1(g); and

(c) the Non-Supplier Trading Party or a Virtual Lead Party meets the conditions set

out in 2.3A.5.

2.3A.4 If the Panel considers that there is insufficient information available to it to enable it to take

the decision referred to in paragraph 2.3A.2 in respect of a request by the Non-Supplier

Trading Party or a Virtual Lead Party for a reduction in Credit Cover then the Panel may

defer consideration of the request until the next succeeding Panel meeting provided that, in

so doing, the Panel shall prescribe the steps which need to be taken (by BSCCo, the Non

Supplier Trading Party, Virtual Lead Party or otherwise) to enable the Panel to decide the

matter at such subsequent meeting.

2.3A.5 In accordance with paragraph 2.3.A.2 the Non-Supplier Trading Party or a Virtual Lead

Party must meet each of the following conditions:

(a) at the date it gives notice pursuant to paragraph 2.3A.1:

(i) there are no Energy Contract Volume Notifications or Metered

Volume Reallocation Notifications in force, in respect of which the

Trading Party is a Contract Trading Party, relating to Settlement

Periods after that date and containing Energy Contract Volume Data

or Metered Volume Reallocation Data with non-zero values; and

(ii) the Non-Supplier Trading Party has terminated all ECVNA

Authorisations and MVRNA Authorisations made under its

authority;

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and

(b) the Non-Supplier Trading Party or a Virtual Lead Party shall have paid any and

all Trading Charges payable up to or on the Payment Date; and

(c) the Non-Supplier Trading Party or a Virtual Lead Party shall have paid any and

all BSC Charges payable up to the date that it gives notice pursuant to

paragraph 2.3A.1 in accordance with Section D Annex D4 and D5; and

(d) the Non-Supplier Trading Party or a Virtual Lead Party shall have completed

de-registration (in accordance with Section K and BSCP15) from ownership of

any BM Units for which it was registered by the date it gives notice pursuant to

paragraph 2.3A.1; and

(e) the Non-Supplier Trading Party or a Virtual Lead Party shall have an Energy

Indebtedness of zero or less than zero continuously over the period of 30 days

immediately preceding to the giving of notice pursuant to 2.3A.1.

2.3A.6 Any reduction in or withdrawal of Credit Cover in relation to 2.3A shall be made in

accordance with the following sum:

The amount of Credit Required (CR, in £) required by a Non-Supplier Trading Party or a

Virtual Lead Party shall be calculated as follows:

RxSP

RxCNRxSP jRx j

Fx

)(

),3,2,1(

)0,max(*

where:

RxSP is the count of all Settlement Periods falling any time up to a year before the

date on which the Non-Supplier Trading Party or a Virtual Lead Party in

question ceased trading for which the Rx Reconciliation Run has been

performed or if this number is less than 1440 (30 days) then 1440.

ΣRx(j) represents summation over all Settlement Periods falling within a year before

the date on which the Non-Supplier Trading Party or a Virtual Lead Party in

question ceased trading for which the Rx Reconciliation Run has been

performed or if the number of Settlement Periods in this sum is less than 1440,

then the summation over the last 1440 Settlement Periods for which the Rx

Reconciliation Run has been performed.

RxCj represents the Reconciliation Charges (as defined in N 6.4.3) payable by the

Non-Supplier Trading Party or a Virtual Lead Party (summed across its

accounts) due to the Rx Reconciliation Run in the relevant Settlement Period.

NRxSP represents the count of all Settlement Periods up to and including the date on

which the Non-Supplier Trading Party or a Virtual Lead Party ceased trading

for which the Rx Reconciliation Run has not been performed.

For the purposes of Section 2.3A the date that the Non-Supplier Trading Party or a Virtual

Lead Party ceased trading shall be the earliest date on which there are no Energy Contract

Volume Notifications or Metered Volume Reallocation Notifications in force in respect of

which the Non-Supplier Trading Party or a Virtual Lead Party is a Contract Trading Party

and there is no credited Energy in either the Production or Consumption Account of such

Non-Supplier Trading Party or a Virtual Lead Party.

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2.3A.7 For the purposes of paragraph 2.3A a Non-Supplier Trading Party shall be a Trading Party

which is not:

(a) a Supplier; or

(b) a Subsidiary Party in a Metered Volume Reallocation Notification where the

Lead Party in the Metered Volume Reallocation Notification was a Supplier

where the percentage value is greater than zero;

and in all cases this shall have been the case for any Settlement Day for which a Final

Reconciliation Settlement Run has not been performed.

2.3A.8 For the avoidance of doubt, paragraph 2.3.3 applies in connection with this paragraph 2.3A.

2.4 Determination of Energy Credit Cover

2.4.1 An Imbalance Party's "Energy Credit Cover" (ECCp) at any time is the amount (in MWh)

determined as:

CCp / CAP

where:

CCp is the amount of the Imbalance Party's Credit Cover at that time;

CAP is the Credit Assessment Price prevailing at such time.

2.4.2 The FAA shall:

(a) monitor the amount of each Imbalance Party's Credit Cover;

(b) determine in accordance with paragraph 2.4.1 the amount from time to time of

each Imbalance Party's Energy Credit Cover;

(c) notify to the ECVAA, the Imbalance Party and BSCCo the amount of each

Trading Party's Energy Credit Cover:

(i) on the day on which that Party becomes an Imbalance Party; and

(ii) upon each occasion on which the amount of such Energy Credit

Cover changes, as soon as reasonably practicable after becoming

aware of the change.

2.4.3 For the purposes of this Section M, a reference to the amount of an Imbalance Party's

Energy Credit Cover is to the amount most recently notified by the FAA to the ECVAA

under paragraph 2.4.2(c) (or to an amount of zero if no such amount has been so notified).

2.4.4 For the purposes of paragraph M4, the time at which (upon a change as referred to in

paragraph 2.4.2©(ii)) the correct amount of an Imbalance Party's Energy Credit Cover

should be notified by the FAA to the ECVAA, shall be 17:00 hours on the Business Day

after the change occurred, or such earlier time as the correct amount was actually so

notified.

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3. CREDIT DEFAULT STATUS

3.1 General

3.1.1 In relation to any Settlement Period, an Imbalance Party's "Credit Cover Percentage"

(CCPpj, %) is:

(a) where ECCp does not equal zero:

CCPpj = (EIpj / ECCp ) * 100

(b) where ECCp equals zero:

then,

if EIpj = 0, then CCPpj = 0

if EIpj > 0, then CCPpj = + 1000

if EIpj < 0, then CCPpj = 1000

where

EIpj is the Imbalance Party's Energy Indebtedness in relation to that Settlement

Period;

ECCp is the amount of the Imbalance Party's Energy Credit Cover most recently

notified by the FAA under paragraph 2.4.2(c).

3.1.2 In relation to a Settlement Period, an Imbalance Party's Credit Cover Percentage

"becomes" greater, or not greater, than a specified percentage where:

(a) such Credit Cover Percentage in relation to that Settlement Period is greater, or

(as the case may be) not greater, than that percentage, and

(b) the Imbalance Party's Credit Cover Percentage in relation to the preceding

Settlement Period was not greater, or (as the case may be) was greater, than that

percentage.

3.1.3 Where under this Section M:

(a) the ECVAA is required or entitled to take any step in relation to any Settlement

Period in which an Imbalance Party's Credit Cover Percentage becomes greater,

or not greater, or less, than a specified percentage, and

(b) the ECVAA does not (within the time required under this Section M) take that

step in relation to that Settlement Period

nothing in this Section M shall prevent the ECVAA from taking that step in relation to any

later Settlement Period in relation to which that Imbalance Party's Credit Cover Percentage

remains greater, or (as the case may be) not greater, or less, than the specified percentage.

3.1.4 The ECVAA will:

(a) for each Settlement Period, as soon as practicable after the Submission

Deadline, determine the Credit Cover Percentage for each Imbalance Party; and

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(b) for each Settlement Day, as soon as reasonably practicable after the end of the

Settlement Day, notify each Imbalance Party of its Credit Cover Percentage as

calculated in respect of the last Settlement Period in that Settlement Day.

3.2 Level 1 Credit Default

3.2.1 If in relation to any Settlement Period an Imbalance Party's Credit Cover Percentage, as

determined by the ECVAA, becomes greater than 80%:

(a) the ECVAA shall, as soon as possible after the Submission Deadline:

(i) give notice ("level 1 default notice") to the Imbalance Party to that

effect (in addition to the notification under paragraph 3.1.4); and

(ii) submit a copy of such notice to BSCCo; and

(b) the Imbalance Party may, at any time before the expiry of the Query Period,

give notice ("default query notice") to the ECVAA that it considers that its

Credit Cover Percentage has been determined erroneously, and may provide

information supporting its view.

3.2.2 In relation to any level 1 default notice, the "Query Period" is the period commencing at

the Submission Deadline for the Settlement Period in relation to which the ECVAA

determines that the Imbalance Party's Credit Cover Percentage becomes greater than 80%

and ending after the shortest duration to include:

(a) 24 hours; and

(b) five consecutive hours occurring during Business Hours in a single Business

Day

after the time at which the level 1 default notice is treated as received by the Imbalance

Party (in accordance with Section O).

3.2.3 If an Imbalance Party gives a default query notice to the ECVAA:

(a) the ECVAA shall, before the expiry of the Query Period, review its

determination of the Imbalance Party's Credit Cover Percentage and if the

Imbalance Party so requests, shall discuss the same by telephone with a

representative of the Imbalance Party;

(b) if requested by the ECVAA, the Imbalance Party shall provide further

information and explanation in support of its view that the ECVAA's

determination of the Credit Cover Percentage was erroneous;

(c) at the expiry of the Query Period (and whether or not any consensus has been

reached between the ECVAA and the Imbalance Party as to the matters notified

by the Imbalance Party), the ECVAA will redetermine the Imbalance Party's

Credit Cover Percentage for the relevant Settlement Period (and for the

avoidance of doubt, such redetermination may be the same as its original

determination), and will give notice to the Imbalance Party of the Credit Cover

Percentage as redetermined;

(d) the ECVAA will correct its determination of the Imbalance Party's Credit Cover

Percentage for any subsequent Settlement Period, so far as such determination

is shown to be erroneous by reference to (or to the matters taken into account

in) the ECVAA's redetermination under paragraph (c).

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3.2.4 If the redetermined Credit Cover Percentage under paragraph 3.2.3(c) is not greater than

80% the level 1 default notice will be deemed to be cancelled and no further action taken

under this paragraph 3.2 in relation to Energy Indebtedness in the relevant Settlement

Period (but without prejudice to the application of this paragraph 3.2 in relation to any later

Settlement Period).

3.2.5 If the redetermined Credit Cover Percentage under paragraph 3.2.3(c) is greater than 80%,

or if no default query notice was given, the Imbalance Party shall secure that its Credit

Cover Percentage becomes not greater than 75% in relation to at least one Settlement

Period in the period (the "Level 1 Credit Default Cure Period"):

(a) commencing on the expiry of the Query Period, and

(b) expiring at 2400 hours on the first Business Day after the day in which the

Query Period expires.

3.2.6 At the end of the Level 1 Credit Default Cure Period, if the Credit Cover Percentage (as

determined by the ECVAA in relation to each Settlement Period) was greater than 75% in

relation to every Settlement Period in the Level 1 Credit Default Cure Period, then subject

to an authorisation notice being in force in relation to that Imbalance Party pursuant to

paragraph 3.4 (or if later, with effect from such notice being given):

(a) the Trading Party shall be in "Level 1 Credit Default";

(b) the ECVAA shall (as soon as reasonably practicable following the expiry of the

Level 1 Default Cure Period) notify the Imbalance Party that it is in Level 1

Credit Default and post on the BMRS or the BSC Website a Level 1 Credit

Default statement in relation to the Imbalance Party.

3.2.7 The Imbalance Party will cease to be in Level 1 Credit Default with effect from the

Submission Deadline for the next Settlement Period (if any) in relation to which the

Imbalance Party's Credit Cover Percentage becomes not greater than 75%; and as soon as

practicable after the Submission Deadline for that Settlement Period the ECVAA will

cancel the Level 1 Credit Default statement on the BMRS or (as the case may be) the BSC

Website.

3.3 Level 2 Credit Default

3.3.1 If, in relation to any Settlement Period (period J), an Imbalance Party's Credit Cover

Percentage as determined by the ECVAA becomes greater than 90%, irrespective of

whether or not Settlement Period J falls in a Query Period or a Level 1 Credit Default Cure

Period (in accordance with paragraph 3.2), then subject to an authorisation notice being in

force in relation to that Imbalance Party pursuant to paragraph 3.4 (or if later, with effect

from such notice being given):

(a) the Imbalance Party shall be in "Level 2 Credit Default";

(b) the ECVAA shall, as soon as reasonably practicable after the Submission

Deadline for Settlement Period J, notify the Imbalance Party that it is in Level 2

Credit Default and post a Level 2 Credit Default statement on the BMRS or the

BSC Website in relation to the Imbalance Party.

3.3.2 The Imbalance Party will cease to be in Level 2 Credit Default with effect from the

Submission Deadline for the next Settlement Period (if any) in relation to which the

Imbalance Party's Credit Cover Percentage becomes not greater than 90%; and as soon as

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practicable after the Submission Deadline for that Settlement Period the ECVAA will

cancel the Level 2 Credit Default statement on the BMRS or the BSC Website.

3.3.3 Where an Imbalance Party is in Level 2 Credit Default:

(a) for the purposes of the provisions of Section P as to the refusal and rejection of

Energy Contract Volume Notifications and Metered Volume Reallocation

Notifications, subject to paragraph 3.3.5:

(i) the "Credit Default Refusal Period" is the period from the

Submission Deadline for Settlement Period J until the Submission

Deadline for the Settlement Period after the first subsequent

Settlement Period in relation to which the Credit Cover Percentage

for the Imbalance Party becomes not greater than 90%;

(ii) the "Credit Default Rejection Period" is the period from the

Submission Deadline for Settlement Period J+3 until the Submission

Deadline for the third Settlement Period after the first subsequent

Settlement Period in relation to which the Credit Cover Percentage

for the Imbalance Party becomes not greater than 90%;

(b) as soon as reasonably practicable after the Submission Deadline for Settlement

Period J, the ECVAA will post on the BMRS or (as the case may be) the BSC

Website a notice of the start of the Credit Default Rejection Period in relation to

the Imbalance Party (but a failure to post such notice will have no effect in

relation to the start of the Credit Default Rejection Period).

3.3.4 For the purposes of paragraph 3.3.3, a relevant Query Period is the Query Period in relation

to any Settlement Period, not later than Settlement Period J, for which the Imbalance Party

had given a default query notice.

3.3.5 The following provisions apply for the purposes of addressing delays in the completion of

credit checking (and references in the Code to Credit Default Refusal Periods and Credit

Default Rejection Periods shall be construed accordingly):

(a) a Credit Default Refusal Period and a Credit Default Rejection Period shall not

commence if credit checking for Settlement Period J is not completed by the

half-hour deadline, but without prejudice to paragraph 3.1.3;

(b) a Credit Default Refusal Period excludes the period from the Submission

Deadline for Settlement Period J until credit checking for that Settlement Period

is completed;

(c) a Credit Default Refusal Period excludes the period (if any) from completion of

credit checking for the Submission Deadline for the first subsequent Settlement

Period referred to in paragraph 3.3.3(a)(i) until the half-hour deadline;

(d) if a Credit Default Refusal Period has commenced and credit checking for any

Settlement Period has not been completed by the half-hour deadline, the Credit

Default Refusal Period shall be suspended (and accordingly exclude the period)

from the time at which the ECVAA determines that credit checking has not

been completed by the half-hour deadline, until such time as credit checking for

a Settlement Period is completed by the half-hour deadline;

(e) if a Credit Default Rejection Period has commenced and credit checking for any

Settlement Period (the "relevant" Settlement Period) has not been completed by

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the half-hour deadline, the Submission Deadline for the third Settlement Period

after the relevant Settlement Period shall be considered (for the purposes of the

Code including Sections P2.5.2 and P3.5.2) not to fall within the Credit Default

Rejection Period.

3.3.6 For the purposes of paragraph 3.3.5, in relation to each Settlement Period:

(a) completion of credit checking means the time (determined by the ECVAA) at

which the ECVAA completes the determination, for each Imbalance Party, of

Credit Cover Percentage pursuant to paragraph 3.1.4(a); and references to credit

checking being completed shall be construed accordingly;

(b) references to a case in which credit checking is not completed by the half-hour

deadline include a case where the ECVAA has earlier determined that it will be

unable to complete credit checking by that deadline;

(c) if requested by BSCCo in relation to any Settlement Period, the ECVAA will

inform BSCCo of the time of completion of credit checking;

(d) the half-hour deadline means the time of the Submission Deadline for the

following Settlement Period.

3.3.7 Without prejudice to paragraph 3.1.3, where an Imbalance Party has not been treated as in

Level 2 Credit Default in relation to a Settlement Period, irrespective of any error made by

the ECVAA in the application of the provisions of this Section M, no Party may raise a

Trading Dispute to the effect that the Imbalance Party should have been treated as being in

Credit Default or that a Credit Default Refusal Period or Credit Default Rejection Period

should have commenced in relation to the Imbalance Party.

3.3.8 Not used.

3.3.9 Not used.

3.3.10 Not used.

3.3.11 If in relation to any Settlement Period an Imbalance Party's Credit Cover Percentage, as

determined by the ECVAA, becomes greater than 100% the ECVAA shall as soon as

reasonably practicable after the Submission Deadline:

(a) give a notice to the Imbalance Party which states that Imbalance Party's Credit

Cover Percentage and alerts it to the provisions of paragraph H3.1.1(c); and

(b) submit a copy of such notice to BSCCo.


(a) the application of paragraph 3.3.11 to an Imbalance Party in relation to a

Settlement Period shall not have the affect of excluding the application of any

other relevant paragraph of Section M in relation to that Imbalance Party in that

Settlement Period; and

(b) any failure or delay by the ECVAA to give a notice required by paragraph

3.3.11 shall not be taken into account for the purposes of determining the expiry

of any of the time periods specified in paragraph H3.1.1(c).

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3.4 Authorisation by BSCCo

3.4.1 In accordance with paragraphs 3.2.6 and 3.3.1, an Imbalance Party will not be in Credit

Default unless:

(a) BSCCo has given to the ECVAA an authorisation notice in relation to that

Imbalance Party; and

(b) the authorisation notice remains in force.

3.4.2 For the purposes of this Section M, an "authorisation notice" is a notice authorising the

ECVAA, at any time while the notice is in force, to take the steps referred to in paragraph

3.2.6(b) and 3.3.1(b) in relation to an Imbalance Party.

3.4.3 Subject to paragraph 3.4.3A, where the ECVAA submits to BSCCo a copy of a level 1

default notice under paragraph 3.2.1 in relation to an Imbalance Party:

(a) BSCCo shall promptly upon the earlier of:

(i) the expiry of the Query Period during which the relevant Imbalance

Party's Credit Cover Percentage becomes greater than 90%;

(ii) the expiry of the Submission Deadline for Settlement Period J falling

within a Level 1 Credit Default Cure Period during which the

relevant Imbalance Party's Credit Cover Percentage becomes greater

than 90%;

(iii) not used; or

(iv) the expiry of a Level 1 Credit Default Cure Period during which the

relevant Imbalance Party's Credit Cover Percentage becomes not

greater than 90%,

give an authorisation notice to the ECVAA unless:

(1) BSCCo has been notified by the ECVAA that in the

ECVAA's opinion there is, or

(2) BSCCo otherwise has substantial evidence that, or other

reasons to believe that, there is

(in accordance with paragraph 1.2.1(e) and the prevailing principles or guidance

established by the Panel in accordance with paragraph 1.7) a material doubt as

to whether, at the time, the systems and processes used by the ECVAA are

giving correct determinations of the values of Credit Cover Percentage for that

Imbalance Party;

(b) subject to paragraph (c), BSCCo shall not be required to make any enquiry of

the Imbalance Party or any other person (but in accordance with paragraph

1.2.1(f) will take into account any information already provided by the

Imbalance Party which is relevant to the matter in paragraph (a));

(c) if (pursuant to paragraph (a)(1) or (2)) BSCCo withholds an authorisation

notice:

(i) BSCCo shall investigate the matter; and

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(ii) if at any time it concludes that there is not (or no longer is) any

material doubt as to the matter in paragraph (a), BSCCo shall

promptly give the authorisation notice.

3.4.3A BSCCo shall not give an authorisation notice to the ECVAA in relation to an Imbalance

Party under paragraph 3.4.3 if:

(a) Section G4 applies to that Imbalance Party; and

(b) that Imbalance Party’s Credit Cover Percentage is greater than 80% as a direct

result of it being subject to a direction given by the Secretary of State or action

taken on behalf of Her Majesty’s Government.

3.4.3B If paragraph 3.4.3A applies:

(a) BSCCo shall investigate the matter; and

(b) if at any time it concludes that the fact that the Imbalance Party’s Credit Cover

is greater than 80% is not (or no longer is) the direct result of a direction from

the Secretary of State or action taken on behalf of Her Majesty’s Government,

BSCCo shall promptly give the authorisation notice under paragraph 3.4.3(a).

3.4.4 An authorisation notice shall remain in force until such time as:

(a) it is established or determined (as provided in paragraph 3.5.1) that the Credit

Cover Percentage of Imbalance Party was not and has not since become greater

than 80%; or

(b) the ECVAA notifies BSCCo that the Imbalance Party's Credit Cover Percentage

has become lower than 75% for any Settlement Period after the authorisation

notice was given; or

(c) BSCCo in its discretion determines that (as a result of the passage of time, or

because of any other matter of which notice has been given to BSCCo) the

authorisation notice should lapse, and gives notice to that effect to the ECVAA.

3.4.5 For the avoidance of doubt, paragraph 3.4.3 is without prejudice to the ability of a Party to

raise a Trading Dispute in respect of any step taken or determination made by BSCCo or

the ECVAA pursuant to this Section M.

3.4.6 Notwithstanding any other provision of this Section M, BSCCo shall and shall be treated as

having refused to give to the ECVAA any authorisation notice in relation to the

Replacement Supplier in respect of any Settlement Period for which the Submission

Deadline falls within the first 14 days after the Appointment Day for such Replacement

Supplier (counting the Appointment Day itself for these purposes).

3.5 Result of Trading Dispute, etc

3.5.1 If at any time a Imbalance Party has been treated as in Credit Default, and it is established

or pursuant to the resolution of a Trading Dispute determined that (by reason of such

Imbalance Party's Credit Cover Percentage having been erroneously determined or

otherwise) such Imbalance Party should not have been so treated:

(a) with effect as soon as practicable following the resolution of such Trading

Dispute, BSCCo will post a notice on the BMRS or the BSC Website or both,

referring to the relevant notices of Credit Default and stating that the Imbalance

Party should not have been in Credit Default;

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(b) the ECVAA shall take account of such determination in the further application

(in relation to Settlement Periods after such resolution) of this Section M in

respect of that Imbalance Party;

(c) the determination that the Imbalance Party should not have been treated as in

Credit Default shall not affect or prejudice:

(i) the treatment (as refused or rejected) of any Energy Contract

Volume Notifications or Metered Volume Reallocation Notifications

which were treated as refused during the relevant Credit Default

Refusal Period or treated as rejected during the relevant Credit

Default Refusal Period, and no adjustment or reconciliation shall be

made in respect thereof;

(ii) any other step taken under the Code while the Party was treated as in

Credit Default,

but subject thereto, the Imbalance Party shall be treated for the purpose of the

Code as never having been in Credit Default;

(d) the Imbalance Party shall have no other right or remedy in respect thereof

except as described in paragraph (a) and (b) and pursuant to paragraph 4 where

applicable.

3.6 BMRS and BSC Website

3.6.1 Provisions of this Section M requiring any statement or notice to be posted or cancelled on

the BMRS or the BSC Website shall be subject to the provisions of Section V4.

4. CREDIT COVER ERRORS AND COMPENSATION

4.1 Introduction

4.1.1 If an Imbalance Party's Credit Cover Percentage is incorrectly determined and as a result a

level 1 default notice was given to the Imbalance Party and/or the Imbalance Party was in

Credit Default, the Imbalance Party shall be entitled to be paid compensation ("Credit Cover

Error Compensation") subject to and in accordance with the further provisions of this

paragraph 4.

4.1.2 Any Credit Cover Error Compensation paid to an Imbalance Party pursuant to this

paragraph 4 shall be paid by BSCCo and accordingly shall be a BSC Cost; provided that

BSCCo shall not be required to include any amount in respect of such compensation in the

Annual Budget or to revise the Annual Budget if any such compensation becomes payable.

4.1.3 The provisions of this paragraph 4 are independent of any provision of a BSC Agent

Contract pursuant to which any amount may be payable (by way of damages, liquidated

damages, service credit or otherwise) in respect of the circumstances resulting in a Credit

Cover Error; and it is acknowledged and agreed that any such amount will be paid to

BSCCo and will accordingly reduce BSC Costs.

4.1.4 For the purposes of this paragraph 4:

(a) there is a "Credit Cover Error" where the Credit Cover Percentage determined

(in the application of paragraph 3) for an Imbalance Party in respect of any

Settlement Period was incorrect, and as a result (in relation to that or any earlier

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Settlement Period) a level 1 default notice was given to the Imbalance Party or

the Imbalance Party was in Level 2 Credit Default;

(b) in relation to a Credit Cover Error

(i) the "first error" Settlement Period is the first Settlement Period in

relation to which the Credit Cover Error occurred (in other words,

for which the incorrect Credit Cover Percentage was determined as

described in paragraph (a));

(ii) the "Credit Cover Error Period" is the period commencing on the

earlier of:

(1) in relation to the first error Settlement Period, the expiry

of the Query Period (the "error" Query Period) , and

(2) where as a result of the Credit Cover Error the Imbalance

Party was determined to be in Level 2 Credit Default, the

start of the Credit Default Rejection Period

and continuing until the first Settlement Period (after the Credit

Cover Error has been corrected) for which the Imbalance Party's

Credit Cover Percentage Energy is determined (in the application of

paragraph 3) without such error.

4.2 Credit Cover Error Compensation

4.2.1 The amount of Credit Cover Error Compensation (CCECp, in £) payable to an Imbalance

Party in respect of a Credit Cover Error shall be determined as follows:

CCECp = j max (ECA pj, ECB pj, 0)

where:

j is summation over all Settlement Periods falling within the Credit Cover Error

Period;

ECA pj is the Credit Cover Error Interest Amount, determined in accordance with

paragraph 4.2.2;

ECB pj is the Credit Cover Error Imbalance Amount, determined in accordance with

paragraph 4.2.3.

4.2.2 For a Settlement Period within the Credit Cover Error Period, ECA pj shall be determined

as follows:

ECApj = {0.02 / (365 * 48)} * CAP * {( EEIpj / 0.8 ) – max (IECCp, ( EIpj / 0.8 ))}

where:

EEIpj (Erroneous Energy Indebtedness) is an amount (in £), determined as:

(i) (ECCp * CCPpj), or

(ii) if ECCp is zero, EIpj

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in respect of the first error Settlement Period, as incorrectly determined or

redetermined (on the basis of the Credit Cover Error) in the application of

paragraph 3 as at the expiry of the error Query Period;

IECCp (Initial Energy Credit Cover) is the correct amount of the Imbalance Party's

Energy Credit Cover as at the Submission Deadline for the first error Settlement

Period;

EIpj is the Imbalance Party's Energy Indebtedness for Settlement Period j, as

correctly determined after the Credit Cover Error was corrected.

4.2.3 For a Settlement Period within the Credit Cover Error Period, ECBpj shall be determined as

follows:

ECB pj = (SBPj – SSPj) * a min (REJaj, QAEIaj) * FLAGpj

where:

j is summation over both Energy Accounts of the Imbalance Party;

REJaj (Credit Cover Error Rejection Volume) is the volume (in MWh) determined for

Energy Account a of the Imbalance Party as the sum of:

(i) the sum of the Energy Contract Volume Data specified in Energy

Contract Volume Notifications for which the Imbalance Party holds

the Energy (From) Account less the sum of Energy Contract Volume

Data specified in Energy Contract Volume Notifications for which

the Imbalance Party holds the Energy (To) Account,

(ii) the aggregate of the Metered Volume Reallocation Fixed Data, and

the aggregate amount determined in accordance with paragraph 4.2.5

in respect of Metered Volume Reallocation Percentage Data, which

was the subject of Metered Volume Reallocation Notifications;

which (pursuant to Section P2.5.2 or P3.5.2) were treated as rejected and

ineffective in respect of Settlement Period j by reason of there being a Credit

Default Rejection Period in respect of the Imbalance Party;

FLAGpj shall have the value 1 if the condition in paragraph 4.2.4 is satisfied and

otherwise the value zero.

4.2.4 The condition (in relation to Settlement Period j) is that, if the Imbalance Party's Credit

Cover Percentage had been correctly determined (with the Credit Cover Error corrected),

but otherwise assuming that all steps and notifications (by the ECVAA and BSCCo) under

paragraphs 3.3 and 3.4 had been taken in accordance with that paragraph, Settlement

Period j would not have fallen within a Credit Default Rejection Period.

4.2.5 The value of REJaj (so far as relating to Metered Volume Reallocation Percentage Data)

shall be determined:

(a) by reference to the formula in Section T4.5.1 by which Credited Energy

Volume is determined, but assuming a value of one for the term TLMij and

disregarding the term QMFRiaj in that formula; and

(b) by reference to BM Unit Metered Volumes as determined in the Volume

Allocation Run (for the Settlement Period j) most recently carried out before the

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date upon which the Imbalance Party submits its claim under paragraph

4.3.1(a).

4.3 Procedures

4.3.1 A Imbalance Party shall not be entitled to be paid Credit Cover Error Compensation:

(a) unless the Imbalance Party has submitted a claim for such compensation to

BSCCo, within a period of 3 months after the Settlement Day in which the first

error Settlement Period fell, setting out the amount which the Imbalance Party

considers to be so payable and the basis on which the Imbalance Party has

calculated such amount;

(b) if the amount which would be payable by way of Credit Cover Error

Compensation (determined for the whole of the Credit Error Period) is less than

£1,000.

4.3.2 BSCCo shall determine and make payment of the amount payable by way of Credit Cover

Error Compensation to an Imbalance Party as soon as reasonably practicable after the

Imbalance Party submits its claim under paragraph 4.3.1(a).

4.3.3 The ECVAA shall provide all such assistance and information as BSCCo may reasonably

require to enable it to determine any amount payable by way of Credit Cover Error

Compensation.

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ANNEX M-1

Form of Letter of Credit (UCP 500)

To: ELEXON Clear Limited (the "BSC Clearer")

At the request of [name of Imbalance Party] (the "applicant") we have opened in favour of the BSC

Clearer our irrevocable Letter of Credit Number ( ) for £[ ] (amount in words).

This Letter of Credit is available against sight drafts issued by the BSC Clearer accompanied by a

signed statement issued by the BSC Clearer stating either:

(a) that the applicant has failed to pay to BSC Clearer the amount you are claiming under the

terms of the Balancing and Settlement Code (as modified from time to time, the "Code");

or

(b) that the amount of the Letter of Credit has become payable pursuant to the Code by reason

of the Letter of Credit not being extended or replaced in accordance with the requirements

of the Code or that we have ceased to have the credit rating required under the Code.

Payments under this Letter of Credit shall be effected immediately to [insert relevant account details].

Partial drawings are allowed hereunder.

Claims under this Letter of Credit shall be made at the counters of [insert details of the branch of the issuing/advising/confirming bank].

This Letter of Credit expires on [ ].

We waive any right to set off against any amount payable hereunder any claims we may have against

you.

Any sight draft and statement to be issued by the BSC Clearer for the purposes of this Letter of Credit

may be signed by [insert name of FAA] (the "FAA") on behalf of the BSC Clearer.

Any demand hereunder must comply with all the above requirements and signatures (on behalf of the

BSC Clearer or the FAA) thereon must be confirmed by your Bankers.

This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits 1993

Revision, ICC Publication No. 500 (UCP500) published by the International Chamber of Commerce.

We undertake that drafts and documents presented under the terms of this Letter of Credit which are a

complying presentation will be honoured upon presentation.

This Letter of Credit shall be governed by and construed in accordance with English law.

For and on behalf of [ ] Bank [Plc].

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ANNEX M-2

Form of Letter of Credit (UCP 600)








or






Claims under this Letter of Credit shall be made at the counters of [insert details of the branch of the issuing/advising/confirming bank].

This Letter of Credit expires on [ ].


you.

Any sight draft and statement to be issued by the BSC Clearer for the purpose of this Letter of Credit




This Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits 2007

Revision, ICC Publication No. 600 (UCP600) published by the International Chamber of Commerce.





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ANNEX M-3

Form of Letter of Credit (ISP98)








or






Claims under this Letter of Credit shall be made at the counters of [insert details of the branch of the issuing/advising/confirming bank] [insert exact location within the building] at [insert time] to [insert person to whom the Letter of Credit should be presented] by [insert medium of presentation i.e. delivery of paper documents].

This Letter of Credit expires on [ ]


you.

Any sight draft and statement to be issued by the BSC Clearer for the purpose of this Letter of Credit




This Letter of Credit is subject to International Standby Practices 1998 (ISP98) published by the

International Chamber of Commerce.





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ANNEX M-4

1. REQUIREMENTS OF AN APPROVED INSURANCE PRODUCT

1.1 Providers of an Approved Insurance Product

1.1.1 A provider of an Approved Insurance Product may be:

(a) an insurance company or insurance companies regulated in the United Kingdom

which shall meet the credit rating as specified in the definition of Approved

Insurance Product; or

(b) a bank or banks which shall meet the criteria set out in the definition of Letter

of Credit.

1.2 Requirements of an Approved Insurance Product

1.2.1 An Approved Insurance Product shall include a guarantee that payments made under it will

be effected within 3 Business Days of a claim being presented in accordance with the

specific Approved Insurance Product.

1.2.2 Except as otherwise approved by the Panel, an Approved Insurance Product shall:

(a) be in favour of the BSC Clearer;

(b) be denominated in Sterling and be available for payment in the United

Kingdom;

(c) be unconditional and irrevocable;

(d) include a waiver of any rights of set off against any amount payable thereunder;

(e) allow for partial drawings; and

(f) be governed by English Law and shall be enforceable in the courts of England

and Wales

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N – 1 of 35 Effective Date: 29 March 2019

SECTION N: CLEARING, INVOICING & PAYMENT

1. INTRODUCTION

1.1 General

1.1.1 This Section N sets out:

(a) the means by which the BSC Clearer will receive from, or pay to, each Payment

Party an amount in respect of Trading Charges and Reconciliation Charges on

each Payment Date;

(b) data requirements of, and procedures to be followed by, the FAA in order to

determine and notify to Payment Parties the amounts payable by them in respect

of Trading Charges and Reconciliation Charges;

(c) procedures for the FAA and Payment Parties to facilitate and make payments in

respect of Trading Charges and Reconciliation Charges;

(d) the obligations of Payment Parties and the BSC Clearer to make payments in

respect of Trading Charges and Reconciliation Charges, and consequences of

any of them failing to make such payment; and

(e) the basis on which amounts paid in respect of Trading Charges and

Reconciliation Charges, and on which Credit Cover provided in accordance

with Section M, will be held by the BSC Clearer.

1.1.2 For the avoidance of doubt, this Section N applies in relation to Trading Charges,

Reconciliation Charges and other payments due from Parties pursuant to this Section N

only and not to any BSCCo Charges or other payments due from Parties pursuant to the

Code.

2. CLEARING ARRANGEMENTS

2.1 General

2.1.1 In this paragraph 2:

(a) references to a Party are to an Imbalance Party or the NETSO and do not

include the BSC Clearer; and

(b) references to a Defaulting Party are to a Party in relation to whom:

(i) a Default within Section H3.1.1 (g) has occurred; or

(ii) a notice within Section H3.2.1(f) has been received by the FAA on

behalf of the BSC Clearer.

2.2 The BSC Clearer as counter party to each Party

2.2.1 Each Party shall be entitled to receive from the BSC Clearer (and not from any other

Party), and shall be obliged to pay to the BSC Clearer (and not to any other Party), amounts

(pursuant to the Code) in respect of Trading Charges and Reconciliation Charges

(determined pursuant to paragraphs 2.8.2 and 6.4.2 and including Ad-hoc Trading Charges

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in accordance with paragraph 6.9.1(b)) and the BSC Clearer shall be correspondingly

obliged and entitled.

2.2.2 The BSC Clearer’s obligations to pay amounts in respect of Trading Charges and

Reconciliation Charges (determined pursuant to paragraphs 2.8.2 and 6.4.2 and including

Ad-hoc Trading Charges in accordance with paragraph 6.9.1(b)) shall be subject to the

provisions of paragraphs 2.4 to 2.7 (inclusive).

2.3 Determination of payments for Trading Charges

2.3.1 The obligation to pay an amount in respect of Trading Charges for a Settlement Day shall

be calculated in accordance with Section T so that there is one obligation to pay an amount

(if any) in respect of those Trading Charges.

2.4 Payment netting

2.4.1 If, on any Business Day, amounts in respect of Trading Charges (determined in accordance

with paragraph 2.3 and, where applicable, paragraph 6.10), amounts in respect of

Reconciliation Charges (determined in accordance with paragraphs 2.8.2 and 6.4.2 and

including Ad-hoc Trading Charges in accordance with paragraph 6.9.1(b)) and amounts in

respect of interest (determined in accordance with paragraph 4.6.3) would otherwise be

payable by each of a Party and the BSC Clearer to the other, then the obligations to make

payment of such amounts will automatically be cancelled and replaced by a single

obligation upon the Party or the BSC Clearer (as the case may be) who would have had to

pay the larger aggregate amount to pay the net amount (if any) to the other.

2.5 Conditions for payment by the BSC Clearer

2.5.1 Subject to paragraph 2.5.2, a Party shall be entitled to payment from the BSC Clearer on a

Business Day if, and only if, on that Business Day there is no Amount in Default (as

defined in paragraph 9.1(a)) due and payable by that Party to the BSC Clearer and not paid

or recovered (within the meaning of paragraph 9.3.1) and so long as an Amount in Default,

or any part of it, remains owing to the BSC Clearer, that Party will not request, demand or

claim to be entitled to payment by the BSC Clearer.

2.5.2 Subject to paragraph 2.5.4 and paragraph 2.5.5 as the case may be, a Defaulting Party shall

be entitled to payment from the BSC Clearer if, and only if, all amounts, liabilities and

other obligations due, owing, incurred or payable by that Defaulting Party to the BSC

Clearer, whether those liabilities or obligations are actual or contingent, present or future,

joint or several (including, without limitation, all interest (after as well as before judgment)

and expenses) have been paid or recovered and until that time the Defaulting Party will not

request, demand or claim to be entitled to payment by the BSC Clearer.

2.5.3 The FAA on behalf of the BSC Clearer shall credit to the Reserve Account amounts due

and payable to a Defaulting Party and not set off under paragraph 2.6 and while any such

amount is credited to the Reserve Account, it shall form part of the relevant Party’s Credit

Cover and may be applied by the FAA on behalf of the BSC Clearer in accordance with

this Section N.

2.5.4 Where at any time a Defaulting Party:

(i) is in Default solely by virtue of Section H3.1.1(g);

(ii) has given a Withdrawal Notice pursuant to Section A5.1 that continues to be

effective; and

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(iii) is not prevented from withdrawing from the Code or from ceasing to be a Party

to the Framework Agreement by virtue of Section A5.1.3;

then references to amounts, liabilities and other obligations of such Defaulting Party in

paragraph 2.5.2 shall not include amounts, liabilities and obligations of a contingent nature.

2.5.5 Where at any time the Panel has determined in accordance with section M2.3A that an

Imbalance Party is entitled to:

(a) a reduction in the amount of a Letter of Credit provided by the Imbalance Party,

and/or

(b) a withdrawal of cash deposited by the Imbalance Party

then references to amounts, liabilities and other obligations of such Imbalance Party in

paragraph 2.5.2 shall not include amounts, liabilities and obligations of a contingent nature.

2.6 Set-off

2.6.1 If on any Business Day an amount is due and would but for paragraph 2.5 have been

payable from the BSC Clearer to a Party, but before that Business Day there was due from

that Party an Amount in Default (as defined in paragraph 9.1(a)) which has not been paid

or recovered (within the meaning of paragraph 9.3.1) then notwithstanding paragraph 2.5,

the amount owing by the BSC Clearer shall be automatically and unconditionally set off

against the Amount(s) in Default.

2.6.2 If in respect of any Non-paying BSC Debtor there is more than one Amount in Default,

then any amount due and payable from the BSC Clearer shall be set off against the

Amounts in Default in the order in which they originally became due and payable.

2.7 Liability of the BSC Clearer

2.7.1 The liability of the BSC Clearer to make payments on a Business Day under the Code shall

be limited so that the aggregate of such payments (excluding the amount (if any) by which

each such payment has been increased on account of VAT) does not exceed the aggregate

amount of payments (excluding the amount (if any) by which each such payment has been

increased on account of VAT) that has been paid to or recovered (within the meaning of

paragraph 9.3.1) by the BSC Clearer:

(a) from Parties (including by way of realisation of Credit Cover in accordance

with paragraph 9), in respect of that Business Day; and

(b) by way of a Drawing, but only where this Section N provides for such a

Drawing to be made, and without prejudice to the further payment obligations

of Parties arising following any such Drawing;

and each Party irrevocably and unconditionally releases the BSC Clearer from any other

liability in respect of that Business Day other than as provided in this paragraph 2.7.1 and

paragraph 2.7.2(b).

2.7.2 Where in relation to any Business Day, the aggregate amount that the BSC Clearer pays to

Parties is less than the amount to which those Parties would, but for the operation of

paragraph 2.7.1, have been entitled:

(a) the provisions of paragraph 9 shall apply; and

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(b) if and to the extent that, after the required time on the Business Day, the BSC

Clearer is paid and recovers (within the meaning of paragraph 9.3.1) amounts

from any BSC Debtor, the BSC Clearer shall to the extent of such receipts make

payments (to certain Parties and/or the BSC Banker) in accordance with the

provisions of paragraph 9.

2.7.3 Any amounts in respect of VAT that the BSC Clearer is required to pay to Parties on a

Business Day under the Code shall be funded:

(a) by amounts that it receives in respect of VAT from Parties under the Code on

that Business Day; and

(b) by way of a Drawing, but:

(i) only where this Section N provides for such a Drawing to be made;

(ii) without prejudice to the further payment obligations of Parties

arising following any such Drawing; and

(iii) only to the extent that the amount of such a Drawing represents the

part of the Amount in Default that is attributable to VAT;

and where such amounts are insufficient BSCCo shall, in advance in accordance with

paragraph 7.1.4 or, where such amount is insufficient due to the occurrence of an Amount

in Default, as soon as reasonably practicable, fund the excess provided that the BSC

Clearer shall only be required to pay that excess as and when it receives such funding from

BSCCo.

2.8 Trading Disputes

2.8.1 For the avoidance of doubt, nothing in this paragraph 2 shall prevent a Party from raising

Trading Disputes.

2.8.2 It is acknowledged and agreed that, where any dispute or difference arises under the Code

as to any amount paid or payable by any Party by way of Trading Charge:

(a) where such dispute or difference is resolved, any necessary payments or

adjustments required in order to give effect to such resolution (including any

arbitral award) shall be effected (and may be given full effect) by way of

Reconciliation Settlement Run, giving rise to new Reconciliation Charges, or by

way of Ad-hoc Trading Charges under paragraph 6.9.1(a)(ii); and

(b) it is not necessary (in order to enable such dispute or difference to be resolved)

for the BSC Clearer to participate in any Trading Dispute under Section W, or

to be party to any arbitration pursuant to Section H7;

and accordingly no Party shall commence any proceedings against the BSC Clearer in

relation to any such dispute or difference or seek to join or involve the BSC Clearer in any

such proceedings.

2.8.3 If, notwithstanding paragraph 2.8.2, a Party commences proceedings against the BSC

Clearer:

(a) all costs of the BSC Clearer shall be paid by BSCCo; and

(b) any award against the BSC Clearer shall be paid by BSCCo unless the terms of

the award are to the effect that other Parties should pay or be liable for the

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award in which case such other Parties shall indemnify the BSC Clearer

accordingly.

2.9 Assignment

2.9.1 Subject to the provisions of paragraphs 2.4 to 2.7 (inclusive), nothing in this paragraph 2

shall prevent Parties from assigning by way of security only any or all of their rights to

receive from the BSC Clearer amounts determined in accordance with this paragraph 2 or

in accordance with any other provision of this Section N.

3. PAYMENT CALENDAR

3.1 Content

3.1.1 No later than 31st January in each year the FAA shall:

(a) determine, in accordance with the requirements in paragraph 3.2 and BSCP301

and subject to approval of BSCCo, the following dates:

(i) the Initial Payment Date; and

(ii) the Initial Notification Date;

for each such Settlement Day in the next following BSC Year, and

(iii) the Payment Date for each Timetabled Reconciliation Settlement

Run; and

(iv) the Notification Date for each Timetabled Reconciliation Settlement

Run,

where the Payment Date is between the earliest and the latest Initial Payment

Dates identified in (i) above; and

(b) prepare or cause to be prepared a Payment Calendar showing (for each such

Settlement Day) such dates.

3.2 Requirements

3.2.1 The following requirements shall apply to each Payment Calendar:

(a) as an average over the entire BSC Year to which the Payment Calendar relates,

each Initial Payment Date shall fall, as nearly as practicable, 29 days after the

Settlement Day to which it relates;

(b) each Initial Payment Date shall fall as nearly as practicable to the 29th day after

the Settlement Day to which it relates;

(c) each Payment Date and each Notification Date shall fall on a Business Day;

(d) no Payment Date shall fall fewer than 3 Business Days after the relevant

Notification Date; and

(e) if possible, it shall not give rise to a requirement for more than 15 Timetabled

Reconciliation and/or Initial Settlement Runs on any day.

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3.3 Production

3.3.1 The Payment Calendar shall be in such form as the Panel shall from time to time decide.

3.3.2 The FAA shall distribute any Payment Calendar prepared pursuant to this paragraph 3

promptly to BSCCo, the SAA and each Payment Party; and shall send the prevailing

Payment Calendar to any Party upon its becoming an Imbalance Party.

4. BANKING ARRANGEMENTS

4.1 Establishment of Accounts

4.1.1 The FAA shall establish and operate on behalf of the BSC Clearer the following accounts

(each a "BSC Account") in the name of the BSC Clearer:

(a) a Clearing Account with the BSC Banker to and from which all payments

determined in accordance with this Section N are to be made;

(b) a Collection Account to which payments from Trading Parties are made;

(c) a Reserve Account with the BSC Banker to which all Cash Cover, proceeds of

Letters of Credit, surplus payments received from Payment Parties pursuant to

paragraph 7 and other amounts specified in this Section N shall be credited or

debited;

(d) a Borrowing Account with the BSC Banker on which the FAA on behalf of the

BSC Clearer may make permitted Drawings or to cover payments due from

Payment Parties that are below the Advice Note Threshold Limit during an

Advice Note Period; and

(e) any other account that the FAA (with the prior written consent of BSCCo)

considers desirable to enable the BSC Clearer to perform any obligations

imposed on it by this Section N.

4.1.2 The FAA shall also establish on behalf of the BSC Clearer the means by which to facilitate

and manage the transfer of Reserve Account monies between the Reserve Account and an

Investment Account(s).

4.2. Funds Transfer Agreement

4.2.1 Not later than the date required by paragraph 4.2.3, the BSC Clearer and the FAA shall

enter into a funds transfer agreement, in a form approved by the Panel, with a bank (the

"BSC Banker") approved by the Panel, which shall set out the accounts opened in the

name of the BSC Clearer and the basis on which the FAA shall operate them.

4.2.2 Neither the BSC Clearer nor the FAA may amend or terminate the Funds Transfer

Agreement without the approval of the Panel.

4.2.3 The required date is:

(a) two months after the Code Effective Date; and

(b) if the Panel has approved the termination of any existing Funds Transfer

Agreement, 10 Business Days before such termination.

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4.3 Settlement Account

4.3.1 Each Payment Party shall, unless otherwise agreed by the Panel, at all times maintain a

Settlement Account at a Settlement Bank.

4.3.2 Each Payment Party shall also supply to the FAA and the Panel such information or (as the

case may be) further information concerning its Settlement Account as the Panel or the

FAA reasonably requests.

4.4 Notification of Settlement Account

4.4.1 Not Used.

4.4.2 Each Payment Party shall, not later than the date required by paragraph 4.4.3, deliver to the

FAA a duly completed and signed Settlement Account designation providing details of the

Settlement Account to which the FAA on behalf of the BSC Clearer is instructed to make

payments to such person.


(a) two months after the Code Effective Date; or

(b) in the case of an Imbalance Party, if later, 10 Business Days (or such shorter

period as the Panel may approve in relation to that Party) before it becomes an

Imbalance Party.

4.5 Change of Settlement Account

4.5.1 Each Payment Party may change its Settlement Account at any time by delivering to the

FAA a duly completed and signed notice, and with an effective date, in accordance with

BSCP301.

4.6 Reserve Account

4.6.1 Where an Imbalance Party provides Credit Cover by delivering cash (as contemplated by

Section M) that Cash Cover shall be:

(a) credited to the Reserve Account (an account in the name of the BSC Clearer);

(b) the absolute property of the BSC Clearer (and the relevant Imbalance Party shall

have no beneficial or other interest in the Cash Cover); and

(c) a limited recourse loan to the BSC Clearer which is repayable only in the

circumstances set out in paragraph 4.6.3 and subject to the provisions of this

Section N.

4.6.2 The purpose of the Cash Cover is to ensure that, on a continuing basis and for so long as

the Imbalance Party is not a Discontinuing Party, the BSC Clearer is a debtor to the

relevant Imbalance Party and in calculating the amounts due either from the BSC Clearer to

the Imbalance Party or from the Imbalance Party to the BSC Clearer in accordance with

this Section N, the amount of the Cash Cover shall be ignored.

4.6.3 The FAA on behalf of the BSC Clearer shall pay or repay the following amounts at the

times indicated from the Reserve Account to each Payment Party:

(a) (subject to paragraph 4.6.6) quarterly the amount of interest referred to in

paragraph 4.6.4;

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(b) an amount requested in accordance with Section M2.3; and

(c) if that Payment Party is a Discontinuing Party (as defined in Section A), on the

Discontinuance Date the cash paid by or on behalf of that Discontinuing Party

credited to the Reserve Account and not subsequently withdrawn or repaid in

accordance with this Section N.

4.6.4 The amount of interest is:

(a) an amount equal to interest from time to time received which is proportionate to

the amount of monies deposited by the Payment Party from time to time in the

Reserve Account; and

(b) credited to the Reserve Account and not subsequently withdrawn, repaid or set

off in accordance with this Section N.

4.6.5 The BSC Clearer’s obligation to repay amounts under this paragraph 4.6 shall be subject to

the provisions of paragraphs 2.4 to 2.6 (inclusive).

4.6.6 While any interest is credited to the Reserve Account, it shall be deemed to form part of the

relevant Party’s Credit Cover for the purposes of this Section N only (and not for the

purposes of Section M2.1.3 or any other section of the Code) and may be applied by the

FAA on behalf of the BSC Clearer in accordance with this Section N.

4.6.7 Each Payment Party waives any right and agrees not to make any claim it might otherwise

have to set off against any obligation owing to the BSC Clearer any claims such Payment

Party may have to repayment of moneys paid to the BSC Clearer and credited to the

Reserve Account.

4.7 Details of Accounts

4.7.1 The FAA shall supply bank details, sort code and account numbers for:

(a) the Reserve Account and the Collection Account to each Payment Party; and

(b) the Clearing Account, the Reserve Account, the Collection Account, the

Borrowing Account and all other BSC Accounts and the Settlement Accounts to

BSCCo and the BSC Clearer.

4.8 Banking Communications Links

4.8.1 The FAA shall set up communications links with the BSC Banker to ensure efficient

transfers of funds.

4.8.2 Payments under paragraph 4.8.1 shall be made by such payment methods as may be

authorised by BSCCo from time to time.

4.9 Credit Facility

4.9.1 The BSC Clearer shall enter into a facility agreement, in a form approved by the Panel,

with the BSC Banker pursuant to which the BSC Banker shall make available to the BSC

Clearer not later than the date required by paragraph 4.9.2 a facility of a maximum

aggregate principal amount outstanding of £4,000,000 or such other amount (but subject to

a maximum amount of £10,000,000) approved by the Panel from time to time for the

purpose set out in paragraph 4.9.3 below.

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(a) the Go-live Date; and

(b) if an existing Credit Facility will not be extended or renewed, upon the expiry

of that Credit Facility.

4.9.3 The purpose of the Credit Facility is to cover banking and payment errors and short-term

payment defaults and to minimise the need to use Credit Cover provided by Payment

Parties in accordance with this Section N and the Credit Facility shall not be used for any

other purpose.

4.9.4 All fees and expenses properly due from the BSC Clearer to the BSC Banker (including

any additional amounts payable to the BSC Banker under the terms of the Credit Facility

which the FAA on behalf of the BSC Clearer has not been able to pay after acting in

accordance with paragraph 9) shall be paid by BSCCo on behalf of the BSC Clearer on the

date the fees or expenses are payable to the BSC Banker.

4.9.5 The FAA on behalf of the BSC Clearer shall notify BSCCo and all Payment Parties of, and

any changes in, the interest rate notified by the BSC Banker under the Credit Facility to it

from time to time.

4.9.6 The FAA on behalf of the BSC Clearer shall:

(a) notify BSCCo forthwith on:

(i) becoming aware of any circumstances which may lead to the BSC

Banker withdrawing the Credit Facility;

(ii) receiving a written demand from the BSC Banker as a result of

which the Credit Facility ceases to become available;

(iii) receiving notice from the BSC Banker that it requires any additional

amount to be paid to it as a result of any change in circumstances or

any increased costs; and

(b) notify all Payment Parties as soon as reasonably practicable after receiving

notice from the BSC Banker that it requires any additional amount to be paid to

it as a result of any change in circumstances or any increased costs.

4.9.7 Neither the BSC Clearer nor the FAA may amend, supplement or cancel the Credit Facility

without the prior approval of the Panel.

4.9.8 The FAA on behalf of the BSC Clearer shall:

(a) not earlier than one month before the expiry of the Credit Facility, negotiate

with the BSC Banker to extend or renew the Credit Facility on substantially the

same terms for a further year, and keep the Panel informed of the progress of

these negotiations; and

(b) subject to the approval of the Panel, extend or renew the Credit Facility on the

terms so negotiated.

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4.10 Treasury Policy and investment of Reserve Account monies

4.10.1 BSCCo may from time to time, and in accordance with the Treasury Policy, direct the FAA

in writing to transfer certain monies between the Reserve Account and an Investment

Account.

4.10.2 BSCCo shall notify the Parties in the event the Board amends the Treasury Policy. If there

is any amendment to the Treasury Policy, such amendment shall not take effect until at

least 15 Business Days after BSCCo has issued notification to the Parties of the

amendment.

4.10.3 The Treasury Policy shall be made available to Parties upon request.

5. TAXATION

5.1 Tax Agreements

5.1.1 Each Payment Party agrees that it will be bound by any agreement made (whether before or

after the entry into force of the Code) between the BSC Clearer (or BSCCo on its behalf)

and any tax authority as to the treatment for taxation purposes of obligations to pay

amounts (pursuant to the Code) in respect of Trading Charges between the BSC Clearer

and any Payment Party.

5.1.2 Each Payment Party further undertakes that it will not act in any way prejudicial to such

agreement, including acting on the basis of, assuming, seeking or making any application

or request to any tax authority for, any conflicting treatment.

5.1.3 BSCCo on behalf of the BSC Clearer shall ensure that details of each such agreement as is

referred to in this paragraph 5.1 are provided to each Payment Party upon its becoming a

Party and upon any change in such agreement.

5.2 Withholdings on account of taxation

5.2.1 The FAA on behalf of the BSC Clearer and any BSC Debtor shall deduct from all

payments made by or through it under this Section N any deductions (including

withholdings) as are required by law and any such agreement as is referred to in paragraph

5.1.

5.2.2 Such deduction shall be the minimum amount required by law and any such agreement as

is referred to in paragraph 5.1.

5.2.3 If any such deductions are made, the FAA on behalf of the BSC Clearer or the relevant

BSC Debtor (as the case may be) shall take such further actions as are required by law and

any such agreement as is referred to in paragraph 5.1, including making payments and

returns to the tax authorities and promptly issuing certificates.

5.3 Taxation of BSC Clearer

5.3.1 Subject to this paragraph 5, if at any time and for any reason the BSC Clearer has an

obligation to account for any taxation to any taxation authority, where it has no equivalent

credit then available to it but the FAA reasonably believes that such a credit will be

receivable from such taxation authority in the future, the FAA on behalf of the BSC Clearer

shall borrow the required amount from BSCCo, and BSCCo shall lend such amount, on

such terms (if any) as BSCCo may decide, and the FAA on behalf of the BSC Clearer shall

repay that amount upon receipt of the equivalent credit from the taxation authority.

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5.4 Value Added Tax

5.4.1 Each Party shall, for the purposes of enabling the BSC Clearer to charge and pay the

correct amounts in respect of VAT and of enabling BSCCo to account for the correct

amounts of VAT, notify BSCCo in accordance with BSCP301 such information about that

Party relating to VAT as BSCCo requests.

5.4.2 Each Party shall notify BSCCo (in accordance with BSCP301) as soon as it has actual

knowledge that any information which it has given to BSCCo in accordance with

paragraph 5.4.1 may change, will change or has changed.

5.4.3 The BSC Clearer, BSCCo and the Parties shall and shall be entitled to charge amounts in

respect of VAT in accordance with any agreement referred to in paragraph 5.1.1, on the

following basis, subject to paragraph 5.4.4:

(i) if a Party has not notified BSCCo to the contrary in accordance with paragraphs

5.4.1 or 5.4.2, that the address (the "Relevant VAT Address") of such Party's

relevant business or fixed establishment (within the meaning of Article 8(1)(d)

of Council Directive 77/388/EEC on the harmonisation of the laws of the

Member States relating to turnover taxes – common system of value added tax;

uniform basis of assessment) is in the United Kingdom;

(ii) if a Party has not notified BSCCo to the contrary in accordance with paragraphs

5.4.1 or 5.4.2, that such Party has not been issued with an individual

identification number by the Member State where its Relevant VAT Address is

located; and

(iii) if a Party has notified BSCCo in accordance with either paragraphs 5.4.1 and

5.4.2, that the information contained in the latest such notification is correct.

5.4.4 If in a particular case BSCCo and/or the BSC Clearer reasonably believe that any of the

assumptions referred to in paragraphs 5.4.3(i), (ii) or (iii) is incorrect, they shall be entitled

but not obliged to charge amounts in respect of VAT on the basis of that belief.

5.4.5 If, in relation to a payment made to BSC Clearer or BSCCo by a Party, that payment has

not been increased on account of VAT, for reasons including but not limited to that Party's

Relevant VAT Address not being located in the United Kingdom or the Isle of Man, that

Party shall (by way of increasing that payment but subject to paragraph 5.4.7) indemnify

BSCCo and BSC Clearer in respect of:

(a) any VAT (including interest and penalties) which BSCCo or BSC Clearer

becomes liable to pay; and

(b) any reduction in the amount of VAT which BSCCo or BSC Clearer is entitled

to recover;

arising because that payment constituted the consideration for a taxable or deemed taxable

supply (as such terms are used in the Value Added Tax Act 1994 ("VATA 1994")).

5.4.6 If, in relation to a payment made to a Party by BSC Clearer or BSCCo, that payment has

been increased on account of VAT, for reasons including but not limited to that Party's

Relevant VAT Address being located in the United Kingdom or the Isle of Man, that Party

shall (subject to paragraph 5.4.7) indemnify BSCCo to the extent that BSCCo and BSC

Clearer are not entitled to a credit for input tax for the increased part of that payment

because that payment did not constitute the consideration for a taxable or deemed taxable

supply (as such terms are used in VATA 1994).

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5.4.7 Paragraphs 5.4.5 and 5.4.6 shall not apply to the extent that BSC Clearer or BSCCo has

been compensated by, in the case of paragraph 5.4.5, an increase to the relevant payment,

or, in the case of paragraph 5.4.6, a rebate of the relevant payment.

5.4.8 Any part of the Code providing that an amount that is payable should be increased by an

amount in respect of VAT, or should otherwise be paid with an amount attributable to VAT

or in respect of VAT, shall not apply to amounts constituting consideration for a taxable or

deemed taxable supply (as such terms are used in VATA 1994) where the VAT is payable

by the recipient of that supply (or any person that is treated as the recipient in accordance

with any agreement referred to in paragraph 5.1.1) by way of the reverse charge

mechanism.

5.4.9 The FAA shall retain and, on request, grant BSCCo access to the following documents for

such period as may be required by law:

(a) sufficient information to allow it to comply with its obligations under applicable

VAT legislation; and

(b) copies of all VAT invoices (or other documents that H.M. Customs & Excise

have agreed to treat as VAT invoices) for taxable or deemed taxable supplies

(as such terms are used in VATA 1994) made to BSCCo.

6. CALCULATION OF PAYMENTS

6.1 Settlement Runs

6.1.1 In relation to each Settlement Day, following each Settlement Run, the information referred

to in paragraphs 6.1.2 to 6.1.4 (inclusive) concerning Trading Charges in respect of

Settlement Periods in that Settlement Day is to be submitted by 09.00 hours on the relevant

Notification Date by the SAA to the FAA.

6.1.2 The following information is to be submitted in relation to each Settlement Run:

(a) the Settlement Day; and

(b) whether the Settlement Run is an Initial Settlement Run, Timetabled

Reconciliation Settlement Run or Post-Final Settlement Run.

6.1.3 The following information (subject to paragraph 6.1.5) is to be submitted for each

Imbalance Party:

(a) the identity of the Imbalance Party;

(b) the amount (exclusive of VAT) calculated for the Settlement Day in respect of

each of the following Trading Charges separately:

(i) the Daily Party BM Unit Cashflow;

(ii) the Daily Party Non-Delivery Charge;

(iii) the Daily Party Energy Imbalance Cashflow;

(iv) the Daily Party Information Imbalance Charges;

(v) the Daily Party Residual Settlement Cashflow;

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[P344](vi) the Daily Party RR Instruction Deviation Cashflow; and

[P344](vii) the Daily Party RR Cashflow.

(c) the net credit or debit amount (exclusive of VAT) for the Settlement Day for all

Trading Charges under paragraph (b) for that Imbalance Party.

6.1.4 The following information (subject to paragraph 6.1.5) is to be submitted in relation to the

NETSO: the Daily System Operator Cashflow which shall be a single credit or debit

amount (exclusive of VAT) for the Settlement Day.

6.1.5 In relation to any Reconciliation Settlement Run, the amounts referred to in paragraphs

6.1.3 and 6.1.4 are to be determined as though it were the first Settlement Run to be carried

out in relation to the relevant Settlement Day, and so disregarding any payments which

may on any prior Payment Date have been paid or payable in respect of the relevant

Settlement Day.

6.1.6 For the purposes of this Section N, in relation to any Settlement Day and Notification Date,

the amount (in relation to an Imbalance Party) under paragraph 6.1.3(c) and the amount (in

relation to the NETSO) under paragraph 6.1.4 is the "Trading Charges Amount".

6.2 Validation by FAA

6.2.1 Upon receipt of the information supplied by the SAA, the FAA shall determine whether, on

the basis of such information:

(a) the aggregate of the debit Trading Charges Amounts (excluding any amounts

attributable to VAT) for all Payment Parties for the relevant Settlement Day (the

"total debits") is equal to

(b) the aggregate of the credit Trading Charges Amounts (excluding any amounts

attributable to VAT) for all Payment Parties for the relevant Settlement Day (the

"total credits").

6.2.2 If difference between the total debits and the total credits is less than £10.00, such

information is "valid".

6.2.3 If the information is valid and there is a difference between the total debits and the total

credits, the FAA shall account for such difference by adjusting the Daily Party Residual

Settlement Cashflow and the Trading Charges Amount for the Imbalance Party with the

largest absolute Trading Charges Amount for the relevant Settlement Day by the amount of

such difference and references to "Trading Charges Amounts" in paragraphs 6.4, 6.5, and

7 below are to Trading Charges Amounts so adjusted.

6.3 Rectification of errors

6.3.1 If the FAA determines that the information provided by the SAA is not valid in accordance

with paragraph 6.2, it shall as soon as possible notify the SAA accordingly, but if the FAA

has not so notified the SAA by the close of business on the Notification Date, the SAA may

assume that FAA has determined that the information is valid in accordance with paragraph

6.2.

6.3.2 Upon receiving a notice under paragraph 6.3.1, the SAA will use its best endeavours

promptly to provide corrected information as may be necessary for the FAA to determine

whether the corrected information is valid and to enable it to issue Advice Notes in

accordance with paragraph 7.

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6.4 Reconciliation

6.4.1 Upon receipt of the information supplied by the SAA in a Reconciliation Settlement Run,

the FAA shall calculate, on the basis of such information, for each Payment Party, the

difference (if any) between:

(a) the debit or credit Trading Charges Amount calculated in that Reconciliation

Settlement Run for that Payment Party;

and

(b) either:

(i) the debit or credit Trading Charges Amount calculated for that

Payment Party in the Initial Settlement Run for the same Settlement

Day; or

(ii) (if a Reconciliation Settlement Run has already been carried out in

respect of that Settlement Day) the debit or credit Trading Charges

Amount calculated for that Payment Party in the most recent

Reconciliation Settlement Run previously carried out for that

Settlement Day (other than a Reconciliation Settlement Run not used

to calculate Reconciliation Charges in accordance with paragraph

6.6.3).

6.4.2 Subject to paragraph 5, each Payment Party shall following each Reconciliation Settlement

Run be liable to pay to, or (as the case may be) entitled to receive from, the BSC Clearer an

amount calculated as being:

(a) the amount of the difference determined under paragraph 6.4.1; plus

(b) interest, calculated on a compound basis in accordance with paragraph 6.4.2A

("the interest amount") on the amount of such difference.

6.4.2A The interest amount shall be calculated in respect of the period from (and including) the

Payment Date relating to the Initial Settlement Run to (but not including) the relevant

Reconciliation Payment Date by applying the Base Rate:

(a) as prevailing at 00:00 hours on the relevant day on a daily basis to the amount

of such compounded difference up to (but not including) the Advice Note Date;

and

(b) as prevailing at 00:00 hours on the Advice Note Date on a daily basis to the

amount of such compounded difference up to (but not including) the relevant

Reconciliation Payment Date.

6.4.2B The Implementation Date for paragraphs 6.4.2 and 6.4.2A shall be the Go-live Date.

6.4.3 The amount determined, for a Payment Party and Reconciliation Settlement Run, pursuant

to paragraph 6.4.2 shall be a "Reconciliation Charge".

6.4.4 It is hereby acknowledged and agreed that the obligations of Payment Parties and the BSC

Clearer under paragraphs 2.8.2 (a) and 6.4.2 are new obligations to pay an amount by way

of Trading Charge and not an adjustment or amendment of any existing obligation and

those obligations are subject to the provisions of paragraphs 2.4 to 2.7 (inclusive).

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6.5 Amounts in Advice Notes

6.5.1 If the information supplied by the SAA is valid, the amounts to be incorporated in Advice

Notes in accordance with paragraph 7.1:

(a) in relation to an Initial Settlement Run, shall be the Trading Charges Amounts;

and

(b) in relation to a Reconciliation Settlement Run, shall be the Reconciliation

Charges

together with an amount in respect of applicable VAT on the amount payable.

6.6 Postponed Payments

6.6.1 If no information is received by the FAA in respect of a Settlement Run on a Notification

Date or for any reason it is not possible, after application of paragraph 6.3, for the FAA to

determine by the close of business on the Notification Date the amounts to be incorporated

in the Advice Notes:

(a) the Payment Date shall be postponed so that it falls on the second Business Day

(or such later day as the Panel shall from time to time decide upon request of the

FAA) after the day on which the FAA receives and/or validates the information

provided by the SAA pursuant to paragraph 6.2;

(b) the FAA shall inform the Panel, BSCCo, the SAA and each Payment Party:

(i) upon the Notification Date, of such postponement; and

(ii) promptly upon validating such information, of the postponed

Payment Date;

(c) such postponed date shall be a "Postponed Payment Date", and a reference to

a Payment Date in this Section N shall, unless the context otherwise requires,

include a Postponed Payment Date.

6.6.2 In the case of an Initial Settlement Run only, if the Postponed Payment Date falls more

than one week after the original Payment Date:

(a) each BSC Debtor shall pay to the BSC Clearer; and

(b) each BSC Creditor shall receive from the BSC Clearer

(but subject to paragraphs 2.4 to 2.7 (inclusive)) interest calculated on a compound basis in

accordance with paragraph 6.6.2A.

6.6.2A For the purposes of paragraph 6.6.2, interest shall be calculated on the amount shown in the

Advice Note in respect of the period from (and including) the originally scheduled

Payment Date to (but not including) the Postponed Payment Date by applying the Base

Rate:

(a) as prevailing at 00:00 hours on the relevant day on a daily compounded basis up

to (but not including) the Advice Note Date for the Postponed Payment Date;

and

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(b) as prevailing at 00:00 on the Advice Note Date for the Postponed Payment Date

on a daily compounded basis up to (but not including) the Postponed Payment

Date.

6.6.2B The Implementation Date for the application of compound interest pursuant to paragraphs

6.6.2 and 6.6.2A shall be the Go-live Date.

6.6.3 In the case of a Timetabled Reconciliation Settlement Run, other than a Final

Reconciliation Settlement Run:

(a) the Panel may at any time after receiving a notice under paragraph 6.6.1(b)(i),

but not after the FAA has given a notice under paragraph 6.6.1(b)(ii), determine

and instruct the FAA that Reconciliation Charges will not be determined and

payable by reference to that Reconciliation Settlement Run;

(b) if the Panel makes such a determination:

(i) the FAA shall promptly notify all Payment Parties and the SAA of

the Panel’s determination; and

(ii) there shall be no Postponed Settlement Date;

but without prejudice to the determination of Reconciliation Charges by

reference to the next following Timetabled Reconciliation Settlement Run for

the relevant Settlement Day.

6.6.4 Where in accordance with Section T5.4 BSCCo submits to the FAA data and information

estimated by the Panel:

(a) the FAA shall determine the amounts to be incorporated in Advice Notes on the

basis of such data and information (and this paragraph 6 shall apply as though

such data and information were information supplied by the SAA under

paragraph 6.1);

(b) the Postponed Payment Date shall accordingly be established in accordance

with paragraph 6.6.1(a) by reference to the day on which the FAA receives the

data estimated by the Panel.

6.7 Payment by BSC Debtors, the BSC Clearer and BSCCo

6.7.1 On the relevant Payment Date, each BSC Debtor shall (without defence, set-off or

counterclaim) pay the BSC Clearer, and the BSC Clearer shall pay each BSC Creditor, the

full amount (including an amount in respect of any applicable VAT), but subject to

paragraphs 2.4 to 2.7 (inclusive), notified in the Advice Note as being payable by or to it.

6.7.2 Payment shall be made in accordance with the terms of this Section N.

6.7.3 For the avoidance of doubt, no payment by Payment Parties shall be treated as being paid

on account or subject to any condition or reservation, notwithstanding any provision of the

Code as to Trading Disputes.

6.7.4 Paragraph 11.1 shall apply to any payment insofar as it is or may constitute an

overpayment.

6.7.5 A Payment Party may query an amount calculated, and/or notified to it in an Advice Note,

by the FAA if, and only if, it has paid the amount in accordance with this Section N.

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6.7.6 The FAA shall promptly investigate the query and shall, if so directed by the Panel, issue

corrected Advice Notes to all affected Parties for payment by or to the BSC Clearer

(subject to the provisions of paragraphs 2.4 to 2.7 (inclusive)) five Business Days after the

date of the corrected Advice Notes.

6.8 Liability several

Save as otherwise expressly provided, the liability of each Payment Party and the BSC

Clearer for amounts payable by it pursuant to this Section N is several.

6.9 Ad-hoc Trading Charges


(a) an "Ad-hoc Trading Charge" is an amount which a Party is liable to pay to or

entitled to receive from the BSC Clearer:

(i) pursuant to any provision of the Code, where such amount is

specified in such provision to be such an Ad-hoc Trading Charge;

(ii) pursuant to an Extra-Settlement Determination in accordance with

Section U2.2.3;

(b) the date on which payment in respect of an Ad-hoc Trading Charge is due shall

be:

(i) the date established in accordance with the relevant provision of the

Code or the decision of the Panel (as referred to in paragraph (a)(i)

or (ii) respectively); or

(ii) failing any such date, the 10th Business Day after the FAA received

notification from BSCCo under paragraph 6.9.2(a);

(c) references to Reconciliation Charges in the Code, other than in paragraph 2.8,

this paragraph 6 and paragraph 7.1.2 (and other than for the purposes of any

provision as to Reconciliation Settlement Runs), include Ad-hoc Trading

Charges;

(d) it is hereby acknowledged and agreed that the obligations of Parties and the

BSC Clearer under the Code in respect of Ad-hoc Trading Charges are new

obligations to pay an amount by way of Trading Charge and not an adjustment

or amendment of any existing obligation and those obligations are subject to the

provisions of paragraphs 2.4 to 2.7 (inclusive).

6.9.2 Where under any provision of the Code any entitlements or liabilities in respect of Ad-hoc

Trading Charge(s) arise:

(a) BSCCo shall so notify the FAA, in accordance with such provision or otherwise

as soon as reasonably practicable after such entitlements or liabilities arise,

specifying (subject to paragraph (b)):

(i) the identity of each Party entitled or liable in respect thereof; and

(ii) the amount(s) of the Ad-hoc Trading Charge for which each such

Party is liable or entitled, or (provided that the FAA has indicated

that it is able to make such calculation) the basis on which such

amount(s) are to be calculated;

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(iii) the due date for payment where established as provided in paragraph

6.9.1(b)(i);

(b) where under the relevant provision:

(i) a particular Party is entitled to or liable for a particular amount by

way of Ad-hoc Trading Charge, and

(ii) each Imbalance Party is liable for or entitled to its Party Daily

Reallocation Proportion of that amount, by way of Ad-hoc Trading

Charge,

BSCCo shall specify to the FAA the identity of the Party and amount of the Ad-

hoc Trading Charge in paragraph (i), and the Settlement Day by reference to

which such Party Daily Reallocation Proportions are to be determined;

(c) BSCCo shall, at the time at which it gives such notification to the FAA, send to

each Imbalance Party and the NETSO the details notified to the FAA under

paragraph (a) and (where applicable) paragraph (b).

6.9.3 Where the FAA receives from BSCCo a notification under paragraph 6.9.2, the FAA shall:

(a) make any calculation required under paragraph 6.9.2(a)(ii);

(b) where paragraph 6.9.2(b) applies, determine for each Imbalance Party the

amount for or to which it is liable or entitled (including where relevant any

VAT and/or interest payable at the Base Rate) under paragraph 6.9.2(b)(ii); and

(c) include the amount(s) for or to which each Party is liable or entitled by way of

Ad-hoc Trading Charges in Advice Notes for the Payment Date which is the

same as the due date for such charges.

6.10 Replacement Supplier

6.10.1 Where a Replacement Supplier is appointed in accordance with Section K7 and the

Replacement Supplier Transfer Date precedes the Appointment Day for that Replacement

Supplier, then subject to paragraph 5, the NETSO and each Imbalance Party shall be liable

to pay to, or (as the case may be) entitled to receive from, the BSC Clearer a sum in respect

of each Settlement Day within the Relevant Period representing the difference between:

(a) the net amount of the Trading Charges for that Party for that Settlement Day

determined taking account of the application of Section K7.1.3; and

(b) the net amount of the Trading Charges for that Party for that Settlement Day

determined disregarding the application of Section K7.1.3,

which sum shall be payable on the Payment Date for the Initial Settlement Run for that

Settlement Day.

6.10.2 It is hereby acknowledged and agreed that the obligations of Payment Parties and the BSC

Clearer arising by virtue of paragraph 6.10.1 are new obligations to pay an amount by way

of Trading Charges and not an adjustment or amendment to any existing obligation and

those obligations are subject to the provisions of paragraphs 2.4 to 2.7 (inclusive).

6.10.3 In respect of each Settlement Day within the Relevant Period and for each Payment Party,

the Trading Charges Amount under paragraph 6.1 automatically (by virtue of Section K7)

includes the sum referred to in paragraph 6.10.1.

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6.10.4 For the purposes of this paragraph 6.10, the "Relevant Period", in relation to the

appointment of a Replacement Supplier, is the period of whole Settlement Days from (and

including) the Replacement Supplier Transfer Date to (and including) the Settlement Day

immediately preceding the Appointment Day.

7. ADVICE NOTES

7.1 Despatch of Advice Notes

7.1.1 On each Advice Note Date, in good time (in accordance with BSCP301) for Payment

Parties to give all necessary instructions for payments to be effected on the relevant

Payment Date, the FAA shall despatch to each Payment Party an Advice Note showing the

amount (including an amount in respect of VAT), but subject to paragraphs 2.4 to 2.7

(inclusive) which, according to the FAA's calculations, is to be paid by that Payment Party

to the BSC Clearer or to that Payment Party by the BSC Clearer on that Payment Date in

respect of the Advice Note Period.

7.1.2 Each Advice Note shall set out in respect of each Notification Date in the Advice Note

Period:

(a) in relation to Initial Settlement Runs:

(i) an amount in respect of each of the items set out in paragraph 6.1.3

(b) or paragraph 6.1.4 (as the case may be);

(ii) the Trading Charges Amount; and

(iii) if the Payment Date is a Postponed Payment Date, any interest

pursuant to paragraph 6.6.2;

(b) in relation to Reconciliation Settlement Runs,

(i) the Reconciliation Charge;

(ii) the Reconciliation Charge excluding interest and any withholdings

on account of taxation;

(iii) the interest included in the Reconciliation Charge pursuant to

paragraph 6.4.2;

(iv) the amount of any withholdings on account of taxation; and

(v) the Trading Charges Amounts in respect of which the FAA has

calculated there to be a Reconciliation Charge due;

(c) any amount due pursuant to paragraph 4.6.3;

(d) the amount of any Ad-hoc Trading Charge due pursuant to paragraph 6.9;

(e) any amount set off pursuant to paragraph 2.6;

(f) any amount due pursuant to paragraph 9.6.4;

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(g) the aggregate amount which is to be paid by that Payment Party to the BSC

Clearer or to that Payment Party by the BSC Clearer on the relevant Payment

Date over the Advice Note Period; and

(h) the amount of VAT in respect of the total amount payable or total amount

receivable.

7.1.3 Not Used.

7.1.4 On each Advice Note Date, the FAA shall provisionally notify BSCCo of the amount in

respect of VAT (if any) which, according to its calculations and on the basis that all

amounts due are paid, is to be paid by BSCCo to the BSC Clearer or to BSCCo by the BSC

Clearer on that Payment Date to ensure that:

(a) BSC Clearer has sufficient funds to pay amounts in respect of VAT to BSC

Creditors; and

(b) BSC Clearer is not left with any excess of amounts in respect of VAT that are

payable to it over amounts in respect of VAT that are payable by it.

7.1.5 The FAA shall despatch to each Payment Party an Advice Note:

(a) on each Notification Date, where the aggregate amount payable or receivable by

the Payment Party, in respect of the Advice Note Period, is equal to or exceeds

the Advice Note Threshold Limit; and

(b) where paragraph (a) does not apply, in respect of a Notification Date which is

also a Quarter Date, on such date,

(each such Notification Date being an "Advice Note Date") and, subject to paragraph 7.1.7

to 7.1.9 inclusive, the FAA shall not be required to despatch an Advice Note in respect of a

Notification Date which is not also an Advice Note Date.

7.1.6 For the purposes of paragraph 7 and in respect of a Payment Party:

(a) the "Advice Note Period" means:

(i) the Notification Date on which an Advice Note is despatched

pursuant to this Section N; or

(ii) the period (of consecutive Notification Dates) between (but

excluding) the last preceding Advice Note Date and ending on (and

including) the latest Advice Note Date;

(b) "Advice Note Threshold Limit" means £500 or such other amount as the Panel

may determine from time to time.

7.1.7 The FAA shall despatch a corrected Advice Note pursuant to paragraph 6.7.6.

7.1.8 A Payment Party may request (by notice to BSCCo) that the FAA despatch an Advice Note

(for such Notification Date or other period specified by the Payment Party) where the

Payment Party:

(a) has given a Withdrawal Notice to BSCCo in accordance with Section A5.1;

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(b) notifies BSCCo of a change in respect of the information in relation to VAT

that the Payment Party previously provided in accordance with paragraph 5.4;

or

(c) is a Defaulting Party in accordance with paragraph 2.1.1(b),

and following such a request, the FAA will accordingly despatch an Advice Note to the

Payment Party.

7.1.9 Without limitation to the foregoing, the FAA shall despatch an Advice Note to a Payment

Party at such other times as may be requested by BSCCo.

7.2 Method of despatch

7.2.1 All Advice Notes shall be despatched by the means established in accordance with Section

O, or by such other means as the Panel may reasonably direct.

8. PAYMENT PROCEDURE

8.1 Instructions for payment

8.1.1 Each BSC Debtor shall, in respect of each Payment Date on which it is under an obligation

to make a payment under this Section N, make such arrangements as will ensure that the

payment is credited to the Collection Account as soon as practicable and in any event no

later than the end of the Business Day on that Payment Date.

8.1.2 Each BSC Debtor shall ensure all remittances by its bank to the Collection Account shall

be remittances for value on the relevant Payment Date.

8.2 FAA’s responsibilities

8.2.1 As soon as practicable and in any event not later than 11.00 hours on the first Business Day

following each Payment Date the FAA shall find out whether all amounts required to be

credited to the Collection Account on such Payment Date have been so credited.


following each Payment Date the FAA shall take such action as is required to ensure that

all amounts credited to the Collection Account on such Payment Date in accordance with

paragraph 8.1 have been remitted to the Clearing Account.


following each Payment Date the FAA shall reconcile the actual amounts credited to the

Collection Account and remitted to the Clearing Account on or before 11.00 hours on the

first Business Day following each Payment Date and the aggregate of such amounts.

8.3 Non-payment

8.3.1 If any BSC Debtor becomes aware that a payment for which it is responsible will not be

credited to the Collection Account by the end of the Business Day on the relevant Payment

Date, it will immediately notify the FAA of the non-payment and the reasons thereof.

8.3.2 The FAA shall, as soon as it becomes aware that a payment has not or will not be credited

to the Collection Account or remitted to the Clearing Account on the relevant Payment

Date, use its reasonable endeavours to establish the reason.

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8.4 Excess payments

8.4.1 If by 11.00 hours on the Business Day following any Payment Date the FAA receives from

a BSC Debtor a payment in excess of the amount notified to that BSC Debtor pursuant to

paragraph 7.1 in respect of that Payment Date, or amounts greater than the amounts

notified pursuant to paragraph 7.1. 5 have been credited to the Clearing Account, the FAA

shall use its reasonable endeavours to ascertain the nature of the excess payment, to

calculate the entitlement to such payment and to instruct the BSC Banker by 16.00 hours

that day to credit the relevant BSC Debtor's Settlement Account or (if so requested by the

BSC Debtor) the Reserve Account or such other account authorised by BSCCo.

8.4.2 Any Payment Party who instructs its bank to make a payment in excess of the amount

owing by that Payment Party on any Payment Date shall simultaneously with giving such

instructions advise the FAA in writing of the amount of the excess payment providing a

description of what that Payment Party considers the excess payment relates to.

8.5 Payment to BSC Creditors

8.5.1 By no later than 15.00 hours on each Payment Date, the FAA shall:

(a) estimate the aggregate amounts which will be credited to the Collection

Account in accordance with paragraph 8.1;

(b) subject to paragraph 8.5.4, on the basis of such estimate, calculate the amounts

available for payment by the BSC Clearer to BSC Creditors, taking account of

paragraph 2.7 and anticipating the steps (where relevant) in paragraph 9.2, on

that Payment Date;

(c) for the purposes of paragraph 8.5.4, determine, by reference only to the amounts

which have by that time on the Payment Date already been credited to the

Collection Account:

(i) the amount (if any) which would be required to be drawn on the

Credit Facility in order to enable full payment to be made of the

amounts due to BSC Creditors;

(ii) whether, and if so the amount (“possible shortfall amount”) by

which, the amount in paragraph (i) exceeds the amount then

remaining available to make a Drawing;

after allowing for any amounts which the FAA is satisfied will be paid into the

Clearing Account on the Payment Date pursuant to paragraphs 9.2.2 (b) and (c).

8.5.2 Subject to paragraph 8.5.4, as soon as practicable and not later than 16.00 hours on the

Payment Date the FAA shall arrange for the remittance from the Clearing Account to the

relevant Settlement Accounts maintained by the BSC Creditors of the aggregate of amounts

determined by the FAA to be available for payment to BSC Creditors and, if required,

arrange for the transfer of amounts from the Reserve Account or (subject to paragraph

8.5.3) the Borrowing Account to the Clearing Account or vice versa.

8.5.3 Subject to paragraph 8.5.4, any differences between the amount of the FAA’s estimate

under paragraph 8.5.1(a) and the aggregate amount actually credited to the Collection

Account in accordance with paragraph 8.1 on the Payment Date shall be addressed by way

of adjustment (later on the Payment Date) to the amount of any Drawing, and the FAA

shall arrange for such adjustment to be made in respect of the transfer of any amount from

the Borrowing Account to the Clearing Account or vice versa.

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8.5.4 If the FAA determines that there is a possible shortfall amount, the FAA shall calculate the

amounts under paragraph 8.5.1(b) assuming the reduction of payments (by the BSC Clearer

to BSC Creditors) under paragraph 9.2.2(d) by an aggregate amount equal to the possible

shortfall amount, and arrange remittances under paragraph 8.5.2 accordingly.

8.6 Prohibition on transfers

8.6.1 The FAA shall not at any time instruct the BSC Banker to transfer any sum from a BSC

Account to another account (not being a BSC Account) unless that account is a Settlement

Account or (in the case of erroneous payments to the BSC Clearer) with the authority of

BSCCo and the relevant Payment Party concerned.

8.6.2 Notwithstanding paragraph 8.6.1, the FAA may instruct the BSC Banker to transfer monies

between the Reserve Account and an Investment Account. Such instruction by the FAA to

the BSC Banker shall only be made by the FAA upon receipt of a written instruction issued

by BSCCo in accordance with paragraph 4.10.1.

8.6.3 For the avoidance of doubt the FAA shall not at any time instruct the transfer of any sum

from an Investment Account(s) to any other account not being the Reserve Account.

8.7 Clearing of Clearing Account

8.7.1 Any amounts standing to the credit of the Clearing Account at the close of business on any

Payment Date shall be transferred to the Reserve Account so that the balance in the

Clearing Account shall at the end of such day be nil.

9. PAYMENT DEFAULT

9.1 General

9.1.1 For the purposes of this Section N:

(a) an "Amount in Default" is all or any part of any amount due and payable from

a BSC Debtor to the BSC Clearer which is not remitted to the Collection

Account by 23.59 hours on the relevant Payment Date and, at any time

thereafter, together with interest payable by that Non-paying BSC Debtor

pursuant to paragraph 9.4 and less any amounts paid or recovered (as defined in

paragraph 9.3.1) in respect thereof at that time;

(b) a "Drawing" is a drawing on the Credit Facility by the FAA on behalf of the

BSC Clearer and includes interest and banking charges charged to the BSC

Clearer by the BSC Banker from time to time;

(c) the "Default Interest Rate", in relation to an Amount in Default, is the Base

Rate plus 2 per cent per annum;

(d) the "VAT Element" means, in respect of any payment, part of that payment

equal to the VAT that is chargeable on the taxable supply or deemed taxable

supply for which the payment constitutes the consideration; and

(e) the "VAT Exclusive Element" means, in respect of any payment, part of that

payment equal to that payment less the VAT Element of that payment.

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9.2 Affected Date

9.2.1 Paragraph 9.2.2 shall apply if, on any Payment Date (such date, in respect of the Settlement

Day to which it relates, the "Affected Date"), the FAA has been notified by a Settlement

Bank or it otherwise has reason to believe there will be an Amount in Default in respect of

any BSC Debtor (the "Non-paying BSC Debtor").

9.2.2 Where this paragraph 9.2.2 applies, subject to paragraphs 8.5.4 and 9.2.5, the FAA shall,

on behalf of the BSC Clearer, act in accordance with the following provisions (or

whichever of them shall apply) in the order in which they appear, until the FAA is satisfied

that the Clearing Account will clear to zero not later than the close of business on the

Affected Date:

(a) if a Credit Facility is available to the BSC Clearer, the FAA shall make a

Drawing by debiting the Borrowing Account and crediting the Clearing

Account with a sum being the lesser of the Amount in Default and the amount

available for drawing under the Credit Facility;

(b) if the FAA is satisfied that any Cash Cover provided by the Non-paying BSC

Debtor will be paid into the Clearing Account in sufficient time to ensure that

that Cash Cover can be applied to the Amount in Default by close of business

on the Affected Date, the FAA shall debit the Reserve Account and credit the

Clearing Account with a sum being the lesser of the Amount in Default (to the

extent that it will not be covered by the amount borrowed by application of

paragraph (a)) and that Cash Cover;

(c) if the FAA is satisfied that the proceeds of a call under the Letter(s) of Credit

supplied by the Non-paying BSC Debtor will be paid into the Clearing Account

in sufficient time to ensure that those proceeds can be applied to the Amount in

Default by close of business on the Affected Date, the FAA shall make a call

under the Letter of Credit(s) in a sum not exceeding the lesser of the Amount in

Default (to the extent it will not be covered by the application of paragraph (a)

or recovered by the application of paragraph (b)) and the available amount of

such Letter(s) of Credit and the FAA shall cause the proceeds of such call to be

paid into the Clearing Account; and

(d) if and to the extent that, notwithstanding application of the foregoing measures,

it is not possible to credit an amount in cleared funds equal to the Amount in

Default to the Clearing Account by close of business on the Affected Date, the

FAA shall:

(i) on behalf of the BSC Clearer, reduce the VAT Exclusive Elements

of the payments by the BSC Clearer to all BSC Creditors in

proportion to the VAT Exclusive Element of the amounts payable to

them by the BSC Clearer on and in respect of the Affected Date by

an aggregate amount equal to the amount necessary to cover the

VAT Exclusive Element of the Amount in Default (to the extent it

will not be covered by the application of paragraph (a) or recovered

by the application of paragraphs (b) or (c));

(ii) determine and pay the appropriate VAT Elements (if any) of the

payments by the BSC Clearer to all BSC Creditors accordingly; and

(iii) (subject to paragraph 2.7) account for such reduction in the Ledger

Accounts as amounts due and owing by the BSC Clearer to each

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BSC Creditor (a "Shortfall Creditor") whose payments were so

reduced; and

(e) notify BSCCo and (in the case of action under paragraph (b) or (c)) the Non-

paying BSC Debtor as soon as reasonably practicable of the action taken.

9.2.3 For the purposes of this paragraph 9, the amount of the reduction pursuant to paragraph

9.2.2(d) plus interest at the Default Interest Rate from time to time in respect of each

Shortfall Creditor is a "Shortfall Amount".

9.2.4 It is acknowledged for the avoidance of doubt that the FAA may (for the purposes of

paragraph 9.2.1) have reason to believe, before a given Payment Date, that there will on

that Payment Date be an Amount in Default in respect of a BSC Debtor; and in such case

the FAA may (if it is feasible to do so) take steps before such date to implement paragraph

9.2.2(b) or (c) on that date.

9.2.5 Where there is an Amount in Default on a Payment Date in respect of a BSC Debtor which

is a Defaulting Party, the order in which the FAA shall act in accordance with the

provisions (or whichever of them shall apply) of the sub-paragraphs of paragraph 9.2.2

shall be as follows: (b), (c), (a), (d) (and references therein to the application of prior

paragraphs shall be construed accordingly).

9.3 Amount in Default

9.3.1 For the purposes of this Section N, an Amount in Default shall be "paid or recovered" on

any Business Day, only if, and to the extent that:

(a) an amount has been paid to the BSC Clearer on that Business Day and applied

by the FAA on behalf of the BSC Clearer to that Amount in Default; or

(b) it has been recovered from the Non-paying BSC Debtor on that Business Day

by operation of set-off pursuant to paragraph 2.6; or

(c) it has been recovered from the Non-paying BSC Debtor on that Business Day

by applying its Cash Cover or the proceeds of its Letter of Credit in accordance

with this paragraph 9.

9.3.2 Any amount received from a Non-paying BSC Debtor shall be applied by the FAA on

behalf of the BSC Clearer in or towards Amounts in Default payable by the Non-paying

BSC Debtor to the BSC Clearer on each successive Payment Date in respect of which there

is an outstanding default, with the longest outstanding default being settled first, and where

a day is a Payment Date for more than one Settlement Day, with the default in respect of

the earliest Settlement Day being settled first.

9.3.3 As soon as any portion of an Amount in Default (whether attributable to principal or

interest) is paid or recovered, the FAA on behalf of the BSC Clearer shall:

(a) first, apply the proceeds to the Drawing;

(b) secondly, apply the VAT Exclusive Element of any remaining proceeds to (and

in proportion to) the VAT Exclusive Elements of the Shortfall Amounts or the

Default Share Amounts (in accordance with paragraph 9.6.8 below) in relation

to that Amount in Default; and

(c) determine and pay the amount of VAT (if any) attributable to amounts paid

pursuant to paragraph 9.3.3(b) accordingly.

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9.3.4 Consistent with paragraph 9.3.3, for the purposes of determining amounts payable pursuant

to paragraphs 9.5.2 and 9.5.3, references in those paragraphs to certain amounts shall be

construed as follows:

(a) in the context of the payment or recovery of all or part of an Amount in Default

from a Non-paying BSC Debtor (including payment or recovery by debiting the

Reserve Account or making a call under a Letter of Credit), such references are

to both the VAT Element and the VAT Exclusive Element of that amount;

(b) in the context of the application of an amount so paid or recovered (including

application by way of crediting the Borrowing Account, or payment to Shortfall

Creditors):

(i) such references are to the VAT Exclusive Element of that amount;

(ii) the amount of VAT (if any) attributable to amounts so applied shall

be separately determined.

9.4 Interest

9.4.1 Each Non-paying BSC Debtor shall pay to the account of the BSC Clearer interest from

time to time (after as well as before judgment) calculated on a compound basis by applying

the prevailing Default Interest Rate on a daily basis to the part of the Amount in Default (as

compounded) not covered by a Drawing from the due date up to (but not including) the day

of its payment or recovery from the Non-paying Debtor.

9.4.2 The Implementation Date for the application of compound interest pursuant to paragraph

9.4.1 shall be the Go-live Date.

9.5 D+1

9.5.1 Subject to paragraph 9.6.2A, paragraphs 9.5.2 to 9.5.4 (inclusive) shall apply if:

(a) the FAA on behalf of the BSC Clearer reduced payments to BSC Creditors in

accordance with paragraph 9.2.2 (d); and

(b) the Amount in Default is not paid in full by the Non-paying Debtor and/or

recovered by operation of set-off pursuant to paragraph 2.6 by the Business Day

after the Affected Date ("D+1").

9.5.2 Where this paragraph 9.5.2 applies, the FAA shall, on behalf of the BSC Clearer, not later

than the close of business on D+1 act in accordance with the following provisions (or

whichever of them shall apply) in the order in which they appear:

(a) debit the Reserve Account with a sum being the lesser of the Amount in Default

(including interest at the Default Interest Rate) and that Non-paying BSC

Debtor’s Cash Cover and credit the Settlement Accounts (and the ledger

accounts) of the Shortfall Creditors with that sum, in proportion to their

respective Shortfall Amounts; and

(b) if, after the application of paragraph (a), there remains any Shortfall Amounts:

(i) make a call under the Non-paying BSC Debtor’s Letter of Credit in a

sum not exceeding the lesser of the Amount in Default (including

interest due pursuant to paragraph 9.4) and the available amount of

such Letter(s) of Credit; and

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(ii) cause the proceeds of such call to be paid forthwith into the Reserve

Account.

9.5.3 On the next Business Day following receipt of such proceeds under a Letter of Credit in

accordance with paragraph 9.5.2 (b), the FAA shall pay on behalf of the BSC Clearer such

amounts as have been credited to the Reserve Account to the Shortfall Creditors in full or

(as the case may be) in proportion to their respective Shortfall Amounts, except where

paragraph 9.6.8 applies.

9.5.4 Where paragraphs 9.5.2 to 9.5.4 apply, the FAA shall promptly notify Shortfall Creditors

and BSCCo and (where it takes action under paragraph 9.5.2) the Non-paying BSC Debtor.

9.6 D+2

9.6.1 Subject to paragraph 9.6.2A, paragraph 9.6.2 shall apply if:

(a) the FAA on behalf of the BSC Clearer has made a Drawing pursuant to

paragraph 9.2.2 (a); and

(b) the Amount in Default is not paid in full by the Non-paying Debtor and/or

recovered by operation of set-off pursuant to paragraph 2.6 by the second

Business Day after the Affected Date ("D+2").

9.6.2 Where this paragraph 9.6.2 applies, the FAA shall, on behalf of the BSC Clearer, not later

than 15.30 hours on D+2, act in accordance with the following provisions (or whichever of

them shall apply) in the order in which they appear until the BSC Clearer has available

sufficient funds in the Clearing Account to repay the Drawing to the BSC Banker:

(a) debit the Reserve Account with a sum being the lesser of the Amount in Default

(including interest due pursuant to paragraph 9.4) and that Non-paying BSC

Debtor’s Cash Cover and credit the Borrowing Account with that sum; and

(b) if, after the application of paragraph (a), there remains an amount due and

owing by the BSC Clearer to the BSC Banker, the FAA on behalf of the BSC

Clearer shall:

(i) make a call under the Non-paying BSC Debtor’s Letter(s) of Credit

in a sum not exceeding the lesser of the Amount in Default

(including interest due pursuant to paragraph 9.4) and the available

amount of such Letter(s) of Credit; and

(ii) cause the proceeds of such call to be paid forthwith into the

Borrowing Account.

9.6.2A Where (on the Affected Date) the Non-paying Debtor was a Defaulting Party:

(a) paragraphs 9.6.1 and 9.6.2 shall apply on the basis that the reference in

paragraph 9.6.1(b) to the second Business Day after the Affected Date is to the

first Business Day after the Affected Date (and references to D+2 shall be

construed accordingly);

(b) the FAA shall act in accordance with paragraph 9.6.2 (on such basis) before

acting in accordance with paragraph 9.5.2 (if applicable).

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9.6.3 Subject to paragraph 9.6.3A and paragraph 9.6.3B, paragraph 9.6.4 shall apply if:

(a) the FAA on behalf of the BSC Clearer made a Drawing pursuant to paragraph

9.2.2(a), and the BSC Banker has not been repaid in full pursuant to paragraph

9.6.2; or

(b) the FAA on behalf of BSC Clearer reduced payments to BSC Creditors in

accordance with paragraph 9.2.2(d), and the Shortfall Amounts have not been

paid or credited to the Shortfall Creditors in full pursuant to paragraph 9.5.3

in either case, by 17.00 hours on D+2.

9.6.3A Where:

(a) the Non-paying BSC Debtor has provided Cash Cover but for any reason the

Reserve Account has not yet been debited in accordance with paragraph 9.5.2(a)

or 9.6.2(a), and/or

(b) the Non-paying BSC Debtor has provided Letter(s) of Credit, the FAA has (in

accordance with paragraph 9.5.2(b) or 9.6.2(b)) made call(s) thereon which

have not yet been paid, but the FAA has no reason to believe such call(s) will

not be paid; and

(c) the sum of the available amount of such Cash Cover and/or (otherwise uncalled)

amounts of such Letter(s) of Credit subject to such call is sufficient to enable

the outstanding Amount in Default to be paid or recovered,

the FAA, with the approval of BSCCo, may defer acting in accordance with paragraph

9.6.4 for a period not exceeding 3 Business Days; and accordingly where this paragraph

9.6.3A applies the reference in paragraph 9.6.3 to D+2 shall be a reference to such later day

as the FAA shall determine, not being later than 5 Business Days after the Affected Date.

9.6.3B Where:

(a) the Non-paying BSC Debtor has received an Advice Note in respect of a

Notification Date which is also a Quarter Date pursuant to paragraph 7.1.5(b);

and

(b) the aggregate amount payable in respect of that Advice Note is less than the

Advice Note Threshold Limit,

the FAA, with approval of BSCCo, may defer acting in accordance with paragraph 9.6.4

for a period not exceeding 13 Business Days; and accordingly where this paragraph 9.6.3B

applies the reference in paragraph 9.6.3 to D+2 shall be a reference to such later day as the

FAA shall determine, not being later than 15 Business Days after the Affected Date.

9.6.4 Where this paragraph 9.6.4 applies, the FAA shall:

(a) determine the VAT Exclusive Element of the Amount in Default (including all

interest accrued thereon) which has not been paid or recovered;

(b) determine for each Payment Party other than Virtual Lead Parties and the Non-

paying BSC Debtor the amount (the "Default Share Amount") of that Payment

Party’s Annual Funding Share (on a default basis, for the month in which the

Affected Date fell) of that VAT Exclusive Element of the Amount in Default;

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(c) in good time (in accordance with BSCP 301) for the relevant Payment Parties to

give instructions for payments to be effected on the Default Payment Date,

despatch to BSCCo and each Payment Party other than the Non-paying BSC

Debtor an Advice Note showing the amount or amounts (as applicable to that

Payment Party) determined under paragraph 9.6.5 below increased to take VAT

into account; and

(d) notify BSCCo, the Panel and each Payment Party.

9.6.5 The amounts are:

(a) for each Payment Party, the Default Share Amount; and

(b) for each Shortfall Creditor:

(i) the VAT Exclusive Element of the outstanding Shortfall Amount

(including interest applied at the Default Interest Rate for each day

on a compounded basis from and including the Affected Date to, but

excluding, the Default Payment Date (as defined below)); and

(ii) the difference between the amounts under paragraph (a) and

paragraph (b)(i).

9.6.6 Each Payment Party shall be liable to pay or (where the amount under paragraph 9.6.5(b)(i)

is greater than the amount under paragraph 9.6.5(a)) entitled to receive the amount set out

in the relevant Advice Note calculated in accordance with paragraph 9.6.5 (a) or if

applicable, paragraph 9.6.5(b)(ii), on the second Business Day (the "Default Payment

Date") after the date of the Advice Note and any payment made by a Payment Party to the

BSC Clearer in accordance with this paragraph is a limited recourse loan on which interest

is payable and which is repayable only to the extent set out in paragraph 9.6.8.

9.6.7 The provisions of paragraphs 8 and 9 shall apply to the making of payments under

paragraph 9.6.6 and Payment Parties who fail to pay the amount in the Advice Note by the

Default Payment Date shall be Non-paying BSC Debtors.

9.6.8 If, after despatching Advice Notes under paragraph 9.6.4(c):

(a) any portion of the Amount in Default attributable to principal is paid or

recovered, the FAA on behalf of the BSC Clearer shall distribute the VAT

Exclusive Element (increased by an amount in respect of VAT if applicable) of

such amounts to Payment Parties in their Annual Funding Shares (as referred to

in paragraph 9.6.4(b)); or

(b) any portion of the Amount in Default attributable to interest is paid or

recovered, the FAA on behalf of the BSC Clearer shall distribute such amounts

to Payment Parties in their Annual Funding Shares (as referred to in paragraph

9.6.4(b)).

9.6.9 To the extent that the VAT Element of amounts received by the BSC Clearer (net of the

VAT Element of amounts paid by the BSC Clearer) in respect of an Amount in Default

under paragraph 9.6.6 are insufficient to repay that part of the Drawing (if any)

representing the part of that Amount of Default that is attributable to VAT, BSCCo shall

pay an amount equal to the excess into the Credit Facility.

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9.7 No liability

9.7.1 The BSC Clearer shall have no liability in respect of any Shortfall Amount or Default

Share Amount in accordance with this paragraph 9, save to the extent that the Amount in

Default (including interest) is paid or recovered.

10. CONFIRMATION NOTICES IN RESPECT OF A PAYMENT DATE

10.1 Despatch of Confirmation Notices

10.1.1 Within two Business Days after each Payment Date the FAA shall, on behalf of the BSC

Clearer, issue a Confirmation Notice to each Payment Party in respect of that Payment

Date setting out the information required in paragraphs 10.2 and 10.3 and any other

information, if any, required for the purposes of any VAT and relevant European

legislation.

10.2 Information – Imbalance Parties

10.2.1 The information required on a Confirmation Notice in respect of each Imbalance Party is as

follows:

(a) the identity of the Imbalance Party;

(b) the amount (inclusive of an amount in respect of VAT) received in, or paid out

of, the Clearing Account on the relevant Payment Date by the FAA on behalf of

the BSC Clearer in respect of Trading Charges incurred or received by that

Imbalance Party;

(c) the amount received in, or paid out of, the Clearing Account on the relevant

Payment Date by the FAA on behalf of the BSC Clearer in respect of Trading

Charges incurred or received by that Imbalance Party, exclusive of VAT;

(d) the amount in respect of VAT received in, or paid out of, the Clearing Account

on the Payment Date by the FAA on behalf of the BSC Clearer in respect of

Trading Charges incurred or received by that Imbalance Party and the

applicable rate at which such VAT is calculated, and where the Imbalance Party

is not liable to VAT, the Confirmation Notice shall state that and indicate that

the Imbalance Party must account for VAT; and

(e) the VAT number and two digit country code for the Imbalance Party.

10.3 Information - NETSO

10.3.1 The information required on a Confirmation Notice in respect of the NETSO is as follows:

(a) the total amount (inclusive of an amount in respect of VAT) received in, or paid

out of, the Clearing Account on the relevant Payment Date by the FAA on

behalf of the BSC Clearer in respect of Daily System Operator Cashflow

incurred or received by the NETSO;

(b) the amount received in, or paid out of, the Clearing Account on the relevant

Payment Date by the FAA on behalf of the BSC Clearer in respect of System

Operator Cashflow incurred or received by the NETSO, exclusive of VAT; and

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(c) the amount in respect of VAT received in, or paid out of, the Clearing Account

on the Payment Date by the FAA on behalf of the BSC Clearer in respect of

System Operator Cashflow incurred or received by the NETSO and the

applicable rate at which such VAT is calculated.

11. PAYMENT ERRORS

11.1 Overpayments

11.1.1 If, for any reason whatsoever, a Payment Party receives from the BSC Clearer on any

Payment Date a payment in excess of the amount it is entitled to (an "overpayment"):

(a) the Payment Party shall forthwith on becoming aware of the overpayment notify

the FAA of the amount of the overpayment;

(b) the FAA shall (if it has received notice from the BSC Banker or otherwise of

the overpayment and the Payment Party has not already notified it) forthwith

notify the Payment Party of the amount of the overpayment in writing; and

(c) the Payment Party shall forthwith repay the overpayment to the Collection

Account.


(a) the "overpayment notification date" is the day on which a Payment Party

notified the FAA or the FAA notified a Payment Party of an overpayment;

(b) the "repayment date" is a Business Day falling two Business Days after the

overpayment notification date; and

(c) paragraph 2.6 shall apply as if references to "overpayments" were substituted

for "Amount in Default".

11.1.3 Not Used.

11.1.4 A Payment Party shall not be liable to pay interest on all or any part of an overpayment if

and to the extent that:

(a) an amount has been paid to the BSC Clearer on the repayment date and applied

by the FAA on behalf of the BSC Clearer to that overpayment; and/or

(b) it has been recovered from that Payment Party on or before the repayment date

by operation of set-off pursuant to paragraphs 2.6 and 11.1.2(c).

11.1.5 All interest and banking charges properly due from the BSC Clearer to the BSC Banker as

a result of an overpayment shall be paid by BSCCo on behalf of the BSC Clearer on the

date the interest and/or banking charges is payable to the BSC Banker.

11.2 Failure to repay overpayments

11.2.1 Paragraph 11.2.2 shall apply if on the repayment date an overpayment has not been repaid

in full and/or recovered by operation of set-off pursuant to paragraphs 2.6 and 11.1 2(c).

11.2.2 Where this paragraph 11.2.2 applies, the FAA shall, on behalf of the BSC Clearer, act in

accordance with the following provisions (or whichever of them shall apply) in the order in

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which they appear until the BSC Clearer has available sufficient funds in the Clearing

Account on the repayment date to repay the amount of the Drawing to the BSC Banker:

(a) debit the Reserve Account with a sum being the lesser of the overpayment and

the relevant Payment Party's Cash Cover and credit the Borrowing Account

with that sum; and

(b) if, after the application of paragraph (a), there remains an amount due and

owing by the BSC Clearer to the BSC Banker, the FAA on behalf of the BSC

Clearer shall:

(i) make a call under the relevant Payment Party's Letter(s) of Credit in

a sum not exceeding the lesser of the overpayment and the available

amount of such Letter(s) of Credit; and

(ii) cause the proceeds of such call to be paid forthwith into the

Borrowing Account; and

(c) if and to the extent that, notwithstanding application of the foregoing measures,

it is not possible to credit an amount in cleared finds equal to the overpayment

to the Borrowing Account, apply paragraphs 9.6.4 to 9.6.8 (inclusive) as if

references to "overpayments" were substituted for "Amount in Default" and

references to interest were to interest in accordance with paragraph 11.2.3.

11.2.3 If a Payment Party does not repay any overpayment (or part thereof) on the repayment date,

it shall pay interest from time to time (after as well as before judgment) at the Default

Interest Rate on that overpayment (or part thereof) from the repayment date until the day of

its payment.

11.2.4 Paragraph 9.3.3 shall apply to overpayments as if references to "overpayments" were

substituted for "Amount in Default".

11.3 Underpayments

11.3.1 If, for any reason whatsoever, a BSC Creditor does not receive on the relevant Payment

Date the full amount it is entitled to (an "underpayment"):

(a) that BSC Creditor shall forthwith on becoming aware of any underpayment

notify the FAA of the amount of the underpayment;

(b) the FAA after consultation with the BSC Banker and on behalf of the BSC

Clearer shall use all reasonable endeavours to promptly to correct the

underpayment; and

(c) the FAA on behalf of the BSC Clearer shall pay interest equal to the amount of

interest earned by the BSC Clearer as a result of such underpayment to such

BSC Creditor.

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12. ENFORCEMENT OF CLAIMS

12.1 Duties of FAA

12.1.1 Except as otherwise expressly provided in this Section N and Section M, neither the FAA

nor the BSC Clearer shall be required to ascertain or enquire as to the performance or

observance by any Payment Party of its obligations under the Code and neither shall have a

duty to inform the Panel or Payment Party of any default, other than a failure to pay, as

may come to its attention.

12.2 Action to recover Default Share Amounts

12.2.1 Where a Payment Party has failed to make a payment required under this Section N and

pursuant to paragraph 9.6.6 Payment Parties have borne Default Share Amounts of the

Amount in Default, BSCCo shall, if the Panel so decides but not otherwise, institute

proceedings on behalf of the BSC Clearer against the Non-paying BSC Debtor for the

recovery of the Amount in Default and interest thereon.

12.2.2 The Panel shall make a decision for the purposes of paragraph 12.2.1 after consultation

with the Payment Parties (other than the Non-paying BSC Debtor) and no later than 28

days after the Affected Date, and shall notify its decision to the Payment Parties.

12.2.3 Where the Panel decides that BSCCo should institute proceedings against a Non-paying

BSC Debtor:

(a) BSCCo shall institute and prosecute such proceedings with all reasonable

diligence;

(b) such proceedings may be instituted by the FAA (if so agreed with BSCCo) on

behalf of the BSC Clearer; and

(c) BSCCo shall keep the Panel informed of the progress of such proceedings, and

shall not settle or discontinue the same without the Panel’s approval.

12.2.4 Where it appears to BSCCo (on the recommendation of the FAA or otherwise) that any

interim proceedings or other step should be taken, in relation to the Non-paying BSC

Debtor, in order to protect the interests of the BSC Clearer and/or Payment Parties pending

the decision of the Panel under paragraph 12.2.2, BSCCo shall take or instruct the FAA to

take such interim proceedings or step on behalf of the BSC Clearer, after consulting where

time permits with the Panel Chairman.

12.2.5 If the Panel decides under paragraph 12.2.2 that BSCCo should not institute proceedings,

or does not make a decision by the time required under that paragraph, or later decides that

any such proceedings should be discontinued, the BSC Clearer shall upon the written

request of any Payment Party that it wishes to institute proceedings or take any action to

recover its Default Share Amount together with interest at the Default Interest Rate:

(a) assign to the requesting Payment Party a part of the Amount in Default equal to

that Party's Default Share Amount; and

(b) if that Payment Party shall so request, at the sole cost of that Payment Party and

upon such terms (as to indemnity from that Payment Party, payment in advance

in respect of costs, and otherwise) as the Panel may require, institute or

maintain on behalf of that Payment Party proceedings against the Non-paying

BSC Debtor for recovery of its Default Share Amount.

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12.2.6 Subject to paragraph 12.2.1, BSCCo on behalf of the BSC Clearer may take any other steps

to recover payment from any Non-paying BSC Debtor, including proving in its insolvency,

unless the Panel otherwise directs.

13. LEDGER ACCOUNTS

13.1 Maintenance of Ledger Accounts

13.1.1 The FAA shall maintain ledger accounts showing all amounts payable and receivable by

each Payment Party and the BSC Clearer according to calculations made and notifications

issued by the FAA pursuant to this Section N.

13.2 Ledger extracts

13.2.1 Each Payment Party shall be entitled to receive a quarterly extract of the ledger account

which is relevant to it showing all amounts debited and credited to its account provided that

if a Payment Party so requests of the FAA, it shall be entitled to receive a monthly extract

of such ledger account.

13.3 Certified copy extracts

13.3.1 In the event of any enforcement proceedings being brought against a Non-paying BSC

Debtor pursuant to paragraph 12.2.3, the FAA shall forthwith upon request being made to it

at the cost of the requesting Payment Parties provide a certified copy of an extract of the

ledger accounts sufficient to establish the details of each Default Share Amount in respect

of which those Payment Parties will have a claim against the Non-paying BSC Debtor upon

assignment of that Default Share Amount by the BSC Clearer to those Payment Parties.

13.4 Confidentiality

13.4.1 The ledger accounts maintained by the FAA shall be kept confidential from the Panel and

from all Payment Parties except as required:

(a) pursuant to paragraph 13.2 or 13.3; or

(b) for the purposes of calculating the amount of Energy Credit Cover to be

provided by an Imbalance Party or monitoring or enforcing compliance by an

Imbalance Party with its obligations with respect to the provision and

maintenance of Credit Cover; or

(c) to be disclosed to the BSC Auditor for the purpose of any BSC Audit.

13.5 Information

13.5.1 Any extract of a ledger account of any other records, data or information provided pursuant

to paragraph 13.2 or paragraph 13.4 (collectively referred to in this paragraph 13 as the

"information") shall, save in the case of manifest error, be deemed prima facie evidence of

its contents.

13.6 Review of extracts

13.6.1 Each Payment Party shall promptly review all extracts of ledger accounts sent to it and

shall (without prejudice to any of its rights under the Code) where practicable within 10

Business Days after receiving such information notify the FAA of any errors on the face of

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such account of which it is aware or, if it is not aware of any such errors on the face of the

extracts, so notify the FAA.

13.7 Dispute of accuracy

13.7.1 If the FAA at any time receives a notice disputing the accuracy of any ledger account,

records, data or information, it shall consult with the Payment Party who gave the notice

and each shall use all reasonable endeavours to agree the information.

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O – 1 of 9 Effective Date: 29 March 2019

SECTION O: COMMUNICATIONS UNDER THE CODE

1. GENERAL

1.1 Introduction

1.1.1 This Section O sets out:

(a) an outline of the arrangements for Communications under the Code; and

(b) in relation to certain Communications between Parties and certain BSC Agents:

(i) requirements to be complied with by Parties and Party Agents in

order to be able to send certain Communications to BSC Agents and

ensure that certain Communications are received;

(ii) requirements as to the forms of certain Communications between

Parties or Party Agents and BSC Agents;

(iii) the basis on which certain Communications will be treated as

received by a Party or BSC Agent for the purposes of the Code.

1.1.2 In this Section O references to a Party do not include BSCCo or BSC Clearer.

1.1.3 For the purposes of this Section O:

(a) "Communication" means any communication (including any notification,

application, request, approval, acceptance, rejection, report or other data

submission or data transfer) to be sent and received under the Code, and

includes (where the context admits) the data flow and content comprised in such

communication;

(b) "Communications Medium" means a particular method of transmitting

Communications, including telefax, e-mail, telephone or other electronic

communications system (and includes the Managed Data Network as defined in

paragraph 1.4.1);

(c) a "Data Catalogue" is a document (or combination of documents) of that title,

as established or adopted and from time to time modified by the Panel in

accordance with the Code, containing a catalogue of certain Communications,

specifying for each such Communication:

(i) the definition of the data items comprised in the Communication;

(ii) the format of the Communication;

(iii) in certain cases, the Communications Medium or alternative

Communications Medium by which such Communication may be

sent;

(iv) any other requirements as to the form of the Communication.

1.1.4 Data Catalogues are Code Subsidiary Documents.

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1.2 Communications

1.2.1 Subject to any other specific provision of the Code, and subject to paragraph 1.2.2 and

1.2.3, the arrangements and requirements (including terms as to when the sending or

receipt of a Communication is effective) which apply in relation to the various kinds of

Communications are as follows (in each case where applicable to any Communication):

(a) Communications between (1) any Party and (2) the Panel, BSC Clearer (but not

the FAA on its behalf) or subject to paragraph 1.2.3 BSCCo, are to be made in

accordance with Section H9.2;

(b) Communications between the NETSO and a Party pursuant to Section Q are

governed by the Grid Code as provided in Section Q;

(c) Communications between (1) Parties (including for the avoidance of doubt the

NETSO pursuant to Section Q) or Party Agents and (2) BSC Agents (not

including SVA Communications except as provided in paragraph 2.1.1(b)) are

to be made in accordance with the further provisions of this Section O;

(d) SVA Communications are to be made in accordance with paragraph 1.4 (and

with the further provisions of this Section O, if and to the extent applicable in

accordance with paragraph 2.1.1(b));

(e) the arrangements for making communications between BSC Agents and/or

between BSC Agents and Market Index Data Providers shall be contained in the

relevant BSC Service Descriptions, BSC Agent Contracts, Market Index Data

Provider Contracts and/or BSC Procedures or otherwise as established or

approved by the Panel;

(f) unless otherwise provided in the Code, any other Communications between

Parties are to be made in accordance with Section H9.2.

1.2.2 A Communication may be made by being posted on the BMRS or (where to be made by

BSCCo or the Panel) by being placed on the BSC Website, in a case where any other

provision of the Code expressly so provides.

1.2.3 BSCCo may arrange with any BSC Agent to send and receive Communications by any of

the Communications Mediums by which Communications are made between that BSC

Agent and Parties.

1.3 Data Catalogue

1.3.1 Unless the Panel otherwise approves, any Communication which is specified in a Data

Catalogue shall be sent and received in the form and format and using the Communications

Medium (where specified) and otherwise in accordance with the requirements set out in

that Data Catalogue (or where the Data Catalogue provides options, in accordance with one

of the options), but subject as provided in paragraph 1.2.3.

1.4 SVA Communications


(a) the "SVA Data Catalogue" is the Data Catalogue of that title (including a data

interfaces document) relating to certain Communications between SVA data

parties;

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(b) "SVA Communication" means any Communication which is specified in the

SVA Data Catalogue or another Code Subsidiary Document as a

Communication to be made using the Managed Data Network or an alternative

approved method of SVA data transfer;

(c) "SVA data parties" means Suppliers, Supplier Agents, SMRAs, BSCCo, the

SVAA and the Teleswitch Agent (but does not include the Profile Administrator

or the TAA for SVA Metering Systems);

(d) the "Managed Data Network" is any third party service approved as such from

time to time by the Panel for the purposes of transfers of data relating to

Supplier Volume Allocation between inter alia SVA data parties;

(e) references to an alternative approved method of SVA data transfer are to such

alternative method or methods of data transfer as the Panel may approve for the

purposes of transferring data to and from SVA data parties in connection with

Supplier Volume Allocation and/or SMRS.

1.4.2 SVA Communications shall be sent and received by the relevant SVA data parties using

the Managed Data Network or an alternative approved method of SVA data transfer.

1.4.3 The BSC Agent Contract for the SVAA shall provide for the SVAA to have access to the

Managed Data Network and to comply with the requirements of any Code Subsidiary

Document in respect of transfers of data using the Managed Data Network, or for an

alternative approved method of SVA data transfer, provided that the Panel shall not, save in

exceptional circumstances, approve an alternative method of SVA data transfer if the

charges for transferring data by that method will exceed the charges for using the Managed

Data Network.

1.4.4 Each Supplier shall procure that:

(a) each Supplier Agent for which it is responsible complies with the relevant

requirements of applicable BSC Procedures in respect of transfers of data to and

from SVA data parties, including the sending of data in accordance with the

SVA Data Catalogue;

(b) without prejudice to paragraph (a), except to the extent otherwise specified by

the Panel, procure that each such Supplier Agent uses the Managed Data

Network or an alternative approved method of SVA data transfer.

1.4.5 Where applicable (in accordance with paragraph 2.1.1(b)) the further provisions of this

Section O shall apply (unless in conflict with this paragraph 1.4) in relation to SVA

Communications.

2. SCOPE AND INTEPRETATION

2.1 Application of further provisions of this Section O

2.1.1 The further provisions of this Section O apply in relation to:

(a) Communications, other than SVA Communications, to be made between:

(i) Parties or Party Agents other than Supplier Agents, and

(ii) BSC Agents; and

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(b) SVA Communications which are to be made using an alternative approved

method of SVA data transfer;

and references to "Communications" and to "BSC Agents" in the further provisions of

this Section O shall be construed accordingly; and further references to this Section O are

to the further provisions of this Section O.

2.1.2 This Section O shall apply in relation to each Party's Party Agents, and each Party shall be

responsible for ensuring that its Party Agents send and receive Communications in

accordance with and otherwise comply with the requirements of this Section O; and

accordingly, where the context admits, a reference in this Section O to a Party includes its

Party Agents.

2.2 Interpretation

2.2.1 For the purposes of this Section O:

(a) in relation to a particular BSC Agent and one or more particular

Communications Mediums a "Data File Catalogue" is a Data Catalogue

applying in respect of Communications to be made between Parties and that

BSC Agent by that or those Communications Medium(s);

(b) a "Communication Requirements Document" is a document or documents of

that title, as established or adopted and from time to time modified by the Panel

in accordance with the Code, containing detailed requirements for sending and

receiving Communications between Parties and one or more BSC Agents using

one or more than one Communications Medium(s);

(c) a "Party System" is the system or systems collectively which (or the use of

which) a Party or (pursuant to paragraph 2.1.2) a Party Agent has or is required

to have pursuant to paragraph 3.1.1;

(d) "Time Standard" means any time standard specified (in relation to a BSC

Agent and Communications Medium) in the relevant Communication

Requirements Document.

2.2.2 Where the same person acts in the capacity of more than one BSC Agent, the Panel may

decide that a single Data File Catalogue shall apply in relation to that person.

2.2.3 Communications specified in a Data File Catalogue are to be sent and received in

accordance with that Data File Catalogue and the further requirements of this Section O

and any applicable Communication Requirements Document.

2.2.4 References in the further provisions of this Section O to Communications are to

Communications which are specified in a Data File Catalogue.

2.3 Communication Requirements Document

2.3.1 Each Communication Requirements Document sets out, in relation to the BSC Agent and

each Communications Medium to which it relates:

(a) a description and specification of the Communications Medium;

(b) requirements (if any) as to the system(s) which are required by a Party in order

to send and receive Communications using that Communications Medium;

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(c) details of the tests which are required of a Party in relation to its Party System

in accordance with paragraph 3.2;

(d) any particular requirements applying to a Party where it wishes to modify its

Party System;

(e) any security requirements (as further described in paragraph 3.4) applying in

respect of the use of the Communications Medium by a Party;

(f) any further terms applying to the use of such Communications Medium by a

Party;

(g) the basis on which (as further described in paragraph 4.2) it will be determined

whether and when Communications sent using such Communications Medium

are deemed to have been received;

(h) for the purposes of the matters in paragraph 4.2.2, the arrangements which exist

within, or the configuration of, each relevant BSC Agent System, and the

arrangements which are required to be a part of each Party System, for

recording and logging and (in certain circumstances) acknowledging the

sending and receipt of communications;

(i) the Time Standard applicable for the purposes in paragraph 4.2;

(j) details relating to planned BSC Agent downtime for the purposes of paragraph

4.3.

2.3.2 A Communication Requirements Document may specify any of the foregoing by reference

to another Code Subsidiary Document.

2.3.3 Communication Requirements Documents are Code Subsidiary Documents.

3 PARTIES' OBLIGATIONS

3.1 Requirement to have a Party System

3.1.1 Each Party is required, at its expense, to ensure that:

(a) it has or has the use of, and

(b) it maintains and (where necessary under paragraph 3.3.3) upgrades,

a system or systems, which may include telecommunications facilities, other equipment,

software and hardware, up to the interface with each Communications Medium or (as the

case may be) BSC Agent System, in compliance with the applicable requirements of the

applicable Communication Requirements Document, which enables the Party to send and

receive Communications by the relevant Communications Medium and otherwise in the

manner required by such Communication Requirements Document.

3.1.2 A Party may use its Party System for any purpose other than a purpose specified under the

Code, provided that use does not affect the Party's ability to send Communications and the

effective receipt of Communications in accordance with the requirements of this Section O.

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3.2 Testing

3.2.1 Each Party shall submit to, and submit its Party System to, tests known as "network access

tests" and "business process integration tests", as provided in the applicable

Communication Requirements Document(s), in order to establish that:

(a) the Party System is compatible with the relevant Communication Medium;

(b) the Party is capable of sending and receiving Communications using the

relevant Communication Medium and otherwise in accordance with the

applicable Communication Requirements Document.

3.2.2 The provisions of the applicable Communication Requirements Document shall apply for

the purposes of determining if and when a Party and its Party System have satisfied the

tests referred to in paragraph 3.2.1.

3.2.3 Each Party is required to comply with paragraph 3.1.1(a) and to satisfy the tests in

paragraph 3.2.1 before it is registered in CRS pursuant to Section A4.1.5.

3.3 Changes to Party Systems

3.3.1 A Party may modify its Party System at any time, provided that:

(a) the Party notifies its intention to modify its Party System to BSCCo if required

to do so by the Communication Requirements Document;

(b) the modification does not affect the Party's ability to receive and send

Communications; and

(c) the modification is made in compliance with the applicable requirements set out

in the Communication Requirements Document.

3.3.2 A Party which modifies its Party System may be required to carry out such further testing

(in accordance with paragraph 3.2.2) as may be specified in or determined in accordance

with each Communication Requirements Document.

3.3.3 It shall be the responsibility of each Party to modify its Party System from time to time and

to take any other steps, upon any change (in accordance with Section F) in any Data File

Catalogue or Communication Requirements Document (including any change in a

Communications Medium), so as to ensure that the Party and its Party System continues to

comply with this Section O (and remains compatible with the Communications Medium).

3.4 Security

3.4.1 A Communication Requirements Document may specify, in relation to any particular

Communication or in relation to the use of the relevant Communications Medium,

requirements as to security of the Communication and/or Communications Medium,

including by reference to any one or more of:

(a) passwords and security keys;

(b) firewalls at relevant gateways from and to which Communications will be sent

and at which Communications may be received;

(c) other encryption methods as may be specified in the Communication

Requirements Document.

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3.4.2 Each Party shall, but without prejudice to paragraph 4.1.3, take all reasonable steps to

prevent unauthorised access to a Communication or Communications Medium and shall

exercise care in the use of passwords and security keys in particular, to prevent

unauthorised use of them.

3.4.3 If a Party becomes aware of a breach of security in relation to a Communication or

Communications Medium, it shall promptly take such steps as may be required under the

Communication Requirements Document in relation thereto, including notifying BSCCo

and the relevant BSC Agent accordingly.

4 RULES AS TO COMMUNICATIONS

4.1 Form and effect of Communications

4.1.1 Parties shall send Communications using the applicable Communications Medium and in

the format and in accordance with all other applicable requirements set out in the Data File

Catalogue or other applicable Communication Requirements Document.

4.1.2 For the purposes of the Code a communication made by a Communications Medium and

otherwise in accordance with the requirements specified in or pursuant to this Section O

shall be a valid and effective Communication; and the Parties hereby confirm that they

intend such communications to have legal effect for the purposes of the Code.

4.1.3 It shall be assumed that any person:

(a) using a Party's Party System, and

(b) where paragraph 3.4 applies, using the relevant identification, password,

security key or authorisation or otherwise appearing to comply with the

applicable security measures,

for the purposes of sending or receiving any Communication, is authorised to access and

use the Party System and to send and receive Communications in the name of and on

behalf of the Party; and any Communication so sent or received shall be considered to have

been sent or received by that Party.

4.1.4 A Party may not send and shall not be entitled to receive a Communication by a means

other than one required or permitted under this Section O, and must otherwise comply with

the applicable requirements of this Section O in order to send Communications; and it is

acknowledged that:

(a) where a Party does not comply with such requirements:

(i) the Party may be unable to send Communications;

(ii) a Communication sent to the Party in accordance with the

requirements of paragraph 4.2.3 shall be properly sent and treated as

received, notwithstanding that the Party may be unable to receive or

access that Communication;

(b) where the Party attempts to send a Communication other than in accordance

with such requirements, the Communication shall be treated as not having been

sent and shall be of no effect.

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4.2 Effective receipt of Communications

4.2.1 The Communication Requirements Document will specify, for the relevant

Communications Medium and BSC Agent, and for all or particular Communications, the

basis on which and time with effect from which a Communication is treated as received for

the purposes of the Code.

4.2.2 In particular, in relation to Communications Mediums comprising electronic forms of

communication, the Communication Requirements Document may specify:

(a) the equipment, to form part of the BSC Agent System and/or Party System

(each referred to in this paragraph 4.2 as a " system"), by which, and the basis

on which, the sending and/or receiving of a Communication is to be logged and

recorded; and the basis on which such log or record is to be made available to

any Party or other person for audit or other purposes;

(b) whether a Communication is treated as received for the purposes of the Code

when logged as sent by the sender's system or as received by the receiver's

system;

(c) whether the receiver's system will send an acknowledgement of receipt of a

Communication and (if so) whether or not the sending of such

acknowledgement of receipt is a condition to the Communication being treated

as received for the purposes of the Code;

(d) any requirements applying where a message comprising a Communication is

not properly received or is not accessible by the receiver, including any steps to

be taken by the receiver and/or sender and whether the taking of or failure to

take such steps has any effect in respect of the effective receipt of such

Communication for the purposes of the Code;

(e) the basis on which (for the purposes of paragraph (b)) the time of sending or (as

the case may be) receipt of a Communication will be logged, using the relevant

Time Standard, where applicable.

4.2.3 It is agreed and acknowledged that (subject to paragraph 4.1.4(a)(ii)):

(a) Communications will be treated for the purposes of the Code as received (and

as effective) by reference to and in accordance with the relevant arrangements

and requirements specified in the Communication Requirements Document, and

will not be treated as received other than in accordance with such arrangements

and requirements; and

(b) where and to the extent that the Communication Requirements Document so

specifies (and provides for arrangements and requirements which include a

Time Standard for this purpose), the time with effect from which a

Communications will be treated for the purposes of the Code as received will be

the time determined in accordance with such arrangements and requirements

and the Time Standard therein.

4.3 BSC Agent Downtime

4.3.1 Each Communication Requirements Document sets out, in relation to the relevant BSC

Agent and Communications Medium:

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(a) the basis on which the BSC Agent System or Communications Medium may be

withdrawn (in whole or in part) from operation for maintenance or other

purposes or may otherwise be unavailable; and

(b) terms as to the expected notice to be given of such withdrawal or unavailability

and the expected duration of each such withdrawal or unavailability.

4.3.2 For the purposes of this Section O "planned BSC Agent downtime" means any period

during which a BSC Agent's BSC Agent System or Communications Medium is withdrawn

or unavailable in the circumstances referred to in paragraph 4.3.1.

4.3.3 During planned BSC Agent downtime, Parties will not be able or entitled to send or receive

Communications to or from the relevant BSC Agent (and to that extent will not have use of

or access to the relevant Communications Medium).

4.4 Other obligations

4.4.1 Each Party shall use reasonable endeavours to ensure that its use of any Communications

Medium does not disrupt the use by other Parties of that or other Communications

Mediums.

4.4.2 Parties shall not send Communications containing content which is illegal, immoral,

pornographic, inciteful, defamatory or contrary in any way to applicable laws, practises and

regulations.

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P – 1 of 24 Effective Date: 27 February 2020

SECTION P: ENERGY CONTRACT VOLUMES

AND METERED VOLUME REALLOCATIONS

1. GENERAL

1.1 Introduction

1.1.1 This Section P sets out:

(a) the basis on which persons may be authorised by Contract Trading Parties to

notify Energy Contract Volume Data and Metered Volume Reallocation Data:

(b) the basis on which Energy Contract Volume Data and Metered Volume

Reallocation Data:

(i) may be notified on behalf of Contract Trading Parties and validated;

(ii) not used;

(iii) may be treated as refused or rejected in certain cases of Credit

Default; and

(iv) will be aggregated in order to be taken into account in Settlement.

1.2 Authorisations - general

1.2.1 Energy Contract Volume Data and Metered Volume Reallocation Data may only be

notified by an Energy Contract Volume Notification Agent and a Metered Volume

Reallocation Notification Agent respectively in accordance with the provisions of this

Section P and Section J.

1.2.2 A Contract Trading Party:

(a) shall not include in any ECVNA Authorisation or MVRNA Authorisation any

qualification of or condition as to the authority of the relevant Energy Contract

Volume Notification Agent or Metered Volume Reallocation Notification

Agent, other than:

(i) the effective period; and

(ii) in the case of an ECVNA Authorisation submitted after the Relevant

Implementation Date of Modification Proposal P309, an

authorisation to submit only Replacement Energy Contract Volume

Notifications or only Additional Energy Contract Volume

Notifications under that ECVNA Authorisation;

(b) shall for the purposes of the Code be bound by, and may not challenge or

dispute under or for the purposes of the Code:

(i) any Energy Contract Volume Notification or Metered Volume

Reallocation Notification submitted by any Energy Contract Volume

Notification Agent or Metered Volume Reallocation Notification

Agent; and

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(ii) any omission or failure to submit any Energy Contract Volume

Notification or Metered Volume Reallocation Notification by any

Energy Contract Volume Notification Agent or Metered Volume

Reallocation Notification Agent

which has been authorised by that Contract Trading Party and whose

authorisation remains effective at the relevant time in accordance with this

Section P.

1.2.3 An ECVNA Authorisation or MVRNA Authorisation authorises the submission, while it is

effective, of Energy Contract Volume Notifications or (as the case may be) Metered

Volume Reallocation Notifications, irrespective of the period for which any such

notification is to be in force; and accordingly such a notification will be and remain in force

notwithstanding that the corresponding authorisation may cease to be effective.

1.2.4 Energy Contract Volume Notifications and Metered Volume Reallocation Notifications

shall not be in force with respect to any Settlement Period for which, the Submission

Deadline is before the time at which such notification is received (in accordance with

Section O) by the Energy Contract Volume Aggregation Agent but subject to paragraphs

2.3.10, 3.3.10 and 5.

1.2.5 In respect of Clock Change Days for which Energy Contract Volume Notifications or

Metered Volume Reallocation Notifications are submitted which do not take account of the

Clock Change, the Energy Contract Volume Aggregation Agent will apply defaulting rules

such as to ignore values submitted in respect of the third and fourth Settlement Periods of

that Settlement Day (for a short Clock Change Day) and to repeat values submitted in

respect of the third and fourth Settlement Periods of that Settlement Day (for a long Clock

Change Day), or such other or supplementary defaulting rules as may be approved from

time to time by the Panel and notified by BSCCo to Trading Parties and the NETSO.

1.3 Further provisions

1.3.1 An ECVNA Authorisation or MVRNA Authorisation shall be effective for the period

commencing on the later of:

(a) the effective date specified in such authorisation, and

(b) the day following that on which the ECVAA gives notice of confirmation

thereof pursuant to this Section P;

and ending on the last day, if specified, of its effectiveness, or otherwise continuing until

such authorisation is terminated.

1.3.2 Unless it is not valid (pursuant to paragraph 2.3.4 or 3.3.4) or treated as refused (pursuant

to paragraph 2.5.1 or 3.5.1), an Energy Contract Volume Notification or Metered Volume

Reallocation Notification shall be in force (subject to paragraphs 1.2.4, 2.5.2 and 3.5.2) in

respect of each Settlement Day within the period commencing on its Effective-from Date

and ending on its Effective-to Date (if any) or otherwise continuing until and unless

replaced pursuant to paragraph 2.3.5(a) or 3.3.5(a).

1.3.3 For the avoidance of doubt, the information that an Energy Contract Volume Notification

or Metered Volume Reallocation Notification is not valid or is (pursuant to paragraph 2.5.1

or 3.5.1) treated as refused, may be given to the Relevant Contract Parties (pursuant to

Section V) after its Effective-from Date but without prejudice to paragraphs 2.3.10 and

3.3.10.

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1.3.4 Energy Contract Volume Data may have a positive or a negative value.

1.3.5 In relation to any ECVNA Authorisation or Energy Contract Volume Notification:

(a) subject to paragraph 1.4, the "Relevant Contract Parties" are the two Contract

Trading Parties by whom the two Energy Contract Volume Notification Agents

are to be appointed or (as the case may be) on whose behalf Energy Contract

Volumes are notified;

(b) the "Energy (To) Account" is the Energy Account (of one Relevant Contract

Party) to which Energy Contract Volume(s) are to be credited or from which

Energy Contract Volume(s) are to be nullified;

(c) the "Energy (From) Account" is the Energy Account (of the other Relevant

Contract Party) from which Energy Contract Volume(s) are to be debited or

from which Energy Contract Volume(s) are to be nullified;

and accordingly where the Energy Contract Volume Data is positive an Energy Contract

Volume Notification has the effect of transferring the relevant Energy Contract Volume

from the Energy (From) Account of one Relevant Contract Party to the Energy (To)

Account of the other Relevant Contract Party.

1.4 Single Relevant Contract Party

1.4.1 An ECVNA Authorisation and Energy Contract Volume Notifications may be submitted

on behalf of a single Trading Party in the capacity of both Relevant Contract Parties, who

may (by such a notification) transfer Energy Contract Volume(s) from one of its Energy

Accounts to the other.

1.4.2 Any provisions of the Code which refer to both, or two, Relevant Contract Parties, or to

either Relevant Contract Party, or which otherwise imply that there must be two Relevant

Contract Parties, shall be construed so as to give effect to this paragraph 1.4.

1.5 Single Energy Contract Notification Agent or Single Metered Volume Reallocation

Notification Agent

1.5.1 Where the same person is appointed as an Energy Contract Volume Notification Agent by

each of the Relevant Contract Parties by an ECVNA Authorisation, the Energy Contract

Volume Notification Agent so appointed shall submit Energy Contract Volume

Notifications on behalf of each of the Relevant Contract Parties.

1.5.2 Where the same person is appointed as a Metered Volume Reallocation Notification Agent

by each of the Lead Party and the Subsidiary Party by an MVRNA Authorisation, the

Metered Volume Reallocation Notification Agent so appointed shall submit Metered

Volume Reallocation Notifications on behalf of each of the Lead Party and the Subsidiary

Party.

1.5.3 Any provisions of the Code which refer to both, or two, Energy Contract Volume

Notification Agents or both, or two, Metered Volume Reallocation Notification Agents, or

to either Energy Contract Volume Notification Agent or either Metered Volume

Reallocation Notification Agent, or which otherwise imply that there must be two Energy

Contract Volume Notification Agents or two Metered Volume Reallocation Notification

Agents, shall be construed so as to give effect to this paragraph 1.5.

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1.6 Suspension of contract volume notification

1.6.1 Where, for the purposes of any Contingency Provisions, the notification of contract

volumes is to be suspended in relation to any Settlement Period:

(a) no Energy Contract Volume Notification shall be taken into account in

Settlement as to any Energy Contract Volume Data which relates to that

Settlement Period, and accordingly the Account Bilateral Contract Volume shall

be zero for all Energy Accounts;

(b) no Metered Volume Reallocation Notification shall be taken into account in

Settlement as to any Metered Volume Reallocation Data which relates to that

Settlement Period, and accordingly the Metered Volume Fixed Reallocation and

the Metered Volume Percentage Reallocation shall be zero for all BM Units and

Subsidiary Energy Accounts;

(c) subject to any other provision of the Code relating to Level 2 Credit Default,

when (in accordance with the relevant Contingency Provisions) the notification

of contract volumes ceases to be suspended, the provisions of this Section P

shall apply by reference to all Volume Notifications then in force.

2. ENERGY CONTRACT VOLUMES

2.1 Submission of ECVNA Authorisation

2.1.1 Energy Contract Volume Notification Agents may be appointed by an ECVNA

Authorisation, given by the Relevant Contract Parties by whom such persons are to be

appointed, and submitted to the Energy Contract Volume Aggregation Agent.

2.1.2 An ECVNA Authorisation:

(a) shall be made under the authority of both Relevant Contract Parties;

(b) shall specify:

(i) the relevant Energy Contract Volume Notification Agents,

(ii) the Relevant Contract Parties,

(iii) the Energy (From) Account,

(iv) the Energy (To) Account, and

(v) the first day on which it is intended to be effective;

(bb) shall, in the case of an ECVNA Authorisation submitted after the Relevant

Implementation Date of Modification Proposal P309, specify whether the

Energy Contract Volume Notification Agent is authorised to submit:

(i) only Replacement Energy Contract Volume Notifications; or

(ii) only Additional Energy Contract Volume Notifications; or

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(iii) either Additional Energy Contract Volume Notifications or

Replacement Energy Contract Volume Notifications,

under that ECVNA Authorisation;

(c) shall be made in accordance with and subject to BSCP71; and

(d) may specify the last day on which it is to be effective (failing which it is to be

effective until otherwise terminated in accordance with paragraph 2.2).

2.1.3 An ECVNA Authorisation shall be valid if and only if it is made in accordance with

BSCP71 and the following conditions are met:

(a) each Relevant Contract Party is a Contract Trading Party;

(b) each Energy Contract Volume Notification Agent has qualified in accordance

with Section J5.3;

(c) the Energy (From) Account is either the Production Energy Account or the

Consumption Energy Account of one of the Relevant Contract Parties;

(d) the Energy (To) Account is either the Production Energy Account or the

Consumption Energy Account of the other Relevant Contract Party.

(e) in the case of an ECVNA Authorisation submitted after the Relevant

Implementation Date of Modification Proposal P309, the authorisation

identifies whether the Energy Contract Volume Notification Agent is authorised

to submit:

(i) only Additional Energy Contract Volume Notifications; or

(ii) only Replacement Energy Contract Volume Notifications; or

(iii) either Additional Energy Contract Volume Notifications or

Replacement Energy Contract Volume Notifications,

under that ECVNA Authorisation.

2.1.4 The Energy Contract Volume Aggregation Agent shall, in accordance with BSCP71:

(a) validate (as to compliance with the requirements in paragraph 2.1.3) each

ECVNA Authorisation submitted to it pursuant to this paragraph 2.1; and

(b) on the basis of such validation, confirm or reject, by notice to the Contract

Trading Parties and each of the Energy Contract Volume Notification Agents,

such ECVNA Authorisation.

2.1.5 The Relevant Contract Parties may, subject to and in accordance with BSCP71, submit a

change to the authority of an Energy Contract Volume Notification Agent to submit

Replacement Energy Contract Volume Notifications or Additional Energy Contract

Volume Notifications (an "Authorisation Change").

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(a) validate an Authorisation Change; and

(b) on the basis of such validation, confirm or reject the Authorisation Change by

notice to the Relevant Contract Parties and each of the Energy Contract Volume

Notification Agents.

2.1.7 An Authorisation Change shall be effective from the later of:

(a) the effective date specified in the Authorisation Change in accordance with

BSCP71; and

(b) the day following that on which the Energy Contract Volume Aggregation

Agent gives notice of confirmation thereof pursuant to paragraph 2.1.6(b).

2.1.8 An Authorisation Change shall be effective until the earlier of:

(a) the termination or expiry of the associated ECVNA Authorisation; and

(b) confirmation (in accordance with paragraph 2.1.6(b)) of a subsequent

Authorisation Change in respect of the same ECVNA Authorisation.

2.1.9 During the period in which an Authorisation Change is effective (in accordance with

paragraphs 2.1.7 and 2.1.8), the relevant Energy Contract Volume Notification Agent shall

be authorised to submit Energy Contract Volume Notifications as authorised by that

Authorisation Change.

2.2 Termination of ECVNA Authorisation

2.2.1 An ECVNA Authorisation (if validated pursuant to paragraph 2.1) shall be and remain

effective until and only until:

(a) a valid notice of termination is received and validated pursuant to paragraph

2.2.2, or

(b) the end of the last day of its effectiveness (if specified pursuant to paragraph

2.1.2(d)), or

(c) either Relevant Contract Party ceases to be a Contract Trading Party, or

(d) it is replaced by a further ECVNA Authorisation in accordance with paragraph

2.2.3

whichever is the earliest.

2.2.2 An ECVNA Authorisation may be terminated by notice, given in accordance with

BSCP71, by either of the Relevant Contract Parties or either of the Energy Contract

Volume Notification Agents to (and effective when received by) the Energy Contract

Volume Aggregation Agent, which notice shall specify:

(a) the Energy Contract Volume Notification Agents,

(b) the Energy (To) Account, and

(c) the Energy (From) Account.

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(a) an ECVNA Authorisation (the "first" such authorisation) is and remains

effective, and

(b) a further ECVNA Authorisation, for which the Relevant Contract Parties,

Energy (To) Account, Energy (From) Account, and (subject to paragraph 2.2.5)

Energy Contract Volume Notification Agents are the same as those for the first,

is submitted to the ECVAA and is valid

then the further ECVNA Authorisation shall, upon and with effect from its becoming

effective, replace the first ECVNA Authorisation which shall then cease to be effective.

2.2.4 Where at any time an ECVNA Authorisation ceases to be effective, the Energy Contract

Volume Aggregation Agent shall issue a notification to that effect to the Relevant Contract

Parties and the Energy Contract Volume Notification Agents in accordance with BSCP71.

2.2.5 Where an ECVNA Authorisation (the "successor" such authorisation) is submitted which:

(a) satisfies the requirements in paragraph 2.2.3(b), except that it specifies a

different Energy Contract Volume Notification Agent for either of the Relevant

Contract Parties from that for the first authorisation (referred to in paragraph

2.2.3(a)), and

(b) states that it is to replace the first authorisation.

then the successor ECVNA Authorisation shall, upon and with effect from its becoming

effective, replace the first ECVNA Authorisation which shall then cease to be effective,

and the Energy Contract Volume Notification Agents under the successor ECVNA

Authorisation shall be considered to be the same as that under the first for the purposes of

paragraph 2.3.5.

2.3 Energy Contract Volume Notifications

2.3.1 Energy Contract Volume Data may be notified by way of an Energy Contract Volume

Notification submitted by an Energy Contract Volume Notification Agent.

2.3.1A An Energy Contract Volume Notification shall be one or more of the following types:

(a) an Additional Energy Contract Volume Notification;

(b) an Initial Energy Contract Volume Notification;

(c) a Replacement Energy Contract Volume Notification.

2.3.2 An Energy Contract Volume Notification:

(a) shall specify:

(i) the ECVNA Authorisation under which it is given (thereby

identifying the Energy (From) Account and the Energy (To)

Account),

(ii) the Energy Contract Volume Notification Agent,

(iii) the first Settlement Day on which it is intended to be in force (the

"Effective-from Date"), and

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(iv) for each Settlement Period, a quantity of Active Energy (expressed

in MWh);

(b) shall be submitted in accordance with and subject to BSCP71; and

(c) may specify:

(i) subject to paragraph 2.3.4(d)(i), that it is to replace, in accordance

with paragraph 2.3.5(a), a previous Energy Contract Volume

Notification identified (by the ECVN identifier provided for in

BSCP71) in such notification; and/or

(ii) the last Settlement Day on which it is to be in force (the "Effective-

to Date"), failing which it is to be in force until and unless replaced

in accordance with paragraph 2.3.5(a).

2.3.3 Where an Energy Contract Volume Notification is to be in force for more than one

Settlement Day, the Energy Contract Volume Data for a given Settlement Period

(considered as a period in any day) shall be the same for that period in each Settlement Day

for which it is in force.

2.3.4 An Energy Contract Volume Notification shall be valid (but without prejudice to paragraph

1.2.4) if and only if it is made in accordance with BSCP71 and:

(a) there is an effective ECVNA Authorisation with respect to the Energy (From)

Account, Energy (To) Account, and the Energy Contract Volume Notification

Agent submitting the Energy Contract Volume Notification;

(b) the Energy Contract Volume Notification is submitted within the period of

effectiveness of such ECVNA Authorisation;

(c) the Energy Contract Volume for each Settlement Period is a number in MWh,

positive or negative, with no more than three digits after the decimal point, and

between –99,999.999 and 99,999.999; provided that (subject to paragraph 1.2.5)

where in relation to a Settlement Period no value for Energy Contract Volume is

specified, a value of zero shall be deemed to be specified; and

(d) where the Energy Contract Volume Notification:

(i) is a Replacement Energy Contract Volume Notification, the relevant

ECVNA Authorisation authorises the Energy Contract Volume

Notification Agent to submit Replacement Energy Contract Volume

Notifications;

(ii) is an Additional Energy Contract Volume Notification, the relevant

ECVNA Authorisation authorises the Energy Contract Volume

Notification Agent to submit Additional Energy Contract Volume

Notifications.

2.3.4A For the purpose of paragraph 2.3.4(d):

(a) the references to an ECVNA Authorisation shall include any change to such

authorisation pursuant to an effective Authorisation Change; and

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(b) an ECVNA Authorisation validated prior to the Implementation Date of

Modification Proposal P309 shall be deemed to authorise an Energy Contract

Volume Notification Agent to submit Replacement Energy Contract Volume

Notifications or Additional Energy Contract Volume Notifications except to the

extent that the Relevant Contract Parties have changed the authority of the

Energy Contract Volume Notification Agent in accordance with an

Authorisation Change.

2.3.4B For the avoidance of doubt, any authorisation to submit:

(a) only Replacement Energy Contract Volume Notifications; or

(b) only Additional Energy Contract Volume Notifications; or

(c) either Additional Energy Contract Volume Notifications or Replacement

Energy Contract Volume Notifications,

as specified in an ECVNA Authorisation, shall not affect the ability to submit, or validity

of, an Initial Energy Contract Volume Notification and paragraph 2.3.4(d) shall not apply

to such notification.

2.3.5 Where a valid (in accordance with paragraph 2.3.4):

(a) Replacement Energy Contract Volume Notification is submitted then, with

effect from the Effective-from Date of the Replacement Energy Contract

Volume Notification (or, if later, the first Settlement Period from which it is in

force pursuant to paragraph 1.2.4), the Replacement Energy Contract Volume

Notification shall replace the earlier valid Energy Contract Volume Notification

and, the earlier valid Energy Contract Volume Notification shall cease to be in

force (or if it is not yet in force, shall not come into force), irrespective of

whether the Effective-from Date of the earlier valid Energy Contract Volume

Notification falls before or after the Effective-to Date of the Replacement

Energy Contract Volume Notification;

(b) Additional Energy Contract Volume Notification is submitted, the Additional

Energy Contract Volume Notification shall be additional to the earlier valid

Energy Contract Volume Notification, and the earlier valid Energy Contract

Volume Notification shall (subject to any other provision of this Section P)

remain in (or, as the case may be, come into) force.

2.3.6 Subject to paragraph 2.3.10, an Energy Contract Volume Notification may not be amended

or varied other than pursuant to paragraph 2.3.5(a).

2.3.7 The Energy Contract Volume Aggregation Agent shall:


Energy Contract Volume Notification submitted to it pursuant to this paragraph

2.3; and

(b) determine whether such Energy Contract Volume Notification is to be treated as

refused in accordance with paragraph 2.5.1.

(c) not used.

2.3.8 Subject to paragraph 2.3.11, the ECVAA will inform the Relevant Contract Parties and the

relevant Energy Contract Volume Notification Agent if it does not validate an Energy

Contract Volume Notification submitted to it pursuant to this paragraph 2.3.

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2.3.9 If:

(a) an Energy Contract Volume Notification Agent submits an Energy Contract

Volume Notification (the "original" such notification) which is not valid as

provided in paragraph 2.3.4, and

(b) the ECVAA does not so inform the relevant Energy Contract Volume

Notification Agent pursuant to paragraph 2.3.8 within 20 minutes after the

Energy Contract Volume Notification was received,

then (subject to paragraph 2.3.11) paragraph 2.3.10 shall apply.

2.3.10 In the circumstances in paragraph 2.3.9:

(a) the Energy Contract Volume Notification may be:

(i) amended but only so as to correct those matters which gave rise to

the invalidity as provided in paragraph 2.3.4, and

(ii) resubmitted (as so amended) by that Energy Contract Volume

Notification Agent at any time not later than the end of the Business

Day next following:

(1) the day on which the ECVAA did inform the Energy

Contract Volume Notification Agent pursuant to

paragraph 2.3.8, or

(2) in the absence of the ECVAA so informing the Energy

Contract Volume Notification Agent, Gate Closure for

the first Settlement Period for which the Energy Contract

Volume Notification would (if valid, and in accordance

with paragraph 1.2.4 where applicable) have been taken

into account in Settlement; and

(b) the resubmitted Energy Contract Volume Notification:

(i) shall be deemed (for the purposes of the Code) to have been received

at the time at which the original such notification was received; and

(ii) if valid in accordance with paragraph 2.3.4, shall, notwithstanding it

may be submitted after Gate Closure for any such Settlement Period,

be in force and (subject to paragraph 2.5) effective for the Settlement

Periods for which the original Energy Contract Volume Notification

would (consistent with paragraph 1.2.4) have been in force.

2.3.11 To the extent that a Relevant Contract Party or Energy Contract Volume Notification

Agent has requested the ECVAA not to give the information in paragraph 2.3.8, paragraphs

2.3.8, 2.3.9 and 2.3.10 shall not apply in relation to that Party or Agent.

2.4 Not used

2.5 Refusal and rejection for credit reasons

2.5.1 Where either of the Relevant Contract Parties is in Level 2 Credit Default in accordance

with Section M3, a relevant Energy Contract Volume Notification which is submitted

during the Credit Default Refusal Period will be treated as refused and will not become

effective.

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2.5.2 Where:

(a) a relevant Energy Contract Volume Notification is in force; and

(b) either of the Relevant Contract Parties is in Level 2 Credit Default in

accordance with Section M3.

such Energy Contract Volume Notification will be treated as rejected, and will have no

effect, as to Energy Contract Volume Data which relate to relevant Settlement Period(s) (as

defined in paragraph 2.5.3) for which Gate Closure falls within the Credit Default

Rejection Period.

2.5.3 For the purposes of this paragraph 2.5, a relevant Energy Contract Volume Notification is

one which, if in force and not treated as rejected in relation to a Settlement Period (a

"relevant" Settlement Period) would have the effect in relation to that Settlement Period of

increasing the Energy Indebtedness (in accordance with Section M1.2) of the Party in

Level 2 Credit Default.

2.6 Energy Contract Volume

2.6.1 For each Settlement Day or (pursuant to paragraph 1.2.4 or 2.5.2) part thereof for which an

Energy Contract Volume Notification is in force and not treated as rejected pursuant to

paragraph 2.5.2, for each matched Settlement Period specified in that Energy Contract

Volume Notification, the Energy Contract Volume ECQzabj shall be the Energy Contract

Volume Data specified (for that matched Settlement Period) in the Energy Contract

Volume Notification.

2.6.2 Wherever the term ECQzabj (or the term 'ECQ' with first and fourth subscripts 'z' and 'j' and

second and third subscripts representing Energy Accounts) is used in the Code, the second

subscript represents the Energy (From) Account and the third subscript represents the

Energy (To) Account, so that (in this example) the term ECQzabj means an Energy Contract

Volume pursuant to an Energy Contract Volume Notification for which Energy Account 'a'

is the Energy (From) Account and Energy Account 'b' is the Energy (To) Account.

3. METERED VOLUME REALLOCATIONS

3.1 Submission of MVRNA Authorisation

3.1.1 Metered Volume Reallocation Notification Agents may be appointed by a MVRNA

Authorisation, given by the Lead Party (for the BM Unit to which it relates) and the

Subsidiary Party by whom such persons are to be appointed, and submitted to the Energy

Contract Volume Aggregation Agent.

3.1.2 A MVRNA Authorisation:

(a) shall be made under the authority of both the Lead Party and the Subsidiary

Party;

(b) shall specify:

(i) the relevant Metered Volume Reallocation Notification Agents,

(ii) the BM Unit to which it relates,

(iii) the Lead Party,

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(iv) the Subsidiary Party,

(v) the Subsidiary Energy Account,

(vi) the first day on which it is intended to be effective;

(c) shall be made in accordance with and subject to BSCP71; and

(d) may specify the last day on which it is to be effective (failing which it is to be

effective until otherwise terminated in accordance with paragraph 3.2).

3.1.3 A MVRNA Authorisation shall be valid if and only if it is made in accordance with

BSCP71 and the following conditions are met:

(a) the person specified as Lead Party is registered as the Lead Party in respect of

the BM Unit;

(b) the Subsidiary Party is a Contract Trading Party;

(c) each Metered Volume Reallocation Notification Agent has qualified in

accordance with Section J5.3;

(d) the Subsidiary Energy Account is:

(i) where the BM Unit is a Production BM Unit, the Production Energy

Account,

(ii) where the BM Unit is a Consumption BM Unit, the Consumption

Energy Account

of the Subsidiary Party, and

(e) the BM Unit to which it relates is not a Secondary BM Unit.



MVRNA Authorisation submitted to it pursuant to this paragraph 3.1; and

(b) on the basis of such validation, confirm or reject, by notice to the Lead Party

and Subsidiary Party and each of the Metered Volume Reallocation Notification

Agents, such MVRNA Authorisation.

3.2 Termination of MVRNA Authorisation

3.2.1 A MVRNA Authorisation (if validated pursuant to paragraph 3.1) shall be and remain

effective until and only until:

(a) a valid notice of termination is received and validated pursuant to paragraph

3.2.2, or

(b) the end of the last day of its effectiveness (if specified pursuant to paragraph

3.1.2(d)), or

(c) the Lead Party ceases to be registered as Lead Party of the BM Unit, or

(d) the Subsidiary Party ceases to be a Contract Trading Party, or

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(e) if:

(i) the Subsidiary Energy Account is a Consumption Energy Account,

the BM Unit becomes a Production BM Unit, or

(ii) the Subsidiary Energy Account is a Production Energy Account, the

BM Unit becomes a Consumption BM Unit, or

(f) it is replaced by a further MVRNA Authorisation in accordance with paragraph

3.2.4

(and in the cases in paragraphs (c), (d) and (e), until the relevant information has been

provided to and validated by the ECVAA) whichever is the earliest.

3.2.2 A MVRNA Authorisation may be terminated by notice, given in accordance with BSCP71,

by any one of the Lead Party, Subsidiary Party or either of the Metered Volume

Reallocation Notification Agents to (and effective when received by) the Energy Contract

Volume Aggregation Agent, which notice shall specify:

(a) the Metered Volume Reallocation Notification Agents,

(b) the Lead Party,

(c) the Subsidiary Party,

(d) the Subsidiary Energy Account, and

(e) the BM Unit.


(a) a MVRNA Authorisation (the "first" such authorisation) is and remains

effective, and

(b) a further MVRNA Authorisation, for which the Lead Party and BM Unit, the

Subsidiary Party, Subsidiary Energy Account, and (subject to paragraph 3.2.5)

Metered Volume Reallocation Notification Agents are the same as those for the

first, is submitted to the ECVAA and is valid

then the further MVRNA Authorisation shall, upon and with effect from its becoming

effective, replace the first MVRNA Authorisation which shall then cease to be effective.

3.2.4 Where at any time a MVRNA Authorisation ceases to be effective, the Energy Contract

Volume Aggregation Agent shall issue a notification to that effect to the Lead Party,

Subsidiary Party and Metered Volume Reallocation Notification Agents in accordance with

BSCP71.

3.2.5 Where an MVRNA Authorisation (the "successor" such authorisation) is submitted which:

(a) satisfies the requirements in paragraph 3.2.3(b), except that it specifies a

different Metered Volume Reallocation Notification Agent for either the Lead

Party or the Subsidiary Party from that for the first authorisation (referred to in

paragraph 3.2.3(a)), and

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(b) states that it is to replace the first authorisation

then the successor MVRNA Authorisation shall, upon and with effect from its becoming

effective, replace the first MVRNA Authorisation which shall then cease to be effective,

and the Metered Volume Reallocation Notification Agents under the successor MVRNA

Authorisation shall be considered to be the same as that under the first for the purposes of

paragraph 3.3.5.

3.3 Metered Volume Reallocation Notifications

3.3.1 Metered Volume Reallocation Data may be notified by way of a Metered Volume

Reallocation Notification submitted by a Metered Volume Reallocation Notification Agent.

3.3.2 A Metered Volume Reallocation Notification:

(a) shall specify:

(i) the MVRNA Authorisation under which it is given (thereby

identifying the BM Unit, the Lead and Subsidiary Parties, and the

Subsidiary Energy Account to which it relates);

(ii) the Metered Volume Reallocation Notification Agent,

(iii) the first Settlement Day on which it is intended to be in force (the

"Effective-from Date"), and

(iv) for each Settlement Period, a quantity of Active Energy and a

percentage (either of which may be zero) in accordance with

paragraph 3.6.1;

(b) shall be submitted in accordance with and subject to BSCP71; and

(c) may specify:

(i) that it is to replace, in accordance with paragraph 3.3.5(a), a previous

Metered Volume Reallocation Notification identified (by the MRVN

identifier provided for in BSCP71) in such notification; and/or

(ii) the last Settlement Day on which it is to be in force (the "Effective-

to Date"), failing which it is to be in force until and unless replaced

in accordance with paragraph 3.3.5(a).

3.3.3 Where a Metered Volume Reallocation Notification is to be in force for more than one

Settlement Day, the Metered Volume Reallocation Data for a given Settlement Period

(considered as a period in any day) shall be the same for that period in each Settlement Day

for which it is in force.

3.3.4 A Metered Volume Reallocation Notification shall be valid (but without prejudice to

paragraph 1.2.4) if and only if it is made in accordance with BSCP71 and:

(a) there is an effective MVRNA Authorisation with respect to the BM Unit,

Subsidiary Energy Account, and Metered Volume Reallocation Notification

Agent submitting the Metered Volume Reallocation Notification;

(b) the Metered Volume Reallocation Notification is submitted within the period of

effectiveness of such MVRNA Authorisation; and

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(c) the Metered Volume Reallocation Data complies with the requirements of

subsection 3.6.

3.3.5 Where a valid Metered Volume Reallocation Notification (the "second" such notification)

is submitted for which the relevant Metered Volume Reallocation Notification Agent, BM

Unit and Subsidiary Energy Account are the same as those for an earlier-submitted

Metered Volume Reallocation Notification (the "first" such notification):

(a) if the second notification specifies (pursuant to paragraph 3.3.2(c)(i)) that it is to

replace the first notification, and either

(i) the Effective-from Date of the second notification is the same as or

prior to the Effective-to Date of the first notification; or

(ii) the first notification has no Effective-to Date;

then, with effect from the Effective-from Date of the second notification (or, if

later, the first Settlement Period from which it is in force pursuant to paragraph

1.2.4), the second notification shall replace the first notification and the first

notification shall cease to be in force (or if it is not yet in force, shall not come

into force), irrespective of whether the Effective-from Date of the first

notification falls before or after the Effective-to Date of the second notification;

(b) otherwise, the second notification shall be additional to the first, and the first

notification shall (subject to any other provision of this Section P) remain in (or,

as the case may be, come into) force.

3.3.6 Subject to paragraph 3.3.10, a Metered Volume Reallocation Notification may not be

amended or varied other than pursuant to paragraph 3.3.5(a).



Metered Volume Reallocation Notification submitted to it pursuant to this

paragraph 3.3; and

(b) determine whether such Metered Volume Reallocation Notification is to be

treated as refused in accordance with paragraph 3.5.1.

(c) not used

3.3.8 Subject to paragraph 3.3.11, the ECVAA will inform the Lead and Subsidiary Parties and

the relevant Metered Volume Reallocation Notification Agent if it does not validate a

Metered Volume Reallocation Notification submitted to it pursuant to this paragraph 3.3.

3.3.9 If:

(a) a Metered Volume Reallocation Notification Agent submits a Metered Volume

Reallocation Notification (the "original" such notification) which is not valid as

provided in paragraph 3.3.4, and

(b) the ECVAA does not so inform the relevant Metered Volume Reallocation

Notification Agent pursuant to paragraph 3.3.8 within 20 minutes after the

Metered Volume Reallocation Notification was received,

then (subject to paragraph 3.3.11) paragraph 3.3.10 shall apply.

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3.3.10 In the circumstances in paragraph 3.3.9:

(a) the Metered Volume Reallocation Notification may be:

(i) amended but only so as to correct those matters which gave rise to

the invalidity as provided in paragraph 3.3.4, and

(ii) resubmitted (as so amended) by that Metered Volume Reallocation

Notification Agent at any time not later than the end of the Business

Day next following:

(1) the day on which the ECVAA did inform the Metered

Volume Reallocation Notification Agent pursuant to

paragraph 3.3.8, or

(2) in the absence of the ECVAA so informing the Metered

Volume Reallocation Notification Agent, Gate Closure

for the first Settlement Period for which the Metered

Volume Reallocation Notification would (if valid, and in

accordance with paragraph 1.2.4 where applicable) have

been taken into account in Settlement; and

(b) the resubmitted Metered Volume Reallocation Notification:

(i) shall be deemed (for the purposes of the Code) to have been received

at the time at which the original such notification was received; and

(ii) if valid in accordance with paragraph 3.3.4, shall, notwithstanding it

may be submitted after Gate Closure for any such Settlement Period,

be in force and (subject to paragraph 3.5) effective for Settlement

Periods for which the original Metered Volume Reallocation

Notification would (consistent with paragraph 1.2.4) have been in

force.

3.3.11 To the extent that a Lead or Subsidiary Party or Metered Volume Reallocation Notification

Agent has requested the ECVAA not to give the information in paragraph 3.3.8, paragraphs

3.3.8, 3.3.9 and 3.3.10 shall not apply in relation to that Party or Agent.

3.4 Not Used

3.5 Refusal and rejection for credit reasons

3.5.1 Where either the Lead Party or the Subsidiary Party is in Level 2 Credit Default in

accordance with Section M3, a relevant Metered Volume Reallocation Notification which

is submitted during the Credit Default Refusal Period will be treated as refused and will not

become effective.

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3.5.2 Where:

(a) a relevant Metered Volume Reallocation Notification is in force; and

(b) either the Lead Party or the Subsidiary Party is in Level 2 Credit Default in

accordance with Section M3.

such Metered Volume Reallocation Notification will be treated as rejected, and will have

no effect, as to Metered Volume Reallocation Data which relate to relevant Settlement

Period(s) (as defined in paragraph 3.5.3) for which Gate Closure falls within the Credit

Default Rejection Period.

3.5.3 For the purposes of this paragraph 3.5, a relevant Metered Volume Reallocation

Notification is one which, if in force, and not treated as rejected in relation to a Settlement

Period (a "relevant" Settlement Period), would have the effect in relation to that Settlement

Period of increasing the Energy Indebtedness (in accordance with Section M1.2) of the

Party in Level 2 Credit Default.

3.6 Metered Volume Reallocation Data

3.6.1 A Metered Volume Reallocation Notification shall specify for each Settlement Period:

(a) a MWh value, with no more than three digits after the decimal point, between –

99,999.999 and 99,999.999; and

(b) a percentage value, non-negative, with no more than five digits after the

decimal point and not exceeding 100;

but for the avoidance of doubt any such data may have zero values; and (subject to

paragraph 1.2.5) where in relation to a Settlement Period no value for such data is

specified, a value of zero shall be deemed to be specified.

3.6.2 In relation to the Subsidiary Energy Account (‘a’), for each Settlement Day or (pursuant to

paragraph 1.2.4 or 3.5.2) part thereof for which a Metered Volume Reallocation

Notification is in force and not treated as rejected pursuant to paragraph 3.5.2, for each

matched Settlement Period specified in that Metered Volume Reallocation Notification:

(a) the Metered Volume Reallocation Fixed Data specified pursuant to paragraph

3.6.1(a) shall be "QMFRziaj";

(b) the Metered Volume Reallocation Percentage Data specified pursuant to

paragraph 3.6.1(b) shall be "QMPRziaj";

(c) values of QMFRziaj and QMPRziaj that are not determined pursuant to paragraphs

(a) and (b) shall be set to zero.

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4. AGGREGATION

4.1 Aggregation of Energy Contract Volumes

4.1.1 For each Energy Account and each Settlement Period, the Account Bilateral Contract

Volume QABCaj shall be determined according to the following formula:

QABCaj = b, z ECQzabj – b,z ECQzbaj

where:

(a) the summations on z extend to all Energy Contract Volume Notifications in

force, and

(b) the summations on b extend to all Energy Accounts of all Contract Trading

Parties.

4.2 Exclusion of certain Metered Volume Reallocations

4.2.1 Where, in relation to any BM Unit and any Settlement Period, the sum (the ‘aggregate

percentage data’ or "APD") of all values of QMPRziaj for all Metered Volume Reallocation

Notifications and all Energy Accounts exceeds 100, values of that term:

(a) in the inverse of the chronological order in which the Metered Volume

Reallocation Notifications were submitted (so that the data in the most recently

submitted shall be the first to be disregarded), and

(b) until the value of APD (determined excluding the disregarded values of

QMPRziaj) is not greater than 100,

shall be disregarded and shall not take effect for Settlement as to that Settlement Period.

4.3 Aggregation of Metered Volume Reallocations

4.3.1 For each BM Unit i, Subsidiary Energy Account a, and Settlement Period j, the Metered

Volume Fixed Reallocation (QMFRiaj) and Metered Volume Percentage Reallocation

(QMPRiaj) shall be determined as follows:

QMFRiaj = z QMFRziaj

QMPRiaj = z QMPRziaj

where in each case the summation on z extends to all Metered Volume Reallocation

Notifications in force.

4.4 Determination and submission of aggregated data


(a) determine, for each Settlement Period, Metered Volume Fixed Reallocations,

Metered Volume Percentage Reallocations and Account Bilateral Contract

Volumes; and

(b) no later than the Business Day following the Settlement Day, submit such

Metered Volume Fixed Reallocations, Metered Volume Percentage

Reallocations and Account Bilateral Contract Volume data to the SAA.

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4.4.2 Where, following the resolution of a Trading Dispute (but not for the avoidance of doubt in

the circumstances described in Section M3.5), any adjustment or other change is to be

made in any of the data referred to in paragraph 4.4.1 in relation to a Settlement Day, the

ECVAA shall:

(a) make such adjustment or other change, and

(b) resubmit such data (as so adjusted or changed) to the SAA not later than the

time required for such data to be taken into account in the next following

Reconciliation Settlement Run (whether or not a Timetabled Reconciliation

Settlement Run) for the relevant Settlement Day.

4.4.3 The ECVAA shall submit to BSCCo each month such data concerning Metered Volume

Fixed Reallocations, Metered Volume Percentage Reallocations and Account Bilateral

Contract Volumes as BSCCo requires to enable it to make the calculations required under

Section D.

4A NULLIFICATION OF VOLUME NOTIFICATIONS

4A.1 Submission of a Volume Notification Nullification Request

4A.1.1 A request to nullify Energy Contract Volume Notifications and Metered Volume

Reallocation Notifications may be submitted in accordance with this paragraph 4A to the

ECVAA by either Contract Trading Party to whom the notifications relate (a "Volume

Notification Nullification Request" (VNNR)).

4A.1.2 A VNNR must:

(a) specify:

(i) where Energy Contract Volume Notifications are in force between

the relevant Contract Trading Parties, the Energy (From) Account

and Energy (To) Account; and

(ii) where Metered Volume Reallocation Notifications in force between

the relevant Contract Trading Parties, the Lead Energy Account and

Subsidiary Energy Account,

in relation to which all notified volumes are to be nullified;

(b) specify the intended first effective Settlement Day and Settlement Period (the

"Nullification Effective Period"); and

(c) be submitted in accordance with and subject to BSCP71.

4A.2 Validity of a VNNR

4A.2.1 A VNNR shall be valid if and only if:

(a) it is made in accordance with paragraph 4A.1; and

(b) all ECVNA Authorisations and MVRNA Authorisations between the accounts

specified in accordance with paragraph 4A.1.2(a), have been terminated in

accordance with paragraphs 2.2 and 3.2 (as applicable).

4A.2.2 The ECVAA shall, in accordance with BSCP71, assess the validity of each VNNR.

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4A.2.3 For the avoidance of doubt, a VNNR subsequently submitted in relation to the accounts

specified in accordance with paragraph 4A.1.2(a) will replace the first Confirmed VNNR

unless the VNNR specifies a later Nullification Effective Period or is invalid.

4A.3 Amendment of a VNNR

4A.3.1 Where there is an error in a submitted VNNR, the Contract Trading Party which submitted

the VNNR may amend and re-submit the VNNR so as to rectify such error at any time

prior to the ECVAA issuing a Volume Notification Nullification Confirmation Report

("VNNCR") in respect of the original VNNR pursuant to paragraph 4A.4.

4A.3.2 Where a VNNR is re-submitted in accordance with 4A.3.1, the time of receipt of a VNNR

for the purposes of paragraph 4A.4 shall be the time of receipt of the last VNNR re-

submitted in accordance with paragraph 4A.3.1.

4A.4 ECVAA confirmation

4A.4.1 The ECVAA shall issue a VNNCR:

(a) if valid receipt of a VNNR occurs between 0900 hours and 1600 hours

(inclusive) on a Business Day, within one hour of such valid receipt; or

(b) if valid receipt of a VNNR occurs between 1600 hours and 1700 hours on a

Business Day, within a period of 60 successive minutes where each minute falls

during a Business Day. Such period shall commence on valid receipt of a

VNNR and end during the first hour of the next Business Day; or in all other

cases

(c) within one hour of the commencement of the next Business Day.

4A.4.2 For the purposes of this paragraph 4A.4, references to a Business Day shall mean the

period between 0900 hours and 1700 hours (inclusive) on a Business Day.

4A.4.3 At the time of issue of the VNNCR, the VNNR becomes the Confirmed VNNR.

4A.4.4 If the Confirmed VNNR is:

(a) not valid, the VNNCR shall be issued only to the Contract Trading Party which

submitted the Confirmed VNNR and shall state the reason(s) why it is not valid;

(b) valid:

(i) the VNNCR shall be issued to both Contract Trading Parties to

whom the Confirmed VNNR relates;

(ii) the VNNCR shall state the Valid Nullification Effective Period; and

(iii) the ECVAA shall commence nullification of all Energy Contract

Volumes and Metered Volume Reallocations between the accounts

specified in accordance with paragraph 4A.1.2(a), with effect from

the Valid Nullification Effective Period.

4A.5 Notification of completion of process

4A.5.1 The ECVAA shall, in accordance with BSCP71, provide confirmation to both Contract

Trading Parties to whom the Confirmed VNNR relates upon completion of the

nullifications detailed in 4A.4.4(b).

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5. FAILURES OF THE ECVAA SYSTEM

5.1 Introduction

5.1.1 For the purposes of this Section P:

(a) "Volume Notification" means an Energy Contract Volume Notification and/or

a Metered Volume Reallocation Notification, and "Volume Notification

Agent" means an Energy Contract Volume Notification Agent and/or a Metered

Volume Reallocation Notification Agent;

(b) the "ECVAA System" is the BSC Agent System of the ECVAA, which for the

avoidance of doubt does not include hardware or software forming part of any

relevant Communications Medium;

(c) an "ECVAA System Failure" is a failure or breakdown of the ECVAA System

which has the effect that the ECVAA is unable to receive Volume Notifications

submitted to it by all or any Volume Notification Agents, and/or (as the case

may be) to send within 20 minutes after such receipt confirmations of such

receipt to all or any such agents;

(d) the reference in paragraph (c) to the ECVAA sending confirmations of receipt

of Volume Notifications is without prejudice to the provisions of the

Communications Requirements Document as to the deemed receipt of such

notifications;

(e) for the avoidance of doubt, no failure or breakdown of any Party System or any

communications link not forming part of the ECVAA System shall be counted

as an ECVAA System Failure;

(f) in relation to an ECVAA System Failure:

(i) the "system failure time" is the start of the ECVAA System Failure,

or such earlier time as BSCCo may determine as being appropriate

for the purposes described in paragraph (g) and notify to the

ECVAA, Contract Trading Parties and Volume Notification Agents;

(ii) the "resubmission deadline" is the end of the Business Day

following the day on which the ECVAA notified BSCCo (in

accordance with paragraph 5.2.1(c)(i)) that the ECVAA System

Failure has ended, or such earlier time (not being earlier than such

failure ended) or later time as BSCCo may determine as being

appropriate for the purposes described in paragraph (g) and notify to

the ECVAA, Contract Trading Parties and Volume Notification

Agents;

(g) the purposes referred to in paragraph (f) are to enable Contract Trading Parties

and their Volume Notification Agents to take steps to put themselves, so far as

is practicable, in the position as respects the submission of Volume

Notifications which they would have been had the ECVAA System Failure not

occurred.

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5.2 Consequences of ECVAA System Failure

5.2.1 Where an ECVAA System Failure occurs:

(a) the ECVAA shall as soon as possible notify BSCCo of the failure and the time

at which it started;

(b) the ECVAA and BSCCo shall each use all reasonable efforts as soon as

practicable to notify all Contract Trading Parties and Volume Notification

Agents of the failure and the time at which it started;

(c) as soon as practicable after the end of the ECVAA System Failure:

(i) the ECVAA shall notify BSCCo, Contract Trading Parties and

Volume Notification Agents that the failure has ended;

(ii) BSCCo will notify Contract Trading Parties and Volume

Notification Agents that Volume Notifications may be submitted or

resubmitted in accordance with paragraph 5.2.2.

5.2.2 Where an ECVAA System Failure has occurred, commencing at the end of such failure,

and until the resubmission deadline, Volume Notifications may be submitted or

resubmitted to the ECVAA in relation to any Settlement Period for which Gate Closure

falls after the system failure time and before the resubmission deadline.

5.2.3 Where an ECVAA System Failure affects the ability of the ECVAA to receive and/or

confirm receipt of Volume Notifications (as described in paragraph 5.1.1(c)) from or to

some but not all Volume Notification Agents:

(a) the ECVAA shall inform BSCCo which Volume Notification Agents are so

affected, and references in paragraph 5.2.1 to Volume Notification Agents shall

only be to those agents so affected;

(b) paragraph 5.2.2 shall apply only in relation to the affected Volume Notification

Agents.

5.2.4 Any Volume Notification submitted or resubmitted in accordance with paragraph 5.2.2

shall specify the details (as provided in paragraph 2.3.2 or 3.3.2) which were or would

(pursuant to commitments made before Gate Closure for any Settlement Period to which

such notification relates) have been specified in such notification if it had been submitted

before Gate Closure for any Settlement Period to which it relates (and if any question arises

in relation to this paragraph 5.2.4, such question shall be decided by the Panel whose

decision shall be final and binding on all Parties).

5.2.5 For the avoidance of doubt the existence of an ECVAA System Failure which is known to

BSCCo shall constitute a material doubt as referred to in Section M3.4.3(a) in relation to

all Trading Parties, except (in relation to a particular Trading Party) in a case where

BSCCo is aware that such Party has not appointed any of the Volume Notification Agents

affected thereby.

5.2.6 If any Contract Trading Party or Volume Notification Agent considers that:

(a) an ECVAA System Failure has occurred which has not been notified under

paragraph 5.2.1(b), or

(b) the ECVAA has given notice under paragraph 5.2.1(c)(i) at a time at which the

ECVAA System Failure has not ended, or

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(c) (in the case of such an agent, where paragraph 5.2.3 applies) that it was not but

should have been informed that it is affected as described in that paragraph;

such Party or agent may so notify BSCCo, as soon as reasonably practicable and in any

event not later than the end of the Business Day following the day on which the Party or

agent considers that the ECVAA System Failure occurred, or (in a case in paragraph (b))

after the day on which the ECVAA gave notice as therein mentioned.

5.2.7 Upon any Party or Volume Notification Agent giving notification to BSCCo in accordance

with paragraph 5.2.6:

(a) BSCCo shall:

(i) notify the ECVAA,

(ii) promptly investigate the matter, and

(iii) determine whether an ECVAA System Failure occurred, or whether

the failure had ended, or whether such agent was affected, each as

referred to in paragraph 5.2.6;

(b) the ECVAA and upon request any Party or Notification Agent shall provide

reasonable assistance to BSCCo in such investigation;

(c) BSCCo shall promptly notify its findings to all Contract Trading Parties and

Volume Notification Agents;

(d) BSCCo's determination of such matters shall be final and binding for the

purposes of this paragraph 5.2;

(e) where BSCCo determines that an ECVAA System Failure has occurred, BSCCo

may determine and notify the resubmission deadline at any time at which it

appears to BSCCo that the ECVAA System Failure has ended.

5.3 ECVAA System Withdrawal

5.3.1 Where:

(a) there occurs or has occurred any partial ECVAA System Failure (that is, such a

failure affecting some but not all Volume Notification Agents, and/or affecting

only the ability of the ECVAA to receive or its ability to confirm receipt (as

described in paragraph 5.1.1(c)) of Volume Notifications) and/or any failure or

breakdown of the ECVAA System affecting the ability of the ECVAA to

provide information of invalidity of Volume Notifications within the timescales

contemplated in paragraph 2.3.9(b) and 3.3.9(b), and

(b) the ECVAA or BSCCo determines (in its reasonable opinion) that, in order to

minimise disruption to the smooth and efficient implementation of Contract

Trading Parties' operations under this Section P and of Settlement, it is

necessary:

(i) to withdraw the ECVAA System from operation in order to remedy

such failure or breakdown and/or to implement the provisions of

paragraph 5.2 (in the case of an ECVAA System Failure giving rise

to the application of such provisions); and

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(ii) to do so earlier than might otherwise be done by way of planned

BSC Agent downtime in accordance with the Communications

Requirement Document

then the ECVAA shall withdraw the ECVAA System from operation, for the purposes of

remedying the failure or breakdown and/or implementing the provisions of paragraph 5.2.

5.3.2 Where the ECVAA withdraws the ECVAA System from operation pursuant to paragraph

5.3.1:

(a) the ECVAA shall, not later than the time of such withdrawal, give notice

thereof to BSCCo specifying the time of such withdrawal;

(b) the ECVAA shall restore the ECVAA System to operation as soon as

reasonably practicable, having regard to the purposes (described in paragraph

5.3.1(b)) for which it was withdrawn from operation;

(c) in order to enable Volume Notifications to be submitted to the ECVAA in

respect of the period of withdrawal, paragraphs 5.1.1(f) and 5.2 (excluding

paragraphs 5.2.1(a), 5.2.3, 5.2.6 and 5.2.7) shall apply as if references in those

paragraphs:

(i) to the ECVAA System Failure (or the start of such failure) were to the

withdrawal from operation of the ECVAA System;

(ii) to the end of the ECVAA System Failure were to the restoration to operation of

the ECVAA System.

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Q – 1 of 37 Effective Date: 18 March 2021

SECTION Q: BALANCING SERVICES ACTIVITIES

1. INTRODUCTION

1.1 Scope

1.1.1 This Section Q provides for:

(a) the submission of data items in respect of relevant BM Units in accordance with

the Grid Code;

(b) the submission of Physical Notifications in accordance with the Grid Code such

as to enable Final Physical Notification Data to be submitted by the NETSO and

Point FPNs to be established by the SAA in respect of BM Units for each

Settlement Period;

(c) the submission of Final Physical Notification Data to enable Period FPNs to be

established by the ECVAA in respect of Interconnector BM Units and for each

Credit Qualifying BM Unit for each Settlement Period;

(d) arrangements for the submission by Lead Parties of Bid-Offer Pairs in respect

of relevant BM Units and for the acceptance of Bids and Offers by the NETSO;

(e) the submission by the NETSO of Acceptance Data for the purposes of Section T

and Section V;

(f) the submission by the NETSO of Balancing Services Adjustment Data for the

purposes of Settlement;

(g) the submission by the NETSO to the BMRA of other operational data items for

the purposes of Section V;

(h) not used;

(i) not used;

(j) the submission by the NETSO of Transparency Regulation Data and EBGL

Local Data to the BMRA for the purposes of Section V;

(k) the submission by relevant Market Participants of Inside Information Data to

the BMRA via the NETSO or BSCCo (as the case may be) for the purpose of

Section V;

(l) the submission by the NETSO of Loss of Load Probability values and Demand

Control Event data for the purposes of Section R, Section S, Section T and

Section V;

(m) arrangements for the submission by Lead Parties of Replacement Reserve Bids

in respect of BM Units to the NETSO;

(n) the submission by the NETSO of Replacement Reserve Auction Result Data for

the purposes of Section T and Section V.

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1.2 Interpretation

1.2.1 In this Section Q:

(a) at or in relation to a particular time and in relation to a particular data item,

"prevailing" means most recently received by the NETSO in accordance with

the Grid Code (and not invalidated thereunder) prior to that time or, in the

absence of any such receipt and/or during a period of Outage, determined

(where applicable) by the NETSO in accordance with the Grid Code;

(b) subject to paragraph 1.2.4, references to a "relevant BM Unit" are to a BM

Unit in respect of which the Lead Party wishes to submit Bid-Offer Pairs or a

Replacement Reserve Bid from time to time under the Code;

(c) an "Outage" means any withdrawal by the NETSO (for maintenance or

otherwise), breakdown or failure of any electronic data communications

systems by which the NETSO receives and accesses communications made by

Lead Parties, where such withdrawal, breakdown or failure has (and for so long

as it has) the effect that all Lead Parties are unable to submit Physical

Notifications, Bid-Offer Data, Replacement reserve Bid Data or the NETSO is

unable to receive or access such data submitted by all Lead Parties;

(d) references to the period of Outage shall be to the period commencing at the time

when such Outage first occurs and ending at the time when the NETSO’s ability

to receive and access Physical Notifications, Bid-Offer Data and Replacement

Reserve Bid Data is restored.

1.2.2 In respect of the submission of data and the making of other communications under this

Section Q:

(a) where a Party (other than the NETSO) or the NETSO is entitled or obliged to

submit data items to, or otherwise to communicate with, the NETSO or such a

Party (respectively) in accordance with the Grid Code, such submission or

communication shall be:

(i) in accordance with the communications requirements; and

(ii) subject to the rules as to when and whether data or communications

are treated as received,

set out in the Grid Code;

(b) the NETSO shall ensure that it has appropriate systems and processes in place

for the purposes of receiving and responding to the data items to be submitted

by Lead Parties, and otherwise communicating with Lead Parties, pursuant to or

as contemplated by this Section Q; and

(c) where the NETSO is entitled or obliged to submit data items to a BSC Agent,

such submission shall be subject to and in accordance with the provisions of

Section O.


(a) the Final Physical Notification Data, the Bid-Offer Data and the Acceptance

Data submitted by the NETSO pursuant to this Section Q shall be converted

into point values by the SAA and the BMRA in accordance with the provisions

of Section T and Section V respectively; and

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(b) the Final Physical Notification Data submitted by the NETSO pursuant to this

Section Q shall be converted into point values by the ECVAA in accordance

with the provisions of this Section Q.

1.2.4 From the first occasion on which the Lead Party submits any Bid-Offer Pair in respect of a

BM Unit, by virtue of arrangements (for the determination of default data) applying under

the Grid Code, the BM Unit will be and at all times continue to be a relevant BM Unit,

unless the Lead Party takes any such steps as may be available in accordance with the Grid

Code to discontinue the application of such default data arrangements.

1.2.5 The NETSO shall notify BSCCo (as soon as reasonably practicable after the information is

available):

(a) of any notice given by the NETSO to Users under the Grid Code that an Outage

is to occur and of the period of notice given;

(b) of the time when an Outage occurs;

(c) of the time when such Outage ends.

1.3 Data submission by the NETSO

1.3.1 Where under this Section Q the NETSO is required to send particular data to:

(a) both the BMRA and SAA; or

(b) both the BMRA and the ECVAA

for so long as the same person acts as both the BMRA and SAA, or both the BMRA and

the ECVAA (as the case may be), the NETSO shall be treated as having sent such data to

both of them if it has sent the data to one of them.

2. DATA SUBMISSION BY LEAD PARTY

2.1 Dynamic Data Set

2.1.1 For each relevant BM Unit participating in the Balancing Mechanism, the Lead Party shall

ensure that those data items forming part of the Dynamic Data Set listed in paragraph

2.1.2(a) to (j) are submitted to the NETSO to the extent required by and in accordance with

the provisions of the Grid Code.

2.1.1A For each relevant BM Unit submitting Replacement Reserve Bids, the Lead Party shall

ensure that data items 2.1.2 (a) and (b) from the Dynamic Data Set are submitted to the

NETSO to the extent required by and in accordance with the provisions of the Grid Code.

2.1.2 The Dynamic Data Set shall comprise the following data items (in each case, as defined in

the Grid Code) (the "Dynamic Data Set"):

(a) Run-Up Rate;

(b) Run-Down Rate;

(c) Notice to Deviate from Zero;

(d) Notice to Deliver Offers;

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(e) Notice to Deliver Bids;

(f) Minimum Zero Time;

(g) Minimum Non-Zero Time;

(h) Maximum Delivery Volume and associated Maximum Delivery Period;

(i) Stable Export Limit;

(j) Stable Import Limit.

2.1.3 The Lead Party may change any data item included in the Dynamic Data Set for a relevant

BM Unit at any time by notifying the NETSO in accordance with the Grid Code, and any

such change shall be effective from such time as provided in the Grid Code.

2.2 Maximum Export Limits and Maximum Import Limits

2.2.1 For each relevant BM Unit, the Lead Party shall ensure that the Maximum Export Limit

and the Maximum Import Limit (in each case, as defined in the Grid Code) are submitted

to the NETSO to the extent required by and in accordance with the provisions of the Grid

Code.

2.2.2 In respect of Interconnector BM Units:

(a) the value of Maximum Import Limit for the Production BM Unit shall be zero;

and

(b) the value of Maximum Export Limit for the Consumption BM Unit shall be

zero.

2.2.3 Without prejudice to paragraph 2.2.2, the Lead Party may change the Maximum Export

Limit and/or the Maximum Import Limit for a relevant BM Unit at any time by notifying

the NETSO in accordance with the Grid Code and any such change shall be effective from

such time as provided in the Grid Code.

2.3 Not Used

3. FINAL PHYSICAL NOTIFICATION DATA SUBMISSION

3.1 Application

3.1.1 The provisions of this paragraph 3 shall apply:

(a) in respect of any BM Unit for which (at a given time) there is an obligation

under the Grid Code to submit a Physical Notification;

(b) in respect of any BM Unit and any Settlement Period for which the Lead Party

wishes to submit one or more Bid-Offer Pairs; and

(c) in respect of any BM Unit for which the Lead Party wishes to submit Physical

Notifications so as to be classified under the Code as a Credit Qualifying BM

Unit; and

(d) in respect of any BM Unit and any Settlement Period for which the Lead Party

wishes to submit one or more Replacement Reserve bids.

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3.1.2 References in this paragraph 3 to a BM Unit shall be construed as a reference to a BM Unit

in respect of which this paragraph 3 applies by virtue of paragraph 3.1.1.

3.2 Final Physical Notification Data

3.2.1 Where this paragraph 3 applies, the Lead Party shall ensure that Physical Notifications are

submitted (or can be determined) in accordance with the Grid Code such as to enable Final

Physical Notification Data to be submitted by the NETSO under this Section Q, Point

FPNs to be established by the SAA under Section T and Period FPNs to be established by

the ECVAA in respect of Interconnector BM Units and each Credit Qualifying BM Unit,

consistent with the requirements of paragraph 3.2.3, for each Settlement Period and for

each BM Unit.

3.2.2 For each Settlement Period, the Final Physical Notification Data in respect of a BM Unit

shall be the data specified in the Physical Notification in respect of that BM Unit prevailing

at Gate Closure.

3.2.3 The requirements referred to in paragraph 3.2.1 are:

(a) Final Physical Notification Data shall comprise one or more values, each of

which shall comprise a MW 'from' level with an associated 'from' time and a

MW 'to' level with an associated 'to' time;

(b) in each case, the MW level shall be an amount representing a quantity of Active

Power expressed in whole MW and for spot time 't' falling within the relevant

Settlement Period, where 't' is a time expressed in a whole number of minutes;

(c) Final Physical Notification Data shall include a MW level for the spot time at

the start of the relevant Settlement Period and a MW level for the spot time at

the end of the relevant Settlement Period;

(d) Final Physical Notification Data shall comply with the conventions established

in Section X; and

(e) in the case of Interconnector BM Units:

(i) the MW level for a Production BM Unit shall be zero or a positive

amount;

(ii) the MW level for a Consumption BM Unit shall be zero or a

negative amount; and

(iii) the MW level for each of the pair of BM Units associated with an

Interconnector and an Interconnector User shall be such that at no

time is the value of FPNij(t) for both such BM Units a non-zero

amount for the same spot time.

4. BALANCING SERVICES BID-OFFER SUBMISSION

4.1 Bid-Offer Pairs

4.1.1 For any Settlement Period, the Lead Party of a relevant BM Unit may submit one or more

Bid-Offer Pairs in respect of that BM Unit, provided that such Party has complied with

paragraph 3.2.1.

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4.1.2 Any submission of Bid-Offer Pairs under this paragraph 4.1 shall be made to the NETSO in

accordance with the Grid Code and so as to be received no later than Gate Closure for the

relevant Settlement Period, subject to paragraph 4.2.

4.1.3 Each Bid-Offer Pair for a relevant BM Unit for a Settlement Period shall comprise:

(a) a 'from' MW level expressed as a whole number of MW with an associated

'from' time expressed as the spot time at the start of the Settlement Period and a

'to' MW level expressed as a whole number of MW with an associated 'to' time

expressed as the spot time at the end of the Settlement Period;

(b) an associated Offer Price (POnij) and Bid Price (PBn

ij) each expressed in £/MWh

and to two decimal places; and

(c) an associated Bid-Offer Pair Number 'n'.

4.1.4 For each Bid-Offer Pair:

(a) the MW 'from' level shall be equal to the MW 'to' level;

(b) the Offer Price shall be not less than the Bid Price.

4.1.5 In respect of each relevant BM Unit for each Settlement Period:

(a) no more than 5 Bid-Offer Pairs may be submitted with positive MW levels, and

each such Bid-Offer Pair shall have a positive value of Bid-Offer Pair Number,

numbered sequentially starting from one and up to (but not beyond) 5; and

(b) no more than 5 Bid-Offer Pairs may be submitted with negative MW levels, and

each such Bid-Offer Pair shall have a negative value of Bid-Offer Pair Number,

numbered sequentially starting from -1 and down to (but not beyond) –5;

provided that a Bid-Offer Pair under paragraph (a) or (b) may be submitted with zero MW

levels.

4.1.6 If more than one Bid-Offer Pair has been submitted in respect of a Settlement Period for a

relevant BM Unit, the associated Bid Prices shall remain constant or increase with the Bid-

Offer Pair Number and the associated Offer Prices shall remain constant or increase with

the Bid-Offer Pair Number.

4.2 Balancing Mechanism Default Data

4.2.1 If, in respect of a relevant BM Unit and a Settlement Period, no Bid-Offer Pairs are

received by the NETSO in accordance with paragraph 4.1, the NETSO shall establish the

Bid-Offer Pair data for that BM Unit for that Settlement Period by copying and applying

the Bid-Offer Pair data (if any) that was applying for that BM Unit at 1100 hours on the

preceding day for the equivalent Settlement Period in that day (or, in the case of Clock

Change Days, for the Settlement Period determined under the Grid Code) in accordance

with the provisions of the Grid Code; and the Lead Party shall be deemed under this

Section Q to have submitted such Bid-Offer Pair(s) in accordance with paragraph 4.1.

4.2.2 For the purposes of paragraph 4.1, where Gate Closure for a Settlement Period occurs

during a period of Outage, the NETSO shall establish the Bid-Offer Pair data for each

relevant BM Unit by applying the Bid-Offer Pair data for that BM Unit for that Settlement

Period most recently received by the NETSO prior to the start of such period of Outage or,

in the absence of any such receipt, the data established by the NETSO pursuant to

paragraph 4.2.1.

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4.3 Replacement Reserve Bid Data Submission and Default Data

4.3.1 For any Replacement Reserve Auction Period, the Lead Party of a relevant BM Unit may

submit Replacement Reserve Bid Data in respect of that BM Unit, for one or more Quarter

Hour periods (including in relation to the same Quarter Hour period) within the

Replacement Reserve Auction Period provided that such Party has complied with

paragraph 3.2.1.

4.3.2 Any submission of Replacement Reserve Bid Data under this paragraph 4.3 shall be

communicated to the NETSO in accordance with BC4.5 of the Grid Code and so as to be

received no later than Gate Closure for the relevant Replacement Reserve Auction Period.

4.3.3 For each relevant BM Unit, the Lead Party shall ensure that any submission of

Replacement Reserve Bid Data under this paragraph 4.3 shall be made in accordance with

the TERRE Data Validation and Consistency Rules as defined under the Grid Code.

4.3.4 For the purposes of paragraph 4.3, where Gate Closure for a Replacement Reserve Auction

Period occurs during a period of Outage, the NETSO shall establish the Replacement

Reserve Bid Data for each relevant BM Unit by applying the Replacement Reserve Bid

Data for that BM Unit for that Replacement Reserve Auction Period most recently received

by the NETSO prior to the start of such period of Outage or, in the absence of any such

receipt, no Replacement Reserve Bid Data shall be established by the NETSO.

5. BALANCING MECHANISM BID-OFFER ACCEPTANCE

5.1 Bid-Offer Acceptances

5.1.1 The NETSO may accept Bids and/or Offers subject to and in accordance with the

provisions of this paragraph 5.1 and not otherwise.

5.1.2 The NETSO may accept Bid(s) and/or Offer(s) by issuing a communication under the Grid

Code of a type which, for the purposes of the Code, is classed as an Acceptance pursuant to

paragraph 5.1.3.

5.1.3 The following communications only shall be classed as Acceptances for the purposes of the

Code:

(a) a communication issued in respect of a BM Unit in accordance with BC2.7 of

the Grid Code which complies with the requirement in paragraph 5.1.4 and

which:

(i) was confirmed by the Lead Party (in accordance with BC2.6.1) of

the Grid Code; or

(ii) if not so confirmed:

(1) is consistent with the data referred to in paragraph 5.2.1,

and

(2) was not rejected by the Lead Party on safety grounds in

accordance with BC 2.7.3 of the Grid Code, and

(3) was not withdrawn by the NETSO in accordance with

BC2.7.3 of the Grid Code;

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(b) a communication issued as an Emergency Instruction in respect of a BM Unit in

accordance with BC2.9, excluding BC2.9.1.2(e), of the Grid Code, which:

(i) complies with the requirement in paragraph 5.1.4, and

(ii) was not rejected by the Lead Party on safety grounds in accordance

with BC2.9.2.1 of the Grid Code.

5.1.4 The requirement referred to in paragraphs 5.1.3(a) and (b)(i) is that the relevant

communication comprises a request or instruction which contains the data items set out in

paragraph 5.3.1(a), or from which such data items can be derived or reasonably inferred.

5.1.5 Not used.

5.1.6 The NETSO shall log the communications referred to in paragraph 5.1.3 in its system.

5.1.7 The NETSO shall record and maintain a record of each confirmation, rejection or

withdrawal under the Grid Code of any such communication as is referred to in paragraph

5.1.3.

5.1.8 For the avoidance of doubt, a communication of the type referred to in this paragraph 5.1

may relate to more than one Settlement Period.

5.1.9 In this paragraph 5.1, references to a Lead Party's rejection or confirmation of a

communication (and similar expressions):

(a) shall be construed as meaning rejection or confirmation of the request or

instruction contained in such communication; and

(b) shall include a rejection or confirmation which is effected by any person acting

for or on behalf of the Lead Party.

5.1.10 In this paragraph 5.1, "consistent" shall be construed as meaning to the nearest integer

MW level (where a first decimal place value of a magnitude of 4 or less results in the MW

level being rounded to the nearest integer MW level of lower magnitude).

5.1.11 For the purposes of the Code the "Bid-Offer Acceptance Time" in respect of a

communication classed as an Acceptance shall be in the case of a communication under

paragraph 5.1.3(a) or (b), the time at which the communication was issued by the NETSO.

5.1.12 For the avoidance of doubt (and without prejudice to paragraph 5.1.3 or Section T3)

nothing prevents the NETSO from sending Acceptance Data to the SAA pursuant to

paragraph 6.2.1 which is such that the value of qAkij(t) determined for any time t under

Section T3.4 may be:

(a) greater than the value of FPNij(t) + n+qBOnij(t) at that time t; or

(b) less than the value of FPNij(t) + n-qBOnij(t) at that time t;

where

n+ represents a sum over all positive Bid-Offer Pair Numbers; and

n- represents a sum over all negative Bid-Offer Pair Numbers.

5.1.13 Not used.

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5.1.14 The NETSO may classify an Acceptance which falls within paragraph 5.1.3(b) as

"Emergency Flagged".

5.2 Data Consistency Requirements

5.2.1 The data referred to in paragraph 5.1.3(a)(ii)(1), in respect of the BM Unit to which a

communication relates, are:

(a) the Physical Notification prevailing at Gate Closure for each of the Settlement

Periods respectively to which the communication relates, adjusted in each case

to take account of any previous Acceptances in respect of such Settlement

Period;

(b) the Dynamic Data Set prevailing at the Bid-Offer Acceptance Time; and

(c) the Maximum Export Level and Maximum Import Level data referred to in

paragraph 2.2.1 prevailing at the Bid-Offer Acceptance Time.

(d) not used

5.2.2 For the avoidance of doubt, the consistency of any communication (within paragraph

5.1.3(a)) with any data or information, other than as provided in paragraph 5.2.1, which

may be submitted to the NETSO by the Lead Party in respect of a BM Unit, shall be

disregarded in determining whether such communication is to be classed as an Acceptance

for the purposes of the Code.

5.3 Acceptance Data

5.3.1 Acceptance Data for a BM Unit shall comprise the following data items:

(a) a set comprising one or more Acceptance Volume Pairs, each with a 'from' MW

level and an associated 'from' time and a 'to' MW level and an associated 'to'

time and where:

(i) the MW levels are expressed in whole MW measured from the zero

point (of no energy export or import); and

(ii) the times are expressed in a whole number of minutes and the first

'from' time is not earlier than the Bid-Offer Acceptance Time and the

last 'to' time is not later than the end of the last Settlement Period for

which Gate Closure fell before the Bid-Offer Acceptance Time; and

(b) the associated Bid-Offer Acceptance Number 'k' expressed as an integer greater

than the value of k for the Acceptance Data (for that BM Unit) with the

immediately preceding Bid-Offer Acceptance Time or, where any Acceptance

Data exists with identical Bid-Offer Acceptance Time, greater than the highest

value of k which exists with such Bid-Offer Acceptance Time; and

(c) the associated Bid-Offer Acceptance Time; and

(d) in the case of an Acceptance within paragraph 5.1.3(a), whether the NETSO has

classified such Acceptance as "RR Instruction Flagged" or "SO-Flagged" or

"STOR Flagged";

(e) in the case of an Acceptance within paragraph 5.1.3(b) that the Acceptance was

an Emergency Acceptance; and

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(f) in the case of an Acceptance within paragraph 5.1.3(b) whether the NETSO has

classified such Acceptance as "Emergency Flagged".

5.3.2 Subject to paragraph 5.3.3, for the purposes of an Acceptance falling under paragraph

5.1.3(b), the Acceptance Data shall be deemed to include a Volume Acceptance Pair for

which:

(a) the 'from' time and MW level are the same as the latest 'to' time and MW level

which are specified in or can be derived or inferred from the communication;

(b) the 'to' time is the end of the last Settlement Period for which Gate Closure fell

before the Bid-Offer Acceptance Time, and the 'to' MW level is the same as the

'from' MW level.

5.3.3 The Lead Party and the NETSO may agree variations in the Acceptance Data in paragraph

5.3.1(a) in respect of an Acceptance pursuant to paragraph 5.1.3(b) provided that no such

variation may be made:

(a) in relation to the first Volume Acceptance Pair;

(b) in respect of the Bid-Offer Acceptance Time;

(c) for the avoidance of doubt, which would be inconsistent with the requirements

in paragraph 5.3.1(a)(ii);

and provided that such agreed variations are notified by the NETSO to the SAA no later

than the end of the Settlement Day following the Settlement Day in which the Bid-Offer

Acceptance Time falls.

5.3.4 The NETSO shall submit Acceptance Data to the SAA and the BMRA in accordance with

paragraph 6 in respect of each communication which is classed as an Acceptance pursuant

to paragraph 5.1.3.

5.4 Suspension of balancing mechanism

5.4.1 Where, for the purposes of any Contingency Provisions, the operation of the balancing

mechanism is to be suspended in relation to any Settlement Period:

(a) no communication issued by the NETSO under the Grid Code relating to that

Settlement Period shall be classed as an Acceptance;

(b) accordingly (without prejudice to any further provisions applying under the

Grid Code in the relevant circumstances):

(i) the arrangements in this paragraph 5 for the acceptance of Bids and

Offers, and

(ii) the entitlements and liabilities of Parties pursuant to the provisions

in Section T for the determination of Period BM Unit Cashflow and

BM Unit Period Non-delivery Charge and (unless otherwise

provided in the relevant Contingency Provisions) Information

Imbalance Charge,

shall not apply;

(c) the NETSO shall accordingly not submit Bid-Offer Data or Acceptance Data to

the BMRA or SAA pursuant to paragraph 6.

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5.5 Historic balancing mechanism prices

5.5.1 Where, for the purposes of any Contingency Provisions, historic price limits are to apply in

the Balancing Mechanism, the Lead Party in respect of each relevant BM Unit shall secure

that, in relation to each Bid-Offer Pair submitted for such BM Unit in relation to a relevant

Settlement Period:

(a) subject to paragraphs (b) and (c), the value of Offer Price shall not be greater

than, and the value of Bid Price shall not be less than the median value, for all

Settlement Periods in the historic period (or for those of such Settlement

Periods for which values for such Offer Price and Bid Price exist), of the Offer

Prices or Bid Prices of the Bid-Offer Pairs for that BM Unit respectively

determined in accordance with the following table:

Positive Bid-Offer

Pair Number (n)

Negative Bid-Offer

Pair Number (n)

Offer Offer Price for

n = +1

Offer Price for

n = –1

Bid Bid Price for

n = +1

Bid Price for

n = –1

(b) except where paragraph (c) applies, if there are no values (as referred to in

paragraph (a)) of Offer Price or (as the case may be) Bid Price for any of the

Settlement Periods in the historic period, the value of Offer Price or (as the case

may be) Bid Price shall be equal to zero;

(c) if the direction referred to in paragraph 5.5.2(c)(i)) was given within a period of

30 days commencing on the Go-live Date, the value of Offer Price shall not be

greater than, and the value of Bid Price shall not be less than, such values as the

Panel shall determine, in its opinion, subject to the approval of the Secretary of

State, as being appropriate limits on such prices having regard to any guidance

provided by the Secretary of State (and taking into account, inter alia, such Bid

Prices and Offer Prices as are referred to in paragraph (a) for Settlement Periods

on and after the Go-live Date, and any prices submitted under the Pooling and

Settlement Agreement which appear to the Panel to be relevant);

(d) in relation to BM Units located in Scotland, if the direction referred to in

paragraph 5.5.2(c)(i)) was given within a period of 30 days commencing on the

BETTA Effective Date, the value of Offer Price shall not be greater than, and

the value of Bid Price shall not be less than, such values as the Panel shall

determine, in its opinion, subject to the approval of the Secretary of State, as

being appropriate limits on such prices having regard to any guidance provided

by the Secretary of State (and taking into account, inter alia, such Bid Prices

and Offer Prices as are referred to in paragraph (a) for Settlement Periods on

and after the BETTA Effective Date, and any prices which appear to the Panel

to be relevant).

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(a) a relevant BM Unit is a BM Unit for which, in accordance with the relevant

Contingency Provisions, historic prices are to be determined;

(b) a relevant Settlement Period is a Settlement Period for which, in accordance

with the relevant Contingency Provisions, historic price limits (for relevant BU

Units) are to be determined;

(c) the historic period is:

(i) the period of 30 consecutive Settlement Days expiring with (and

excluding) the day on which the Secretary of State gave the direction

(in accordance with the relevant Contingency Provisions) pursuant

to which this paragraph 5.5 is to apply; or

(ii) such other period as may be determined in accordance with the

relevant Contingency Provisions;

(d) where a median value is to be selected from an even number of Offer Prices or

Bid Prices, the highest Offer Price or Bid Price shall be disregarded.

5.5.3 In respect of each relevant Settlement Period, the NETSO shall as soon as reasonably

practicable and in any event such that any revised data is available in time for use by the

SAA in carrying out the Initial Settlement Run for that Settlement Period:

(a) ascertain whether the values of Bid Price and Offer Price for each relevant BM

Unit submitted by the Lead Party comply with the requirements in paragraph

5.5.1;

(b) where they do not, substitute (for such value(s)) the greatest value of Offer

Price or (as the case may be) the lowest value for Bid Price which complies

with such requirements; and

(c) send the revised Bid-Offer Data resulting from any such substitution to the

SAA.

5.6 REPLACEMENT RESERVE AUCTION RESULT DATA

5.6.1 For the purposes of the Code the "Replacement Reserve Activation Time" in respect of a

communication classed as Replacement Reserve Auction Result Data shall be the time at

which the communication was issued by the NETSO.

5.6.2 The Replacement Reserve Auction Result Data submitted by the NETSO shall comprise at

least the following data sets:

(a) Replacement Reserve Activation Data for each Replacement Reserve Auction

Period;

(b) GB Need Met Data for each Replacement Reserve Auction Period;

(c) Interconnector Schedule Data for each Interconnector for each Replacement

Reserve Auction Period.

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5.6.3 Replacement Reserve Activation Data for a BM Unit shall comprise at least the following

data items:

(a) the Replacement Reserve Auction Period identification number expressed as an

integer;

(b) the Flow Direction;

(c) the Replacement Reserve Auction Period Resolution Type;

(d) for each Position associated with a Replacement Reserve Auction Period the

NETSO shall provide:

(i) a Replacement Reserve Activation Price expressed in £/MWh and to

two decimal places; and

(ii) an Activated Quantity expressed in whole MW measured from the

zero point (of no energy Export or Import).

5.6.4 GB Need Met Data shall comprise at least the following data items:


integer;



(d) for each Position associated with the Replacement Reserve Auction Period the


(i) a Replacement Reserve Acceptance Price expressed in £/MWh and

to two decimal places; and



5.6.5 Interconnector Schedule Data shall comprise at least the following data items:


integer;



(d) for each Position associated with the Replacement Reserve Auction Period the


(i) a Replacement Reserve Acceptance Price expressed in £/MWh and

to two decimal places; and



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5A SUSPENSION OF THE TERRE MARKET

5A.1 Outages of computer systems leading to the suspension of the TERRE Market

5A.1.1 This paragraph 5A.1 will apply if and only if Planned Maintenance Outages or unplanned

computer system failures have occurred in one of the circumstances set out in BC 4.9 of the

Grid Code and the TERRE Market is or will be suspended pursuant to BC4.9 of the Grid

Code (the terms 'Users' and ‘Planned Maintenance Outages’ each having, for the purposes

of this paragraph 5A.1, the meanings given in the Grid Code).

5A.1.2 Where paragraph 5A.1 applies:

(a) following the occurrence of any of the circumstances set out in BC4.9 of the Grid

Code NETSO shall (as soon as is practicable) notify BSCCo that the TERRE

Market will be or has been suspended pursuant to that provision;

(b) BSCCo shall (as soon as is practicable following the NETSO’s notification under

paragraph 5A.1.2(a)) notify all Parties that the TERRE market will be or has been

suspended pursuant to BC4.9 of the Grid Code;

(c) the NETSO shall (as soon as is practicable following its notification under

paragraph 5A.1.2(a)) determine, in its reasonable opinion, the time and date with

effect from which the TERRE Market suspension commenced and inform

BSCCo of that time and date;

(d) BSCCo shall determine the Settlement Period that corresponds with the time and

date from which the TERRE Market suspension commenced (as determined by

the NETSO under paragraph 5A.1.2(b));

(e) BSCCo shall, as soon and so far as is practicable, notify all Parties of the

Settlement Period from which the TERRE Market suspension commenced;

(f) the NETSO shall (as soon as is practicable) determine, in its reasonable opinion,

the time and date with effect from which the TERRE Market suspension

concluded and notify BSCCo of that time and date;

(g) BSCCo shall determine the Settlement Period that corresponds with the time and

date from which the TERRE Market suspension concluded (as determined and

notified by the NETSO under paragraph 5A.1.2(f));

(h) BSCCo shall, as soon and so far as is practicable following its determination

under paragraph 5A.1.2(g), notify all Parties of the Settlement Period from which

the TERRE Market suspension concluded;

(i) BSCCo shall, as soon and so far as is practicable, keep Parties informed of the

operation of BSC Systems and, in so far as it is informed by the NETSO, of the

operation of the Transmission System during TERRE Market suspension; and

(j) the provisions of paragraph 5A.2 shall apply in relation to all Settlement Periods

that fall within a period of TERRE Market suspension as determined by the

BSCCo in accordance with this paragraph 5A.1, with effect from the start of the

Settlement Period determined by BSCCo under paragraph 5A.1.2(d) until the end

of the Settlement Period determined by the BSCCo under paragraph 5A.1.2(g).

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5A.2 TERRE Market Suspension General Provisions

5A.2.1 Where, for the purposes of paragraph 5A.1 or any Contingency Provisions, the operation of

the TERRE Market is to be suspended in relation to any Settlement Period:

(a) no communication issued by the NETSO under the Grid Code relating to that

Settlement Period shall be classed as Replacement Reserve Auction Result Data

or as "RR Instruction Flagged" Acceptance Data;

(b) accordingly (without prejudice to any further provisions applying under the Grid

Code in the relevant circumstances):

(i) the arrangements in paragraph 5 regarding Replacement Reserve

Auction Result Data, and

(ii) the entitlements and liabilities of Parties pursuant to the provisions in

Section T for the determination of Daily Party RR Cashflow, Daily

Party RR Instruction Deviation Cashflow, BM Unit Period Non-

delivery Charge (where this charge is derived from Replacement

Reserve Auction Result Data and (unless otherwise provided in the

relevant Contingency Provisions) Information Imbalance Charge

(where this is charge is derived from Replacement Reserve Auction

Result Data),

shall not apply;

(c) the NETSO shall accordingly not submit Replacement Reserve Bid Data,

Replacement Reserve Auction Result Data or "RR Instruction Flagged"

Acceptance Data to the BMRA or SAA pursuant to paragraph 6.

6. SUBMISSION OF DATA BY THE NETSO

6.1 Submission of data to the BMRA


(a) times by which the NETSO is to send data to the BMRA are target times, which

the NETSO is expected to meet unless abnormal circumstances prevent it from

doing so;

(b) capitalised terms shall, unless otherwise defined in the Code, have the meanings

given to such terms in the Grid Code;

(c) references to Total Output Usable data are references to Total Output Usable

data determined from Output Usable data (and, where the context so requires,

expected Interconnector transfer capacity data) for the time being provided to

the NETSO by the relevant User pursuant to the Grid Code;

(d) notwithstanding anything to the contrary in the Grid Code, references to Output

Usable shall exclude (unless, and to the extent, expressly stated otherwise in the

Code) expected Interconnector transfer capacity; and

(e) references to a week shall mean a week that begins on a Monday and end on a

Sunday, and references to the 2nd week after the current week shall mean the

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week commencing on the Monday that falls between 8 and 14 days ahead of the

current day.

6.1.2 Not later than 1700 hours on the last Business Day of the week, the NETSO shall send to

the BMRA the following data for each week from the 2nd week following the current week

to the 52nd week following the current week (i.e. 2 to 52 weeks ahead):

(a) the National Demand forecast; and

(b) the Transmission System Demand forecast,

in each case, expressed as an average MW value for the Settlement Period at the peak of

the week.

6.1.2A At least once per day by no later than 1600 hours and up to every hour, the NETSO shall

send to the BMRA the following data for each week from the 2nd week following the

current week to the 52nd week following the current week (i.e. 2 to 52 weeks ahead):

(a) the Total Output Usable;

(b) the Total Output Usable (plus expected Interconnector transfer capacity into the

Transmission System) by Fuel Type Category (to the extent that such data is

available to the NETSO for each Fuel Type Category);

(c) the Output Usable (plus, in respect of Interconnector BM Units, the expected

Interconnector transfer capacity into the Transmission System) by BM Unit (to

the extent that such data is available to the NETSO for each BM Unit); and

(d) the national Surplus forecast; and

(e) the Generating Plant Demand Margin forecast,


the week.

6.1.2B Not Used

6.1.3 Not later than 1500 hours each day, the NETSO shall send to the BMRA the following data

applicable for each Operational Day from the 2nd day following the current Operational

Day to the 14th day following the current Operational Day: the peak National Demand

forecast expressed as an average MW value for the Settlement Period at the peak of the day

and the peak Transmission System Demand forecast expressed as an average MW value for

the Settlement Period at the peak of the day.

6.1.4 At least once per day by no later than 1600 hours and up to every hour, the NETSO shall

send to the BMRA the following data applicable for each day from the 2nd day following

the current day to the 14th day following the current:

(a) and the Total Output Usable;






the extent that such data is available to the NETSO for each BM Unit);

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the day.

6.1.4A Not Used.

6.1.4B At least once per day by no later than 1600 hours and up to every hour, the NETSO shall

send to the BMRA the following data for each week from the 2nd week following the

current week to the 156th week following the current week (i.e. 2 to 156 weeks ahead):

(a) the Total Output Usable;






the extent that such data is available to the NETSO for each BM Unit);




the week.

6.1.4C The NETSO shall send to the BMRA details of the System Zone boundaries. If pursuant to

the Grid Code any changes are made to System Zone definitions or boundaries, details of

these changes shall be forwarded to the BMRA by the NETSO prior to implementation and

whenever details of such changes are provided to any User pursuant to the Grid Code.


applicable for the following Operational Day:

(a) the National Demand forecast expressed as an average MW value for each

Settlement Period within the Operational Day;

(b) the Transmission System Demand forecast expressed as an average MW value

for each Settlement Period within the Operational Day; and

(c) the Zonal Transmission System Demand forecast expressed as an average MW

value for each Settlement Period within the Operational Day.


expressed as an average MW value for each Settlement Period within the following

Operational Day:

(a) the Indicated Margin;

(b) the National Indicated Imbalance;

(c) the National Indicated Generation;

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(d) the National Indicated Demand;

(e) the National Demand forecast; and

(f) the Transmission System Demand forecast.

6.1.7 The NETSO shall send to the BMRA the data set out in paragraph 6.1.8 as a minimum at

the submission times specified in Table 1 below (and may send it more frequently) and

such data shall be provided as an average MW value for each of the Settlement Periods

within the period defined by columns 2 and 3 in Table 1 (in which 'D' refers to the

Settlement Day in which the submission time falls):

Table 1

Column 1 Column 2 Column 3

Submission time Data applicable from: Data applicable to:

0200 Hours 0200 D 0500 D+1

1000 Hours 1000 D 0500 D+1

1600 Hours 0500 D+1 0500 D+2

1630 Hours 1630 D 0500 D+1

2200 Hours 2200 D 0500 D+2

6.1.8 The data items to be provided to the BMRA by the NETSO at the times specified in Table

1 above shall be:

(a) the National Demand forecast;

(b) the National Indicated Margin;

(c) the National Indicated Imbalance;

(d) the National Indicated Demand;

(e) the National Indicated Generation;

(f) the Zonal Transmission System Demand forecast for each BMRS Zone;

(g) the Indicated Constraint Boundary Margin for each BMRS Zone;

(h) the Zonal Indicated Imbalance for each BMRS Zone;

(i) the Zonal Indicated Demand for each BMRS Zone;

(j) the Zonal Indicated Generation for each BMRS Zone; and

(k) the Transmission System Demand forecast.

6.1.9 Not later than 5 minutes following receipt from the Lead Party, the NETSO shall send to

the BMRA any notifications of the Dynamic Data Set submitted in accordance with

paragraph 2.1.

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6.1.10 Not later than 15 minutes following Gate Closure for each Settlement Period, the NETSO

shall send to the BMRA the following data, so far as relating to that Settlement Period,

received by Gate Closure, for each BM Unit for which it has so received such data:

(a) the Maximum Export Limit data or the Maximum Import Limit data (including

any change to such data) submitted in accordance with paragraph 2.2

(b) any Quiescent Physical Notification data (including any change to such data)

submitted in accordance with paragraph 2.3;

and where after Gate Closure the NETSO is notified of any change in any such data (so far

as relating to such Settlement Period) the NETSO shall send to the BMRA such changed

data, and the time of notification and the effective time of such change, not later than 5

minutes following receipt of notification of such change.


shall send to the BMRA the following data for each BM Unit for which it has received or

determined such data:

(a) the Final Physical Notification Data established pursuant to paragraph 3.2;

(b) Bid-Offer Data.

6.1.11A Not later than 40 minutes before the start of each Replacement Reserve Auction Period, the

NETSO shall send to the BMRA the Replacement Reserve Bid Data for each BM Unit for

which it has received or determined such data.

6.1.12 Not later than 15 minutes following the issue of a communication or the occurrence of an

event which (pursuant to paragraph 5.1.3(a)) is to be treated as an Acceptance, the NETSO

shall send to the BMRA the Acceptance Data.

6.1.12A As soon as practicable after the issue of a communication which (pursuant to paragraph

5.1.3(b) is to be treated as an Acceptance, the NETSO shall send to the BMRA the

following information: the fact that such a communication has been given, the time at

which it was given and the BM Unit in respect of which it was given.

6.1.12B Not later than 30 minutes following Gate Closure for each Replacement Reserve Auction

Period, the NETSO shall send to the BMRA the Replacement Reserve Auction Result Data

for each BM Unit for which it has received or determined such data.

6.1.13 Not later than 15 minutes following the end of each Settlement Period, the NETSO shall

send to the BMRA the Initial National Demand Out-Turn and Initial Transmission System

Demand Out-Turn for that Settlement Period.

6.1.14 At the same as the issue to Users (as defined in the Grid Code) of a System Warning, the

NETSO shall send to the BMRA the information contained in such System Warning.

6.1.15 No later than 1700 hours each day, the NETSO shall send to the BMRA the following data

applicable for the day preceding the current day: the Out-Turn Temperature, expressed as a

single degrees celsius value deemed to be representative of the temperature measured at

midday.


applicable for the day preceding the current day:

(a) the Normal Reference Temperature expressed as a degrees celsius value;

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(b) the Low Reference Temperature expressed as a degrees celsius value; and

(c) the High Reference Temperature expressed as a degrees celsius value.


for the period commencing at 2100 hours on D and ending at 2130 hours on D+2 (and in

respect of which 'D' refers to the Settlement Day in which the submission time falls):

(a) the Forecast Total Power Park Module Generation for a sample of Settlement

Periods selected by the NETSO, expressed as an average MW value for each

such Settlement Period across all Power Park Modules metered by the NETSO

in accordance with CC6.5.6 of the Grid Code;

(b) the time associated with each Settlement Period referred to in paragraph 6.1.17

(a); and

(c) the Total Metered Capacity for each Settlement Period referred to in paragraph

6.1.17 (a), expressed as a total MW value of the Registered Capacity of all

Power Park Modules metered by the NETSO in accordance with CC6.5.6 of the

Grid Code.

6.1.18 Every 5 minutes the NETSO shall send to the BMRA the Total Instantaneous Out-Turn

Generation, expressed as an instantaneous MW value for each fuel type, energy source or

External Interconnection approved, amended or removed as a category by the Panel (after

such consultation with Parties and interested third parties as the Panel considers necessary)

from time to time ("Fuel Type Category") and which, as at the Relevant Implementation

Date for Modification Proposal P336, includes the following Fuel Type Categories:

(a) CCGT Modules;

(b) Oil Plant;

(c) Coal Plant;

(d) Nuclear Plant;

(e) Power Park Modules;

(f) Pumped Storage Plant;

(g) Non Pumped Storage Hydro Plant;

(h) Open Cycle Gas Turbine Plant;

(i) External Interconnection flows from France to England;

(j) External Interconnection flows from Northern Ireland to Scotland;

(k) External Interconnection flows from the Netherlands to England;

(l) each External Interconnection approved as a category by the Panel as at the

Relevant Implementation Date for Modification Proposal P336;

(m) Biomass Plant; and

(n) a single category containing any other generation not covered by (a)-(m) above.

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6.1.19 No later than 15 minutes following the end of each Settlement Period, the NETSO shall

send to the BMRA the Total Period Out-Turn Generation expressed as an average MW

value for that Settlement Period for each of the Fuel Type Categories referred to in

paragraph 6.1.18.

6.1.20 The NETSO shall:

(a) prepare, keep up-to-date and maintain, a BM Unit Fuel Type List identifying

the Fuel Type Category for each BM Unit which is:

(i) metered by the NETSO in accordance with CC6.5.6 of the Grid

Code; and

(ii) identified by the NETSO as falling within a Fuel Type Category as

referred to in paragraph 6.1.18; and

(b) provide to the BMRA the BM Unit Fuel Type List as updated from time to

time.


applicable for the day preceding the current day:

(a) the Transmission Energy transmitted across the Transmission System,

expressed in MWh;

(b) the Normal Reference Transmission Energy transmitted across the

Transmission System, expressed in MWh;

(c) the Low Reference Transmission Energy transmitted across the Transmission

System, expressed in MWh; and

(d) the High Reference Transmission Energy transmitted across the Transmission

System, expressed in MWh.

6.1.22 No later than 15 minutes following the end of each Settlement Period, the NETSO shall

send to the BMRA the Non-BM STOR Instructed Volume for that Settlement Period,

expressed in MWh.

6.1.23 Every 2 minutes the NETSO shall send to the BMRA the Transmission System Frequency,

expressed as a hertz value for one or more spot times within that 2 minute period.

6.1.24 The NETSO shall send to the BMRA all Inside Information Data that it receives from time

to time from a Market Participant (in accordance with the Grid Code), as soon as

reasonably practicable after receipt taking into account any technical constraints.

6.1.25 In respect of each Settlement Period, the NETSO shall send to the BMRA the De-Rated

Margin Forecast calculated in accordance with the Loss of Load Probability Calculation

Statement as a minimum (and may send more frequently):

(a) at 1200 hours on each calendar day for all Settlement Periods for which Gate

Closure has not yet passed and which occur within the current Operational Day

or the following Operational Day; and

(b) at eight, four, two and one hour(s) prior to the beginning of the Settlement

Period to which the De-Rated Margin Forecast relates.

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6.1A Submission of data to the ECVAA

6.1A.1 Not later than fifteen minutes following Gate Closure for each Settlement Period, the

NETSO shall send to the ECVAA the latest Final Physical Notification Data it has received

or determined for each Interconnector BM Unit.

6.1B Submission of Transparency Regulation Data and EBGL Local Data to the BMRA

6.1B.1 The NETSO shall submit to the BMRA:

(a) the data that the NETSO is required to submit to the ENTSO-E under the

Transparency Regulation; and

(b) the EBGL Local Data,

in each case, except for any such data that is already held by the BMRA.

6.1B.2 The NETSO shall submit the data referred to in paragraph 6.1B.1 to the BMRA in

accordance with any requirements specified in the Transparency Regulation, the Guideline

on Electricity Balancing and any procedures specified by the ENTSO-E (including

timeframes for submission of data, the format of data and procedures for addressing

overlaps between the Transparency Regulation Data and the EBGL Data). For the purpose

of this paragraph 6.1B.2, any timeframes for submission of data to the BMRA are target

times, which the NETSO is expected to meet unless exceptional circumstances prevent it

from doing so.

6.2 Submission of Balancing Mechanism data to the SAA

6.2.1 In respect of each Settlement Day, for each BM Unit for which such data is received or

determined by the NETSO under this Section Q, the NETSO shall send to the SAA (so that

such data has been sent by the time which is 15 minutes following the end of such

Settlement Day) the following data:

(a) the Final Physical Notification Data established pursuant to paragraph 3.2 in

respect of each Settlement Period within such Settlement Day;

(b) changes to the Dynamic Data Set data received by the NETSO pursuant to the

Grid Code to apply in respect of such Settlement Day and the notification time

of each such receipt by the NETSO;

(c) changes to the Maximum Export Limit and Maximum Import Limit data

received by the NETSO to apply in respect of such the Settlement Day in

accordance with paragraph 2.2 and 2.3 respectively;

(d) Bid-Offer Data in respect of each Settlement Period within such Settlement Day

submitted or determined in accordance with paragraph 4; and

(e) Acceptance Data, other than in relation to Acceptances which fall within

paragraph 5.1.3(b).

6.2.2 The NETSO shall send Acceptance Data for Acceptances which fall within paragraph

5.1.3(b) as soon as reasonably practicable following the relevant Settlement Day, and

wherever practicable in time for such Acceptance Data to be taken into account in the

Initial Settlement Run.

6.2A Submission of data to the CDCA

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6.2A.1 Within the period of 5 Business Days commencing on the Business Day after cessation of a

Demand Control Event, the NETSO shall send to the CDCA:

(a) the BM Unit Identification Number; and

(b) the start and end date and time in Co-ordinated Universal Time for which the

BM Unit was subject to Demand Disconnection,

in respect of each disconnected BM Unit that is directly connected to the Transmission

System.

6.2B Submission of Data to the SVAA

6.2B.1 The NETSO shall send to the SVAA the data relating to Non-BM STOR Instructions in

accordance with Section S9.2.

6.2C Submission of Replacement Reserve data to the SAA

6.2C.1 In respect of each Settlement Day, for each BM Unit for which such data is received or

determined by the NETSO under this Section Q, the NETSO shall send to the SAA (so that

such data has been sent by the time which is 15 minutes following the end of such

Settlement Day) the following data:

(a) the Final Physical Notification Data established pursuant to paragraph 3.2 in

respect of each Settlement Period within such Settlement Day;

(b) changes to the Dynamic Data Set data received by the NETSO pursuant to the

Grid Code to apply in respect of such Settlement Day and the notification time

of each such receipt by the NETSO;

(c) changes to the Maximum Export Limit and Maximum Import Limit data

received by the NETSO to apply in respect of such the Settlement Day in

accordance with paragraph 2.2 and 2.3 respectively;

(d) Replacement Reserve Bid Data in respect of each Quarter Hour period within

each Replacement Reserve Auction Period within such Settlement Day

submitted or determined in accordance with paragraph 4; and

(e) Replacement Reserve Auction Result Data in respect of each Replacement

Reserve Auction Period.

6.3 Balancing Services Adjustment Data

6.3.1 In respect of each Settlement Period within a Settlement Day, the NETSO shall send:

(a) subject to paragraph 6.3.4, to the BMRA:

(i) (in relation to all such Settlement periods) not later than 17:00 hours

on the preceding day,

(ii) (in relation to each such Settlement Period) as soon as reasonably

practicable after Gate Closure for, and in any event not later than the

end of, such Settlement Period the NETSO's estimate (at the relevant

time of sending) of Balancing Services Adjustment Data as

described in paragraph 6.3.2; and

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(iii) (in relation to each such Settlement Period) not later than fifteen

minutes after the end of the relevant Settlement Period, its estimate

of Balancing Services Adjustment Data including (but not limited to)

that relating to Non-BM STOR actions and Non-BM Fast Reserve,

as described in paragraph 6.3.2;

(b) to:

(i) the SAA, and

(ii) subject to paragraph 6.3.4, the BMRA

on the day next following such Settlement Day, the Balancing Services

Adjustment Data as described in paragraph 6.3.2.

6.3.2 The Balancing Services Adjustment Data shall comprise the following data in respect of

each Settlement Period:

(a) the unique sequential number for each Balancing Services Adjustment Action;

(b) for each such Balancing Services Adjustment Action:

(i) the Balancing Services Adjustment Volume;

(ii) the Balancing Services Adjustment Cost;

(iii) whether the NETSO has classified such Balancing Services

Adjustment Action as "SO-Flagged"; and

(iv) whether the NETSO has classified such Balancing Services

Adjustment Action as "STOR Flagged";

(c) Buy Price Price Adjustment; and

(d) Sell Price Price Adjustment.

6.3.2A The SAA and the BMRA shall calculate the Balancing Services Adjustment Price in

respect of each Settlement Period for each Balancing Services Adjustment Action by

dividing the Balancing Services Adjustment Cost by the Balancing Services Adjustment

Volume for each respective Settlement Period; and the Balancing Services Adjustment

Price shall be deemed to be Balancing Services Adjustment Data for the purposes of the

Code.

6.3.3 The NETSO may resubmit to the SAA the Balancing Services Adjustment Data in respect

of any Settlement Period within a Settlement Day at any time prior to the Final

Reconciliation Settlement Run for such Settlement Day and the SAA shall correct such

data in the Settlement Run next following such resubmission.

6.3.4 Until such time as the Panel confirms that Indicative Balancing Services Adjustment Data

(as defined in Section V) or Balancing Services Adjustment Data is capable of being

displayed on the BMRS:

(a) the NETSO shall comply with paragraph 6.3.1(a) or 6.3.1(b)(ii) respectively by

sending such data to BSCCo (and shall separately send Balancing Services

Adjustment Data to the SAA pursuant to paragraph 6.3.1(b));

(b) BSCCo will ensure that such data is displayed on the BSC Website.

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6.3.5 For the purposes of any Settlement Run to be carried out on or after the date with effect

from which this paragraph 6.3.5 takes effect in respect of each Settlement Day between the

period 5 April 2001 to 24 September 2001 (both dates inclusive):

(a) the provisions of the Code as modified with effect from 25 September 2001 to

include Buy Price Price Adjustment and Sell Price Price Adjustment in the

Balancing Services Adjustment Data and to take such Price Adjustments into

account in the determination of Energy Imbalance Prices under Section T4.4

shall apply;

(b) the NETSO shall submit or resubmit the Balancing Services Adjustment Data to

the SAA and to BSCCo for each Settlement Period of such Settlement Days as

soon as reasonably practicable in order to give effect to paragraph 6.3.5(a); and

(c) BSCCo shall arrange for such data to be published in accordance with Section

V4.2.

6.3.6 For the avoidance of doubt, paragraph 6.3.5 is without prejudice to Settlement Runs carried

or to be carried out at any time in respect of Settlement Days commencing with the

Settlement Day of 25 September 2001, which have been and shall continue to be carried

out in accordance with the provisions of the Code as modified with effect from 25

September 2001.

6.4 Applicable Balancing Services Volumes Data

6.4.1 In relation to each Settlement Period in a Settlement Day and each BM Unit, the NETSO

shall send the BM Unit ABSVD to:

(a) the SAA; and

(b) the BMRA

no later than the second Business Day after such Settlement Day.

6.4.2 BM Unit ABSVD shall:

(a) be expressed in MWh;

(b) follow the sign conventions set out in paragraph 2.4 of Annex X-2; and

(c) represent an aggregate net volume of Active Energy for the whole Settlement

Period.

6.4.3 The NETSO may resubmit to the SAA the BM Unit ABSVD in respect of any BM Unit

and Settlement Period within a Settlement Day (originally sent under paragraph 6.4.1) at

any time prior to the Final Reconciliation Settlement Run for such Settlement Day and the

SAA shall correct such data in the Settlement Run following such resubmission.

6.4.4 For the avoidance of doubt, in respect of each Settlement Period and each BM Unit,

volumes of Active Energy contained in the BM Unit ABSVD sent pursuant to paragraph

6.4.1 shall not include or be included in any volumes of Active Energy contained in

Acceptance Data in respect thereof.

6.4.5 Not Used.

6.4.6 The obligations of the NETSO to send data under paragraph 6.4.1 in respect of Settlement

Periods and Settlement Days, and the use of such data in the determination of Trading

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Charges in respect of Settlement Days in accordance with the provisions of Section T, shall

apply in respect of each Settlement Period and Settlement Day from the time when

paragraph 6.4.1 comes into effect.

6.4.7 Where the NETSO becomes reasonably aware that it is or may be required to provide

ABSVD in relation to a MSID Pair, and that it will not be possible for the NETSO to

assign such ABSVD to a BM Unit, the NETSO shall send to the SVAA, in respect of that

MSID Par and in relation to any Settlement Period in a Settlement Day, the following

("Non BM Unit ABSVD"):

(a) Non BM Unit ABSVD MSID Pair Data in accordance with BSCP602 and


(b) the associated MSID Pair Delivered Volume in accordance with paragraph

6.4.9, and such MSID Pair Delivered Volume shall be sent to the SVAA by the

fifteenth day after such Settlement Day to the extent such data has been

received by the NETSO, and in any event by the forty fifth day after such

Settlement Day.

6.4.8 For the purposes of the Code, "Non BM Unit ABSVD MSID Pair Data" shall contain the

following in relation to an MSID Pair:

(a) the GSP Group in which the Import Metering System and (where applicable)

Export Metering System are located;

(b) the MSID of the Import Metering System;

(c) the MSID of the associated Export Metering System (where applicable);

(d) the date from when, subject to the provisions of Section S10.2, the NETSO

shall provide MSID Pair Delivered Volume in relation to this MSID Pair;

(e) the date to when, subject to the provisions of Section S10.2, the NETSO shall

provide MSID Pair Delivered Volume in relation to this MSID Pair;

(f) a Customer Consent Flag for the MSID of the Import Metering System setting

out:

(i) the date from when the Customer Consent Flag is to be effective;

and

(ii) the date to when the Customer Consent Flag is to be effective;

(g) a Customer Consent Flag for the MSID of the Export Metering System setting

out:


and

(ii) the date to when the Customer Consent Flag is to be effective.

6.4.9 MSID Pair Delivered Volumes shall:

(a) be expressed in MWh;

(b) follow the sign conventions set out in paragraph 2.4 of Annex X-2; and

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(c) represent an aggregate net deviation volume of Active Energy for the whole

Settlement Period for each MSID Pair.

6.4.10 The NETSO may resubmit to the SVAA the MSID Pair Delivered Volume in respect of

any MSID Pair and Settlement Period within a Settlement Day (originally sent pursuant to

this paragraph 6.4.8) at any time prior to the Final Reconciliation Volume Allocation Run

for such Settlement Day and the SVAA shall correct such data in the Volume Allocation

Run following such resubmission.

6.4.11 For the avoidance of doubt, in respect of each Settlement Period and any MSID Pair, the

MSID Pair Delivered Volumes sent pursuant to paragraph 6.4.8 shall not include or be

included in any volumes of Active Energy contained in Acceptance Data in respect of any

BM Unit(s) that include the MSIDs comprising the MSID Pair.

6.5 Not used

6.6 Outages

6.6.1 Where the NETSO is required to submit data by or within a specified period pursuant to

this paragraph 6, such period shall be automatically extended by the period of any relevant

Outage, and the NETSO shall submit relevant data in accordance with this paragraph 6 for

the period of such Outage as soon as reasonably practicable after the end of such Outage.

6.7 Static Function Loss of Load Probability

6.7.1 The NETSO shall send any Loss of Load Probability function calculated in accordance

with the Loss of Load Probability Calculation Statement to the BMRA not less than three

months before it is due to take effect.


shall send to the BMRA the Final Loss of Load Probability value applicable to the relevant

Settlement Period calculated in accordance with the Static LoLP Function Methodology.

6.7.3 Paragraph 6.7 shall cease to have effect for all Settlement Periods occurring on or after

00:00 on 1 November 2018.

6.8 Dynamic Function Loss of Load Probability

6.8.1 With effect from 00:00 on 1 November 2018 and for all Settlement Periods thereafter, the

NETSO shall:

(a) calculate Indicative Loss of Load Probability values in accordance with the

Dynamic LoLP Function Methodology at the following times:

(i) in relation to paragraph 6.8.2, at 1200 hours on each calendar day;

and

(ii) in relation to paragraph 6.8.3, at 8 hours, 4 hours and 2 hours prior to

the beginning of the Settlement Period for each Settlement Period

during each Settlement Day;

(b) calculate the Final Loss of Load Probability value for each Settlement Period in

accordance with the Dynamic LoLP Function Methodology at the same time as

Gate Closure for each Settlement Period.

6.8.2 Not later than 15 minutes following the calculation time set out in paragraph 6.8.1(a)(i), the

NETSO shall send to the BMRA the Indicative Loss of Load Probability values applicable

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to all Settlement Periods for which Gate Closure has not yet passed occurring within the

current Operational Day and the following Operational Day.

6.8.3 Not later than 15 minutes following the calculation time set out in paragraph 6.8.1(a)(ii),

the NETSO shall send to the BMRA the Indicative Loss of Load Probability values

applicable to each relevant Settlement Period.

6.8.4 Not later than 15 minutes following the calculation time set out in paragraph 6.8.1(b), the

NETSO shall send to the BMRA the Final Loss of Load Probability values applicable to

the relevant Settlement Period.

6.9 Demand Control Instructions


(a) times by which the NETSO is to send data to the BMRA are target times, which

the NETSO is expected to meet unless abnormal circumstances prevent it from

doing so; and

(b) capitalised terms shall, unless otherwise defined in the Code, have the meanings

given to such terms in the Grid Code.

6.9.2 For the purposes of paragraph 6.9, a Demand Control Event shall be:

(a) a demand disconnection instructed by the NETSO;

(b) a voltage reduction instructed by the NETSO; and/or

(c) an automatic low frequency Demand Disconnection,

in each case as set out in OC6 of the Grid Code.

6.9.3 In respect of each Demand Control Event, not later than 15 minutes after the

commencement of a Demand Control Event the NETSO shall send to the BMRA the

following:

(a) the unique identification number for that Demand Control Instruction;

(b) the relevant stage number for the Demand Control Event Stage (which, for the

purposes of this paragraph, shall be the first Demand Control Event Stage);

(c) the Demand Control Event type flag;

(d) the Demand Control Event Start Point;

(e) where known, the Distribution System Operator instructed;

(f) the Demand Control Event Estimate in MW based on the total Demand Control

Level anticipated to be delivered; and

(g) a SMAF Flag.

6.9.4 Not later than 15 minutes after the NETSO has issued an updated Demand Control

Instruction, the NETSO shall send to the BMRA the following:

(a) the relevant Demand Control Instruction identification number;

(b) the updated sequential Demand Control Event Stage number;

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(c) the Demand Control Event type flag;

(d) the time and date of the additional Demand Control Instruction;

(e) where known, the Distribution System Operator instructed;

(f) the Demand Control Event Estimate in MW based on the total additional

Demand Control Level anticipated to be delivered during the stage being

reported; and

(g) a SMAF Flag.

6.9.5 Not later than 15 minutes after the end of a Demand Control Event, the NETSO shall send

to the BMRA the following:

(a) the Demand Control Instruction identification number; and

(b) the Demand Control Event End Point.

6.9.6 For the purposes of the Code, a Demand Control Impacted Settlement Period shall be:

(a) each Settlement Period that corresponds with:

(i) any Demand Control Event Start Point; or

(ii) any Demand Control Event End Point; or

(b) any intervening Settlement Period(s).

6.9.7 As soon as reasonably practical after receipt, the BMRA shall send each Demand Control

Event Notice to the SVAA, the SAA and the CDCA.

7. MANIFEST ERRORS

7.1 Meaning of Manifest Error

7.1.1 For the purposes of this Section Q:

(a) there is a "Manifest Error" in a Bid-Offer Pair or an Acceptance where and

only where:

(i) in relation to a Bid-Offer Pair, there was a Manifest Error on the part

of the Lead Party of a BM Unit in the Offer Price and/or the Bid

Price associated with a Bid-Offer Pair relating to that BM Unit

which has been accepted by the NETSO;

(ii) in relation to an Acceptance and one or more of the Bids or Offers

thereby accepted, the acceptance of such Bid(s) or Offer(s) was a

Manifest Error on the part of the NETSO;

(b) for the purposes of paragraph (a) an error will be considered manifest only

where it is self-evidently an error;

(c) in relation to a claim of Manifest Error:

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(i) an "Error Bid-Offer Pair" is the Bid-Offer Pair referred to in

paragraph (a)(i) or (as the case may be) a Bid-Offer Pair which

included one of the accepted Bid(s) or Offer(s) referred to in

paragraph (a)(ii);

(ii) the "relevant" Acceptance is the Acceptance by which the Error

Bid-Offer Pair(s) were accepted, and references to the Bid-Offer

Acceptance Time shall be construed accordingly;

(iii) the "relevant" Settlement Period is the Settlement Period to which

the Error Bid-Offer Pair relates;

(iv) references to the Lead Party are to the Lead Party of the BM Unit for

which the Error Bid-Offer Pair(s) were submitted.

7.2 Claiming Manifest Errors

7.2.1 Where a Party considers that it has made a Manifest Error in a Bid-Offer Pair, such Party

may, subject to paragraph 7.2.3, as soon as reasonably practicable after becoming aware of

the error and in any event no later than 4 hours after the Bid-Offer Acceptance Time, make

a claim to that effect by giving notice of such claim to the NETSO, identifying the Error

Bid-Offer Pair.

7.2.2 Where the NETSO considers that it has made a Manifest Error in an Acceptance, the

NETSO may, subject to paragraph 7.2.3, as soon as reasonably practicable after becoming

aware of the error and in any event no later than 4 hours after the Bid-Offer Acceptance

Time, make a claim to that effect by giving notice of such claim to BSCCo, which notice

the NETSO shall also copy promptly to the Lead Party, identifying:

(a) each Error Bid-Offer Pair; and

(b) the relevant Acceptance, by specifying:

(i) subject to paragraph (ii), the Bid-Offer Acceptance Number;

(ii) where (at the time at which the NETSO gives such notice) the Bid-

Offer Acceptance Number is not available to the NETSO (or no such

number has been established), the Acceptance Data specified in

paragraphs 5.3.1 (a) and (c).

7.2.3 Where a Party makes a claim of Manifest Error, such Party shall pay a fee to BSCCo the

amount of which (for each such claim) shall be £5,000, or such other amount as the Panel

may from time to time, after consultation with Parties, determine upon not less than 30

days notice to Parties; which fee shall not be reimbursed in any circumstances.

7.3 Flagging Manifest Errors

7.3.1 Where a Party gives notice of a claim of Manifest Error to the NETSO under paragraph

7.2.1, the NETSO shall within 15 minutes after receiving such notice forward the notice to

BSCCo.

7.3.2 At the same time as giving notice (under paragraph 7.2.2 or 7.3.1) of a claimed Manifest

Error, the NETSO shall ensure that a Manifest Error notice is posted on the BMRS,

specifying the identity of the BM Unit, the relevant Settlement Period(s) and the Bid Price

or Offer Price to which the claimed error relates.

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7.4 Determination of Manifest Errors

7.4.1 The Panel shall consider claims of Manifest Error in accordance with this paragraph 7.4.

7.4.2 For the avoidance of doubt the Panel may establish or appoint a Panel Committee to

discharge its functions under this paragraph 7; and (notwithstanding Section W2.2) the

Panel may appoint the Trading Disputes Committee, and (if so appointed) that Committee

shall have the ability and competence, to do so.

7.4.3 Where a claim of Manifest Error is made:

(a) the Panel Secretary shall arrange for the claim to be placed on the agenda of a

meeting of the Panel (consistently with paragraph (c)), and shall request:

(i) the Party claiming the error to provide evidence and information

supporting its claim;

(ii) the NETSO or the Lead Party (whichever is not the Party claiming

the error) to provide comments in relation to the claim;

(iii) the NETSO to provide such information as the Panel Secretary

considers may be required under paragraph 7.5.2(c);

(b) the Panel shall determine in its opinion whether there was a Manifest Error and

(if so) what adjustments are to be made in accordance with paragraph 7.5;

(c) the Panel shall wherever practicable consider the claim in time for any such

adjustments to be taken into account in the Initial Settlement Run;

(d) if the Lead Party claims a payment under paragraph 7.6.1, the Panel shall

determine in its opinion what is the error compensation amount under paragraph

7.6;

(e) the Panel Secretary shall notify the Panel's determinations to the NETSO and all

Trading Parties;

(f) BSCCo shall give such instructions to the SAA and FAA as are necessary to

give effect to any such adjustments and payments;

(g) the fee under paragraph 7.2.3 shall be invoiced as and included in determining

BSCCo Charges for the relevant Party for the next month for which BSCCo

Charges are invoiced following the notification of the Panel's determination

under paragraph (e), and paid accordingly.

7.4.4 The determination of the Panel (or any Panel Committee established or appointed under

paragraph 7.4.2) as to whether there was a Manifest Error, and (if so) what adjustments are

to be made under paragraph 7.5 and (if claimed) the amount of the error compensation

amount to be paid under paragraph 7.6, shall be final and binding on all Parties.

7.5 Adjustments to Bid or Offer Price

7.5.1 Where the Panel determines that there was a Manifest Error, the Bid Price and Offer Price

of each Error Bid-Offer Pair shall be adjusted (so that such Bid-Offer Pair shall be treated

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(a) the Panel shall determine (in its opinion) in consultation with the :

(i) what other Bid-Offer Pairs (submitted by any Party) were available

to, and not already accepted by, the NETSO at the Bid-Offer

Acceptance Time;

(ii) which of those other Bid-Offer Pairs would (in the circumstances

which gave rise to the NETSO accepting the Error Bid-Offer Pair(s),

and having regard to the principles on which the NETSO generally

selects Bid-Offer Pairs for acceptance) have been accepted by the

NETSO, at the Bid-Offer Acceptance Time, if it had not accepted

(by the relevant Acceptance) the Error Bid-Offer Pair;

(iii) the Bid Price or Offer Price of such Bid-Offer Pair (or where it

determines that more than one would have been accepted, the

average of such prices, weighted according to the quantities (in

MWh) of each which would have been accepted)

(and for these purposes it shall be assumed that one or more of the Bid/Offer

Pairs referred to in paragraph (a)(i) would have been so accepted);

(b) both the Bid Price and the Offer Price of the Error Bid-Offer Pair shall be

adjusted to be equal to the price determined under paragraph (a)(iii);

(c) the NETSO shall provide to the Panel all such information as the Panel may

reasonably require to enable it to determine the matters in paragraph (a).

7.6 Error compensation amount

7.6.1 Where the Panel determines that there was a Manifest Error, the Lead Party may, within

the period of 5 Business Days commencing on the Business Day after the Panel determined

the adjustment under paragraph 7.5.2, submit to BSCCo a claim for payment of an error

compensation amount to be determined in accordance with this paragraph 7.6.

7.6.2 For the purposes of this paragraph 7, in relation to an Acceptance of an Error Bid-Offer

Pair:

(a) the "error compensation amount" shall be an amount determined as:

max {(A - B), 0}

where

A is the amount of the Avoidable Party Costs of the Lead Party in

relation to the changes in Exports and/or Imports determined by the

Panel under paragraph 7.6.3(a);

B is an amount determined as:

(MECQnij * Pn

ij);

where Pnij is the adjusted Offer Price or Bid Price (being the same

price, in accordance with paragraph 7.5.2(b)) of the Error Bid-Offer

Pair in accordance with paragraph 7.5.1;

(b) the "error compensation volume" (MECQnij) is the quantity (in MWh)

determined by the Panel under paragraph 7.6.3(b), subject to paragraph (c);

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(c) for the purposes of paragraph (b):

(i) MECQnij shall be negative where it represents an increase in net

Imports or a reduction in net Exports, and otherwise positive;

(ii) the value of MECQnij shall not exceed the algebraic sum of the

Period Accepted Offer Volume and Period Accepted Bid Volume for

all Acceptances relating to the Error Bid-Offer Pair;

(iii) the magnitude of MECQnij shall not exceed the magnitude of the

amount claimed by the Lead Party under paragraph 7.6.3(a).

7.6.3 Where the Lead Party submits a claim under paragraph 7.6.1, the Panel shall determine, in

its opinion:

(a) what changes in Exports and/or Imports of the BM Unit during the relevant

Settlement Period resulted from action taken by the Lead Party for the purposes

of complying (in accordance with the Grid Code) with the relevant Acceptance;

and

(b) what is the net quantity (in MWh) of such changes in Exports or Imports of the

BM Unit for such Settlement Period.


(a) the Lead Party shall, at the time at which it submits its claim under paragraph

7.6.1, provide a statement to the Panel of the changes which the Lead Party

considers to be the changes described in paragraph 7.6.3(a), and the quantity

which the Lead Party considers to be the net quantity described in paragraph

7.6.3(b), and shall provide such other information as the Panel may reasonably

request for the purposes of determining the matters in paragraphs 7.6.3(a) and

(b);

(b) the Lead Party shall comply with the requirements of Section G2.2.1 in relation

to determination of Avoidable Costs;

(c) the NETSO and each Distribution Company shall provide such information as

the Panel may reasonably request for the purposes of determining the error

compensation volume.

7.6.5 Where the Lead Party has submitted a claim in accordance with paragraph 7.6.1, subject to

the provisions of the Code:

(a) the Lead Party shall be entitled to be paid by the BSC Clearer the error

compensation amount, together with compound interest calculated by applying

the Base Rate on a daily basis on the error compensation amount from the

Initial Payment Date for the relevant Settlement Period to (but not including)

the date (if later) when such payment is made;

(b) in the case of a Manifest Error (on the part of the NETSO) in an Acceptance,

the NETSO shall be liable to pay to the BSC Clearer an amount equal to the

amount payable to the Lead Party under paragraph (a);

(c) in the case of a Manifest Error (on the part of the Lead Party) in a Bid/Offer

Pair, each Trading Party (including the Lead Party) shall be liable to pay to the

BSC Clearer its Party Daily Reallocation Proportion (for the Settlement Day

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which included the relevant Settlement Period) of the amount payable to the

Lead Party under paragraph (a); and

(d) the amounts of the entitlements and liabilities under paragraphs (a) to (c) shall

be Ad-hoc Trading Charges for the purposes of Section N6.9.


7.6.5(a) shall be the Go-live Date.

8. COMPENSATION FOR OUTAGES

8.1 General


(a) an "outage compensation period" is:

(i) the period of any Outage, where the NETSO gave notice (pursuant

to BC1.4.1(c) or BC2.9.7.2 of the Grid Code) of less than 12 hours

of the commencement of such Outage, or gave notice thereof after

such commencement; or

(ii) irrespective of the period of notice given of the Outage, the period (if

any) of an Outage which falls more than 2 hours after the

commencement of the Outage;

(b) a "relevant" Settlement Period is a Settlement Period for which Gate Closure

fell within the outage compensation period.

8.1.2 For the avoidance of doubt, this paragraph 8 shall not apply by reason only of any Outage

or other withdrawal, failure or breakdown of any system which does not affect the

communication of Physical Notifications.

8.1.3 If any dispute arises in connection with this paragraph 8 as to the time of commencement

of an Outage, or the period of such an Outage, the Panel shall determine the matter in

dispute after consultation with the NETSO and the Party raising the dispute, and the Panel's

determination shall be final and binding for the purposes of this paragraph 8.

8.2 Claim for compensation following unplanned outage

8.2.1 Subject to the provisions of the Code, following an outage compensation period, a Party

which:

(a) is the Lead Party of any BM Unit(s); and

(b) considers:

(i) it suffered (consistent with the matters set out in paragraph 8.2.5) a

material loss, which it could not reasonably have avoided, as a result

of its inability to submit Physical Notifications during an outage

compensation period; or

(ii) where a Metered Volume Reallocation Notification(s) is in force for

any BM Unit(s), that collectively it and all Subsidiary Parties in

relation to any BM Unit ("relevant" Subsidiary Parties for the

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purposes of this paragraph 8) suffered (consistent with the matters

set out in paragraph 8.2.5) a net material loss, which could not

reasonably have been avoided, as a result of its inability to submit

Physical Notifications during an outage compensation period,

may, within the period of 10 Business Days after the end of the compensation outage

period, submit to BSCCo a claim for payment of compensation to be determined in

accordance with this paragraph 8.2.

8.2.1A The Party shall, at the time at which it submits a claim under paragraph 8.2.1:

(a) provide a statement and explanation of the basis on which it considers that it has

or it and all relevant Subsidiary Parties have suffered such a loss as is referred

to in paragraph 8.2.1; and

(b) for each Metered Volume Reallocation Notification(s) in force for any relevant

BM Unit(s) provide:

(i) the MVRNA Authorisation under which it is given (thereby

identifying the BM Unit, the Lead Party and relevant Subsidiary

Party and the Subsidiary Energy Account to which it relates); and

(ii) for each relevant Settlement Period, the quantity of Active Energy

and the percentage (either of which may be zero) of BM Unit

Metered Volume allocated to each Subsidiary Energy Account in

accordance with Section P3.3.

8.2.2 The Panel will not consider a claim by a Party for compensation under this paragraph 8.2

unless the Party's submission under paragraph 8.2.1 demonstrates (but without prejudice to

what the Panel determines under paragraph 8.2.4), to the reasonable satisfaction of the

Panel, that it and any relevant Subsidiary Party suffered such a loss as is referred to in

paragraph 8.2.1(b).


(a) the Party shall provide such other information as the Panel may reasonably

request by way of justification of what is claimed in the Party's statement or

otherwise for the purposes of the Panel's determination of such matters;

(b) a relevant Subsidiary Party shall provide such other information as the Panel

may reasonably request by way of justification of what is claimed in the Party’s

statement or otherwise for the purposes of the Panel’s determination of such

matters;

(c) to the extent required by the Panel, the Party shall comply with the requirements

of Section G2.2.1 in relation to determination of Avoidable Costs for its BM

Units; and

(d) the NETSO and each Distribution Company shall provide such information as

the Panel may reasonably request for the purposes of determining the matters in

paragraph 8.2.

8.2.4 Where the Panel determines (in accordance with paragraph 8.2.2) to consider the Party's

claim, the Panel shall determine, in its opinion, the amount of the loss:

(a) which was suffered by the Party and any relevant Subsidiary Party; and

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(b) which the Party and any relevant Subsidiary Party could not reasonably have

avoided,

as a result of the Party's inability to submit or resubmit Physical Notifications during the

outage compensation period.

8.2.5 In determining the amount (if any) of the loss suffered by a Party and any relevant

Subsidiary Party, and whether and the extent to which the Party and any relevant

Subsidiary Party could reasonably have avoided such loss, the Panel shall have regard to

the following:

(a) whether and the extent to which, in the opinion of the Panel, the net financial

position of the Party together with all relevant Subsidiary Parties, in respect of

Trading Charges, was worse than the net financial position of the Party together

with all relevant Subsidiary Parties, in respect of Trading Charges and

Avoidable Costs, would have been if the Party had been able to submit or

resubmit Physical Notifications during the outage compensation period; where

Avoidable Costs refers to Avoidable Costs which would have been incurred in

respect of changes which would (if the Party had so been able) have occurred in

Exports and/or Imports of the BM Units of which the Party is Lead Party; and

(b) whether and the extent to which, in the opinion of the Panel, the Party acted

reasonably and prudently in making commitments which resulted in notification

of Energy Contract Volumes relating to relevant Settlement Periods, and

otherwise in its operations under the Grid Code and the Code;

and the Panel shall disregard costs and losses (including in respect of amounts payable in

respect of such commitments as are referred to in paragraph (b)) other than those referred

to in paragraph (a).

8.3 Compensation entitlements

8.3.1 Where a Party has submitted a claim for compensation in accordance with paragraph 8.2:

(a) that Party and any relevant Subsidiary Party shall be informed of the Panel’s

determination under paragraph 8.2.4;

(b) that Party shall be entitled to be paid by the BSC Clearer the amount (if any)

determined in accordance with paragraph 8.2.4, together with compound

interest calculated at the Base Rate on such amount on a daily basis from the

Initial Payment Date for the Settlement Period in which the outage

compensation period ended to (but not including) the date (if later) when such

payment is made;

(c) the NETSO shall be liable to pay to the BSC Clearer an amount equal to the

amount payable under paragraph (a);

(d) such entitlements and liabilities shall be Ad-hoc Trading Charges for the

purposes of Section N6.9; and

(e) BSCCo shall give such instructions to the FAA as are necessary to give effect to

the payment of such Ad-hoc Trading Charges.


8.3.1(b) shall be the Go-live Date.

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9. NOT USED

10. NOT USED

11. SUBMISSION OF INSIDE INFORMATION DATA

11.1 Application

11.1.1 For the purposes of the Code, references in this paragraph 11 to a Party shall be construed

as a reference to a Party which is a Market Participant in the Wholesale Energy Market in

possession of Inside Information Data.

11.2 Inside Information Data

11.2.1 A Party may submit Inside Information Data to the BMRA via the BSC Website in

accordance with Section O2.2.3.

11.2.2 Inside Information Data shall be submitted by an authorised person previously approved or

a delegate otherwise approved in accordance with BSCP38.

11.2.3 Not used.

11.2.4 Without prejudice to the generality of Section V, paragraph 1.1.4, each Party acknowledges

and agrees that no Party shall have any claim or entitlement against BSCCo (including its

agents), BSC Agents, the NETSO or any other Party in respect of the availability, non-

availability, accuracy, inaccuracy, completeness or incompleteness of the Inside

Information Data published on the BMRS from time to time and nothing in the Code shall

operate to relieve a Party, where applicable, from its obligations and responsibilities

pursuant to REMIT.

11.3 Submission of Data by BSCCo

11.3.1 BSCCo shall send to the BMRA all Inside Information Data that it receives from time to

time from a Market Participant, as soon as reasonably practicable after receipt taking into

account any technical constraints.

11.4 Submission of Data by Non-Parties

11.4.1 BSCCo shall ensure that any non-Party wishing to submit Inside Information Data to the

BMRS:

(a) undergoes a relevant authorisation process; and

(b) complies with the requirements set out in this Section Q.

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BSC/V18.0

R – 1 of 20 Effective Date: 12 October 2020

SECTION R: COLLECTION AND AGGREGATION OF METER DATA FROM CVA METERING SYSTEMS

1. INTRODUCTION

1.1 General

1.1.1 This Section R provides for the determination of Metered Volumes for the purposes of Central Volume Allocation in respect of:

(a) BM Units other than Interconnector BM Units, Supplier BM Units and Secondary BM Units (in this Section R, "relevant" BM Units);

(b) Interconnectors;

(c) Grid Supply Points; and

(d) GSP Groups;

(collectively referred to as "Volume Allocation Units" for the purposes of this Section R).

1.1.2 This Section R accordingly sets out:

(a) the basis on which data registered in CRS and Meter Technical Details will be submitted to and validated by the CDCA;

(b) requirements for Parties to prepare Aggregation Rules and submit such rules to the CDCA, and for the validation of such rules;

(c) the basis on which Line Loss Factors will be submitted to CDCA for CVA Metering Systems connected to Distribution Systems; and

(d) the basis on which the CDCA will collect and validate or (where necessary) estimate metered data from Metering Systems, aggregate such data to determine Metered Volumes, and submit such Metered Volumes to the SAA and/or SVAA.

1.1.3 This Section R applies only in relation to CVA Metering Systems (and references in this Section R to Metering Systems shall be construed accordingly).

1.1.4 Paragraph 7 of this Section R provides for the determination of BM Unit Metered Volumes in respect of Interconnector BM Units (other than those for which an Interconnector Error Administrator is Lead Party); and further references to BM Units in paragraphs 1 to 6 do not include Interconnector BM Units.

1.2 Metered Volumes

1.2.1 For the purposes of this Section R, in relation to a Volume Allocation Unit and a Settlement Period, the "Metered Volume" is the net aggregate volume of Active Energy, determined as at the Transmission System Boundary, which flowed in that Settlement Period to or from that Volume Allocation Unit.

1.3 Settlement Calendar

1.3.1 The CDCA shall undertake its duties under this Section R as to the collection, validation, estimation and aggregation of metered data, and the submission of such data to certain

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Parties and other BSC Agents, in accordance with BSCP01 and the prevailing Settlement Calendar.

1.4 Requirements for data collection

1.4.1 The CDCA shall collect or procure the collection of metered data (as required by paragraph 5) available from Outstations either by means of remote interrogation or by means of manual on-site interrogation.

1.4.2 The CDCA shall be responsible for the operation and maintenance of Communications Equipment (other than modems or equivalent exchange links) after it has been installed by the Registrant in accordance with Section L; and for the purposes of remote interrogation the CDCA shall enter into, manage and monitor contracts or other arrangements to provide for the maintenance of all communication links which form part of such Communications Equipment.

1.4.3 In the event of any fault or failure of any communication link or any error or omission in such data or all necessary data not being available from Outstations the CDCA shall collect or procure the collection of such data by manual on-site interrogation.

1.4.4 The CDCA shall cease to be required to maintain communications links in respect of Metering Equipment if, and with effect from the date when, the Metering System ceases to be registered in CMRS.

1.4.5 The CDCA shall be responsible for the installation and maintenance of central collector stations.

1.4.6 Communications Equipment need not be dedicated exclusively to the provision of data to the CDCA for the purposes of Central Volume Allocation, provided that any other use shall not interfere at any time with the operation of the Central Volume Allocation processes.

1.4.7 The CDCA shall comply (without charge to the Registrant) with any reasonable request by the Registrant to provide access to Communications Equipment to the Registrant and to other persons nominated by the Registrant (including for the purposes of complying with the Registrant's obligations under Section L5.2).

1.5 Objective of CDCA

1.5.1 The CDCA shall carry out its functions under this Section R with the objective of ensuring that all exports and imports at CVA Boundary Points and Systems Connection Points are properly and accurately taken into account and allocated to the responsible Party in Central Volume Allocation.

1.6 Interpretation

1.6.1 For the purposes of this Section R:

(a) "metered data" means data, relating to a flow (by way of import or export) of Active Energy or Reactive Energy, derived from any meter register of any Metering System;

(b) where the context admits, a reference to metered data shall include estimated data;

(c) "active energy metered data" is metered data relating to a flow of Active Energy;

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(d) "reactive energy metered data" is metered data relating to a flow of Reactive Energy;

(e) unless the context otherwise requires, references to metered data are to active energy metered data only; and

(f) "import" and "export" shall be construed as including (in addition to Import and Export in accordance with Section K) a flow of electricity at a Systems Connection Point to or from a given System.

1.6.2 No provision of this Section R (including without limitation paragraphs 1.5 and 3.1.4(a)(iii)) shall be construed as requiring anything to be done which could not be done without the existence of Aggregation Rules specifying data or operations beyond what is permitted to be specified in accordance with paragraph 3.3.1.

2. REGISTRATION AND TECHNICAL DETAILS

2.1 Registration Data

2.1.1 Data registered in CRS will be submitted by the CRA to the CDCA pursuant to Section K6.

2.1.2 The CDCA shall:

(a) validate (as to completeness and form) registration data submitted to it by the CRA;

(b) record and maintain such validated data; and

(c) where the CRA fails to submit any registration data to the CDCA, or any registration data which is submitted fails validation, so inform the CRA and request the CRA to submit or correct and submit the registration data.

2.2 Meter Technical Details

2.2.1 Meter Technical Details for each CVA Metering System will be submitted to the CDCA by the Registrant in accordance with BSCP20 and pursuant to Section L2.4.1(c).


(a) validate (as to completeness and form) Meter Technical Details submitted to it;

(b) record and maintain in CMRS such validated data; and

(c) where the Registrant fails to submit any Meter Technical Details to the CDCA, or any Meter Technical Details which are submitted fail validation, so inform the Registrant and request the Registrant to submit or correct and submit the Meter Technical Details.

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3. AGGREGATION RULES

3.1 General

3.1.1 For the purposes of the Code "Aggregation Rules" relating to a Volume Allocation Unit are rules by reference to which import or export active energy metered data collected from Outstations relating to meter registers of one or more Metering Systems are to be aggregated so as to provide, in relation to any Settlement Period, the Metered Volume for that Volume Allocation Unit for the purposes of Settlement.

3.1.2 For the purposes of this Section R, references to the "aggregation" of metered data are to the application to such data of any one or more of the arithmetic operations referred to in paragraph 3.3.1(b) (and 'aggregate' and 'aggregated' shall be construed accordingly).

3.1.3 Aggregation Rules must comply with the applicable requirements and criteria in paragraph 3.3.

3.1.4 Where under this Section R a Party is required to prepare and submit to the CDCA any Aggregation Rules in relation to any Volume Allocation Unit:

(a) the Party shall prepare such rules:

(i) in good faith and in accordance with Good Industry Practice;

(ii) so that such rules comply with the applicable requirements and criteria in paragraph 3.3; and

(iii) so that such rules will ensure that the volumes determined by reference to those rules are those which should be so determined as Metered Volumes;

(b) the Party shall ensure that the rules for the time being submitted continue at all times to comply with paragraphs (a)(ii) and (iii);

(c) the Party shall prepare and submit or resubmit such rules, in accordance with BSCP75:

(i) at the time at which that Party or any other Party applies for registration in accordance with Section K2 of any Metering System from which metered data is to be taken into account under such rules;

(ii) at any time at which there is any change in any such Metering System or in composition of the relevant Volume Allocation Unit;

(iii) at any other time at which it is necessary to do so to comply with paragraph (b);

(iv) at any time if reasonably requested to do so by the CDCA pursuant to paragraph 3.1.5.

3.1.5 Without prejudice to the obligations of any Party under this paragraph 3, the CDCA may, at any time, request a Party to submit or re-submit Aggregation Rules which that Party is required under this paragraph 3 to submit.

3.1.6 The fact that the CDCA may for the time being have validated and recorded a set of Aggregation Rules shall not relieve the Party required to submit such rules from

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responsibility to ensure that such rules continue to comply with the requirements in paragraph 3.1.4(a).

3.1.7 In relation to a Metering System associated with a Distribution Systems Connection Point, the Registrant shall not unreasonably withhold consent (for the purposes of paragraph 3.3.5(d)(i) to a set of Aggregation Rules proposed by the other Distribution System Operator.

3.1.8 For the purposes of this paragraph 3, in relation to any set of Aggregation Rules a "related Party" is a Party whose consent to such Aggregation Rules is required under paragraph 3.3.5(d)(i).

3.2 Duty to prepare and submit Aggregation Rules

3.2.1 The Lead Party of each relevant BM Unit shall prepare a set of Aggregation Rules in respect of that BM Unit, which:

(a) relate to each of the Metering System(s) associated with such BM Unit, and

(b) provides for the determination of the BM Unit Metered Volume.

3.2.2 The NETSO shall prepare a set of Aggregation Rules in respect of each Transmission Interconnector, which:

(a) relate to each of the Metering System(s) associated with such Interconnector, and

(b) provide for the determination of the Interconnector Metered Volume.

3.2.3 Each Distribution System Operator shall prepare:

(a) a set of Aggregation Rules in respect of each Grid Supply Point at which its Distribution System is connected to the Transmission System, which:

(i) relate to each of the Metering System(s) associated with such Grid Supply Point, and

(ii) provide for the determination of the Metered Volume in respect of such Grid Supply Point;

(b) in relation to any GSP Group for which the Distribution System Operator is responsible (in accordance with paragraph 3.2.6), a set of Aggregation Rules which:

(i) relate to each of the Metering System(s) associated with each Systems Connection Point on that GSP Group, and

(ii) provide for the determination of the GSP Group Metered Volume for that GSP Group;

(c) a set of Aggregation Rules in respect of each Distribution Interconnector which is connected to its Distribution System, which:

(i) relate to each of the Metering System(s) associated with such Interconnector, and

(ii) provide for the determination of the Interconnector Metered Volume.

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3.2.4 The Party responsible (in accordance with paragraphs 3.2.1 to 3.2.3) for preparing a set of Aggregation Rules shall in accordance with BSCP75:

(a) submit such rules to the CDCA; and

(b) where paragraph 3.3.5(d) applies, at the same time submit to the CDCA evidence of the consent of the related Parties.

3.2.5 In the case of a BM Unit which comprises a Range CCGT Module:

(a) the Lead Party may, subject to and in accordance with BSCP75, and consistent with the information for the time being submitted to the NETSO under the Grid Code:

(i) prepare and submit more than one set of Aggregation Rules (each of which shall comply with the requirements of paragraph 3.3), reflecting different operating configurations of the Plant and Apparatus comprised in the Range CCGT Module; and

(ii) elect and from time to time change its election (by notice to the CDCA given not later than the equivalent data is to be given to the NETSO under the Grid Code) as to which of the sets of Aggregation Rules for the time being so submitted (provided the same is valid in accordance with paragraph 3.4.2) is to be used by the CDCA in determining the BM Unit Metered Volume;

(b) the CDCA shall use the set of Aggregation Rules for the time being so elected by the Lead Party for the purposes of paragraph 5.4.

3.2.5A In the case of a Power Park Module which belongs to a Switching Group:

(a) the Lead Party may, subject to and in accordance with BSCP75, and consistent with the information for the time being submitted to the NETSO under the Grid Code:

(i) prepare and submit more than one set of Aggregation Rules (each of which shall comply with the requirements of paragraph 3.3), reflecting different operating configurations of the Plant and Apparatus comprised in the Switching Group; and

(ii) elect and from time to time change its election (by notice to the CDCA in accordance with BSCP75) as to which of the sets of Aggregation Rules for the time being so submitted (provided the same is valid in accordance with paragraph 3.4.2) is to be used by the CDCA in determining the BM Unit Metered Volume; and

(b) the CDCA shall, as soon as practicable, use the set of Aggregation Rules for the time being so elected by the Lead Party for the purposes of paragraph 5.4; and

(c) where the CDCA (due to technical constraints in the CDCA system) is unable to make the change in Aggregation Rules so elected effective until 00:00 following the time of the change, the Lead Party may request that any resulting error in the BM Unit Metered Volumes is corrected subject to and in accordance with BSCP03.

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3.2.6 For the purposes of paragraph 3.2.3(b), in relation to each GSP Group, the Distribution System Operator which is responsible for preparing a set of Aggregation Rules shall be:

(a) subject to paragraph (c), the Licensed Distribution System Operator which was so responsible as at 1 August 2003; or

(b) subject to paragraph (c), in relation to those GSPs described in Section K1.8.1(a)(ii), the Scottish Distribution Licensee in respect of that BSP Group under SAS on 1 August 2003; or

(c) if no Licensed Distribution System Operator or Scottish Distribution Licensee was so responsible, or if the person which was so responsible ceases to be the Distribution System Operator of the principal Distribution System (in that GSP Group) which it operated as at 1 August 2003, or in relation to those GSPs described in Section K1.8.1(a)(ii), the Scottish Distribution Licensee in respect of a BSP Group under SAS on 1 August 2003 ceases to be the Distribution System Operator of the principal Distribution System (in that GSP Group) which it operated as at BETTA Go Active or if (after consultation with the NETSO, relevant Distribution System Operators and the Authority) the Panel consents to such person relinquishing such responsibility:

(i) one of the relevant Distribution System Operator(s), selected and nominated to the Panel by agreement of all of the relevant Distribution System Operators and approved by the Panel as such, or

(ii) failing such agreement and approval, one of the relevant Distribution System Operator(s) designated by the Panel, after consultation with such Distribution System Operator, the NETSO, each other relevant Distribution System Operator and the Authority, to undertake such role;

where (in relation to a GSP Group) the relevant Distribution System Operator(s) are the Distribution System Operators of the Distribution System(s) in that GSP Group which are connected to the Transmission System.

3.3 Requirements for Aggregation Rules


(a) Aggregation Rules shall be algebraic rules complying with the requirements as to form specified in BSCP75;

(b) in particular, Aggregation Rules may only specify:

(i) as data to which such rules are to be applied, (1) metered data, Line Loss Factors, and constants, or (2) intermediate terms derived (consistently with paragraph (ii)) from such data;

(ii) as operations to be applied to such data, the operations (or combinations of the operations) of addition, subtraction, multiplication and division and (from the date determined for these purposes by the Panel) logical 'IF' operations;

(c) for the avoidance of doubt, a set of Aggregation Rules may contain sub-sets of rules, or rules requiring iteration, applying to intermediate terms derived consistently with paragraph (b).

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3.3.2 Where any Aggregation Rules relate to any Metering System which is connected to a Distribution System, the Aggregation Rules shall specify, or enable the CDCA to determine, which Line Loss Factor(s) are to be applied, and how they are to be applied, to metered data in determining Metered Volumes.

3.3.3 Aggregation Rules must utilise the conventions as to sign set out in Annex X-2, insofar as such conventions are capable of applying in relation to such Aggregation Rules.

3.3.4 In any case in which (as specified in the relevant Meter Technical Details) metered data will have been subject to any operation (equivalent to any of the arithmetic operations referred to in paragraph 3.3.1(b)) performed automatically by the Metering Equipment, the Aggregation Rules shall not provide for such operation.

3.3.5 Without prejudice to paragraph 3.1 and to any requirements of BSCP75, the set of Aggregation Rules for any Volume Allocation Unit must satisfy the following criteria:

(a) the Aggregation Rules are consistent with:

(i) any supporting information supplied to the CDCA under paragraph 3.4.4 by the Party submitting such Aggregation Rules;

(ii) the registration data received by the CDCA from the CRA;

(iii) the Metering Technical Details submitted to the CDCA by the Registrant;

(b) the Aggregation Rules relate to each Metering System to which they are required by paragraph 3.2 to relate;

(c) the Aggregation Rules employ only the functions referred to in paragraph 3.3.1, and otherwise are consistent with that paragraph;

(d) in any case where the sets of Aggregation Rules for more than one Volume Allocation Unit relate to the same Metering System:

(i) each of the Parties which is responsible for such Aggregation Rules has consented to each such set of Aggregation Rules;

(ii) such sets of Aggregation Rules, taken together, are consistent with each other and in particular have the effect that there is no double counting (as between such Volume Allocation Units) of metered data derived from such Metering System, and that no such metered data is omitted from being counted;

(e) without prejudice to the generality of paragraph (d), in the case of Aggregation Rules which relate to a Metering System associated with a Distribution Systems Connection Point on two GSP Groups, metered data is taken into account so as to have equal and opposite effects in the determination of GSP Group Metered Volume for each such GSP Group;

(f) in the case of Aggregation Rules which relate to a Metering System connected to a Distribution System, the Aggregation Rules provide for the relevant Line Loss Factors to be applied to metered data:

(i) before any combination of metered data to which different Line Loss Factors are to be applied;

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(ii) before any combination of import and export active energy metered data.

3.4 Validation of Aggregation Rules

3.4.1 The CDCA shall validate each set of Aggregation Rules submitted or resubmitted to it.

3.4.2 The CDCA shall treat a set of Aggregation Rules as validated if and only if the Aggregation Rules:

(a) comply with the requirements in paragraphs 3.3.1, 3.3.2, 3.3.3 and 3.3.4;

(b) satisfy the criteria in paragraph 3.3.5;

(c) in the CDCA’s opinion, comply with the requirement in paragraph 3.1.4(a)(iii);

(d) comply with and were submitted in compliance with BSCP75.

3.4.3 The CDCA shall at all times keep under review, by reference to all information provided to it pursuant to any provision of the Code, and determine whether any Party which should have submitted or re-submitted a set of Aggregation Rules has failed to do.

3.4.4 In connection with the validation under paragraph 3.4.1 of Aggregation Rules or review under paragraph 3.4.3 of whether any Party has failed to submit Aggregation Rules, the CDCA may:

(a) request any Party which is or which the CDCA believes to be responsible for submitting Aggregation Rules to supply information or supporting information (including but not limited to network diagrams, connection agreements and installation documentation) to it;

(b) undertake a site visit to the relevant site, or procure that such a site visit is undertaken and a report on such visit received.

3.4.5 A Party shall comply with any reasonable request for information made by the CDCA for the purpose of validation of Aggregation Rules or review of whether any Party has failed to submit Aggregation Rules.

3.4.6 In relation to any Volume Allocation Unit, where the CDCA determines not to validate (in accordance with paragraph 3.4.2) a set of Aggregation Rules submitted by the responsible Party, or determines that the responsible Party has failed to submit a set of Aggregation Rules:

(a) the CDCA shall so notify the responsible Party:

(i) setting out in brief detail the reasons for which the CDCA has so determined; and

(ii) requesting the responsible Party to submit or resubmit a set of Aggregation Rules;

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(b) where there is a prevailing set of Aggregation Rules which are in the CDCA’s opinion appropriate (having regard to the requirements and criteria in paragraphs 3.1.4(a)(iii) and 3.3) to continue to use for the purposes of determining the Metered Volumes in relation to the Volume Allocation Unit, the CDCA will:

(i) continue (until such time as a new set of Aggregation Rules is validated) to use such Aggregation Rules; and

(ii) so inform the Panel, the responsible Party and any related Party (whose consent shall not however be required);

(c) where paragraph (b) does not apply, and the CDCA is for the time being required (under paragraph 5) to determine Metered Volumes in relation to the relevant Volume Aggregation Unit, the CDCA shall (until such time as a valid set of Aggregation Rules is submitted by the responsible Party) and each Party hereby authorises the CDCA to:

(i) determine such Aggregation Rules as are in its reasonable opinion appropriate (having regard to the requirements and criteria in paragraphs 3.1.4(a)(iii) and 3.3) for the relevant Volume Allocation Unit;

(ii) provide such Aggregation Rules to the Panel and to the responsible Party and where relevant to any related Party (whose consent shall not however be required);

(iii) revise such Aggregation Rules in accordance and with effect from the time of any direction to do so given by the Panel;

(iv) apply the Aggregation Rules determined by it under paragraph (i), as revised pursuant to paragraph (iii), in the determination of Metered Volumes for the relevant Volume Allocation Unit.

3.4.7 The use of any Aggregation Rules determined or revised by the CDCA pursuant to paragraph 3.4.6 in any Volume Allocation Run shall (in accordance with Section U2.6) be binding on all Parties, but without prejudice to the ability of any Party to raise a Trading Dispute in relation thereto in accordance with Section W.

3.4.8 Paragraph 3.4.6 shall not prevent the CDCA from using validated Aggregation Rules received after the Settlement Day but in sufficient time to be used in the Interim Information Volume Allocation Run.


(a) record and maintain in CMRS for each Volume Allocation Unit the prevailing Aggregation Rules validated or (where paragraph 3.4.6 applies) determined or revised by it; and

(b) provide a copy of any set of Aggregation Rules maintained by it to the Party responsible for submitting such Aggregation Rules, or to any related Party, upon request from such Party.

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3.5 Further review of Aggregation Rules

3.5.1 Without prejudice to its validation of compliance of each particular set of Aggregation Rules pursuant to paragraph 3.4, the CDCA shall at all times keep under review and determine whether:

(a) all sets of Aggregation Rules taken collectively result in the proper determination and allocation of Metered Volumes for Volume Allocation Units; or

(b) there is any Metering System installed pursuant to any provision of the Code metered data derived from which is not fully taken into account in Aggregation Rules.

3.5.2 Where pursuant to paragraph 3.5.1 the CDCA identifies any possible defect or omission in the full and proper determination and allocation of Metered Volumes, the CDCA shall promptly report the same to the Panel and (if requested to do so) shall discuss with the Panel how such defect or omission should be remedied or otherwise addressed.

4. LINE LOSS FACTORS

4.1 Introduction

4.1.1 Line Loss Factors for relevant CVA Metering Systems connected to Distribution Systems will be established in accordance with Section K1.7.

4.2 Submission to CDCA

4.2.1 BSCCo shall submit to the CDCA, in accordance with BSCP128, for each relevant Metering System, Line Loss Factors as submitted to and approved by the Panel, or as from time to time applying in default of such submission or approval, pursuant to Section K1.7.

4.2.2 If for any relevant Metering System, Line Loss Factor(s) as specified in the Aggregation Rules have not been submitted to the CDCA, the CDCA shall assume a default Line Loss Factor of 1.0 or as otherwise provided in BSCP128 until such time as the required Line Loss Factor(s) are submitted to it.

5. COLLECTION, VALIDATION, ESTIMATION AND AGGREGATION OF METERED DATA

5.1 Collection of Meter Data

5.1.1 The CDCA shall in accordance with paragraph 1.4 collect active energy and reactive energy metered data in respect of each Settlement Period from all Outstations associated with CVA Metering Systems.

5.1.2 In any case where a Metering System produces metered data (for a Settlement Period) which is collected in units of power (i.e. kW or MW, or kVAr or MVAr) rather than Active Energy or Reactive Energy:

(a) the CDCA will convert such metered data to an Active Energy or Reactive Energy value by multiplying by Settlement Period Duration;

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(b) further references in this Section R to collected metered data are to such data following such conversion;

(c) any Aggregation Rules (as to active energy metered data) which relate to such Metering System shall not provide for such conversion.

5.2 Validation

5.2.1 The CDCA shall validate (according to validation principles from time to time established by the CDCA and approved by the Panel) active energy and reactive energy metered data collected pursuant to paragraph 5.1.

5.2.2 Where the CDCA determines, pursuant to validation under paragraph 5.2.1, that any metered data are invalid or missing, the CDCA shall so notify the relevant Meter Operator Agent and Registrant in accordance with BSCP03.

5.3 Estimation of data

5.3.1 Paragraph 5.3.3 shall apply (in accordance with paragraph 5.3.2 where applicable) in relation to any metered data collected or to be collected pursuant to paragraph 5.1.1, where:

(a) such metered data are invalid or missing, or

(b) in the case of active energy metered data only:

(i) errors in such data are notified to the CDCA by the relevant Meter Operator Agent or Registrant, or

(ii) the CDCA reasonably believes such data to be erroneous, or

(iii) the Metering System has been found to be outside the applicable limits of accuracy for whatever reason.

5.3.2 Where Metering Equipment has ceased to function or is found to be outside the applicable limits of accuracy in accordance with Section L3.5, paragraph 5.3.3 shall apply for the period:

(a) in the case where Metering Equipment ceases to function, from the date of such cessation,

(b) in the case where Metering Equipment is outside the applicable limits of accuracy, from the time when such inaccuracy is known or (if not known) estimated by the CDCA to have first occurred or, if the CDCA cannot estimate such time, from 0000 hours on the day during which such inaccuracy was identified and reported to the CDCA,

until, in either such case, the date when such Metering Equipment is adjusted, replaced, repaired or renewed pursuant to Section L and/or otherwise next conforms to the applicable limits of accuracy.

5.3.3 Where this paragraph applies:

(a) the CDCA shall in accordance with BSCP03 notify the relevant Meter Operator Agent and Registrant of the relevant circumstances under paragraph 5.3.1; and

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(b) if the metered data in question is active energy metered data, the CDCA shall in accordance with BSCP03:

(i) estimate such data for the relevant Settlement Period(s);

(ii) notify its estimate of the metered data to the Registrant and Meter Operator Agent, and discuss such estimate with the Registrant if the Registrant so wishes;

(iii) if the CDCA determines (following any such discussion) that its estimate should be revised, make such revision; and

(iv) use its estimate (or any revision thereof made under paragraph (iii)) in determining under this paragraph 5 the Metered Volume for the relevant Volume Allocation Unit(s).

5.3.4 The use (pursuant to paragraph 5.3.3(b)(iv)) of any estimated metered data in any Volume Allocation Run shall (in accordance with Section U2.6) be binding on all Parties, but without prejudice to the ability of any Party to raise a Trading Dispute in relation thereto in accordance with Section W.

5.3.5 The CDCA will not estimate reactive energy metered data pursuant to this paragraph 5.3.

5.3.6 The CDCA shall send a report on any estimated metered data it uses in aggregation under paragraph 5.4 to:

(a) BSCCo, if BSCCo so requests;

(b) the Registrant and Meter Operator Agent for the Metering System for which such estimate was made;

(c) any related Party;

(d) the Distribution System Operator (if any) to whose Distribution System such Metering System is connected; and

(e) the NETSO, if such Metering System is directly connected to the Transmission System.

5.4 Aggregation of Metered Data

5.4.1 References in this paragraph 5.4 to metered data are to active energy metered data collected and validated, or (as the case may be) estimated, by the CDCA in accordance with paragraphs 5.1 and 5.2 or 5.3.

5.4.2 In respect of each Settlement Period:

(a) the BM Unit Metered Volume for each relevant BM Unit;

(b) the Interconnector Metered Volume for each Interconnector;

(c) the Metered Volume for each Grid Supply Point; and

(d) the GSP Group Metered Volume for each GSP Group

shall be determined by aggregating the metered data collected from the Metering Systems associated with each such Volume Allocation Unit for such Settlement Period (including

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where relevant scaling such metered data by the applicable Line Loss Factor(s)) in accordance with the applicable Aggregation Rules.

5.4.3 The CDCA shall aggregate metered data so as to determine the Metered Volume for each Volume Allocation Unit and for each Settlement Period in accordance with paragraph 5.4.2.

5.5 Determination of GSP Group Take

5.5.1 For each GSP Group the CDCA shall:

(a) establish aggregation rules, relating to each relevant BM Unit and Distribution Interconnector in that GSP Group, by reference to which the GSP Group Take can be determined;

(b) keep such rules under review and revise or update the rules upon any change in any of the relevant BM Units or Distribution Interconnectors in that GSP Group, and upon identifying any error in such rules;

(c) provide a copy of such rules to the Panel, BSCCo and each Distribution System Operator whose Distribution System is comprised in such GSP Group and upon request to any other Party;

(d) where the CDCA has identified any error in such rules, notify such error (and the revision to such rules made in accordance with paragraph (b)) and discuss with BSCCo or (if the Panel so requires) with the Panel or the BSC Auditor whether exceptional circumstances justify the making of any adjustment in respect of Settlement relating to Settlement Days before the error was corrected.

5.5.2 The CDCA shall for each GSP Group determine the GSP Group Take in respect of each Settlement Period by applying the rules established under paragraph 5.5.1 to:

(a) the GSP Group Metered Volume;

(b) the Interconnector Metered Volume for any Distribution Interconnector in that GSP Group; and

(c) the BM Unit Metered Volumes for all relevant BM Units in that GSP Group

each as determined by the CDCA for that Settlement Period pursuant to paragraph 5.4.

5.6 Volume Allocation Runs

5.6.1 For each Settlement Period in any Settlement Day the CDCA shall, in accordance with BSCP01, determine or re-determine and (subject to and in accordance with paragraph 5.7) submit Metered Volumes for each Volume Allocation Unit, and GSP Group Take for each GSP Group:

(a) when the Credit Cover Volume Allocation Run, Interim Information Volume Allocation Run, the Initial Volume Allocation Run and each of the Timetabled Reconciliation Volume Allocation Runs are required in relation to that Settlement Day, in accordance with the Settlement Calendar;

(b) on any occasion on which a Post Final Volume Allocation Run is required by the Panel pursuant to Section U2, in accordance with the timetable set by the Panel.

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5.6.2 For each Volume Allocation Run following the Initial Volume Allocation Run in relation to any Settlement Period, where:

(a) any adjustment or revision in relevant data has been or is to be made following resolution of any Trading Dispute, or

(b) pursuant to any other provision of the Code the CDCA is required or entitled to employ any new or revised relevant data for the Settlement Period

the CDCA shall use such adjusted, revised or new relevant data.

5.6.3 In paragraph 5.6.2 relevant data includes registration data, Meter Technical Details, Aggregation Rules, Line Loss Factors and metered data.

5.7 Submission of Aggregated Meter Data

5.7.1 The CDCA shall submit in accordance with BSCP01:

(a) for each relevant BM Unit, Interconnector and GSP Group respectively, BM Unit Metered Volumes, Interconnector Metered Volumes and GSP Group Takes for each Settlement Period to the SAA;

(b) the value of the GSP Group Take for each GSP Group for each Settlement Period to the SVAA (including in relation to any Interim Information Volume Allocation Run);

(c) Interconnector Metered Volumes in relation to each Interconnector for each Settlement Period to the Interconnector Administrator; and

(d) for each Credit Qualifying BM Unit which is not a Supplier BM Unit or Secondary BM Unit, Metered Volumes which have been received by the CDCA for each Settlement Period to the ECVAA.

5.7.2 For the purposes of paragraph 5.7.1(b), the value to be submitted by the CDCA shall be:

(a) positive if the GSP Group Take represents a net import into the relevant Distribution System(s) in a Settlement Period; or

(b) negative if the GSP Group Take represents a net export from the relevant Distribution System(s) in a Settlement Period,

notwithstanding that this is the opposite sign convention to that used in Table X-2 of Annex X-2.

6. FURTHER FUNCTIONS OF CDCA

6.1 Proving Tests

6.1.1 In accordance with BSCP02 and in conjunction with the relevant Meter Operator Agent, the CDCA shall carry out proving tests on CVA Metering Systems and shall report any resulting errors to the relevant Meter Operator Agent and Registrant.

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6.2 Meter Advance Reconciliation

6.2.1 In relation to each CVA Metering System, the CDCA shall in accordance with BSCP05:

(a) undertake Meter Advance Reconciliation or procure that Meter Advance Reconciliation is undertaken;

(b) send reports on the results of Meter Advance Reconciliation to the Registrant, the Meter Operator Agent and (where BSCP05 so requires) to BSCCo;

(c) where BSCP05 so provides, apply the appropriate correction in a Reconciliation Volume Allocation Run in accordance with paragraph 5.6.2.

7. INTERCONNECTOR BM UNIT METERED VOLUMES

7.1 General

7.1.1 This paragraph 7 sets out the basis on which (subject to paragraph 7.1.2) BM Unit Metered Volumes will be determined for each Interconnector BM Unit in respect of each Interconnector.

7.1.2 BM Unit Metered Volumes for the Interconnector BM Units for which the Interconnector Error Administrator is Lead Party will be determined (inter alia, using the Interconnector Metered Volume) in accordance with Section T4.1 and not this paragraph 7, and accordingly:

(a) references in this paragraph 7 to Interconnector BM Units do not include the Interconnector BM Units of which the relevant Interconnector Error Administrator (in that capacity) is Lead Party;

(b) the Interconnector Metered Volume (determined under paragraph 5) is not used for the purposes of this paragraph 7.


(a) the "Interconnector Scheduled Transfer" for each Interconnector in relation to a Settlement Period is the Active Energy flow, scheduled for all Interconnector Users (and not exceeding the physical capability of the Interconnector as from time to time determined under the relevant Interconnection Agreements), across the Interconnector (as a whole), as established pursuant to the relevant Interconnection Agreements between the Interconnected System Operator and the Externally Interconnected System Operator, stated as at the Transmission System Boundary, in the form of a schedule expressed as MW values for the spot times at the start and end of, and other spot times within, the Settlement Period;

(b) after Gate Closure in relation to any Settlement Period, the Interconnector Scheduled Transfer is to be adjusted to reflect:

(i) any failure or derating of the physical capability of the Interconnector (as determined under the relevant Interconnection Agreements), and any subsequent uprating of the physical capability of the Interconnector provided that the uprated capability does not exceed the Interconnector Scheduled Transfer established at Gate Closure;

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(ii) the acceptance by the NETSO of any Offer or Bid submitted by an Interconnector User in respect of an Interconnector BM Unit;

(iii) any event occurring in relation to an External System, to the extent so provided in the relevant Interconnection Agreements, as notified to the Interconnector Administrator; or

(iv) in relation to an Interconnector, the results of Single Intraday Coupling provided that such adjustment shall be made following the Intraday Cross-Zonal Gate Closure Time for the relevant Settlement Period,

but shall not otherwise be adjusted;

(c) the "final" Interconnector Scheduled Transfer in relation to a Settlement Period is the Interconnector Scheduled Transfer prevailing at the end of that Settlement Period;

(d) for each Interconnector BM Unit:

(i) the "Expected Transfer" in relation to a Settlement Period is a schedule of expected Active Energy flows, stated as at the Transmission System Boundary, expressed as MW values for the spot times at the start and end of, and other spot times within, the Settlement Period;

(ii) in the case of a Production BM Unit, the Expected Transfer shall relate only to Exports;

(iii) in the case of a Consumption BM Unit, the Expected Transfer shall relate only to Imports.

(e) for the purposes of an Interconnector Scheduled Transfer and an Expected Transfer, MW values are to be specified at particular spot times during (and including the start and end of) the relevant Settlement Period, and MW values at other spot times shall be established by linear interpolation.

7.1.4 For any Interconnector:

(a) the sum of the Expected Transfers (for any spot time in the relevant Settlement Period) for all Interconnector BM Units shall be equal to the Interconnector Scheduled Transfer for that spot time;

(b) wherever the Interconnector Administrator is to determine or adjust Expected Transfers, the Interconnector Administrator shall adjust the MW values in the Expected Transfers (by reference to capacity entitlements under and/or other applicable provisions of the relevant Interconnection Agreements) as required to ensure that paragraph (a) is satisfied.

7.1.5 In any case where Section H3.2.2(c) applies in relation to an Interconnector User, that Interconnector User shall be treated as having a zero Expected Transfer and the Expected Transfers for other Interconnector Users shall be determined (consistent with paragraph 7.1.4(a)) on that basis.

7.1.6 Without prejudice to Section U1.2, each Interconnector User shall ensure that all information provided pursuant to this paragraph 7 to the Interconnector Administrator is true, accurate and complete.

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7.2 Expected Transfer at Gate Closure

7.2.1 The Interconnected System Operator shall send or procure that there is sent to the Interconnector Administrator the Interconnector Scheduled Transfer prevailing at Gate Closure.

7.2.2 The Interconnector User for each Interconnector BM Unit shall send or procure that there is sent, no later than Gate Closure, to the Interconnector Administrator a copy of the Physical Notification prevailing at Gate Closure for each Settlement Period (and may do so by providing copies of Physical Notifications and changes thereto submitted at times before Gate Closure).

7.2.3 The Interconnector Administrator shall determine the Expected Transfer for each Interconnector BM Unit at Gate Closure, by reference to (and so that the MW values in the Expected Transfer are derived from) the Physical Notification prevailing at Gate Closure, subject to paragraph 7.1.4.

7.3 Adjustments after Gate Closure

7.3.1 Following Gate Closure and until the end of the Settlement Period:

(a) promptly upon any revision thereto, the Interconnected System Operator shall send or procure that there is sent to the Interconnector Administrator the revised Interconnector Scheduled Transfer;

(b) where the Interconnector Administrator is so notified of a revision to the Interconnector Scheduled Transfer, the Interconnector Administrator shall adjust the Expected Transfer(s) accordingly and consistent with paragraph 7.1.4, provided that:

(i) in the case of a revision to the Interconnector Scheduled Transfer under paragraph 7.1.3(b)(ii), only the Expected Transfer of the Interconnector User which submitted the Bid or Offer therein referred to shall be so adjusted;

(ii) in the case of a revision to the Interconnector Scheduled Transfer under paragraph 7.1.3(b)(iii), the Expected Transfer to be adjusted shall be that of the Interconnector User as determined and notified to the Interconnector Administrator in accordance with the applicable provisions of the relevant Interconnection Agreement;

(iii) in the case of a revision to the Interconnector Scheduled Transfer under paragraph 7.1.3(b)(iv), the Expected Transfer to be adjusted to reflect the results of Single Intraday Coupling shall be that of the Interconnector User as determined and notified to the Interconnector Administrator in accordance with the applicable provisions of the relevant Interconnection Agreement;

(c) no adjustment shall be made to Expected Transfers other than pursuant to paragraph (b).

7.4 Determination of BM Unit Metered Volume

7.4.1 No later than the end of the next Business Day following the Settlement Day:

(a) the Interconnected System Operator shall send or procure that there is sent to the Interconnector Administrator the final Interconnector Scheduled Transfer;

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(b) the Interconnector Administrator shall determine the final Expected Transfers for each Interconnector BM Unit;

(c) the Interconnector Administrator shall determine the total Active Energy in the final Expected Transfer for each Interconnector BM Unit by integrating the MW values in such final Expected Transfer over the Settlement Period.

7.4.2 The BM Unit Metered Volume for each Interconnector BM Unit shall be the total Active Energy determined by the Interconnector Administrator in accordance with paragraph 7.4.1(c).

7.4.3 For each Settlement Day, the Interconnector Administrator shall submit to the SAA in accordance with BSCP04 the BM Unit Metered Volumes for each relevant Interconnector BM Unit in respect of each Settlement Period.

7.5 System-to-system flows

7.5.1 This paragraph 7.5 applies where, as a result of an arrangement (outside the arrangements for scheduling flows on behalf of Interconnector Users) between the NETSO and an Externally Interconnected System Operator (and, as the case may be, the system operator of any other system linked to the Total System or the External System), a flow across an Interconnector is scheduled or varied for the purpose of securing stability of operation on the Total System or the External System (or any such other system) or for any other purpose of the NETSO or the Externally Interconnected System Operator (or such other system operator).

7.5.2 For the purposes of allocating and accounting for the Active Energy comprised in any flows as described in paragraph 7.5.1, the NETSO (in that capacity and not in any capacity of Interconnector Error Administrator) shall be:

(a) allocated (and registered in respect of) two notional BM Units, for each Interconnector, designated as a Production BM Unit and a Consumption BM Unit respectively, which shall be treated as BM Units (and as Interconnector BM Units for which the NETSO is the Interconnector User) for the purposes only of paragraphs 7.4.3, 7.5.4 and 7.5.5, Sections K1.1.4(a)(iv), K5.7.1, and Sections T1.3.5, T2, T4.1, T4.5 and T4.6; and

(b) treated as an Interconnector User for that Interconnector accordingly for the purposes only of those paragraphs and Sections.

7.5.3 In relation to each Settlement Period and each Interconnector, not later than the end of the Business Day next following the Settlement Day, the NETSO shall determine (on a basis for the time being approved in writing by the Authority for the purposes of this paragraph 7.5), and notify to the Interconnector Administrator, details of the net amount (in MWh) of any flows as described in paragraph 7.5.1 (the net amount being the "system-to-system flow").

7.5.4 For each Settlement Period, the BM Unit Metered Volumes for the BM Units allocated to the NETSO under paragraph 7.5.2 for each Interconnector shall be as follows:

(a) for the Production BM Unit, the system-to-system flow for the relevant Interconnector as notified by the NETSO to the Interconnector Administrator under paragraph 7.5.3 where the net amount notified is an Export system-to-system flow, and otherwise zero;

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(b) for the Consumption BM Unit, the system-to-system flow for the relevant Interconnector as notified by the NETSO to the Interconnector Administrator under paragraph 7.5.3 where the net amount notified is an Import system-to-system flow, and otherwise zero.

7.5.5 The Interconnector Administrator shall submit to the SAA the BM Unit Metered Volumes for each such BM Unit in accordance with paragraph 7.4.3.

8 DEMAND DISCONNECTION EVENTS

8.1 Duties of Distribution System Operator

8.1.1 Subject to Section S9.2A within the period of 5 Business Days commencing on the Business Day after notification by BSCCo under Section S9.2A.3(b) each Demand Disconnection Impacted DSO shall send to the CDCA:

(a) the BM Unit Identification Number; and

(b) the start and end date and time in Co-ordinated Universal Time for which the BM Unit was subject to Demand Disconnection,

in respect of each disconnected BM Unit that is embedded in a Distribution System.

8.2 Estimation of Period BM Unit Demand Disconnection Volumes (QDDij)

8.2.1 In respect of each Demand Control Impacted Settlement Period and for each BM Unit that is:

(a) directly connected to the Transmission System as notified under Section Q6.2A.1; or

(b) embedded in a Distribution System as notified under paragraph 8.1.1,

the CDCA shall estimate the Period BM Unit Demand Disconnection Volume (QDDij) in accordance with BSCP03 and shall notify these volumes to the SAA.

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S – 1 of 38 Effective Date: 1 April 2021

SECTION S: SUPPLIER VOLUME ALLOCATION

1. GENERAL

1.1 Introduction

1.1.1 This Section S sets out:

(a) the rights and obligations of Suppliers, and the activities and functions for

which Suppliers (and their Party Agents) are responsible, in relation to Supplier

Volume Allocation;

(b) the application of performance assurance measures with respect to Parties

involved in Supplier Volume Allocation and associated liquidated damages;

(c) the functions of Supplier Meter Registration Agents with respect to Supplier

Volume Allocation;

(d) the functions of the SVAA;

(e) the functions of the Profile Administrator;

(f) the basis upon which SVA Metering Systems may be allocated to Additional

BM Units;

(g) the basis upon which quantities of Active Energy associated with SVA

Metering Systems are determined and allocated to Supplier BM Units for the


(h) the basis upon which Parties may submit MSID Pair Data to the SVAA to be

recorded on the SVA Metering System Register;

(i) the basis upon which Parties shall provide MSID Pair Delivered Volumes in

relation to providing Balancing Services for the purposes of Settlement; and

(j) the basis upon which Suppliers, HHDAs and SVAA may declare SVA Storage

Facilities, and aggregate and report metered data from such facilities to NETSO

and the basis upon which BSCCo, SVAA and the Panel may establish related

assurance measures.

1.2 Application and interpretation

1.2.1 This Section S, together with the Annexes to this Section S, apply in respect of:

(a) SVA Metering Systems;

(b) BM Units associated with such Metering Systems; and

(c) Parties responsible for Imports and Exports which, for the purposes of Section

K, are measured by such Metering Systems; and

(d) Virtual Lead Parties that have allocated half hourly SVA Metering Systems in

one or more of their Secondary BM Units solely for purpose of providing

Balancing Services from such Secondary BM Units,

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and references to Half Hourly Metering Systems and Non Half Hourly Metering Systems

(and, where applicable, to Metering Systems) shall be construed accordingly, unless the

context otherwise requires.


(a) a "Supplier Agent" is any Party Agent of a Supplier required to be appointed in

respect of SVA Metering Systems; and

(b) references to the allocation of SVA Metering Systems to an Additional BM

Unit (and cognate expressions) shall be interpreted to mean the allocation to an

Additional BM Unit of Plant and/or Apparatus whose Imports or Exports of

electricity are measured by SVA Metering Systems; and

(c) references to the allocation of half hourly SVA Metering Systems to a

Secondary BM Unit (and cognate expressions) shall be interpreted to mean the

allocation to a Secondary BM Unit of Plant and/or Apparatus whose Imports or

Exports of electricity are measured by half hourly SVA Metering Systems,

solely for the purpose of providing Balancing Services therewith.

1.2.3 Data created under SAS which is:

(a) in a substantially similar form to the data required under the Code; and

(b) used for a substantially similar purpose to the purpose for which such data is

used under the Code; and

(c) produced, created or recorded in connection with Supplier Activity;

("SAS Data") shall be deemed to be data as such term is used in the Code and shall be able

to be used where required for the purposes of the Code.

1.2.4 Notwithstanding paragraph 1.2., SAS Data shall not be used in relation to Annex S-1.

1.2.5 For the purposes of the above paragraph 1.2.3 "Supplier Activity" shall mean:

(a) the steps taken by Suppliers and Supplier Agents to comply with the obligations

placed on them by the SAS; and

(b) other trading operations undertaken by Suppliers and Supplier Agents which are

governed by the SAS.

1.3 Supplier ID

1.3.1 A Supplier ID is a unique reference by which a Supplier is identified in SMRS and for the

purposes of Supplier Volume Allocation.

1.3.2 A Supplier may hold more than one Supplier ID subject to and in accordance with the

further provisions of this paragraph 1.3.

1.3.3 Where a Supplier holds more than one Supplier ID:

(a) the provisions of the Code referred to in paragraph 1.3.4, and any other

provision of the Code which is expressed to apply on a Supplier ID basis, shall

apply separately in respect of the Supplier in the capacity of each of its Supplier

IDs so far as capable of so applying;

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(b) except as otherwise expressly provided, all other provisions of the Code apply

in respect of the Supplier without regard to its Supplier IDs,

and references to a Supplier (including the Supplier as Registrant of a Metering System)

and Supplier 'Z' in the Code shall be construed accordingly.

1.3.4 The provisions of the Code referred to in paragraph 1.3.3(a) are paragraphs 2, 6 and 7

(subject to the provisions of Annex S-2), Annex S-1 and Annex S-2.

1.3.5 A Supplier may hold:

(a) subject to paragraph 1.3.6, no more than three Supplier IDs in relation to which

the Supplier is the first holder of such Supplier ID; and

(b) additional Supplier ID(s) (to those held pursuant to paragraph (a)) provided the

additional Supplier ID(s) is held pursuant to a transfer in accordance with the

further provisions of this paragraph 1.

1.3.6 A Supplier may submit to the Panel a request to hold additional Supplier ID(s) (to those

held pursuant to paragraph 1.3.5) and the Panel shall determine:

(a) whether to grant the request to hold such additional Supplier ID(s); and

(b) the number of additional Supplier IDs permitted to be held by that Supplier

pursuant to its request.

1.4 Transfer of Supplier ID


(a) "ID Transferee" means the Trading Party identified as the transferee in a notice

which is given and takes effect pursuant to and in accordance with this

paragraph 1.4;

(b) "ID Transferor" means the Supplier who gives the notice referred to in

paragraph 1.4.3;

(c) "Relevant BM Units" are in relation to a ID Transferor, the Supplier BM

Unit(s) to which the relevant Metering Systems are associated;

(d) "relevant Metering Systems" means Metering Systems registered in SMRS

and identified by the relevant Supplier ID (and associated with Relevant BM

Units); and

(e) "relevant Supplier ID" means the Supplier ID identified in a notice given

pursuant to paragraph 1.4.2.

1.4.2 A Supplier may give notice to BSCCo that it intends to transfer its interests in respect of

the provision of electrical power to Customers measured by Metering Systems identified in

SMRS with a Supplier ID to another Trading Party (such transfer to be effected by a

transfer of the Supplier ID and referred to as a "relevant ID transfer").

1.4.3 A notice given pursuant to paragraph 1.4.2 shall:

(a) be in writing;

(b) identify:

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(i) the Supplier ID to which the relevant ID transfer relates;

(ii) the transferee, being the Trading Party to which the relevant ID

transfer is to be made;

(iii) subject to paragraph 1.4.5, the date with effect from which the

relevant ID transfer is to be made;

(iv) subject to paragraph 1.4.7, the time with effect from which the

relevant ID transfer is to be made; and

(c) be signed by or on behalf of both the Supplier issuing such notice and the

Trading Party identified in such notice as the transferee.

1.4.4 A relevant ID transfer may not be made in respect of some but not all of the relevant

Metering Systems.

1.4.5 The relevant ID transfer shall take effect for the purposes of the Code from the time and

date specified in the relevant notice given pursuant to paragraph 1.4.2 and in accordance

with paragraphs 1.4.6 and 1.4.7 (such date being the "ID Transfer Date").

1.4.6 For the purposes of the Code the date with effect from which a relevant ID transfer is to

take effect may not be earlier than:

(a) where the relevant notice is received by BSCCo before 12:00 hours on a day,

the day following;

(b) where the relevant notice is received by BSCCo after 12:00 hours on a day, the

second day following

the day on which the relevant notice is received.

1.4.7 The time with effect from which a relevant ID transfer is to take effect, for the purposes of

the Code, is 00:00 hours on the ID Transfer Date.

1.4.8 Without prejudice to the provisions of paragraph 1.4.4, 1.4.5, 1.4.6 and 1.4.7 as they apply

for the purposes of the Code, those provisions shall not affect or limit the terms and

conditions upon which a relevant ID transfer is to be made as between the parties to the

relevant ID transfer.

1.4.9 BSCCo shall send a copy of any notice given pursuant to paragraph 1.4.2 to the Authority,

each Party and the CRA.

1.5 Effect of transfer of Supplier ID

1.5.1 With effect from the time and date that a relevant ID transfer is to take effect:

(a) the ID Transferee shall (notwithstanding the provisions of Section K but subject

to the further provisions of this paragraph 1) be:

(i) responsible for all Exports and Imports of the Plant and Apparatus

comprised in Relevant BM Units (and measured by the relevant

Metering Systems);

(ii) the Registrant of the relevant Metering Systems (and shall be treated,

for the purposes of the Code, as having appointed and registered the

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Party Agents of the ID Transferor in respect of the relevant Metering

Systems); and



Charges) related to or connected with the relevant Metering Systems

and the Exports and Imports of that Plant and Apparatus (and

measured by the relevant Metering Systems);

(b) the ID Transferor shall (notwithstanding the provisions of Section K but subject

to the further provisions of this paragraph 1) cease to be:

(i) responsible for all Exports and Imports of the Plant and Apparatus

comprised in Relevant BM Units (and measured by relevant

Metering Systems);

(ii) the Registrant of the relevant Metering Systems; and



Charges) related to or connected with the relevant Metering Systems

and the Exports and Imports of that Plant and Apparatus (and

measured by the relevant Metering Systems),

in each case, in respect of each Settlement Period on and after such time, and the provisions

of the Code shall be construed accordingly.

1.5.2 The transfer of responsibility in respect of Exports and Imports of Plant and Apparatus

comprised in Relevant BM Units from the ID Transferor to the ID Transferee pursuant to

paragraph 1.5.1 shall be without prejudice and shall not affect:

(a) the rights and liabilities of the ID Transferor under the Code relating to or

connected with Relevant BM Units or the relevant Metering Systems, including

in respect of Trading Charges (including Reconciliation Charges and Ad-hoc

Trading Charges) and BSCCo Charges, accrued or accruing in respect of the

period prior to the ID Transfer Date;

(b) the rights and liabilities of the ID Transferor under the Code relating to or

connected with any other BM Units or Metering Systems, including in respect

of Trading Charges (including Reconciliation Charges and Ad-hoc Trading

Charges) and BSCCo Charges, accrued or accruing in respect of the period on,

before or after the ID Transfer Date.

1.5.3 For the avoidance of doubt, nothing in this paragraph 1.5 shall affect:

(a) any Energy Contract Volume Notifications for which the ID Transferor is a

Contract Trading Party;

(b) any Metered Volume Reallocation Notifications for which the ID Transferor is

the Subsidiary Party,

whether submitted or submitted in respect of a period on, before or after the ID Transfer

Date, and any such Energy Contract Volume Notifications or Metered Volume

Reallocation Notifications validly submitted in accordance with Section P shall apply and

be taken into account in Settlement, subject to and in accordance with the other provisions

of the Code, for the purposes of determining any liability or entitlement of the ID

Transferor in respect of Trading Charges.

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1.5.4 For the avoidance of doubt, the deemed appointment and registration of Party Agents

pursuant to paragraph 1.5.1(a)(ii) applies for the purposes of the Code only and shall not

create, affect or change any relationship between the ID Transferor or the ID Transferee

and those (or any other) Party Agents.

1.5.5 The provisions of this paragraph 1.5 shall apply for the purposes of Settlement under the

Code notwithstanding any other provisions in any Core Industry Document.

1.6 Establishment of BM Units following transfer of Supplier ID

1.6.1 The provisions of this paragraph 1.6 apply in relation to a Relevant BM Unit where

pursuant to a relevant ID transfer the Supplier ID for the relevant Metering Systems is

transferred to a Trading Party.

1.6.2 Where this paragraph 1.6 applies, the CRA shall establish a BM Unit (a "Transferee BM

Unit") for which the ID Transferee is the Lead Party corresponding to each Relevant BM

Unit as soon as reasonably practicable after the ID Transfer Date.

1.6.3 Unless the context otherwise requires, references to BM Units in the Code shall include

Transferee BM Units.

1.6.4 The establishment of Transferee BM Unit(s) pursuant to paragraph 1.6.2 shall take effect

on and from the ID Transfer Date.

1.6.5 Each Transferee BM Unit established pursuant to paragraph 1.6.2 shall be configured in the

same way and have the same attributes as the Relevant BM Unit of the ID Transferor to

which it corresponds, including:

(a) the Generation Capacity and the Demand Capacity;

(b) the Credit Assessment Load Factor;

(c) (where applicable) the GSP Group in which that BM Unit is situated;

(d) (where applicable) the status of that BM Unit as a Base BM Unit or an

Additional BM Unit;

(e) the SVA Metering Systems associated with that BM Unit;

(f) the P/C Status;

(g) the Trading Unit to which that BM Unit belongs; and

(h) not used;

(i) whether that BM Unit is considered a relevant BM Unit for the purposes of

Section Q,

but without prejudice to the ID Transferee's rights and obligations to revise such

configuration and attributes, or otherwise to the revision of such configuration and

attributes, from time to time pursuant to any other provision of the Code.

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1.6.6 Where a ID Transferee is transferred responsibility for Plant or Apparatus which is subject

to a Shared SVA Meter Arrangement, then notwithstanding any provisions to the contrary

in Section K2.5:

(a) the Allocation Schedule prevailing immediately prior to the ID Transfer Date

shall continue to apply and to bind the ID Transferee and the other Supplier(s)

(not being the ID Transferor) to the Shared SVA Meter Arrangement; and

(b) the ID Transferee shall assume the status previously held by the ID Transferor

as the Primary Supplier or a Secondary Supplier (as the case may be).

1.7 Effect of establishment of Transferee BM Units

1.7.1 The establishment of a Transferee BM Unit pursuant to paragraph 1.6 shall be treated, for

the purposes of the Code, as if:

(a) that new BM Unit had been registered (comprising the same Metering Systems

as those comprised in the corresponding BM Unit of the ID Transferor) by the

ID Transferee with effect from the ID Transfer Date; and

(b) the registration of the corresponding BM Unit of the ID Transferor had been

cancelled by the ID Transferor with effect from such date.

1.7.2 Without prejudice to the generality of paragraph 1.7.1 and subject to the further provisions

of this paragraph 1.7, in respect of each Settlement Period on and after the ID Transfer

Date:

(a) the BM Unit Metered Volumes of the Relevant BM Unit to which a Transferee

BM Unit corresponds shall be allocated to the Transferee BM Unit; and

(b) such BM Unit Metered Volumes shall not be allocated or treated as allocated to

the Relevant BM Unit to which such Transferee BM Unit corresponds,

for the purposes of Section T.

1.7.3 Notwithstanding paragraph 1.7.1, any Metered Volume Reallocation Notification and any

data item submitted or purportedly submitted by or on behalf of the ID Transferor (as Lead

Party) relating to Relevant BM Units in respect of the period on or after the ID Transfer

Date (whether submitted before, on or after the date the registration of the Relevant BM

Unit is treated as cancelled pursuant to paragraph 1.7.1) shall, by virtue of paragraph 1.7.1,

be void and of no effect and shall not be applied to the Transferee BM Units to which they

correspond.

1.8 Data relating to Relevant BM Units

1.8.1 For the purposes of any provisions in the Code relating to the ownership and use of data

(including Section L5), the rights of the ID Transferee in respect thereof, as they relate to

the Relevant BM Units for which a Trading Party becomes responsible, shall to the extent

such rights are not assigned to the ID Transferee by reason of the change of Registrant and

with effect from the ID Transfer Date:

(a) automatically be assigned by the ID Transferor to the ID Transferee from and in

respect of the period on and after the ID Transfer Date; or

(b) to the extent that it is not possible legally to assign such rights as provided in

paragraph (a), the ID Transferor shall make such data available to the ID

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Transferee at all times on terms such that the ID Transferee is free to use such

data as if the data had been so assigned to it.

1.8.2 The ID Transferor shall take all reasonable steps to co-operate with the ID Transferee to

give effect to the transfer of responsibility contemplated by paragraphs 1.4, 1.5, 1.6, 1.7

and this paragraph 1.8 and to enable the ID Transferee to comply with its obligations

thereunder.

1.8.3 Without prejudice to the generality of paragraph 1.8.2, the ID Transferor shall provide the

ID Transferee with such records, data and information and otherwise take such steps as if,

in relation to the relevant Metering Systems a change of Registrant (from the ID Transferor

to the ID Transferee) had occurred on the ID Transfer Date.

1.8.4 The ID Transferee shall have a right of access to any records, data and information referred

to in this paragraph 1.8 to the extent required by the ID Transferee for the purposes of the

Code in relation to any period prior to the ID Transfer Date.

2. RESPONSIBILITIES OF SUPPLIERS AND SUPPLIER AGENTS

2.1 Supplier Agents

2.1.1 Each Supplier shall, in accordance with Section J, appoint and register Supplier Agents in

respect of each SVA Metering System for which such Supplier is or is to be the Registrant.

2.1.2 Each Supplier shall be responsible, in accordance with Section J, for every act, breach,

omission, neglect and failure (in relation to that Supplier) of each Supplier Agent appointed

by it and shall comply, and procure compliance by each Supplier Agent, with Party Service

Line 100 and the relevant BSC Procedures, Codes of Practice (in respect of meter

operation) and with the applicable provisions of the Code.

2.1.3 The functions of each Supplier Agent are described in paragraphs 2.2 to 2.5.

2.1.4 Without prejudice to the requirement to perform the obligations and carry out the activities

described in Section J1.2.2 through the use of Supplier Agents, each Supplier shall be

responsible (for the purposes of the Code) for the discharge of such obligations and the

carrying out of such activities in respect of each SVA Metering System for which such

Supplier is the Registrant, and any failure by such Supplier to appoint a Supplier Agent in

accordance with paragraph 2.1.1 shall not alter or affect such responsibility in any way.

2.2 Meter Operator Agents

2.2.1 The principal functions of a Meter Operator Agent in respect of SVA Metering Systems for

which it is responsible are:

(a) to install, commission, test and maintain, and to rectify faults in respect of, SVA

Metering Equipment (including, if applicable, associated Communications

Equipment) in accordance with Section L; and

(b) in respect of:

(i) Half Hourly Metering Systems; and

(ii) Non Half Hourly Metering Systems that have not been installed in

compliance with the Smart Metering Equipment Technical

Specifications:

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to maintain Meter Technical Details and to provide such Details, in accordance

with Section L, to the relevant Half Hourly Data Collector or Non Half Hourly

Data Collector (as the case may be) to enable such Data Collector to read and

process data in accordance with the Supplier Volume Allocation Rules; or

(c) in respect of Non Half Hourly Metering Systems that have been installed in

compliance with the Smart Metering Equipment Technical Specifications:

to maintain such Meter Technical Details as are required in accordance with

BSCP514 for Meter Operation and to provide such Details, in accordance with

Section L, to the relevant Supplier,

in each case, in accordance with Party Service Line 100, BSCP550 and BSCP514 for Meter

Operation, BSCP502 (in respect of Half Hourly Metering Systems) and BSCP504 (in

respect of Non Half Hourly Metering Systems).

2.2.2 Each Supplier shall, as soon as possible and in any event promptly after its registration in

respect of a particular SVA Metering System becomes effective or (as the case may be)

following a change in the Meter Operator Agent appointed in relation to a particular SVA

Metering System, send to the relevant Meter Operator Agent for each SVA Metering

System for which it is responsible (unless otherwise agreed with the relevant Meter

Operator Agent):

(a) details of such Meter Operator Agent's registration in SMRS in relation to that

SVA Metering System, the related SVA Metering System Number and the

Identifiers for the Data Collector and Supplier Meter Registration Agent related

to that SVA Metering System; and

(b) confirmation of the time and date with effect from which that Meter Operator

Agent's appointment in relation to such SVA Metering System is to take effect.

2.2.2A A Supplier shall not be obliged to take the steps required by paragraph 2.2.2 solely because

its registration pursuant to the Code in respect of a particular SVA Metering System

becomes effective as a result of the extension of the Code to Scotland where:

(a) a SAS Meter Operator has been appointed under SAS and following the

BETTA Effective Date the relevant Supplier retains it as a Meter Operator

Agent under the Code; and

(b) the data set out in paragraph 2.2.2 has prior to the BETTA Effective Date been

provided to such Meter Operator Agent when it was a SAS Meter Operator.

2.2.3 Each Supplier shall meet or procure that the relevant Meter Operator Agent meets the

service levels specified in BSCP514 in relation to the SVA Metering Systems in respect of

which it is registered.

2.3 Data Collectors

2.3.1 The principal functions of a Half Hourly Data Collector are, in accordance with the

provisions of this Section S and the Supplier Volume Allocation Rules, with BSCP502 and

BSCP520 and with Party Service Line 100:

(a) to collect metered data;

(b) to validate data and provide reports;

(c) to enter validated metered data into the relevant data collection system;

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(d) to maintain relevant standing data;

(e) to undertake Meter Advance Reconciliation to reconcile half hourly energy

values with meter advances;

(f) to sum register level data to produce SVA Metering System level data;

(g) to provide SVA Metering System level data to the relevant Half Hourly Data

Aggregator; and

(h) to provide validated metered data and SVA Metering System reports to the

relevant Supplier and the relevant Distribution System Operator.

2.3.2 The principal functions of a Non Half Hourly Data Collector are, in accordance with the

provisions of this Section S, the Supplier Volume Allocation Rules, BSCP504 and Party

Service Line 100:

(a) to collect metered data;


(c) to maintain relevant standing data;

(d) to enter data into the relevant data collection system and calculate the Meter

Advance values;

(e) to receive Daily Profile Coefficients from the SVAA;

(f) to determine Estimated Annual Consumption data and Annualised Advance

data based on the Daily Profile Coefficients received from the SVAA;

(g) to provide Estimated Annual Consumption data and Annualised Advance data

to the relevant Non Half Hourly Data Aggregator;

(h) to investigate anomalies relating to Estimated Annual Consumption or

Annualised Advances raised by the relevant Non Half Hourly Data Aggregator;

and

(i) to provide validated metered data and SVA Metering System reports to the


2.3.3 Each Supplier shall send to the Data Collector for each SVA Metering System for which it

is responsible:

(a) promptly after its registration in respect of a particular SVA Metering System

becomes effective or (as the case may be) following a change in Data Collector

appointed in relation to a particular SVA Metering System (unless otherwise

agreed with the relevant Data Collector) details of:

(i) such Data Collector's registration in SMRS in relation to that SVA

Metering System, the related SVA Metering System Number and the

Identifiers for the Meter Operator Agent, Data Aggregator and

Supplier Meter Registration Agent related to that SVA Metering

System; and

(ii) the start of the period for which the Data Collector is appointed; and

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(b) promptly after receiving such information, any data in respect of consumption

at a SVA Metering System received by it directly from SVA Customers, in

order to enable the relevant Data Collector to validate and process such

information.




(a) a data collector has been appointed under SAS and following the BETTA

Effective Date the relevant Supplier retains it as a Data Collector under the

Code; and


provided to such Data Collector when it was a data collector under SAS.

2.3.4 In respect of each SVA Metering System in relation to which it is registered in SMRS, a

Supplier shall ensure that the appointed Data Collector has such access to the relevant

meters as the Data Collector reasonably requires in order to read them all within the

timescales required for Settlement.

2.3.5 In relation to a change of Supplier, a Supplier shall not be obliged to provide any of the

data referred to in paragraph 2.3.3(b) which the Supplier believes on reasonable grounds

and in good faith is not valid.

2.4 Data Aggregators

2.4.1 The principal functions of a Half Hourly Data Aggregator are, in accordance with this

Section S, the Supplier Volume Allocation Rules, BSCP503 and Party Service Line 100:

(a) to receive half-hourly data from the relevant Half Hourly Data Collectors;


(c) to enter data into the relevant data aggregation system;


(e) to receive and maintain Line Loss Factors provided by BSCCo and approved by

the Panel;

(f) to aggregate the metered data in MWh in the relevant data aggregation system;

(g) to receive and maintain Additional BM Unit data for each Supplier (in respect

of which such Half Hourly Data Aggregator is appointed) and to receive,

validate and maintain details of the SVA Metering Systems for which such

Supplier is the Registrant allocated by that Supplier to its Additional BM Units

in the same GSP Group;

(h) to provide to the SVAA data aggregated by Supplier BM Unit or by Supplier

and by GSP Group in accordance with the further provisions of this Section S;

(i) where applicable, to provide metered data to an EMR Settlement Services

Provider in accordance with paragraph 2.9; and

(j) where applicable, to provide to the SVAA Allocated Metering System Metered

Consumption data in accordance with paragraph 2.11;and

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(k) the basis upon which Suppliers, HHDAs and SVAA may declare SVA Storage

Facilities, and aggregate and report metered data from such facilities to NETSO

and the basis upon which BSCCo, SVAA and the Panel may establish related

assurance measures.

2.4.2 The principal functions of a Non Half Hourly Data Aggregator are, in accordance with this

Section S, the Supplier Volume Allocation Rules, BSCP505 and Party Service Line 100:

(a) to receive Estimated Annual Consumption/Annualised Advances from Non

Half Hourly Data Collectors;

(b) to check Estimated Annual Consumption/Annualised Advances and provide

reports;

(c) to enter data into the relevant data aggregation system;


(e) to aggregate the annualised consumption data in MWh;

(f) to provide aggregate annualised consumption data to the SVAA; and

(g) if notice is provided in accordance with paragraph 4.4.19 of Annex S-2, to

provide the relevant Licensed Distribution System Operator with Estimated

Annual Consumption data and Metering System details in respect of Metering

Systems located at Boundary Points on the relevant Licensed Distribution

System Operator’s Distribution System(s) and Associated Distribution

System(s).

2.4.3 Each Supplier shall, promptly after its registration in respect of a particular SVA Metering

System becomes effective or (as the case may be) following a change in Data Aggregator

appointed in relation to a particular SVA Metering System, send to the relevant Data

Aggregator appointed by it in accordance with Section J (unless otherwise agreed with the

relevant Data Aggregator):

(a) details of such Data Aggregator's registration in SMRS in relation to that SVA

Metering System, the related SVA Metering System Number and the Identifiers

for the Data Collector and Supplier Meter Registration Agent related to that

SVA Metering System; and

(b) confirmation of the start of the period for which the Data Aggregator is

appointed.




(a) a data aggregator has been appointed under SAS and following the BETTA

Effective Date the relevant Supplier retains it as a Data Aggregator under the

Code; and


provided to such Data Aggregator when it was a data aggregator under SAS.

2.4.4 Each Supplier shall ensure that any material anomaly reported to it by a Data Aggregator

appointed by it in accordance with Section J in relation to data received by that Data

Aggregator from Data Collectors for which the Supplier is responsible is recorded and

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investigated and that a record is kept of the action (if any) taken to prevent a recurrence of

the anomaly during the next Volume Allocation Run for that Settlement Day.

2.4.5 For the purposes of paragraph 2.4.4, a "material anomaly" is one which is required to be

so recorded and investigated in accordance with Party Service Line 100 or the relevant

BSC Procedures or one which the Supplier appreciates or should reasonably appreciate will

have an impact on the quality of data for Settlement purposes.

2.5 Meter Administrators

2.5.1 The principal functions of a Meter Administrator are, in accordance with this Section S,

BSCP520 and Party Service Line 100:

(a) to calculate deemed metered volumes (estimated energy consumption) for half

hourly unmetered supplies (known as Equivalent Unmetered Supplies) relating

to SVA Customers; and

(b) to provide the relevant data to the relevant Half Hourly Data Collector.

2.5.2 Each Supplier shall, promptly after its registration in respect of a particular SVA Metering

System becomes effective or (as the case may be) following a change in Meter

Administrator appointed in relation to a particular SVA Metering System, send to the

relevant Meter Administrator appointed by it in accordance with Section J (unless

otherwise agreed with the relevant Meter Administrator):

(a) details of such Meter Administrator’s registration (where applicable) in SMRS

in relation to that SVA Metering System, the related SVA Metering System

Number and the Identifiers for the Data Collector and the Supplier Meter

Registration Agent related to that SVA Metering System; and

(b) confirmation of the start of the period for which the Meter Administrator is

appointed.

2.6 Provision of Data

2.6.1 In respect of each SVA Metering System which is a 100kW Metering System in relation to

which it is registered with a Supplier Meter Registration Agent, a Supplier shall promptly

submit or procure the submission of the appropriate data (as specified by BSCP01 ) by the

relevant Half Hourly Data Aggregator appointed by it in accordance with Section J to the

SVAA before each Interim Information Volume Allocation Run, in accordance with

BSCP01.

2.6.1A In respect of each SVA Metering System which is an Advanced Meter in relation to which

it is registered with a Supplier Meter Registration Agent, a Supplier shall submit, or

procure the submission of, the appropriate data (as specified by BSCP01) to the SVAA

promptly after collection of such data and, in any event:

(a) subject to paragraph 2.6.1B, in respect of the data for Settlement Days before

the P272 Implementation Date, before the relevant Final Reconciliation Volume

Allocation Run; and

(b) in respect of the data for Settlement Days on or after P272 Implementation

Date, before the relevant First Reconciliation Volume Allocation Run,

in each case, in accordance with BSCP01.

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2.6.1B In respect of each SVA Metering System which is:

(a) an Advanced Meter; and

(b) Half Hourly Metering Equipment in accordance with Section L2.2.2,

in relation to which it is registered with a Supplier Meter Registration Agent, a Supplier

shall submit, or procure the submission of, the appropriate data (as specified by BSCP01 to

the SVAA promptly after collection of such data and, in any event, in respect of data for

Settlement Days on or after P272 Implementation Date, before the relevant First

Reconciliation Volume Allocation Run, in accordance with BSCP01.

2.6.2 In respect of each SVA Metering System which is not:

(a) a 100kW Metering System; or

(b) Half Hourly Metering Equipment in accordance with Section L2.2.2,

in relation to which it is registered with a Supplier Meter Registration Agent, a Supplier

shall submit, or procure the submission of, the appropriate data (as specified by BSCP01)

to the SVAA promptly after collection of such data and, in any event, before the relevant

Final Reconciliation Volume Allocation Run, in accordance with BSCP01.

2.6.3 A Supplier shall (to the extent that it has not already done so in accordance with the

Qualification Process applicable to that Supplier) submit, or procure the submission of,

appropriate details to the SVAA of each GSP Group in which the Supplier commences or

ceases trading for Supplier Volume Allocation, in accordance with BSCP507.

2.7 Additional Supplier Obligations

2.7.1 Each Supplier shall use all reasonable endeavours to co-operate with and support the Panel,

other Trading Parties, the SVAA and other BSC Agents in the integration testing of any

relevant system, software or hardware required for the operation of Supplier Volume

Allocation.


(a) use all reasonable endeavours to assist BSCCo's and the SVAA’s problem

management service in the resolution of any problems arising from Supplier

Volume Allocation in relation to which that Supplier can reasonably be

expected to provide assistance;

(b) provide all information reasonably requested by the SVAA within a reasonable

timescale agreed with the SVAA; and

(c) use all reasonable endeavours to procure that each Supplier Agent from time to

time appointed by it in respect of a SVA Metering System uses all reasonable

endeavours to assist the SVAA’s problem management service in the resolution

of any problems arising from their contracts relating to Supplier Volume

Allocation and provides all information reasonably requested by the SVAA

within a reasonable timescale agreed with the SVAA, in any such case where

that Supplier can reasonably be expected to provide assistance.

2.7.3 The provisions of Section O, as they relate to Supplier Volume Allocation, shall apply in

relation to the sending and receiving of Communications for the purposes of this Section S.

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2.7.4 In respect of each Non Half Hourly Metering System in relation to which it is registered

with a Supplier Meter Registration Agent, a Supplier shall:

(a) if it is the first time that such Metering System is registered with a Supplier

Meter Registration Agent, allocate such Metering System to:

(i) a Profile Class; and

(ii) a Standard Settlement Configuration and other relevant information

in accordance with the relevant BSC Procedures; and

(b) in any other case:

(i) use reasonable endeavours to ensure that such Metering System

remains at all times allocated to the correct Profile Class; and

(ii) from time to time change the Profile Class to which that Metering

System is allocated,

in each case in accordance with the BSCP516.


(a) co-operate fully with the Profile Administrator in order to assist the Profile

Administrator in the performance of its obligations under its BSC Agent

Contract, including by complying with the requirements of BSCP510;

(b) provide to the Profile Administrator the information required by BSCP510 and

such other information (including in the form and at the times) as the Profile

Administrator may reasonably require in order to assist it in the performance of

its obligations under its BSC Agent Contract, including:

(i) by providing information to assist the Profile Administrator in the

creation and maintenance of a load research sample which includes

the sample of the Supplier’s customers required by the Profile

Administrator; and

(ii) by providing or procuring the collection of half-hourly demand data

for Profile purposes and providing or procuring the provision of that

data to the Profile Administrator;

(c) comply with any directions as may from time to time reasonably be made by the

Panel in respect of the Profile Administrator’s BSC Agent Contract;

(d) provide from its customers the number of members and replacement members

of the load research sample (including the number in a specified class or who

satisfy specified criteria (including as to randomness of selection)) requested by

the Profile Administrator from time to time;

(e) in accordance with BSCP510, procure the installation and maintenance

(including, where appropriate, by authorising and/or entering into an agreement

with the Profile Administrator to install and maintain or procure the installation

and maintenance on the Supplier’s behalf) of Profile Capable Metering Systems

at the premises of those customers of the Supplier who are or are to become

members of the Profile Administrator’s load research sample for the purposes of

the Profile Administrator’s load research programme; and

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(f) annually confirm to the Profile Administrator whether new customers are

located at premises in which Profile Capable Metering Systems are providing

half-hourly demand data for the purposes of the Profile Administrator’s load

research programme and, if they are, provide the Profile Administrator with all

relevant details required by the Profile Administrator.

2.7.5A For the purposes of this Section S, references to a "Profile Capable Metering System"

means a single Metering System capable of providing both half-hourly demand data and

non half hourly demand data and which otherwise complies with the requirements of

BSCP510.

2.7.6 In relation to each SVA Metering System for which it is responsible, a Supplier shall

(where applicable) ensure that teleswitch data and changes thereto are provided to the

SVAA in accordance with the relevant BSC Procedure (if any) and (to the extent

applicable) the provisions of Section O.

2.7.7 Subject to paragraphs 2.7.7B and 2.7.7C, each Supplier shall provide, or procure the

provision by the SVAA of, the appropriate data specified in BSCP508 (being certain output

from Volume Allocation Runs) to:

(a) the relevant Distribution System Operators;

(b) any other Licensed Distribution System Operator which operates a Distribution

System or has an Associated Distribution System that is upstream of a

customer; and

(c) an agent appointed on behalf of Licensed Distribution System Operators for the

purpose, inter alia, of receiving such data,

provided that the relevant Distribution System Operators shall receive such data free of

charge.

2.7.7A For the avoidance of doubt, the relevant Distribution System Operators may provide the

data received by them pursuant to paragraph 2.3.1(h), paragraph 2.7.7(a) or Section L5.2.4

to the Licensed Distribution System Operators specified in paragraph 2.7.7(b) or an agent

appointed on behalf of Licensed Distribution System Operators in accordance with

paragraph 2.7.7(c).

2.7.7B A Licensed Distribution System Operator which receives data pursuant to paragraph 2.7.7

and/or paragraph 2.7.7A (including via an agent appointed on its behalf) shall only be

entitled to use such data for the purposes of the operation of its Distribution System and for

the calculation of charges for use of and connection to its Distribution System, but not for

any other purposes.

2.7.7C A Licensed Distribution System Operator (but excluding a relevant Distribution System

Operator) or an agent appointed on behalf of Licensed Distribution System Operators in

accordance with paragraph 2.7.7(c) shall not be entitled to receive the data specified in

paragraph 2.7.7 where such data relates to a Distribution System or an Associated

Distribution System that is connected directly to the Transmission System.

2.7.7D Each Party agrees to the release and use of data referred to in paragraphs 2.7.7 and 2.7.7A

on the terms and conditions set out in paragraphs 2.7.7B and 2.7.7C.

2.7.8 Each Supplier which is or intends to be registered in SMRS shall comply with the data

quality standards specified in the Supplier Volume Allocation Rules, BSCP501 and with

Party Service Line 100.

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2.7.8A In relation to each Non Half Hourly Metering System for which it is responsible, and which

has been installed in compliance with the Smart Metering Equipment Technical

Specification, the Supplier shall establish and maintain Meter Technical Details and

provide such Details, in accordance with BSCP504, to the relevant Non Half Hourly Data

Collector to enable such Data Collector to process data in accordance with the Supplier

Volume Allocation Rules.

2.7.9 Each Supplier shall at all times hold the following data in relation to each SVA Metering

System for which it is responsible:

(a) the Meter Technical Details;

(b) in the case of a Non Half Hourly Metering System, the Metered Data obtained

for each relevant Settlement Register on each occasion during the preceding 40

months on which valid Metered Data was obtained, and the latest values of

Estimated Annual Consumption and Annualised Advance.

2.7.10 If a Supplier appoints a replacement Supplier Agent in relation to any SVA Metering

System in the circumstances set out in Section J4.2.6(a)(i) or (ii), the Supplier shall provide

to the replacement Supplier Agent the following data:

(a) in the case of the replacement of a Meter Operator Agent, the data held by the

Supplier pursuant to paragraph 2.7.9(a);

(b) in the case of a Non Half Hourly Data Collector, the data held by the Supplier

pursuant to paragraph 2.7.9(b).

2.7.11 To enable the identity of each Equipment Owner to be included in Market Domain Data, a

Supplier shall, in accordance with BSCP509, inform the SVAA of the identity of an

Equipment Owner (whether or not the Supplier itself) in relation to any Non Half Hourly

Metering System for which the Supplier is registered in SMRS (unless such data already

exists in Market Domain Data).

2.7.12 For the purposes of this paragraph 2 and Section L5.2.4, the term "relevant Distribution

System Operators" means those Licensed Distribution System Operators to whose

Distribution System or Associated Distribution System a customer is connected.

2.7.13 For the purposes of paragraph 2.7.7(b), a Distribution System or Associated Distribution

System shall be treated as being upstream of a customer if that Distribution System or

Associated Distribution System is used (or expected to be used) to distribute electricity

from (or to) the Transmission System to (or from) a Distribution System or Associated

Distribution System:

(a) to which such customer is connected; or

(b) that is upstream of such customer in accordance with this paragraph 2.7.13.

2.8 Long Term Vacant

2.8.1 Each Supplier who treats or intends to treat a Non Half Hourly Metering System for which

it is responsible as Long Term Vacant shall comply with paragraphs 4.3.19 to 4.3.22

(inclusive) of Annex S-2 and the relevant provisions of BSCP504.

2.8.2 A Supplier shall not treat a Non Half Hourly Metering System for which it is responsible as

Long Term Vacant where:

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(a) the criteria set out in paragraph 2.8.3 for determining whether a Non Half

Hourly Metering System is Long Term Vacant and any further requirements set

out in BSCP504 have not been satisfied;

(b) Metered Data (as described in BSCP504) relating to such Non Half Hourly

Metering System becomes available (including by reason of the Supplier

receiving such Metered Data from the owner and/or occupier of the property on

which the Non Half Hourly Metering System is situated);

(c) the Supplier becomes aware that consumption of electricity is occurring at the

property on which the Non Half Hourly Metering System is situated (including

by reason of receiving communications from the owner and/or occupier or new

owner and/or occupier of that property); or

(d) there is a change of Supplier in relation to such Non Half Hourly Metering

System.

2.8.3 The criteria for determining whether a Supplier may treat a Non Half Hourly Metering

System for which it is responsible as Long Term Vacant includes the requirements set out

below and any further requirements set out in BSCP504:

(a) the Non Half Hourly Data Collector responsible for such Non Half Hourly

Metering System has made two visits (in accordance with the applicable

timescales specified in BSCP504) to the property on which the Non Half

Hourly Metering System is situated for the purpose of obtaining Metered Data

and has been unable to obtain access to the Non Half Hourly Metering System

to obtain such Metered Data;

(b) the Non Half Hourly Data Collector has notified the Supplier (in the manner

and form required by BSCP504) of such visits and of its failure to obtain access

to the Non Half Hourly Metering System; and

(c) the Supplier has proactively in accordance with BSCP504 used its utmost

reasonable endeavours to identify the owner and/or occupier of the property

upon which the Non Half Hourly Metering System is situated where such owner

and/or occupier is unknown and has attempted to gain access for the purpose of

obtaining Metered Data.

2.8.4 A Supplier shall cease to treat a Non Half Hourly Metering System for which it is

responsible as Long Term Vacant if any of the matters set out in paragraph 2.8.2 (a) to (d)

(inclusive) occurs or if the Supplier fails to comply with the requirements of the processes


2.8.5 A Supplier who treats or intends to treat a Non Half Hourly Metering System for which it

is responsible as Long Term Vacant shall also have in place processes, as required by

BSCP504, to ascertain whether the Non Half Hourly Metering System can continue to be

treated as Long Term Vacant. BSCP504 shall as a minimum contain the following

requirements to ascertain whether the Non Half Hourly Metering System can continue to

be treated as Long Term Vacant:

(a) the Non Half Hourly Data Collector responsible for such Non Half Hourly

Metering System shall make at least one visit (in accordance with the applicable

timescale specified in BSCP504) to the property on which the Non Half Hourly

Metering System is situated for the purpose of obtaining Metered Data and be

unable to obtain access to the Non Half Hourly Metering System to obtain such

Metered Data;

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(b) the Non Half Hourly Data Collector shall notify the Supplier (in the manner and

form required by BSCP504) of such visits and of its failure to obtain access to

the Non Half Hourly Metering System; and

(c) the matters set out in paragraph 2.8.3 (c).

2.8.6 A Supplier treating a Non Half Hourly Metering System for which it is responsible as Long

Term Vacant shall keep auditable records of its compliance with the requirements of the

Code and BSCP504 for treating and continuing to treat such Non Half Hourly Metering

System as Long Term Vacant.

2.8.7 In the event that a Licensed Distribution Supplier Operator requests details from a Supplier

as to which Non Half Hourly Metering Systems that Supplier is responsible for and is

treating as Long Term Vacant then the Supplier shall provide the same.

2.9 Provision of Data to a CM Settlement Services Provider

2.9.1 Where a Supplier that is the Registrant of an SVA Metering System associated with CM

Assets is so requested by a Customer or generator that has entered into a Capacity

Agreement in respect of those CM Assets then that Supplier shall ensure that its Half

Hourly Data Aggregator provides metered data relating to that SVA Metering System to a

CM Settlement Services Provider in accordance with BSCP503.

2.10 Provision of Data relating to EII Assets

2.10.1 Where a Supplier is the Registrant of an SVA Metering System associated with EII Assets

then that Supplier shall ensure that its Half Hourly Data Aggregator provides metered data

relating to that SVA Metering System to an EMR Settlement Services Provider in


2.11 Provision of Data for SVA Metering Systems

2.11.1 Each Supplier shall ensure that where the SVAA informs its Half Hourly Data Aggregator

that it is required to provide Allocated Metering System Metered Consumption data in

relation to a Half Hourly Metering System for which that Supplier is the Registrant, the

Half Hourly Data Aggregator provides metered data relating to that Half Hourly Metering

System to the SVAA in accordance with BSCP503.

2.11.2 Each Supplier shall ensure that its Half Hourly Data Aggregators do not disclose to a

Supplier the identity of those Metering Systems for which the SVAA has requested data

pursuant to paragraph 2.11.1 unless the relevant SVA Customer or SVA Generator has

consented to such disclosure. For the avoidance of doubt, Half Hourly Data Aggregators

may disclose to the Supplier the number of Metering Systems for which the SVAA has

requested data pursuant to paragraph 2.11.1.

2.12 Provision of data for SVA HH Metering Systems related to SVA Storage Facilities

2.12.1 Each Supplier shall ensure that where the SVAA informs its Half Hourly Data Aggregator

that a half hourly SVA Metering System, for which that Supplier is the Registrant, is

related to an SVA Storage Facility which is the subject of a valid Declaration, the Half

Hourly Data Aggregator provides metered data relating to that half hourly SVA Metering

System to the SVAA in accordance with Annex S-2, BSCP503 and BSCP508.

3. PERFORMANCE

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3.1 Performance Assurance

3.1.1 Each Supplier shall provide, or procure the provision of such reports to the Performance

Assurance Board as may from time to time be reasonably required in accordance with the

relevant BSC Procedures in order to enable the Performance Assurance Board to review

compliance by that Supplier with the requirements of paragraph 2 and compliance by each

Supplier Agent for which that Supplier is responsible with Party Service Line 100 and the

relevant BSC Procedures.

3.1.2 Each Supplier shall provide the Panel and the Performance Assurance Board with access to

all of its records, data and other information (and those of its Supplier Agents) as may

reasonably be required by the Panel or (as the case may be) the Performance Assurance

Board to carry out its functions in accordance with the Code and relevant Code Subsidiary

Documents, or procure that such access is provided.

3.1.3 Without prejudice to paragraph 3.1.2, each Supplier shall pay, in accordance with

paragraph 4 of Annex S-1 any amounts which fall to be paid by it in accordance with

paragraph 3.2.

3.2 Supplier Charges

3.2.1 Without prejudice to any other right of other Parties (other than in respect of claims for

damages for loss), a Supplier which fails to comply with:

(a) the reporting requirements imposed on it pursuant to paragraph 3.1.1; or

(b) the requirements in respect of data provision imposed on it pursuant to

paragraph 2.6; or

(c) any of the Performance Levels set out in the Menu of Supplier Charges set out

in Annex S-1

shall be liable to the relevant charge set out in the Menu of Supplier Charges in Annex S-1,

to be payable in accordance with Annex S-1.

3.2A Temporary disapplication of Supplier Charges

3.2A.1 For the purposes of this paragraph 3.2A:

(a) the "Coronavirus Disapplication Period" shall be the period determined in

accordance with paragraphs 3.2A3 and 3.2A.4; and

(b) the "Relevant Supplier Charges" shall be those charges associated with Serials

SP08 and SP04.

3.2A.2 In relation to the Relevant Supplier Charges, each Party acknowledges that the Coronavirus

epidemic or pandemic is likely to disrupt, prevent or delay Suppliers from complying with

the obligations referred to in paragraphs 3.2.1(a) to (c) inclusive and accordingly each

Party agrees that:

(a) for the duration of the Coronavirus Disapplication Period, no Supplier shall be

liable to any other Party under paragraph 3.2.1 for any of the Relevant Supplier

Charges set out in the Menu of Supplier Charges in Annex S-1; and

(b) without prejudice to the generality of the foregoing, no Party shall be entitled to

bring a claim against another Party pursuant to Annex S-1 in respect of

Relevant Supplier Charges that relate to the Coronavirus Disapplication Period.

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3.2A.3 The Coronavirus Disapplication Period shall commence on the Relevant Implementation

Date and shall remain in force until the Panel determines that such period shall cease by

providing three months prior notice pursuant to paragraph 3.2A.4.

3.2A.4 BSCCo shall, on behalf of the Panel, within 1 Working Day after the determination by the

Panel under paragraph 3.2A.3:

(a) send a notification to all Parties and the Authority of the Panel’s determination;

and

(b) publish a copy of that notification on the BSC Website.

3.3 Supplier Force Majeure

3.3.1 A Supplier shall not be liable to any other Party for delay or failure in performing its

obligations under paragraph 2 or paragraph 3.1.1 to the extent that such delay or failure

results from or is caused directly by any event or circumstance beyond the reasonable

control of the Supplier including:

(a) act of public enemy, war declared or undeclared, threat of war, terrorist act,

blockade, revolution, riot, insurrection, civil commotion, public demonstration,

sabotage or act of vandalism;

(b) strikes, lockouts or other industrial disturbances;

(c) lightning, storm, accumulation of snow or ice, earthquake, fire, flood or act of

God;

(d) explosion, fault or failure of plant or machinery which (in each case) could not

have been prevented by Good Industry Practice;

(e) governmental restraint, Act of Parliament, other legislation, by-law and

Directive (not being any order, regulation or direction under Section 32, 33, 34

or 35 of the Act);

(f) a failure by the SVAA to provide Daily Profile Coefficients to a Data Collector

for which the Supplier is responsible or to distribute Market Domain Data in

accordance with the relevant BSC Procedures;

(g) the provision to the Supplier or any Supplier Agent for which it is responsible

by the SVAA of Daily Profile Coefficients or Market Domain Data which is

incorrect in any material respect;

(h) a failure in the communication network or method used by the Supplier’s

Supplier Agent in accordance with Party Service Line 100 and the relevant BSC

Procedures provided the Supplier has first used reasonable endeavours to ensure

that its Supplier Agent has used any reasonable alternative method of

communication available,

("Supplier Force Majeure"), provided that this paragraph 3.3 is subject to compliance by

the Supplier and its Supplier Agents in all respects with the disaster recovery provisions

from time to time set out in Party Service Line 100 and/or the relevant BSC Procedures.

3.3.2 Lack of funds shall not be interpreted as a circumstance beyond a Supplier’s reasonable

control.

3.3.3 A Supplier which is affected by Supplier Force Majeure shall:

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(a) give immediate notice to BSCCo;

(b) use all reasonable endeavours to mitigate the impact of the Supplier Force

Majeure and to remedy as soon as practicable its inability to perform;

(c) provide notice to BSCCo within one Business Day of the Supplier Force

Majeure being resolved or ceasing to apply.

3.3.4 The provisions of paragraph 3.3.3 shall be without prejudice to the disaster recovery

provisions from time to time set out in Party Service Line 100 and/or the relevant BSC

Procedures.

4. FUNCTIONS OF BSC AGENTS IN RELATION TO SUPPLIER VOLUME

ALLOCATION

4.1 Supplier Volume Allocation Agent

4.1.1 The principal functions of the SVAA are, in accordance with the Code and relevant Code

Subsidiary Documents (including BSCP508 and BSCP602):

(a) to provide a supplier volume allocation service in accordance with the relevant

BSC Service Description and the Supplier Volume Allocation Rules and to

comply with the other requirements of the relevant BSC Service Description;

(b) to provide a daily profile production service in accordance with the relevant

BSC Service Description involving, inter alia, receiving, obtaining and

maintaining data relating to GSP Groups, noon temperatures and times of

sunset, the preparation of Daily Profile Coefficients and the provision of reports

on profiles and Standard Settlement Configurations to Non Half Hourly Data

Collectors and Suppliers;

(c) to provide a Market Domain Data service to the electricity markets of England

and Wales and Scotland in accordance with the relevant BSC Service

Description;

(d) to perform additional related services if and to the extent required by the Panel,

including:

(i) the development and maintenance of a contingency plan in

accordance with the relevant BSC Service Description for approval

from time to time by the Panel;

(ii) the provision of a disaster recovery service, and the development and

maintenance of a disaster recovery plan, all in accordance with the

relevant BSC Service Description;

(iii) the provision of a national helpdesk service, a problem management

service, a change management service, a committee support service,

a performance report service, an ad hoc reporting service, a dispute

support service, a software acceptance testing service and an

integration testing service, in each case in accordance with the


(iv) the development and maintenance of a hand-over service, and the

provision of an exit management plan, in accordance with the


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(v) the provision of a consultancy service, a technical architecture and

design service and a software maintenance service, in each case in

accordance with the relevant BSC Service Description; and

(vi) such other services as may from time to time be agreed by the Panel;

(e) to provide data to the NETSO and Distribution System Operators necessary for

the purposes of calculating transmission and distribution use of system charges

respectively in accordance with BSCP508;

(f) to provide such data to the SAA as is necessary for the provision of Relevant

EMR Settlement Data to an EMR Settlement Services Provider;

(g) to provide such data to the SAA as is necessary for Settlement in relation to

Secondary BM Units;

(h) to establish and maintain a register, hereby known as the SVA Metering System

Register, of each half hourly SVA Metering System identified in MSID Pair

Data that has been provided to the SVAA;

(i) to provide the Lead Party of a Secondary BM Unit with half hourly Metered

Data for each Metering System registered to that Secondary BM Unit; and

(j) to establish and maintain a register, hereby known as the SVA Storage Facilities

Register, of each validly declared SVA Storage Facility and related Metering

Systems notified to the SVAA by a Supplier in accordance with BSCP508.

4.2 Profile Administrator

4.2.1 The principal functions of the Profile Administrator are, in accordance with the Supplier

Volume Allocation Rules and relevant Code Subsidiary Documents:

(a) to create and maintain a load research sample using customer information

provided to it by Suppliers and to carry out a programme of load research in

order to collect or obtain half-hourly demand data relating to customers who

form part of the load research sample;

(b) to analyse data collected through the load research programme and from other

sources approved from time to time by the Panel;

(c) to derive sets of Regression Coefficients for each Profile Class;

(d) to deliver the Regression Coefficients and related data to Parties, the SVAA,

Supplier Agents or BSCCo;

(e) to analyse data and to monitor the accuracy of Profiles derived from Regression

Coefficients;

(f) to provide such consultancy services as the Panel may from time to time

determine; and

(g) to, where agreed between the Profile Administrator and the relevant Supplier

and in accordance with any requirements in BSCP510, install and maintain

and/or procure the installation and maintenance of Profile Capable Metering

Systems at the premises of the customers referred to in paragraph 2.7.5(e) who

are identified to the Profile Administrator by the Supplier.

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4.2.2 The Profile Administrator shall provide (unless and to the extent otherwise specified from

time to time by BSCCo) to BSCCo or as otherwise directed by it a set of Regression

Coefficients, Group Average Annual Consumption values and Profile Coefficients for each

BSC Year on or before 30th November before the beginning of the relevant BSC Year,

using data collected from the load research programme carried out by the Profile

Administrator, augmented with data provided by Suppliers which is consistent with the

overall sample design.

4.2.3 Unless and to the extent otherwise specified by BSCCo, the Profile Administrator shall

deliver to BSCCo or as otherwise directed by it:

(a) on a quarterly basis, a breakdown by GSP Group of each Profile Class sample,

together with a statement of the daily average number of customers for which

monitoring equipment has been successfully installed and commissioned for

each Profile Class in respect of the previous quarter (a quarter being a period of

3 months commencing on 1st January, 1st April, 1st July and 1st October in any

year); and

(b) an annual report and data analysis plan (in such form as may be specified by the

Panel) setting out what load research data the Profile Administrator proposes to

use, together with a load research plan (in such form as the Panel shall specify)

setting out the proposed sample design and sample sizes in respect of the

following BSC Year.

4.2.4 Unless and to the extent otherwise specified by the Panel, the Profile Administrator shall:

(a) make one or more representatives available, subject to reasonable notice, to

attend meetings of the Panel or its representatives in order to provide advice on

profiling matters; and

(b) provide advice to the Panel as to the implications of introducing new or

modified Profile Classes and GSP Groups and as to the implications of

changing sample sizes and profiling methodology.

4.2.5 Where:

(a) at the request of a Supplier, the Profile Administrator installs and maintains or

procures the installation and maintenance of a Profile Capable Metering System

on the Supplier’s behalf at the premises of a customer who forms part of the

load research sample, the Profile Administrator’s associated costs shall be

treated as BSC Costs under Section D of the Code; and

(b) a Supplier procures the installation and maintenance of a Profile Capable

Metering System at the premises of a customer who forms part of the load

research sample, the Supplier shall be entitled in respect of that customer to be

paid the relevant Profile Sum (referred to in paragraph 4.2.7) by the Profile

Administrator.

4.2.6 Without prejudice to any other provision in the Code, in the event that the Supplier requests

the Profile Administrator to install and maintain or procure the installation and

maintenance of a Profile Capable Metering System in relation to a customer who forms

part of the load research sample, the Supplier shall also request the Profile Administrator to

acquire or procure the acquisition of the Profile Capable Metering System and to perform

or procure the performance of the relevant functions of a Meter Operator Agent, Data

Collector and Data Aggregator in relation to that Metering System.

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4.2.7 The relevant Profile Sum shall be the total of the average annual cost per member of the

load research sample incurred by the Profile Administrator in each BSC Year in relation to

the:

(a) acquisition and installation of a Profile Capable Metering System (provided that

this cost shall only be included in the relevant Profile Sum where it has been

necessary for the Supplier to procure the acquisition and installation of a Profile

Capable Metering System in relation to the relevant customer for the purposes

of the load research programme, and then only in relation to the first acquisition

and installation thereof or in relation to the necessary replacement thereof);

(b) annual maintenance of a Profile Capable Metering System at a customer’s

premises and of performing the other functions of a Meter Operator Agent in

relation to it (provided that only 50% of such cost shall be included in the

relevant Profile Sum where the relevant customer has been part of the load

research sample for part only of the relevant BSC Year or has been a customer

of the relevant Supplier for part only of the relevant BSC Year); and

(c) annual cost of the collection of the half-hourly demand data from a Profile

Capable Metering System (provided that only 50% of such cost shall be

included in the relevant Profile Sum where the relevant customer has been part

of the load research sample for part only of the relevant BSC Year or has been a

customer of the relevant Supplier for part only of the relevant BSC Year).

4.2.8 The Profile Sum payable to each Supplier shall be paid annually in accordance with

BSCP510 in respect of each BSC Year and, for the avoidance of doubt, shall be treated as

BSC Costs under Section D of the Code.

4.3 Teleswitch Agent

4.3.1 The primary functions of the Teleswitch Agent shall be:

(a) to monitor the messages concerning contact switching times sent pursuant to the

Radio Teleswitch Agreement to groups of SVA Metering Systems for which the

related Metering Equipment is equipped with a teleswitch;

(b) to provide details of those messages to the SVAA (by such means and in

accordance with such BSC Procedures as may from time to time be approved by

the Panel);

(c) to maintain a log recording the provision of details of teleswitch messages and

to provide performance monitoring reports;

(d) to report to the SVAA any known or suspected failures in the monitoring and

provision of messages; and

(e) to provide a consultancy and support service and a disaster recovery service.

5. FUNCTIONS OF OTHER AGENTS IN RELATION TO SUPPLIER VOLUME

ALLOCATION

5.1 Supplier Meter Registration Agents

5.1.1 The principal function of a Supplier Meter Registration Agent is to provide a registration

service for SVA Metering Systems and associated data with respect to its Distribution

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System(s) and Associated Distribution System(s) in accordance with the MRA, Section K,

the Supplier Volume Allocation Rules and BSCP501.

5.1.2 A Supplier Meter Registration Agent shall ensure that, to the extent to which is responsible

for establishing or creating data in its SMRS relating to SVA Metering Systems, such data

is accurate and complete (and in particular that each SVA Metering System is assigned to

the GSP Group which such Metering System is in).

6. SUPPLIER BM UNITS

6.1 Qualification

6.1.1 A Half Hourly Data Aggregator shall be Qualified:

(a) to aggregate energy values per Supplier BM Unit in accordance with paragraph

3.6 of Annex S-2; and/or

(b) to aggregate energy values per Supplier per GSP Group in accordance with

paragraph 3.5.9 to 3.5.12 of Annex S-2,

as further provided in this paragraph 6.1 and, in each case, in accordance with the

provisions of Section J and BSCP537 applicable to the function (as described in paragraphs

(a) and (b)) which such Data Aggregator is to perform.

6.1.2 Without prejudice to the requirements for Qualification set out in paragraph 6.1.1:

(a) in relation to a GSP Group, a Half Hourly Data Aggregator shall aggregate

energy values for all SVA Metering Systems for which such Data Aggregator is

responsible in that GSP Group either in accordance with paragraph 3.5.9 to

3.5.12 or paragraph 3.6 of Annex S-2 (but not both);

(b) where one or more Suppliers within a GSP Group has allocated SVA Metering

Systems for which such Data Aggregator is responsible to Additional BM

Unit(s) in accordance with paragraph 6.2 and 6.3, such Data Aggregator shall

aggregate energy values for all SVA Metering Systems (and all Suppliers) for

which it is responsible in that GSP Group in accordance with paragraph 3.6 of

Annex S-2.

6.1.3 The provisions of paragraph 6.1.2 shall be without prejudice to the basis upon which a Half

Hourly Data Aggregator is required (in accordance with BSCP503) to send reports to the

Supplier by whom it is appointed.

6.2 Allocation of SVA Metering Systems to Additional BM Units

6.2.1 In relation to a GSP Group, where a Supplier has registered one or more Additional BM

Units with the CRA in accordance with Section K, the Supplier may allocate SVA

Metering Systems in that GSP Group for which such Supplier is the Registrant to such

Additional BM Unit(s) subject to and in accordance with the provisions of this paragraph

6.2 and paragraph 6.3.

6.2.2 An Additional BM Unit may comprise:

(a) one or more Half Hourly Metering Systems; and/or

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(b) one or more valid combinations (in accordance with BSCP507) of Non Half

Hourly Metering Systems, comprising (in each case) all the Non Half Hourly

Metering Systems with the same Profile Class and the same Standard

Settlement Configuration,

for which the relevant Supplier is the Registrant in a GSP Group.


(a) in relation to a GSP Group, any SVA Metering Systems not allocated to an

Additional BM Unit in accordance with this paragraph 6.2 for which a Supplier

is the Registrant shall be attributed to such Supplier's Base BM Unit for the


(b) a SVA Metering System may not be allocated to more than one Additional BM

Unit.


(a) the allocation of SVA Metering Systems to an Additional BM Unit shall

become effective for the purposes of Settlement on the day specified by the

Supplier in accordance with paragraph 6.3.1, which shall be a date no earlier

than the day next following the date when the SVAA or relevant Half Hourly

Data Aggregator (as the case may be) has received the Supplier's notification

under paragraph 6.3.1, provided such notification is so received by Gate

Closure in respect of the first Settlement Period of that day (failing which, the

day specified by the Supplier shall be no earlier than the day next following

such day); and

(b) in relation to a Half Hourly Metering System, the Supplier shall ensure that the

identity of any relevant Half Hourly Data Aggregator is sent to the SMRA and

recorded in SMRS prior to Gate Closure in respect of the first Settlement Period

of the day when the allocation of such Metering System to an Additional BM

Unit becomes effective pursuant to paragraph (a).

6.2.5 No allocation of Half Hourly Metering Systems to Additional BM Units shall become

effective or be taken into account for the purposes of Settlement until and unless the

relevant Half Hourly Data Aggregator has been Qualified in accordance with paragraph

6.1.2.

6.2.6 In this paragraph 6, the "relevant" Half Hourly Data Aggregator means the Half Hourly

Data Aggregator appointed by the Supplier in respect of the Half Hourly Metering

System(s) which the Supplier wishes to allocate to an Additional BM Unit in a GSP Group.

6.3 Process

6.3.1 Where a Supplier wishes to allocate SVA Metering Systems to an Additional BM Unit in a

GSP Group pursuant to paragraph 6.2, the Supplier shall:

(a) in the case of Half Hourly Metering Systems, notify the relevant Half Hourly

Data Aggregator in accordance with BSCP503 of:

(i) the SVA Metering System Number of each Half Hourly Metering

System; and

(ii) the identification number of the relevant Additional BM Unit; and

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(iii) the date from when, subject to paragraph 6.2.4, the Supplier wishes

such Half Hourly Metering System(s) to be allocated to such

Additional BM Unit for the purposes of Settlement;

(b) in the case of Non Half Hourly Metering Systems, notify the SVAA in

accordance with BSCP507 of:

(i) the Profile Class;

(ii) the Standard Settlement Configuration;

(iii) the identification number of the relevant Additional BM Unit; and

(iv) the date from when, subject to paragraph 6.2.4, the Supplier wishes

such Non Half Hourly Metering System(s) to be allocated to such

Additional BM Unit for the purposes of Settlement; and

(c) in the case of both Half Hourly Metering Systems and Non Half Hourly

Metering Systems, notify the CRA of the estimates referred to in Section K3.4.1

relating to the relevant Additional BM Unit which is to apply upon allocation of

such SVA Metering Systems to that Additional BM Unit.

6.3.2 The relevant Half Hourly Data Aggregator shall in accordance with BSCP503:

(a) validate the data submitted to it by a Supplier under paragraph 6.3.1(a) as to

compliance with the requirements of this paragraph 6;

(b) on the basis of the checks referred to in paragraph (a), confirm or reject the

relevant allocation by notice to the Supplier; and

(c) where it confirms the relevant allocation in accordance with paragraph (b),

record the data in its aggregation system to take effect, for the purposes of

Settlement, from the date specified under paragraph 6.3.1(a)(iii).

6.3.3 The SVAA shall in accordance with BSCP507:

(a) validate the data submitted to it by a Supplier under paragraph 6.3.1(b) as to



relevant allocation by notice to the Supplier; and

(c) where it confirms the relevant allocation in accordance with paragraph (b),

record the data in its systems to take effect, for the purposes of Settlement, from

the date specified under paragraph 6.3.1(b)(iv).

6.3.4 Further SVA Metering Systems may be allocated (subject to paragraph 6.2.2) to Additional

BM Units to which SVA Metering Systems have already been allocated by following the

procedures set out in this paragraph 6.3.

6.3.5 A SVA Metering System which is allocated to an Additional BM Unit may be removed

from that Additional BM Unit and transferred either to another Additional BM Unit in that

GSP Group or to the Supplier's Base BM Unit in respect of that GSP Group, in accordance

with BSCP503 (in the case of Half Hourly Metering Systems) and BSCP507 (in the case of

Non Half Hourly Metering Systems), by:

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(a) notifying the relevant Data Aggregator (in the case of Half Hourly Metering

Systems) or the SVAA (in the case of Non Half Hourly Metering Systems); and

(b) notifying the CRA of the revised Generation Capacity and Demand Capacity of

the relevant Additional BM Units or the relevant Additional BM Unit and Base

BM Unit (as the case may be) in accordance with Section K3.4.1,

and such transfer shall take effect from the time specified in those BSC Procedures and, in

any event, prior to Gate Closure of the first Settlement Period in respect of which it is to

take effect.

7. SUPPLIER VOLUME ALLOCATION RULES

7.1 Application

7.1.1 The provisions of Annex S-2 shall apply and be given effect as if they were set out in full

in this Section S and shall be treated for all purposes as a part of this Section S.

7.1.2 Quantities of Active Energy associated with SVA Metering Systems shall be determined

and allocated to Supplier BM Units for the purposes of Settlement in accordance with

Annex S-2.

7.2 Overview of the Supplier Volume Allocation Rules

7.2.1 Suppliers and Supplier Agents shall provide data to the SVAA in accordance with the

Supplier Volume Allocation Rules and BSCP508.

7.2.2 The Supplier Volume Allocation Rules consist of the following principal activities:

(a) the provision of SVA Metering System registration data from the relevant

SMRA to Suppliers, Supplier Agents, Distribution System Operators and

relevant BSC Agents;

(b) the provision of standing data to the SVAA from Suppliers, Supplier Agents,

Distribution System Operators, the Profile Administrator and other BSC

Agents;

(c) the provision of periodic data to the SVAA from Non Half Hourly Data

Aggregators, Half Hourly Data Aggregators, the Temperature Provider and the

Teleswitch Agent;

(d) the derivation and distribution of the Daily Profile Coefficients by the SVAA;

(e) the data collection and data aggregation calculations performed by Data

Collectors and Data Aggregators on behalf of Suppliers;

(f) the determination of the pre-correction consumption and production per

Settlement Period per Supplier BM Unit by the SVAA;

(g) the GSP Group Correction Factor calculation performed by the SVAA which

reconciles SVA metered volumes with the GSP Group Take;

(h) determination of the half hourly energy volumes allocated to each Supplier BM

Unit, and the provision of such data to the SAA; and

(i) the determination of Supplier BM Unit Non BM ABSVD for each Supplier BM Unit,

and the provision of such data to the SAA.

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7.2.3 The summary in paragraph 7.2.2 (which is included for convenience and ease of reference

only) is without prejudice to the provisions of the Supplier Volume Allocation Rules and

the Supplier Volume Allocation Rules shall prevail over paragraph 7.2.2 in the event of any

conflict or inconsistency.

7.2.4 Suppliers and Supplier Agents shall comply with the Supplier Volume Allocation Rules

and all relevant Code Subsidiary Documents in order that data is provided within the

timescales defined in the Settlement Calendar or otherwise as may be required in order to

effect a Settlement Run.

8. UNMETERED SUPPLIES

8.1 Unmetered Supplies and this Section

8.1.1 The rights and obligations of the Parties in relation to Unmetered Supplies shall be as set

out in this paragraph 8, Party Service Line 100 and BSCP520.

8.1.2 If there is any inconsistency or conflict between the provisions of this paragraph 8 and any

other provisions of the Code in relation to Unmetered Supplies, the provisions of this

paragraph 8 shall prevail.

8.1.3 The standards of accuracy of data for Unmetered Supplies from time to time shall be no

worse than those which at such time apply generally under the Code for metered supplies

of electricity.

8.1.4 The Panel may at any time and from time to time commission load research programmes in

respect of Unmetered Supplies to support changes made or proposed to be made to Party

Service Line 100 and/or the relevant BSC Procedures.

8.2 Licensed Distribution System Operators and Unmetered Supplies

8.2.1 A Licensed Distribution System Operator shall determine in relation to supplies of

electricity connected to its Distribution System(s) or its Associated Distribution System(s)

(if any) whether a supply of electricity to a particular inventory of Apparatus is to be

treated for the purposes of the Code as an Unmetered Supply provided that, if such supply

is separately measured and recorded through a SVA Metering System at or near to the

point of supply to the Customer, the Licensed Distribution System Operator shall not

determine that such supply is an Unmetered Supply.

8.2.2 Each Licensed Distribution System Operator acknowledges that, without prejudice to any

other factor to which it may choose to have regard in making its determination, it would

not expect to determine that a supply of electricity to a particular inventory of Apparatus is

to be treated for the purposes of the Code as an Unmetered Supply unless it is technically

impractical to install a Meter or to carry out meter readings or the cost of installation of a

Meter or of carrying out meter readings is wholly disproportionate or the supply of

electricity in question is both small (in kWh terms) and reasonably predictable.

8.2.3 If a Licensed Distribution System Operator determines in accordance with paragraph 8.2.1

that a supply of electricity to a particular inventory of Apparatus qualifies as an Unmetered

Supply:

(a) it shall issue an Unmetered Supply Certificate to the Customer taking such

supply in relation to such inventory;

(b) such Unmetered Supply Certificate shall state whether the Unmetered Supply to

which it relates is an Equivalent Unmetered Supply or a Profiled Unmetered

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Supply, as agreed between the Licensed Distribution System Operator and the

Customer.

8.2.4 The inventory of Apparatus relative to a particular Unmetered Supply shall be agreed

between the Licensed Distribution System Operator on whose Distribution System or

Associated Distribution System the Unmetered Supply takes place and the Customer taking

such supply and the Licensed Distribution System Operator shall:

(a) ensure that any such inventory includes the means of identifying the type and

number of items connected and taking supply, the location of such items, the

wattage and the switch regime; and

(b) prepare and provide in accordance with the relevant BSC Procedure a summary

inventory of Apparatus based on the information included in the detailed

inventory of Apparatus.

8.2.5 A Licensed Distribution System Operator shall assign a unique SVA Metering System

Number to each Unmetered Supply Certificate relating to an Equivalent Unmetered Supply

on any of its Distribution System(s) or Associated Distribution System(s).

8.2.6 A Licensed Distribution System Operator shall assign a unique SVA Metering System

Number to each Standard Settlement Configuration for each Unmetered Supply Certificate

relating to a Profiled Unmetered Supply on any of its Distribution System(s) or Associated

Distribution System(s).

8.2.7 Not Used.

8.2.8 Not Used.

8.2.9 Not Used.

8.2.10 Not Used.

8.2.11 For each Profiled Unmetered Supply on its Distribution System(s) or Associated

Distribution System(s) (if any), the Licensed Distribution System Operator shall calculate

an Estimated Annual Consumption and shall notify the relevant Supplier or its Supplier

Agent of such Estimated Annual Consumption.

8.2.12 As soon as reasonably practicable after there has been a material change in the inventory of

Apparatus to which an Unmetered Supply Certificate relates, the Licensed Distribution

System Operator which issued such Unmetered Supply Certificate shall, in accordance with

the relevant BSC Procedure, provide to the relevant Supplier or its Supplier Agent:-

(a) a revised summary inventory of Apparatus (in the case of an Equivalent

Unmetered Supply); and/or

(b) a new Estimated Annual Consumption (in the case of a Profiled Unmetered

Supply).

8.2.13 If, at the Go-live Date, a Distribution System Operator (being, or being the successor to,

the holder at the Code Effective Date of a PES Supply Licence relating to distribution

activities in England and Wales, acting in that capacity) is providing meter administration

services to any third party it shall continue to provide meter administration services to

Suppliers upon request and upon agreement as to the terms and conditions thereof,

provided that such a Distribution System Operator shall not be obliged to offer to provide

such services if after the Go-live Date it ceases for more than six consecutive months to

provide meter administration services to third parties.

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8.2.14 A Licensed Distribution System Operator when carrying out the functions set out in this

paragraph 8.2 may be referred to as an "Unmetered Supplies Operator" or "UMSO".

8.2.15 Each Licensed Distribution System Operator shall ensure that it (or any person performing

the relevant functions of an UMSO on its behalf) is Qualified to perform the functions of

an UMSO in accordance with Section J and BSCP537 before it (or any person performing

the relevant functions on its behalf) provides the functions set out in this paragraph 8.2.

8.3 Suppliers and Unmetered Supplies


(a) trade Unmetered Supplies on a basis consistent with the terms of the relevant

Unmetered Supply Certificate so that Equivalent Unmetered Supplies are

treated and traded as such and Profiled Unmetered Supplies are treated and

traded as such; and

(b) ensure that Estimated Annual Consumption or summary inventory of Apparatus

associated with an Unmetered Supply Certificate is properly submitted for use

in Settlement.

8.3.2 A change in the treatment and trading of an Unmetered Supply from an Equivalent

Unmetered Supply to a Profiled Unmetered Supply (or vice versa) shall only be made if the

relevant Unmetered Supply Certificate is withdrawn and cancelled and a new Unmetered

Supply Certificate is issued in its place.

9. DEMAND DISCONNECTION EVENTS

9.1 Duties of Distribution System Operator

9.1.1 As regards an Embedded Distribution System that is connected to a Distribution System

operated by a Host DSO, that Host DSO shall notify the Embedded DSO as soon as

reasonably practicable where it becomes aware of any Demand Disconnection Events

affecting that Embedded Distribution System.

9.1.2 Following the cessation of a Demand Disconnection Event, for each SVA Metering System

impacted by a Demand Disconnection Event a Demand Disconnection Impacted DSO

shall, using the relevant Supplier Meter Registration Service system, identify each MSID

that is connected to its Distribution System (either directly or through any private

distribution system) but not including any SVA Metering Systems that:

(a) are de-energised;

(b) have been de-registered; or

(c) have voluntarily reduced consumption at the request of the Demand

Disconnection Impacted DSO.

9.1.3 Each Demand Disconnection Impacted DSO shall, in respect of each Impacted SVA

Metering System identified under paragraph 9.1.2, notify each Half Hourly Data Collector,

Half Hourly Data Aggregator, Non Half Hourly Data Collector and Non Half Hourly Data

Aggregator and the SVAA of:

(a) the MSID for each disconnected Metering System; and

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(b) the start and end date and time in Co-ordinated Universal Time at which the

Metering System was subject to Demand Disconnection.

9.1.4 Any notice given under paragraph 9.1.3 shall be given within the period of 5 Business

Days commencing on the Business Day after notification by BSCCo under Section

9.2A.3(b).

9.1.5 Each Demand Disconnection Impacted DSO shall update any notice given under paragraph

9.1.4 as soon as reasonably practical after becoming aware of any necessary amendments

to this information.

9.1.6 This paragraph 9.1 is subject to paragraph 9.2A.

9.2 Duties of the NETSO

9.2.1 Subject to paragraph 9.2A, within the period of 25 Business Days commencing on the

Business Day after notification by BSCCo under Section 9.2A.3(b) or as soon as

reasonably practicable thereafter, for each Metering System that has been subject to a Non-

BM STOR Instruction the NETSO shall send to the SVAA:

(a) the MSID; and

(b) the estimated Non-BM STOR Instruction Volume (NBSVDZaKj) anticipated to

have been delivered by the MSID,

during each Demand Control Impacted Settlement Period.

9.2.2 Not used

9.2.3 Each Party that is a provider of Non-BM STOR shall co-operate with the NETSO and

provide such information as the NETSO may require for the purposes of complying with

this paragraph 9.2.

9.2A Demand Disconnection Event Threshold Methodology

9.2A.1 For the purposes of this paragraph:

(a) the "Demand Disconnection Event Threshold" shall be the threshold

determined in accordance with the Demand Disconnection Event Threshold

Rules pursuant to which BSCCo shall determine whether the Demand

Disconnection Event Obligations shall be performed;

(b) the "Demand Disconnection Event Obligations" means the obligations in

Sections R8.1, S9.1 and S9.2 together with any consequential obligations which

are necessary to calculate BM Unit Allocated Demand Disconnection Volumes

and Period BM Unit Demand Disconnection Volumes; and

(c) the "Demand Disconnection Event Threshold Rules" shall be a document

established and maintained by the Panel setting out a process and methodology

for determining the anticipated cost and value of performing the Demand

Disconnection Event Obligations, the Demand Disconnection Event Threshold

and whether the Demand Disconnection Event Obligations should be

performed.

9.2A.2 The Panel shall review the Demand Disconnection Event Threshold Rules from time to

time and:

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(a) in respect of any revisions that it proposes to make to the Demand

Disconnection Event Threshold Rules, the Panel shall consult with Parties and

other interested parties and have due regard to any representations made and not

withdrawn during such consultation;

(b) the Panel shall make such revisions to the Demand Disconnection Event

Threshold Rules as may be determined by it;

(c) the revised Demand Disconnection Event Threshold Rules shall be effective for

the purposes of the Code from the date determined by the Panel; and

(c) BSCCo shall notify the Authority, Parties, Data Aggregators and Data

Collectors of the effective date determined by the Panel and shall promptly

publish the revised Demand Disconnection Event Threshold Rules on the BSC

Website.

9.2A.3 In respect of a Demand Disconnection Event (which, for the purposes of this paragraph

9.2A shall mean the Demand Control Events specified in Section Q6.9.2(a) or (c) only),

BSCCo shall:

(a) determine the Demand Disconnection Event Threshold in accordance with the

Demand Disconnection Event Threshold Rules; and

(b) within the period of 1 Business Day commencing on the Business Day after the

BMRA receives the data from the NETSO specified in Section Q6.9.5, notify

the Panel, Parties, each Data Collector, each Data Aggregator, the CDCA, the

SVAA and the SAA (the "impacted participants") that either:

(i) the Demand Disconnection Event Obligations shall not be performed

in which case the impacted participants shall, in respect of the

Demand Disconnection Event to which such notification relates, be

relieved of the duty to comply with the Demand Disconnection

Event Obligations; or

(ii) the impacted participants shall, in respect of the Demand

Disconnection Event to which such notification relates, comply with

the Demand Disconnection Event Obligations in accordance with the

Code; and

(c) at the next following Panel meeting after such notice, provide a report to the

Panel setting out an explanation of its determination of the Demand

Disconnection Event Threshold and the notice issued to impacted participants

under this paragraph 9.2A.3.

9.3 Duties of the SVAA

9.3.1 The SVAA shall, in respect of each Impacted SVA Metering System identified under

paragraph 9.2.1, notify each Half Hourly Data Collector, Half Hourly Data Aggregator,

Non Half Hourly Data Collector and Non Half Hourly Data Aggregator of:

(a) the MSID for each Metering System; and

(b) the estimated Non-BM STOR Instruction Volume (NBSVDZaKj) anticipated to

have been delivered by each MSID,

for each Demand Control Impacted Settlement Period.

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9.3.2 Any notice given under paragraph 9.3.1 shall be given within the period of 1 Business Day

following receipt of a notification under paragraph 9.2.1.

9.3.3 The SVAA shall send an update to any notice given under paragraph 9.3.1 as soon as

reasonably practical after becoming aware of any necessary amendments to this

information.

10. SVA METERING SYSTEM REGISTER

10.1 Provision of MSID Pair Data

10.1.1 In relation to any Settlement Period where the NETSO is not able to assign ABSVD to a

BM Unit, the NETSO shall send to the SVAA Non BM Unit ABSVD MSID Pair Data

subject to and in accordance with Section Q, the provisions of this paragraph 10.1 and

paragraph 10.2.

10.1.2 In relation to a GSP Group where a Lead Party has registered one or more Secondary BM

Units or Additional BM Units with the CRA in accordance with Section K and intends to

offer Balancing Services, the Lead Party shall allocate MSID Pairs in that GSP Group to

such BM Unit(s) by submitting BM Unit MSID Pair Data for such BM Units subject to and

in accordance with the provisions of this paragraph 10.1 and paragraph 10.2.

10.1.3 For the purposes of the Code, "BM Unit MSID Pair Data" shall contain the following:

(a) in relation to an MSID Pair, the GSP Group in which the Import Metering

System and (where applicable) Export Metering System are located;

(b) the MSID of the Import Metering System;

(c) the MSID of the associated Export Metering System (where applicable);

(d) the date from when, subject to paragraph 10.1.4, the Lead Party wishes such

Half Hourly Metering System(s) to be allocated to such BM Unit for the

purposes of providing Balancing Services;

(e) the date to when, subject to paragraph 10.1.4, the Lead Party wishes such Half

Hourly Metering System(s) to be allocated to such BM Unit for the purposes of

providing Balancing Services;

(f) a Customer Consent Flag for the MSID of the Import Metering System setting

out:


and


(g) a Customer Consent Flag for the MSID of the Export Metering System setting

out:


and


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(h) the identification number of the relevant BM Unit.

10.1.4 For the avoidance of doubt a Half Hourly Metering System within a MSID Pair may not be

allocated to more than one MSID Pair and (where applicable) a MSID Pair may not be

allocated to more than one BM Unit that offers Balancing Services for any given time.

10.1.5 MSID Pair Data shall be recorded and stored in the SVA Metering System Register for the

purposes of Settlement from the day specified by the Lead Party in accordance with

paragraph 10.2.1(e) or the NETSO in accordance with Section Q paragraph 6.4.8 (d).

10.2 Process

10.2.1 The SVAA shall in accordance with BSCP602:

(a) validate the MSID Pair Data submitted to it by a Party under paragraph 10.1 as

to compliance with the requirements of this paragraph 10.2;


relevant MSID Pair Data by notice to the Party;

(c) where it confirms the relevant MSID Pair Data in accordance with paragraph

(b), the SVAA shall record the relevant data in the SVA Metering System

Register;

(d) where the Half Hourly Metering System is to be allocated to either an

Additional BM Unit or a Secondary BM Unit and is already allocated to an

Additional BM Unit or a Secondary BM Unit on the SVA Metering System

Register, the SVAA shall, subject to validation referred to in paragraph (a),

confirm the most recent allocation and notify the previous SVA Metering

System Register registrant of:

(i) the SVA Metering System Number of each Half Hourly Metering

System that is no longer allocated to a BM Unit under this paragraph

10;

(ii) the GSP Group in which such Metering System is located;

(iii) the date from when, subject to paragraph 10.1.2, such SVA Metering

System(s) will no longer be allocated to their BM Unit for the

purposes of providing Balancing Services in Settlement.

10.2.2 In respect of a Primary BM Unit, upon being informed Half Hourly Metering System will

no longer be allocated to that Primary BM Unit for the purposes of providing Balancing

Services in Settlement (in accordance with paragraph 10.2.1 (d)), it is the responsibility of

the Lead Party of that Primary BM Unit to ensure that such Half Hourly Metering System

is not subsequently used for any Balancing Services activity.

10.2.3 A Half Hourly Metering System which is allocated to a BM Unit may be removed from

that BM Unit, or transferred to another BM Unit in that GSP Group, in accordance with

BSCP602 by notifying the SVAA and such transfer shall take effect from the time

specified in accordance with that BSCP.

10.3 Qualification

10.3.1 A Half Hourly Data Aggregator that is Qualified in accordance with paragraph 6.1 shall be

deemed as Qualified to provide energy values for an SVA Metering System in accordance

with paragraph 3.9 of Annex S-2 and paragraph 10.5.

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10.4 MSID Standing Data

10.4.1 Where the SVAA has received and validated MSID Pair Data associated with either a

Secondary BM Unit or the NETSO in the SVA Metering System Balancing Services, in

respect of each SVA Metering System within an MSID Pair, it shall:

(a) procure the MSID Standing Data in accordance with BSCP507; and

(b) store such MSID Standing Data in the SVA Metering System Register,

in each case in accordance with BSCP602.

10.4.2 "MSID Standing Data" means, in relation to a SVA Metering System:

(a) the GSP Group in which the SVA Metering System is located;

(b) the Supplier ID of the Supplier that has in accordance with section K2.4

registered the SVA Metering System in SMRS;

(c) the Half Hourly Data Aggregator appointed in relation to that SVA Metering

System; and

(d) any other data item defined in BSCP507 as being included in MSID Standing

Data.

10.4.3 The SVAA shall, where it confirms the relevant MSID Pair Data in accordance with

paragraph 10.2.1 and procures the MSID Standing Data in accordance with paragraph

10.4.1, notify the relevant Half Hourly Data Aggregator(s) of:

(a) the SVA Metering System Number of each Half Hourly Metering System

contained within the relevant MSID Pair Data; and

(b) the date from when the Half Hourly Data Aggregator shall be required to

provide half hourly Metered Data for such Half Hourly Metering System(s) for

the purposes of Settlement.

10.4.4 The relevant Half Hourly Data Aggregator shall, in accordance with BSCP503:

(a) validate the data submitted to it by the SVAA under paragraph 10.4.3 as to



relevant allocation by notice to the SVAA.

10.5 Provision of metered volumes by the Half Hourly Data Aggregator

10.5.1 Where the Half Hourly Data Aggregator confirms the relevant SVA Metering System

Number in accordance with paragraph 10.4.4 it shall record the relevant data in its

aggregation system to take effect, for the purposes of Settlement, from the date specified in

the notification pursuant to paragraph 10.4.3.

10.5.2 Upon receipt of the half hourly Metered Data from the Half Hourly Data Aggregator the

SVAA shall provide, where relevant, the Lead Party of a Secondary BM Unit with the

relevant half hourly Metered Data for each Metering System registered to that Secondary

BM Unit as per the SVA Metering System Register.

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11 MSID PAIR DELIVERED VOLUMES

11.1 Provision of MSID Pair Delivered Volume

11.1.1 Where the NETSO or a Virtual Lead Party has provided MSID Pair Data in a GSP Group

pursuant to paragraph 10.2, the NETSO or Virtual Lead Party shall in respect of each

relevant MSID Pair and each Settlement Period:

(a) provide the MSID Pair Delivered Volume to the SVAA in accordance with

BSCP602; and

(b) ensure that such MSID Paid Delivered Volumes are determined in good faith

and in accordance with Good Industry Practice to:

(i) be accurate and complete; and

(ii) (without prejudice to the generality of the foregoing) accurately

reflect the change in the Imports and Exports resulting from the

delivery of Balancing Services, as such change in the Imports and

Exports would be measured by the Metering Systems allocated to

that MSID Pair.

11.1.2 Where the SVAA receives MSID Pair Delivered Volume, the SVAA shall in accordance

with BSCP602:

(a) validate that the SVA Metering Systems for which data has been provided are

Half Hourly Metering Systems;

(b) validate, where relevant, that the Virtual Lead Party is the Lead Party of

Secondary BM Units to which the SVA Metering Systems are allocated;

(c) validate, where relevant, whether the MSID(s) relate to SVA Metering Systems

specified by the NETSO by reference to the SVA Metering System Register;

(d) on the basis of the checks referred to in paragraphs (a), (b) and (c), confirm or

reject the relevant delivered volumes by notice to the relevant Party; and

(e) where it confirms the relevant delivered volumes in accordance with paragraph

(d), record the data in its systems to take effect in the next Volume Allocation

Run.

11.1.3 In accordance with BSCP602, a Party may submit revised MSID Pair Delivered Volumes

to the SVAA for SVA Metering Systems and Settlement Periods for which that Party was

provided MSID Pair Data. The SVAA shall validate and process such MSID Pair Delivered

Volumes in accordance with paragraph 11.

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S-1 – 1 of 16 Effective Date: 27 February 2020

ANNEX S-1: PERFORMANCE LEVELS AND SUPPLIER CHARGES

1. GENERAL

1.1 Introduction

1.1.1 This Annex S-1 forms a part of Section S.

1.1.2 This Annex S-1 sets out:

(a) the Menu of Supplier Charges (including Performance Levels and Supplier

Charges); and

(b) payment arrangements in respect thereof.

1.2 Interpretation

1.2.1 In this Annex S-1, unless the context otherwise requires:

(a) references to a Performance Level or Serial shall be to a Performance Level or

(as the case may be) Serial as specified in paragraph 2 or 3 respectively;

(b) references to a Metering System shall be to a SVA Metering System;

(c) references to the term "for which a Supplier is responsible" when used in

relation to a particular Metering System or Metering Equipment shall mean the

relevant Metering System or (as the case may be) Metering Equipment in

relation to which the Supplier is registered with a Supplier Meter Registration

Agent including for the avoidance of doubt a Metering System for which the

Supplier is treated as Registrant pursuant to Section K7.1.3(a)(ii);

(d) references to a paragraph shall be to a paragraph of this Annex S-1;

(e) the acronyms employed in the formulae and other algebraic expressions shall

bear the respective meanings set out in Annex X-2;

(f) the subscripts and summations used in the formulae shall bear the respective

meanings set out in Annex X-2; and

(g) references to the Menu of Supplier Charges are to paragraphs 2 and 3 of this

Annex S-1.

1.2.2 For the purposes of this Annex S-1:

(a) "Applicable Settlement Period" means, in relation to any month, a Settlement

Period in respect of which the relevant Volume Allocation Run for Supplier

Volume Allocation is carried out in that month;

(b) "Applicable Settlement Day" means, in relation to any month, a Settlement Day

in respect of which the relevant Volume Allocation Run for Supplier Volume

Allocation is carried out in that month.

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1.3 Acknowledgement by Parties

1.3.1 Each of the Parties acknowledges and confirms that each of the charges set out in the Menu

of Supplier Charges represents a genuine pre-estimate of the loss likely to be suffered by

other Parties as a result of a failure by a Supplier to meet the applicable Performance Level

and is reasonable in all the circumstances.

1.3.2 Each of the Parties further acknowledges and confirms that the charges set out in the Menu

of Supplier Charges constitute the sole remedy of a Party in respect of any claim for

damages for any losses arising from any failure by a Supplier to meet the applicable

Performance Level or Serial.

1.3.3 Nothing contained in this paragraph 1.3 shall be construed so as to limit a Party’s ability to

seek any other form of remedy (such as specific performance or injunctive relief) in respect

of a Supplier’s failure to meet a Performance Level or Serial, subject to Section C.

2. PERFORMANCE LEVELS

2.1 Compliance with performance levels

2.1.1 Each Supplier shall, without prejudice to its other obligations pursuant to Section S and

elsewhere, comply with the Performance Levels set out in the Menu of Supplier Charges.

2.1.2 Each Supplier acknowledges that the Performance Levels represent the minimum

requirements to be achieved.

2.1.3 In the Menu of Supplier Charges compliance with the Performance Levels set out in

paragraphs 2.2 to 2.7 (both inclusive) shall be measured separately by reference to each

GSP Group and not by reference to all GSP Groups.

2.2 Energy and Metering Systems on Annual Advances and Actual Readings at Each

Volume Allocation Run - Serial SP08

2.2.1 In relation to each GSP Group, the percentage of total energy attributable to a Supplier in

respect of Non Half Hourly Metering Systems settled on the basis of Annualised Advances

for each Settlement Day shall be not less than the percentage set out in the table below

against the applicable Volume Allocation Run:

Volume Allocation Run Performance Level

Initial Volume Allocation Run n/a

First Reconciliation Volume Allocation Run 30%

Second Reconciliation Volume Allocation Run 60%

Third Reconciliation Volume Allocation Run 80%

Final Reconciliation Volume Allocation Run 97%

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2.2.2 For the purpose of paragraph 2.2.1:

(a) the percentage of total energy attributable to a Supplier settled on the basis of

Annualised Advances shall be calculated in accordance with the following

formula:-

A

A E

HZ

HZ HZ

x 100

where:-

AHZ means N(AA) j (CiNj + CLOSSiNj); and

EHZ means N(EAC) j (CiNj + CLOSSiNj);

(b) the following summations shall bear the following respective meanings:

N(AA) means summed over all Consumption Component Classes (N) that

are associated with Annualised Advances. For the avoidance of

doubt, values associated with Consumption Component Classes

associated with Third Party Generating Plant comprised in SVA

Metering Systems shall be added to those values associated with all

other Consumption Component Classes; and

N(EAC) means summed over all Consumption Component Classes (N) that

are associated with Estimated Annual Consumptions and are not

associated with Unmetered Supplies. For the avoidance of doubt,

values associated with Consumption Component Classes associated

with Third Party Generating Plant comprised in SVA Metering

Systems shall be added to those values associated with all other

Consumption Component Classes;

(c) the relevant values shall be those included in the relevant run of Settlement.

2.2.3 The Performance Levels set out in the table in paragraph 2.2.1 are referred to elsewhere in

this Annex S-1 as Serial SP08a.

2.2.4 In relation to each GSP Group and in respect of Half Hourly Metering Systems which are

100kW Metering Systems for which the Supplier is responsible, the Supplier shall ensure

that (in accordance with the relevant BSC Procedure) in respect of each month, actual

(rather than estimated) values in respect of not less than 99 per cent. of total energy

attributable to that Supplier relating to such Metering Systems for the aggregate of the

Applicable Settlement Periods are provided by its Half Hourly Data Aggregator to the

SVAA in time for each Supplier Volume Allocation Run.


(a) the percentage of total energy attributable to a Supplier represented by actual

values in respect of any month shall be calculated in accordance with the

following formula:-

A

A + E

HZ

HZ HZ

x 100

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where:-

AHZ means md N(HHA) j (CiNj + CLOSSiNj); and

EHZ means md N(HHE) j (CiNj + CLOSSiNj);

(b) the following summations shall bear the following respective meanings:-

md means summed over all Applicable Settlement Days;

N(HHA) means summed over all Consumption Component Classes (N) that

are associated with actual values and with half hourly data

aggregation in relation to Metering Systems which are 100kW

Metering Systems save those Consumption Component Classes


Metering System(s);

N(HHE) means summed over all Consumption Component Classes (N) that

are associated with estimated values and with half hourly data

aggregation in relation to Metering Systems which are 100kW



Metering System(s);

(c) the relevant values shall be those included in the relevant Volume Allocation

Run.

2.2.6 In calculating the Performance Levels set out in paragraph 2.2.4, no account shall be taken

of any Metering System which is at the relevant time de-energised for the purposes of BSC

Procedure BSCP502, unless a consumption value has in fact been provided to the SVAA

for the relevant Volume Allocation Run.

2.2.7 The Performance Levels set out in paragraph 2.2.4 are referred to elsewhere in this Annex

S-1 as Serial SP08b.

2.2.8 In relation to each GSP Group and in respect of Half Hourly Metering Systems for which a

Supplier is responsible which are identified as not being 100kW Metering Systems, the

Supplier shall ensure that (in accordance with the relevant BSC Procedure) in respect of

each month actual (rather than estimated) values in respect of:

(a) except to the extent set out in paragraph 2.2.8(b), not less than 99 per cent; or

(b) subject always to paragraph 2.2.8A, in respect of Metering Systems that are

comprised in Measurement Class "F" and "G", not less than 90 per cent,

of the total energy attributable to that Supplier relating to such Metering Systems for the

aggregate of the applicable Settlement Periods are provided by its Half Hourly Data

Aggregator to the SVAA in time for the relevant First Reconciliation Volume Allocation

Run and any subsequent Reconciliation Volume Allocation Runs.

2.2.8A Paragraph 2.2.8(b) shall:

(a) only apply to the relevant First Reconciliation Volume Allocation Run and shall

not apply to any subsequent Reconciliation Volume Allocation Runs (for which

the Performance Level shall be not less than 99 per cent as set out in paragraph

2.2.8(a)); and

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(b) cease to have effect from and including the Settlement Day that falls on 1st

January 2020.

2.2.9 For the purpose of paragraph 2.2.8:

(a) the percentage of total energy attributable to a Supplier represented by actual

values in respect of any month shall be calculated in accordance with the

following formula:

A

A + E

HZ

HZ HZ

x 100

where:-

AHZ means md N(HHA) j (CiNj + CLOSSiNj); and

EHZ means md N(HHE) j (CiNj + CLOSSiNj);

(b) the following summations shall bear the following respective meanings:-

md means summed over all Applicable Settlement Days;

N(HHA) means summed over all Consumption Component Classes (N) that

are associated with actual values and with half hourly data

aggregation in relation to Metering Systems which are not 100kW



Metering System(s);

N(HHE) means summed over all Consumption Component Classes (N) that

are associated with estimated values and with half hourly data

aggregation in relation to Metering Systems which are not 100kW



Metering System(s);

(c) the relevant values shall be those included in the relevant Volume Allocation

Run.

2.2.10 In calculating the Performance Levels set out in paragraph 2.2.8, no account shall be taken

of any Metering System which is at the relevant time de-energised for the purposes of BSC

Procedure BSCP502, unless a consumption value has in fact been provided to the SVAA

for the relevant Volume Allocation Run in respect of that Metering System.

2.2.11 The Performance Levels set out in paragraph 2.2.8 are referred to elsewhere in this Annex

S-1 as Serial SP08c.

2.3 Use of Default Values of Estimated Annual Consumption - Serial SP09

2.3.1 In relation to each GSP Group and in respect of Non Half Hourly Metering Systems for

which the Supplier is responsible, the Supplier shall ensure that the number of such Non

Half Hourly Metering Systems (whether metered Metering Systems or Metering Systems

for Unmetered Supplies) that are settled on the basis of Default Estimated Annual

Consumption For Metered Metering Systems or Default Estimated Annual Consumption

For Unmetered Metering Systems, as the case may be, expressed as a percentage of the

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total number of Non Half Hourly Metered Metering Systems (both metered Metering

Systems and Metering Systems for Unmetered Supplies) for which the Supplier is

responsible, shall be no greater than the values set out in the table below against the

applicable Volume Allocation Run, provided that this paragraph 2.3.1 shall not apply

where the total number of Non Half Hourly Metering Systems for which the Supplier is

responsible is less than 1000.


Initial Volume Allocation Run 0.5%

First Reconciliation Volume Allocation

Run

0.5%

Second Reconciliation Volume

Allocation Run

0.2%

Third Reconciliation Volume Allocation

Run

0.1%

Final Reconciliation Volume Allocation

Run

0%

2.3.2 In relation to each GSP Group and in respect of Non Half Hourly Metering Systems for

which the Supplier is responsible, the number of such Non Half Hourly Metering Systems

(whether metered Metering Systems or Metering Systems for Unmetered Supplies) that are

settled on the basis of Default Estimated Annual Consumption For Metered Metering

Systems or Default Estimated Annual Consumption For Unmetered Metering Systems, as

the case may be, shall be no greater than the values set out in the table below against the

applicable Volume Allocation Run provided that this paragraph 2.3.2 shall not apply where

the total number of Non Half Hourly Metering Systems for which the Supplier is

responsible is 1000 or more.


(number of Metering Systems)

Initial Volume Allocation Run 5


Run

5


Allocation Run

2

Third Reconciliation Volume Allocation

Run

1

Final Reconciliation Volume Allocation

Run

0

2.3.3 The Performance Levels set out in this paragraph 2.3 are referred to elsewhere in this Menu

of Supplier Charges as Serial SP09.

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2.4 Installation of Half Hourly Metering - Serial SP04

2.4.1 A Supplier shall comply with the requirements of Section L2.1.1 in relation to the

installation of Half Hourly Metering Equipment for each 100kW Metering System for

which it is responsible.

2.4.2 The Performance Level set out in paragraph 2.4.1 is referred to elsewhere in this Annex S-

1 as Serial SP04.

2.5 Reporting by Suppliers - Serials SP01 and SP02

2.5.1 A Supplier shall deliver, or procure the delivery of, its Routine Performance Monitoring

Report in respect of each GSP Group to the Performance Assurance Board or as it may

direct, in accordance with the relevant BSC Procedure, by not later than 20 Business Days

after the end of each month.

2.5.2 A Supplier shall update, or procure the updating of, its Routine Performance Monitoring

Log in respect of each GSP Group in accordance with the relevant BSC Procedure, by not

later than 20 Business Days after the end of each month and shall make such updated logs

available promptly on request from time to time to the Performance Assurance Board or as

it may direct.

2.5.3 The Performance Levels set out in paragraphs 2.5.1 and 2.5.2 are referred to elsewhere in

this Annex S-1 as Serial SP01 and Serial SP02 respectively.

3. CHARGES

3.1 Application of Charges

3.1.1 This paragraph 3 will have effect in determining the charges payable by a Supplier in

respect of any failure to comply with the Performance Levels including the maximum

amount payable by a Supplier under paragraph 3.7.

3.1.2 The arrangements for payment, collection and distribution of the charges are set out in

paragraph 4 of this Annex S-1.

3.1.3 The charges specified in this paragraph 3 are cumulative and not mutually exclusive one of

the other.

3.2 Failure to Comply with Serial SP08a

3.2.1 A Supplier who fails to comply with Serial SP08a shall be liable to the charge set out in the

table below against the relevant item in Serial SP08a:

Item in Serial SP08a (as referred to in the table

in paragraph 2.2.1)

Amount per Chargeable MWh

Initial Volume Allocation Run No Charge

First Reconciliation Volume Allocation Run No Charge

Second Reconciliation Volume Allocation Run No Charge

Third Reconciliation Volume Allocation Run £0.13

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Item in Serial SP08a (as referred to in the table

in paragraph 2.2.1)


Final Reconciliation Volume Allocation Run £1.43

3.2.2 For the purposes of paragraph 3.2.1, the Chargeable MWh for a Supplier shall be

calculated in respect of a GSP Group for any month for each Settlement Day (if any) in

relation to which the relevant Volume Allocation Run was carried out in that month, in

respect of which there has been a failure to comply with Serial SP08a, in accordance with

the following formula:

SCMWh = NHHEA x p

100

where:-

SCMWh is the Chargeable MWh attributable to that Supplier for the relevant Settlement

Day in respect of the relevant GSP Group;

NHHEA is the sum of AHZ and EHZ (expressed in MWh) attributable to that Supplier in

respect of such GSP Group for such Settlement Day, as determined in

accordance with paragraph 2.2.2; and

p is the number of percentage points by which the Performance Level in Serial

SP08a was not met by that Supplier in such GSP Group in respect of such

Settlement Day, rounded to 1 decimal place.

3.3 Failure to Comply with Serial SP08b

3.3.1 A Supplier who fails to comply with Serial SP08b shall be liable to the charge set out in the

table below:-

Item in Serial SP08b (as referred to in

paragraph 2.2.4)


Initial Volume Allocation Run £0.13


Run

£1.43


Allocation Run

£0.00

Third Reconciliation Volume

Allocation Run

£0.00

Final Reconciliation Volume

Allocation Run

£0.00

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calculated in respect of a GSP Group for any month in respect of which there has been a

failure to comply with Serial SP08b in accordance with the following formula:

SCMWh = HHEA x p

100

where:-

SCMWh is the Chargeable MWh attributable to that Supplier for all Applicable

Settlement Periods in respect of the relevant GSP Group;

HHEA is the sum of AHZ and EHZ (expressed in MWh) attributable to that Supplier for

such month in respect of the relevant GSP Group for the relevant month, as

determined in accordance with paragraph 2.2.5; and

p is the number of percentage points by which the relevant Performance Level in

Serial SP08b was not met by the Supplier in such GSP Group in respect of such

month, rounded to 2 decimal places.

3.4 Failure to Comply with Serial SP08c

3.4.1 A Supplier who fails to comply with Serial SP08c shall be liable to a charge set out in the

table below:-

Item in Serial SP08c (as referred to in

paragraph 2.2.8)



Run

£0.00


Allocation Run

£0.00

Third Reconciliation Volume

Allocation Run

£0.00

Final Reconciliation Volume

Allocation Run

£1.43


calculated in respect of a GSP Group for any month in respect of which there has been a

failure to comply with Serial SP08c, in accordance with the following formula:

SCMWh = HHEA x p

100

where:-

SCMWh is the Chargeable MWh attributable to that Supplier for all Applicable

Settlement Periods in the relevant month in respect of the relevant GSP Group;

HHEA is the sum of AHZ and EHZ (expressed in MWh) attributable to that Supplier in

respect of the relevant GSP Group for the relevant month, as determined in

accordance with paragraph 2.2.9; and

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p is the number of percentage points by which the Performance Level in Serial

SP08c was not met by the Supplier in such GSP Group in respect of such

month, rounded to the nearest 2 decimal places.

3.5 Failure to Comply with Serial SP04

3.5.1 Subject to paragraph 3.5.2, a Supplier who fails to comply with Serial SP04 shall be liable,

in relation to each relevant Metering System, to a charge of £2.68 per day (or part thereof)

during which the failure continues.

3.5.2 A Supplier shall not be liable to a charge in accordance with paragraph 3.5.1 in respect of

any failure to install Half Hourly Metering Equipment during the three months following

the date on which any Metering Systems (identified as not being 100kW Metering

Systems) to which that Metering Equipment relates first become 100kW Metering Systems

(the "SP04 Exclusion Period").

3.5.3 For the purposes of the charges calculated in accordance with this paragraph 3.5, any

charges calculated in respect of any failure to install Half Hourly Metering by the

completion of the SP04 Exclusion Period (the "SP04 Completion Date"), then:

(a) where the SP04 Completion Date falls on or after the Relevant Implementation

Date of the Code Modification that first made reference to 100 kW Metering

Systems;

(b) such charges shall be calculated in accordance with the rules introduced by the

Code Modification that first made reference to 100 kW Metering Systems.

3.6 Failure to Comply with Serial SP01 and Serial SP02

3.6.1 A Supplier who fails to comply with:

(a) Serial SP01 shall be liable to a charge of £0.00 per Business Day in respect of

each Routine Performance Monitoring Report which is not provided in

accordance with the time limits and in the manner specified in Serial, and/or

(b) Serial SP02 shall be liable to a charge of £25.50 per business day in respect of

each Routine Performance Monitoring Log which is not maintained in

accordance with the time limits and in the manner specified in Serial SP02.

3.7 Charge Cap

3.7.1 A Supplier’s liability to pay charges in respect of any month in respect of a GSP Group

(after taking account of its share of such charges receivable pursuant to paragraph 4.1.13)

shall in no circumstances exceed the Supplier’s Monthly Cap.

3.7.2 A Supplier’s Monthly Cap for any month in respect of a GSP Group shall be calculated by

the Performance Assurance Board on or before the end of the next succeeding month (on

the basis of the then latest available Volume Allocation Run) according to the following

formula:

DT

MCCGSP

SCTxGSPS

where:-

Sc means the Supplier’s Monthly Cap for the relevant month;

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GSPMC means the GSP Group liability cap for the relevant month, calculated in

accordance with paragraph 3.7.3;

SCT means the total quantity of active import energy attributable to that Supplier

determined as the sum of Supplier Cap Take for that Supplier in the relevant

GSP Group across all Settlement Periods in the relevant month; and

GSPDT means the total quantity of active import energy attributable to all Suppliers

determined as the sum of Supplier Cap Take for all Suppliers in the relevant

GSP Group across all Settlement Periods for the relevant month.

3.7.3 The GSP Group liability cap in respect of a GSP Group for any month shall be calculated

by the Performance Assurance Board on or before 30th April in each year (in each case, on

the basis of the then latest available Volume Allocation Run) according to the following

formula:-

GSPMC = £1,275,000 x GSP

GSP

A

AS

where:-

GSPMC means the GSP Group liability cap for the relevant month;

GSPA means the total quantity of energy (rounded to the nearest two decimal places)

attributable to all Suppliers determined as the GSP Group Take in that GSP

Group across all Settlement Periods in the 12 month period ending on the

immediately preceding 31st March, as determined by the Performance

Assurance Board on the basis of information provided by the SVAA; and

GSPAS means the total quantity of energy (rounded to the nearest two decimal places)

attributable to all Suppliers determined as the sum of all GSP Group Takes for

all GSP Groups across all Settlement Periods in the 12 month period ending on

the immediately preceding 31st March, as determined by the Performance

Assurance Board on the basis of information provided by the SVAA.

3.7.4 The Performance Assurance Board shall, in its discretion, establish reasonable transitional

arrangements (by reference to information available to it from the CDCA) for determining

the quantity of energy attributable to all Suppliers for the purposes of paragraph 3.7.3 in

relation to any 12 month period for which information as to the GSP Group Take is not

available in respect of each month in that period.

3.8 Adjustment to Charges and Caps

3.8.1 The charges specified in paragraphs 3.2.1, 3.3.1, 3.4.1, 3.5.1 and 3.6.1 and the figure of

£1,275,000 in paragraph 3.7.3 (for the purposes of this paragraph 3.8 in each case

described as the "Base Sum"), shall be calculated, in respect of each 12 month period

beginning on 1st April, from and including 1st April, 2001, in accordance with the

following formula:

adjusted Base Sum = Base Sum x 1RPI

100

P

where RPIP is the percentage change (whether of a positive or negative value) in the Retail

Price Index between that published in, or (as the case may be) the substitute index for, the

third month before 1st April, 2000 and that published in, or the substitute index for, the

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third month before the anniversary from which the adjusted charges and the adjusted GSP

Group liability cap are to take effect.

3.9 Timing of Commencement of Charges

3.9.1 The charges specified in this Annex S-1 except paragraph 3.6 shall apply in respect of

months commencing on or after the Implementation Date of the Approved Modification

pursuant to which this paragraph 3.9.1 was introduced.

3.9.2 The charges specified in paragraph 3.6 shall apply in respect of months (in respect of which

Routine Performance Monitoring Reports are to be delivered and Routine Performance

Monitoring Logs updated) commencing on or after the date two months after the

Implementation Date of the Approved Modification pursuant to which this paragraph 3.9.2

was introduced.

3.10 Temporary Unavailability in Central Monitoring System

3.10.1 The provisions of this paragraph 3.10 shall apply where the Performance Assurance

Reporting and Monitoring System is temporarily unavailable for whatever reason and, for

the avoidance of doubt, a Supplier shall remain liable to pay charges in respect of which

the Performance Assurance Board is, for the time being, unable to determine the payment

of such charges due to the temporary unavailability of the Performance Assurance

Reporting and Monitoring System.

3.10.2 Each of the Suppliers acknowledges and confirms that those charges specified in this

paragraph 3 which cannot be separately determined by the Performance Assurance Board

without the assistance of the Performance Assurance Reporting and Monitoring System

shall not be payable in respect of a Supplier until such time as the Performance Assurance

Reporting and Monitoring System is available in order to record data and determine the

charges payable by Suppliers pursuant to the Menu of Supplier Charges (as determined by

the Performance Assurance Board) provided that such charges shall nevertheless continue

to accrue for the purposes of paragraph 3.10.3.

3.10.3 Once the Performance Assurance Reporting and Monitoring System is available (as

determined by the Performance Assurance Board in accordance with paragraph 3.10.2), a

Supplier shall be liable to pay charges in respect of its performance against those Serials in

respect of which the Performance Assurance Board could not determine the payment of

such charges without the assistance of the Performance Assurance Reporting and

Monitoring System, for the period from the relevant date when such System became

temporarily unavailable.

3.10.4 The charges referred to in paragraph 3.10.3 shall be calculated in accordance with the

Menu of Supplier Charges (and shall have deemed due dates for payment) for the purposes

of paragraph 4 as if such Performance Assurance Reporting and Monitoring System had

been available.

4. COLLECTION AND PAYMENT OF SUPPLIER CHARGES

4.1 Supplier Charges - Collection and Recovery

4.1.1 The Performance Assurance Board shall determine whether a Supplier has failed to comply

with any of the Serials and the associated charges payable, in each case as soon as is

reasonably practicable following receipt by the Performance Assurance Board of the

Routine Performance Monitoring Reports pursuant to Serial SP01.

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4.1.2 The Performance Assurance Board shall make its determination on the basis of the

information provided to it in the Routine Performance Monitoring Reports adjusted where

appropriate to reflect the circumstances which applied at the time when the calculations

would have been made if the Routine Performance Monitoring Reports had been provided

within the time period specified in Serial SP01.

4.1.3 When making its determination pursuant to paragraph 4.1.1 of whether a Supplier has

failed to comply with any of the Serials and the associated charges payable by the Supplier:

(a) the Performance Assurance Board shall compare the Supplier’s Net Liability for

the relevant month (calculated as SNL below) with the Supplier’s Monthly Cap;

(b) if the Supplier’s Net Liability exceeds the Supplier’s Monthly Cap then the total

charges payable by the Supplier in respect of the relevant month shall be

calculated according to the following formula (instead of by general application

of the Menu of Supplier Charges):-

Supplier’s charges = SS

STGC

C

NL

x

where:-

STGC is the total charges which would be payable by the Supplier for the

relevant month under this paragraph 4 in respect of the relevant GSP

Group before the application of this paragraph;

SC is the Supplier’s Monthly Cap for the relevant month (calculated

pursuant to paragraph 3.8 of the Menu of Supplier Charges); and

SNL is the total charges which would be payable by the Supplier for the

relevant month under this paragraph 4 in respect of the relevant GSP

Group before the application of this paragraph 4.1.3, less any share

of those charges payable by the Supplier which would otherwise be

receivable by the Supplier pursuant to paragraph 4.1.13 before the

application of this paragraph.

4.1.4 As soon as practicable following a determination pursuant to paragraph 4.1.1, the

Performance Assurance Board shall notify each Supplier of the amount (if any) due from it

pursuant to this paragraph in respect of any particular month in respect of failures to

comply with any of the Serials and any such notice shall specify the GSP Group in relation

to which the relevant amount is payable by a Supplier (where relevant).

4.1.5 Each Supplier shall pay the amount notified to it by the Performance Assurance Board in

accordance with paragraph 4.1.4 within 15 days after the invoice date. Any such payment

shall be made to the Performance Assurance Board (for distribution in accordance with

paragraphs 4.1.13 and 4.1.14) in sterling in cleared funds in full without set-off or

counterclaim (subject to paragraph 4.1.20), withholding or deduction of any kind

whatsoever but without prejudice to any other remedy.

4.1.6 All charges under this paragraph 4.1 are exclusive of VAT which shall be added to such

charges, if applicable.

4.1.7 In the event of any dispute regarding charges under this paragraph 4.1 in respect of any

month, no Supplier may withhold payment of any invoiced amount.

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(a) if any amount due under this paragraph 4.1 is not received on the due date, the

Supplier required to pay such amount shall pay interest to the Performance

Assurance Board on such amount from and including the date of default to the

date of actual payment (before as well as after judgment) at the Default Interest

Rate from time to time during such period of default;

(b) if the Performance Assurance Board has to calculate any amount due under this

paragraph 4.1 following the late receipt of a Routine Performance Monitoring

Report (in this paragraph, the “Relevant Report”), the Supplier required to pay

such amount shall pay interest to the Performance Assurance Board on such

amount for the period of default (before as well as after judgment) at the

Default Interest Rate;

(c) if an amount due from a Supplier pursuant to this Annex S-1 in respect of a

failure to comply with any of the Serials is subsequently recalculated or

redetermined (whether as a result of a dispute or otherwise howsoever), interest

shall be payable to the Performance Assurance Board by or for the account of

the Supplier and/or the Trading Parties concerned on the difference between the

original amount and the amount as so recalculated or redetermined from (and

including) the first day of the month following that in respect of which the

original charge was levied to (and including) the last day of the month

immediately preceding that in which the amount is recalculated or redetermined

(before as well as after judgment) at the Base Rate calculated for successive

monthly periods and determined as at the first day of each such period;

and, for the purpose of calculating interest under paragraphs 4.1.8(a) and (b):

(i) the period of default shall be deemed to begin on the due date for

delivery of the Relevant Report and shall be deemed to end on the

due date for delivery of the next succeeding Routine Performance

Monitoring Report required to be delivered by that Supplier after

receipt by the Performance Assurance Board of the Relevant Report

(in this paragraph, the “Next Report”) (or, if the Relevant Report

shall be the last report due from that Supplier, the date that would

have been the due date for delivery of the Next Report); and

(ii) the Default Interest Rate shall be calculated as at the first day of each

month for successive monthly periods beginning with the month in

which the period of default is deemed to begin and ending with the

month in which such period of default is deemed to end.

4.1.9 If the Performance Assurance Board is unable to calculate any amounts due under this

paragraph 4.1 as a result of any temporary unavailability of the Performance Assurance

Reporting and Monitoring System, then the Supplier required to pay any such amounts

shall pay interest to the Performance Assurance Board from and including the deemed due

date for payment, calculated in accordance with paragraph 3.11 of the Menu of Supplier

Charges, to the date of payment (before as well as after judgment) at the BSC Interest Rate

from time to time during such period.

4.1.10 Any amount received by the Performance Assurance Board pursuant to this paragraph 4.1

shall be applied by the Performance Assurance Board (unless otherwise specified by the

paying Supplier) in or towards payment of amounts payable by the Supplier in respect of

the longest outstanding invoice and (where there is a shortfall in payment by a Supplier of

any amounts specified in a single invoice in respect of different GSP Groups) according to

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the proportion which the individual amounts payable pursuant to the invoice bear to the

total amount payable under that invoice.

4.1.11 Any amounts paid by a Supplier pursuant to this paragraph 4.1 shall be accounted for

separately by the Performance Assurance Board by reference to the GSP Group in respect

of which the relevant amounts have been collected or appropriated.

4.1.12 The Performance Assurance Board shall not be obliged to segregate any amounts received

pursuant to this paragraph 4.1 into separate funds.

4.1.13 Each qualifying Supplier shall be entitled to receive its due proportion of amounts

recoverable pursuant to this paragraph 4.1 and available for distribution in respect of a GSP

Group and, for this purpose:-

(a) a "qualifying Supplier" is a Supplier who has at any time during the relevant

month supplied any Customers in the relevant GSP Group who have Non Half

Hourly Metering Systems;

(b) the due proportion relating to a qualifying Supplier is the amount (as near as

may be) calculated by the Performance Assurance Board as that Supplier’s

share of the total quantity of energy (after adjustment for Line Loss Factors)

attributable to Non Half Hourly Metering Systems taken by all Suppliers in the

GSP Group during the relevant month pursuant to the Code;

(c) the amount available for distribution in relation to a GSP Group in respect of a

particular month is 90 per cent. of the total amount from time to time paid or

due and payable from Suppliers pursuant to this paragraph 4.1 in relation to the

relevant GSP Group in respect of that month, whether or not then paid; and

(d) the information as to total quantity of energy referred to in paragraph (b) shall

be as provided by the SVAA based on the latest available run of Supplier

Volume Allocation as at the time when the relevant calculation falls to be made.

4.1.14 Each qualifying Trading Party shall be entitled to receive a share of amounts recoverable

pursuant to this paragraph 4.1 and available for distribution in respect of Trading Parties in

the proportion to which a Trading Party’s Main Funding Share bears to the Main Funding

Shares of all Trading Parties applicable in respect of the relevant month and, for this

purpose:-

(a) a "qualifying Trading Party" is a Trading Party who was at any time during

the relevant month a Trading Party; and

(b) the amount recoverable pursuant to this paragraph 4.1 and available for

distribution to qualifying Trading Parties in respect of a particular month is 10

per cent. of the total amount from time to time paid or due and payable from

Parties pursuant to this paragraph 4.1 in relation to the relevant GSP Group in

respect of that month, whether or not then paid.

4.1.15 The Performance Assurance Board shall, by no later than the end of each month, calculate

the amount (if any) payable to each qualifying Supplier and qualifying Trading Parties

pursuant to paragraph 4.1.13 and paragraph 4.1.14 in respect of the relevant preceding

month (or months) to which a Supplier’s Routine Performance Monitoring Report relates

and any earlier months.

4.1.16 The Performance Assurance Board shall, by no later than the end of each month, notify

each qualifying Supplier and qualifying Trading Party of the amounts (if any) so

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recoverable by them and shall account to each qualifying Supplier and qualifying Trading

Party on a monthly basis out of the funds received in respect of any particular GSP Group

for the amounts so recoverable.

4.1.17 The Performance Assurance Board shall in no circumstances be obliged to account to a

qualifying Supplier or qualifying Trading Party in an amount exceeding the available funds

collected pursuant to this paragraph 4.1.

4.1.18 Any amounts paid by the Performance Assurance Board to a qualifying Supplier or

qualifying Trading Party shall be deemed to be inclusive of any VAT, if applicable.

4.1.19 The provisions of this paragraph 4.1 shall give rise to rights and obligations as between

Suppliers within the same GSP Group and as between qualifying Trading Parties generally

and the relevant Supplier and, accordingly, the procedures for collection and payment of

amounts by the Performance Assurance Board shall accordingly be without prejudice to the

rights of any qualifying Supplier or qualifying Trading Parties to enforce its claim (to the

extent not paid or otherwise satisfied) against any Supplier who fails to make payment on

the due date.

4.1.20 For administrative convenience, the Performance Assurance Board shall be entitled at any

time and from time to time to arrange for the payment and collection of amounts by, and

for the payment and account of amounts to, Suppliers and Trading Parties (or particular

ones of them) pursuant to this paragraph 4.1 to be made on a net basis (in which case such

payments, collections and accounts with respect to, and as between, the Suppliers and

Trading Parties in question shall be so made) but any such netting shall be without

prejudice to paragraph 4.1.19.

4.1.21 The Performance Assurance Board may request BSCCo to arrange for the FAA or some

other person nominated by it from time to time to carry out all or any of its functions

pursuant to this paragraph 4.1 (save where the Performance Assurance Board is required to

make a determination pursuant to any of paragraphs 4.1.1 and 4.1.2 and paragraph

4.1.13(b)), in which case references to the Performance Assurance Board in this paragraph

4.1 are to be read as references to FAA or such other person so long as such delegation

continues.

4.1.22 A Supplier may query the amounts notified to it pursuant to paragraph 4.1.16 within 10

Business Days of receiving such notification in accordance with BSCP536.

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S-2 – 1 of 78 Effective Date: 1 April 2021

ANNEX S-2: SUPPLIER VOLUME ALLOCATION RULES

1. GENERAL

1.1 Introduction

1.1.1 This Annex S-2 forms a part of Section S.

1.1.2 This Annex S-2 sets out the basis upon which quantities of Active Energy associated with

SVA Metering Systems are determined and allocated to Supplier BM Units and Suppliers and Secondary BM Units for the purposes of Settlement, including rules in respect of:

(a) Supplier Meter Registration Services;

(b) Half Hourly Data Collection and Aggregation;

(c) Non Half Hourly Data Collection and Aggregation;

(d) Supplier Volume Allocation Standing Data;

(e) Supplier Volume Allocation Periodic Data;

(f) Reconciliation Allocation Data Input;

(g) Daily Profile Coefficients;

(h) Half Hourly Metering System Consumption;

(i) Non Half Hourly Metering System Consumption;

(j) GSP Group Correction;

(k) Adjustment of Supplier Deemed Takes;

(l) Determination of BM Unit Allocated Demand Volumes and Secondary BM

Unit Demand Volumes;

(m) Reallocation Volumes;

(n) Volume Allocation Runs; and

(o) Secondary BM Unit Supplier Delivered Volumes.

1.1.3 This Annex S-2 also sets out the basis upon which quantities of Active Energy associated

with SVA Metering Systems are determined and allocated to Supplier BM Units and

Suppliers for other purposes, including rules in respect of:

(a) Half Hourly Data Aggregation;

(b) Half Hourly Metering System Consumption; and

(c) determination of aggregated storage volumes.

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1.2 Interpretation

1.2.1 In this Annex S-2:

(a) references to Metering Systems are to SVA Metering Systems (and references

to Metering System Numbers shall be construed accordingly);

(b) references to paragraphs are to paragraphs of this Annex S-2,

unless otherwise expressly stated.

2. THE SUPPLIER METER REGISTRATION SERVICES

2.1 Provision of data

2.1.1 Each Supplier shall ensure that, in respect of each of the Metering Systems for which it is

responsible, data is supplied to the SMRA pursuant to this paragraph 2 by itself and/or its

agents which is complete and accurate in all material respects, valid and timely.

2.1.2 Each SMRA shall use its reasonable endeavours to procure the provision to it by the SVAA

of such data as are specified in BSCP501 as being provided to such SMRA by the SVAA

together with the Settlement Days from which such data are to be effective from the

SVAA.

2.1.3 The SVAA shall notify the data referred to in paragraph 2.1.2 promptly to the SMRA in

accordance with BSCP508 and the SMRA shall ensure that processes are put in place

which are designed to ensure that such data is input promptly into its Supplier Meter

Registration Service system.

2.1.4 Each SMRA shall make and maintain arrangements with those Distribution System

Operators whose Distribution Systems have a connected Metering System for which

Metering System the SMRA is required to store information in its Supplier Meter


2.1.5 The purpose of the arrangements referred to in paragraph 2.1.4 shall be to provide for the

transfer of such data as are specified in BSCP501 as being provided by the Distribution

System Operators to such SMRA in respect of each such Metering System.

2.1.6 Distribution System Operators shall notify such data promptly to such SMRA and such

SMRA shall ensure that processes are put in place which are designed to ensure that such

data are promptly input into its Supplier Meter Registration Service system in accordance

with BSCP501.

2.1.7 Each SMRA shall make and maintain arrangements with all those Suppliers who are

responsible for Metering Systems, details of which are required to be maintained by the

SMRA in its Supplier Meter Registration Service system.

2.1.8 The purpose of the arrangements referred to in paragraph 2.1.7 shall be to provide for the

transfer of such data as are specified in BSCP501 as being provided by such Supplier to

such SMRA together with the Settlement Days on which such data are to be effective from

each such Supplier and in respect of each such Metering System.

2.1.9 Each such Supplier shall notify such data promptly to such SMRA and such SMRA shall

ensure that processes are put in place which are designed to ensure that such data are input

promptly into the Supplier Meter Registration Service system.

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2.1.10 Each SMRA shall ensure that processes are put in place which are designed to ensure that

the data received by it pursuant to this paragraph 2 are validated and complete in

accordance with BSCP501 and that there is a Supplier responsible for each Metering

System for which such SMRA has a requirement to store information in its Supplier Meter


2.1.11 Each Supplier shall ensure that all data sent by it pursuant to this paragraph 2 are valid and

complete.

2.1.12 Each SMRA shall:

(a) supply such data as are specified in BSCP501 as being provided by such SMRA

to a Data Aggregator, together with the Settlement Days on which such data are

to be effective, from such SMRA’s Supplier Meter Registration Service system

to the relevant Half Hourly Data Aggregator and Non Half Hourly Data

Aggregator on initial allocation of such data, on any change of such data and on

request from the relevant Data Aggregator;

(b) supply such data in respect of each Metering System for which such SMRA is

required to store information in its Supplier Meter Registration Service system

and for which such Half Hourly Data Aggregator or Non Half Hourly Data

Aggregator, as the case may be, is responsible.

2.1.13 In respect of each Metering System for which a SMRA is required to store information in

its Supplier Meter Registration Service system, the SMRA shall supply to the persons

specified in BSCP501 (together with the Settlement Days on which such data are to be

effective) such data as are specified in BSCP501 in the following circumstances:

(a) on the change of Supplier; and

(b) on disconnection of such Metering System.

2.1.14 In respect of each Settlement Day, for each BM Unit for which such data is received the

SAA shall send to the SVAA the Replacement Reserve Bid Data in respect of each Quarter

Hour period within each Replacement Reserve Auction Period within such Settlement Day.

3. HALF HOURLY DATA COLLECTION AND AGGREGATION

3.1 Supplier’s responsibility for the collection and aggregation of half hourly data

3.1.1 Subject to paragraph 3.1.2, each Supplier shall ensure that aggregated consumption figures

for each Settlement Period of each Settlement Day are made available to the SVAA

pursuant to this paragraph 3, in respect of all of such Supplier’s Metering Systems which

are subject to half hourly metering and Unmetered Supplies subject to Equivalent

Metering.

3.1.2 If:

(a) a SVA Generator provides Export Active Energy through a SVA Metering

System and such Export Active Energy is allocated between two or more

Suppliers, and/or

(b) a SVA Customer consumes Import Active Energy through a SVA Metering

System and such Import Active Energy is allocated between two or more

Suppliers,

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each such Supplier shall ensure that aggregated consumption figures for each Settlement

Period of each Settlement Day shall be made available to the SVAA pursuant to this

paragraph 3 in respect of all of such Supplier’s Metering System Numbers associated with

Metering Systems which are subject to half hourly metering.

3.1.3 Each Supplier shall ensure that all the aggregated consumption figures which it is required

to make available to the SVAA pursuant to paragraphs 3.1.1 or 3.1.2 shall be collected,

processed and aggregated in accordance with the provisions of this paragraph 3.

3.2 Metered Data

3.2.1 In this paragraph 3 "Metered Data" shall mean only Metered Data in respect of

(a) Metering Systems subject to half hourly metering collected by:

(i) automatic/remote means; or

(ii) site meter reading; and

(b) Unmetered Supplies subject to Equivalent Metering.

3.2.2 Data relating to Unmetered Supplies subject to Equivalent Metering shall be collected

pursuant to BSCP520 and processed in the same way as other metered half hourly data.

3.3 Half Hourly Data Collection

3.3.1 Paragraph 3.3.2 shall apply in respect of each Metering System subject to half hourly

metering and each Unmetered Supply subject to Equivalent Metering (other than a

Metering System through which a SVA Generator provides Export Active Energy or a

SVA Customer consumes Import Active Energy and such Export Active Energy or Import

Active Energy (as the case may be) is allocated between a Primary Supplier and the

associated Secondary Supplier(s), in which case the provisions of paragraph 3.3.4 shall

apply).

3.3.2 Each Supplier shall ensure that each of its Half Hourly Data Collectors shall in respect of

such Supplier’s Metering Systems and Unmetered Supplies subject to Equivalent Metering

(other than those to which the provisions of paragraph 3.3.4 apply) for which such Half

Hourly Data Collector is responsible:

(a) collect the Metered Data in accordance with BSCP502 or, as the case may be,

BSCP520;

(b) check the Metered Data and provide reports in accordance with BSCP502 or, as

the case may be, BSCP520;

(c) enter the Supplier's Meter Register Consumption (SMRCZaKJj) into the relevant

data collection system;

(d) update standing data entries provided by the relevant Supplier or, as the case

may be, the SVAA, and update the Meter Technical Details (in accordance with

BSCP502) to take account of new or revised information as provided by the

relevant Meter Operator Agent;

(e) save in the case of an Unmetered Supply subject to Equivalent Metering, carry

out meter advance reading and reconcile the actual meter advance with

synthesised meter advance derived from the Supplier's Meter Register

Consumption input to the relevant data collection system;

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(f) process the Supplier's Meter Register Consumption and provide the resulting

Supplier's Metering System Metered Consumption (SMMCZaKj) to the relevant

Half Hourly Data Aggregators; and

(g) provide the Supplier's Metering System Metered Consumption report to the


3.3.3 Paragraph 3.3.4 shall apply in respect only of each Metering System subject to half hourly

metering through which:

(a) a SVA Generator provides Export Active Energy and such Export Active

Energy is allocated between a Primary Supplier and the associated Secondary

Supplier(s); or

(b) a SVA Customer consumes Import Active Energy and such Import Active


Supplier(s).

3.3.4 Where this paragraph 3.3.4 applies:

(a) the relevant Primary Supplier and the associated Secondary Supplier(s) shall

appoint the same Half Hourly Data Collector to be responsible for such

Metering System;

(b) the Primary Supplier shall provide an initial Allocation Schedule in respect of

such Metering System to such Half Hourly Data Collector and the associated

Secondary Supplier(s) pursuant to BSCP550;

(c) the Primary Supplier shall provide any subsequent Allocation Schedules in

respect of such Metering System to such Half Hourly Data Collector and to the

associated Secondary Supplier(s) pursuant to BSCP550;

(d) each such Primary Supplier and the associated Secondary Supplier(s) shall

ensure that their Half Hourly Data Collector shall in respect of each such

Metering System for which such Half Hourly Data Collector is responsible:

(i) collect the Metered Data in accordance with BSCP550;

(ii) check the Metered Data and provide reports in accordance with

BSCP550;

(iii) enter the Supplier's Meter Register Consumption (SMRCZaKJj) into

the relevant data collection system (where for such Metering System

and such consumption the subscript "Z" shall denote both the

Primary Supplier "Z1" and each associated Secondary Supplier "Zn"

responsible for such Metering System; and the subscript "a" shall

denote both the Primary Supplier's Half Hourly Data Aggregator

"a1" (and, where Section K2.5.4(c)(ii) applies to the Primary

Supplier, "a1.1") responsible for such Metering System and each

associated Secondary Supplier's Half Hourly Data Aggregator "an"

(and, where Section K2.5.4(c)(ii) applies to the Secondary Supplier,

"an.1") responsible for such Metering System);

(iv) check for consistency of standing data entries provided by the

Primary Supplier and the associated Secondary Supplier(s)

responsible for such Metering System, resolve inconsistencies with

such Suppliers and, when consistent, update such standing data

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entries or, if such inconsistencies cannot be resolved pursuant to

BSCP550, carry out the relevant default procedures in accordance

with such BSC Procedure;

(v) update standing data entries provided by the SVAA; and update the

Meter Technical Details to take account of new or revised

information as provided by the relevant Meter Operator Agent;

(vi) carry out meter advance reading and reconcile the actual meter

advance with synthesised meter advance derived from the Supplier's

Meter Register Consumption input to the relevant data collection

system;

(vii) process the Supplier's Meter Register Consumption (SMRCZaKJj)

employing the Allocation Schedule in respect of such Metering

System for the relevant Settlement Period and Settlement Day (but

disregarding, in respect of such Settlement Period, any Allocation

Schedule to the extent that it was submitted after Gate Closure for

that Settlement Period) and provide the resulting Supplier's Metering

System Metered Consumptions (SMMCZaKj) in respect of the

Primary Supplier and the associated Secondary Supplier(s) to the

relevant Half Hourly Data Aggregators;

(viii) provide the Supplier's Metering System Metered Consumption

report (which, in the event of a dispute related to the Metered Data

in respect of such Metering System, shall include the Shared

Suppliers' Metering System Metered Consumption in respect of such

Metering System and each Settlement Period of the relevant

Settlement Day) in respect of the Primary Supplier to the Primary

Supplier responsible for such Metering System and the relevant

Distribution System Operator; and

(ix) provide the Supplier's Metering System Metered Consumption

report (which, in the event of a dispute related to the Metered Data

in respect of such Metering System, shall include the Shared

Suppliers' Metering System Metered Consumption in respect of such

Metering System and each Settlement Period of the relevant

Settlement Day) in respect of each Secondary Supplier to the

relevant Secondary Supplier responsible for such Metering System

and the relevant Distribution System Operator.

3.3.5 For the avoidance of doubt, each Secondary Supplier shall be bound, for the purposes of

the Code, by the Allocation Schedule submitted from time to time by the Primary Supplier

in accordance with BSCP550 and no dispute may be raised under the Code as to the

accuracy or completeness of an Allocation Schedule submitted in accordance with

BSCP550 (but without prejudice to any rights which the Secondary Supplier(s) may have

under any other agreement with the Primary Supplier in respect thereof).

3.4 Half Hourly Data Aggregation

3.4.1 Each Supplier shall ensure that each of its Half Hourly Data Aggregators shall in respect of

such Supplier’s Metering Systems subject to half hourly metering and Unmetered Supplies

subject to Equivalent Metering for which such Half Hourly Data Aggregator is responsible

and in respect of a particular Settlement Day:

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(a) receive half hourly Supplier's Metering System Metered Consumption from the

relevant Half Hourly Data Collectors;

(b) undertake checks and provide reports in accordance with BSCP503;

(c) update standing data entries, notified by the SVAA to the Half Hourly Data

Aggregator, to the relevant data aggregation system;

(d) update the Line Loss Factor data provided by BSCCo pursuant to BSCP128 and

other data supplied by the SMRA to the Half Hourly Data Aggregator pursuant

to BSCP501;

(e) aggregate the Metered Data in MWh in the relevant data aggregation system;

(f) provide either:

(i) Supplier's Metered Consumption (Losses) (SMCLHZaNj) and

Supplier's Metered Consumption (SMCHZaNj) data in accordance with

paragraphs 3.5.9 to 3.5.12; or

(ii) BM Unit's Metered Consumption (Losses) (BMMCLiaNj) and BM

Unit's Metered Consumption (BMMCiaNj) data in accordance with

paragraph 3.6

to the SVAA;

(g) provide data to the relevant Supplier in accordance with BSCP503; and

(h) where applicable provide to the SVAA the Allocated Supplier’s Metering

System Metered Consumption (ASMMCHZaNLKj).

3.5 Determination of Supplier’s Metered Consumption

3.5.1 Each Supplier shall ensure that the Supplier’s Meter Register Consumption (SMRCZaKJj)

for each Settlement Register "J" within such Supplier's Metering System and Unmetered

Supply subject to Equivalent Metering "K" for such Supplier "Z" and which is associated

with a particular Half Hourly Data Aggregator "a" shall be collected by the relevant Half

Hourly Data Collector.

3.5.2 In the case of a Metering System through which:

(a) a SVA Generator provides Export Active Energy and such Export Active


Supplier(s), or

(b) a SVA Customer consumes Import Active Energy and such Import Active


Supplier(s).

the relevant Primary Supplier and the associated Secondary Supplier(s) shall ensure that the

Supplier's Meter Register Consumption shall be so collected and the subscripts "Z" and "a"

shall be construed as set out in paragraph 3.3.4.

3.5.3 Save where paragraph 3.5.5 or 3.5.7 applies, each Supplier shall ensure that the Supplier’s

Metering System Metered Consumption (SMMCZaKj) for each such Supplier's Metering

System and Unmetered Supply subject to Equivalent Metering "K" for such Supplier "Z"

which is associated with a particular Half Hourly Data Aggregator "a" shall be determined

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by the relevant Half Hourly Data Collector according to the following formula and shall be

provided to the relevant Half Hourly Data Aggregator:

SMMCZaKj= KJ SMRCZaKJj.

3.5.4 The provisions of paragraph 3.5.5 apply in the case of a Metering System:

(a) through which:

(i) a SVA Generator provides Export Active Energy and such Export

Active Energy is allocated between a Primary Supplier and the

associated Secondary Supplier(s); or

(ii) a SVA Customer consumes Import Active Energy and such Import


associated Secondary Supplier(s); and

(b) for which the relevant Half Hourly Data Collector appointed to be responsible

for such Metering System has not identified or, if it has identified, has resolved,

any inconsistencies in notifications from the Primary Supplier and the

associated Secondary Supplier(s) responsible for such Metering System

pursuant to BSCP550; and

(c) for which the Primary Supplier has provided the relevant Allocation Schedule

for the Settlement Period being processed to such Half Hourly Data Collector

pursuant to such BSC Procedure and no later than Gate Closure for that

Settlement Period.

3.5.5 In the case of a Metering System to which this paragraph applies, the Primary Supplier and

the associated Secondary Supplier(s) responsible for such Metering System shall ensure

that the relevant Half Hourly Data Collector shall for each Settlement Period "j":

(a) determine the Shared Suppliers’ Metering System Metered Consumption

(SHMMCZaKj) for such Metering System "K" according to the following

formula:

SHMMCZaKj= KJ SMRCZaKJj

where the subscripts "Z" and "a" shall be construed as set out in paragraph

3.3.4;

(b) determine the Primary Supplier’s Metering System Metered Consumption

(PSMMCZ1a1K1j) for such Primary Supplier "Z1" for the relevant Primary

Metering System Number "K1" which is associated with such Metering System

"K" and against which the particular Half Hourly Data Aggregator "a1" is

appointed by the Primary Supplier to be responsible, employing the relevant

Allocation Schedule associated with such Metering System and Settlement Day

submitted in accordance with BSCP550 and no later than Gate Closure for the

relevant Settlement Period, as:

(i) if a percentage fraction is specified in such Allocation Schedule to

be employed for the relevant Settlement Period, such percentage

fraction of the Shared Suppliers' Metering System Metered

Consumption; or

(ii) if an amount of energy is specified in such Allocation Schedule to be

employed by way of capped block for the relevant Settlement

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Period, the lesser of such amount and the Shared Suppliers' Metering

System Metered Consumption; or

(iii) if an amount of energy is specified in such Allocation Schedule to be

employed by way of fixed block for the relevant Settlement Period

and the Primary Supplier is identified as the fixed supplier, such

amount of energy or, where such amount exceeds the Relevant

Capacity Limit, the amount of energy determined for the equivalent

Settlement Period in the preceding Settlement Day; or

(iv) if an amount of energy is specified in such Allocation Schedule to be

employed by way of multiple fixed block for the relevant Settlement

Period and the Primary Supplier is identified as a fixed supplier, the

amount of energy allocated to the Primary Supplier or, where the

total amount of energy specified in such Allocation Schedule for all

Suppliers identified as fixed suppliers exceeds the Relevant Capacity

Limit (in accordance with BSCP550), the amount of energy

determined in respect of the Primary Supplier for the equivalent


(v) if an amount of energy is specified in such Allocation Schedule to be


and the Primary Supplier is identified as the variable supplier, the

amount by which the Shared Suppliers' Metering System Metered

Consumption exceeds the amount of energy allocated to the

associated Secondary Supplier and, if no such excess, zero; or

(vi) if an amount of energy is specified in such Allocation Schedule to be


Period and the Primary Supplier is identified as the variable supplier,

the amount by which the Shared Suppliers' Metering System

Metered Consumption exceeds the total amount of energy allocated

to all the associated Secondary Suppliers and, if no such excess,

zero;

(c) where applicable, determine the Primary Supplier’s Metering System Metered

Consumption (PSMMCZ1a1.1K1.1j) for such Primary Supplier "Z1" for the

relevant Primary Metering System Number "K1.1" which is associated with

such Metering System "K" and against which the particular Half Hourly Data

Aggregator "a1.1" is appointed by the Primary Supplier to be responsible,

employing the relevant Allocation Schedule associated with such Metering

System and Settlement Day submitted in accordance with BSCP550 and no

later than Gate Closure for the relevant Settlement Period, as:

(i) if an amount of energy is specified in such Allocation Schedule to be


and the Primary Supplier is identified as the variable supplier, the


Consumption falls short of the amount of energy allocated to the

associated Secondary Supplier and, if no such shortfall, zero; or



Period and the Primary Supplier is identified as the variable supplier,

the amount by which the Shared Suppliers' Metering System

Metered Consumption falls short of the total amount of energy

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allocated to all the associated Secondary Suppliers and, if no such

shortfall, zero;

(d) determine each Secondary Supplier’s Metering System Metered Consumption

(SSMMCZnanKnj) for such Secondary Supplier "Zn" for the relevant Secondary

Metering System Number "Kn" which is associated with such Metering System

"K" and against which the particular Half Hourly Data Aggregator "an" is

appointed by the Secondary Supplier to be responsible employing the relevant

Allocation Schedule associated with such Metering System and Settlement Day

submitted in accordance with BSCP550 and no later than Gate Closure for the

relevant Settlement Period, as:

(i) where paragraph (b)(i) or (b)(ii) above apply in respect of the

Primary Supplier:

SSMMCZnanKnj = max ((SHMMCZaKj - PSMMCZ1a1K1j), 0);

where PSMMCZ1a1K1j is the Primary Supplier's Metering System

Metered Consumption associated with such Metering System "K"

determined pursuant to paragraph (b)(i) or (b)(ii) as applicable;



and the Secondary Supplier is identified as the fixed supplier, such

amount of energy or, where such amount exceeds the Relevant

Capacity Limit, the amount of energy specified for the equivalent


(iii) if an amount of energy is specified in such Allocation Schedule to be


Period and the Secondary Supplier is identified as a fixed supplier,

the amount of energy allocated to the Secondary Supplier or, where

the total amount of energy specified in such Allocation Schedule for

all Suppliers identified as fixed suppliers exceeds, the amount of

energy allocated to the Secondary Supplier for the equivalent


(iv) if an amount of energy is specified in such Allocation Schedule to be


and the Secondary Supplier is identified as the variable supplier, the


Consumption exceeds the amount of energy allocated to the Primary

Supplier and, if no such excess, zero; or

(v) if an amount of energy is specified in such Allocation Schedule to be


Period and the Secondary Supplier is identified as the variable

supplier, the amount by which the Shared Suppliers' Metering

System Metered Consumption exceeds the total amount of energy

allocated to the Primary Supplier and all the other associated

Secondary Suppliers and, if no such excess, zero;

(e) where applicable, determine each Secondary Supplier’s Metering System

Metered Consumption (SSMMCZnan.1Kn.1j) for such Secondary Supplier "Zn" for

the relevant Secondary Metering System Number "Kn.1" which is associated

with such Metering System "K" and against which the particular Half Hourly

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Data Aggregator "an.1" is appointed by the Secondary Supplier to be

responsible, employing the relevant Allocation Schedule associated with such

Metering System and Settlement Day submitted in accordance with BSCP550

and no later than Gate Closure for the relevant Settlement Period, as:

(i) if an amount of energy is specified in such Allocation Schedule to be


and the Secondary Supplier is identified as the variable supplier, the


Consumption falls short of the amount of energy allocated to the

Primary Supplier identified as the fixed supplier and, if no such

shortfall, zero; or



Period and the Secondary Supplier is identified as a variable

supplier, the amount by which the Shared Suppliers' Metering

System Metered Consumption falls short of the total amount of

energy allocated to the Primary Supplier and all other Secondary

Suppliers identified as fixed suppliers and, if no such shortfall, zero;

(f) determine the Supplier's Metering System Metered Consumption (SMMCZaKj)

in respect of the Primary Supplier as:

(i) where PSMMCZ1a1.1K1.1j has a non-zero value:

SMMCZaKj = PSMMCZ1a1.1K1.1j

(ii) otherwise:

SMMCZaKj = PSMMCZ1a1K1j

and provide such Supplier’s Metering System Metered Consumption to the

relevant Half Hourly Data Aggregator appointed by the Primary Supplier to be

responsible for such Metering System against the related Primary Metering

System Number where the values of "Z", "a" and "K" are those values

applicable to such Primary Supplier, such Half Hourly Data Aggregator and

such Primary Metering System Number respectively; and

(g) determine the Supplier's Metering System Metered Consumption (SMMCZaKj)

in respect of each Secondary Supplier as:

(i) where SSMMCZnan.1Kn.1j has a non-zero value:

SMMCZaKj = SSMMCZnan.1Kn.1j

(ii) otherwise:

SMMCZaKj = SSMMCZnanKnj

and provide such Supplier’s Metering System Metered Consumption to the

relevant Half Hourly Data Aggregator appointed by the Secondary Supplier to

be responsible for such Metering System against the related Secondary

Metering System Number where the values of "Z", "a" and "K" are those values

applicable to such Secondary Supplier, such Half Hourly Data Aggregator and

such Secondary Metering System Number respectively.

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3.5.6 Paragraph 3.5.7 applies:

(a) in the case of a Metering System through which:

(i) a SVA Generator provides Export Active Energy and such Export


associated Secondary Supplier(s); or

(ii) a SVA Customer consumes Import Active Energy and such Import


associated Secondary Supplier(s); and

(b) (in either case) either:

(i) the relevant Half Hourly Data Collector appointed to be responsible

for such Metering System has identified and has not resolved

inconsistencies in notifications from the Primary Supplier and the

associated Secondary Supplier(s) responsible for such Metering

System pursuant to BSCP550; or

(ii) the Primary Supplier has not provided the relevant Allocation

Schedule for the Settlement Period being processed to such Half

Hourly Data Collector pursuant to BSCP550 and no later than Gate

Closure for the relevant Settlement Period.

3.5.7 Where this paragraph 3.5.7 applies, the Primary Supplier and the associated Secondary

Supplier(s) responsible for such Metering System shall ensure that the relevant Half Hourly

Data Collector shall take such actions as are specified in BSCP550 to be taken by such Half

Hourly Data Collector in such circumstances.

3.5.8 The provisions of paragraphs 3.5.9 to 3.5.12 (inclusive) shall apply in the case of a GSP

Group "H" where the relevant Half Hourly Data Aggregator is not aggregating energy

values per Supplier BM Unit in accordance with paragraph 3.6.

3.5.9 Each Supplier shall ensure that each of its Half Hourly Data Aggregators shall determine

the Allocated Supplier’s Metering System Metered Consumption (ASMMCHZaNLKj) by

assigning a GSP Group "H", Line Loss Factor Class "L", and Consumption Component

Class "N" to the Supplier’s Metering System Metered Consumption provided, pursuant to

paragraph 3.5.3, 3.5.5 or, as the case may be, 3.5.7, by the Half Hourly Data Collector

appointed by such Supplier to be responsible for the relevant Metering System "K" for the

relevant Settlement Day.

3.5.10 For the purposes of paragraph 3.5.9 and any subsequent processing of Supplier’s Metering

System Metered Consumption and data derived from such processing pursuant to the

Supplier Volume Allocation Rules the term "Metering System" shall be construed to

include Primary Metering System Numbers and Secondary Metering System Numbers as if

such Primary Metering System Numbers and Secondary Metering System Numbers

represented physical metering systems.

3.5.11 Each Supplier shall ensure that the Supplier’s Metered Consumption (SMCHZaNj) within

Consumption Component Class "N" (which Consumption Component Class shall not be a

Consumption Component Class for line losses) within such Supplier "Z" for a particular

GSP Group "H", Line Loss Factor Class "L" and Half Hourly Data Aggregator "a" shall be

determined by the relevant Half Hourly Data Aggregator according to the following

formula and shall be provided to the SVAA:

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SMCHZaNj = NLK ASMMCHZaNLKj / 1000

3.5.12 Each Supplier shall ensure that, for each Supplier’s Metered Consumption (SMCHZaNLj)

value determined pursuant to paragraph 3.5.11, one or more values of Supplier’s Metered

Consumption (Losses) (SMCLHZaNLj) within Consumption Component Class "N" (which

Consumption Component Class shall be a Consumption Component Class for line losses),

within such Supplier "Z" for a particular GSP Group "H", Line Loss Factor Class "L" and

Half Hourly Data Aggregator "a" shall be determined by the relevant Half Hourly Data

Aggregator according to the following formula and shall be provided to the SVAA:

SMCLHZaNLj = (vv)L

K ((LLFLj – 1) * ASMMCHZaNLKj) / 1000

where "(vv)" is the Consumption Component Class (not for line losses) associated with the

Consumption Component Class "N" for which the value of SMCLHZaNLj is to be

determined.

3.6 Determination of BM Unit’s Metered Consumption


Group "H" where the relevant Half Hourly Data Aggregator is to aggregate energy values

per Supplier BM Unit in accordance with Section S6.


the Allocated BM Unit's Metering System Metered Consumption (ABMMMCiaNLKj) by

assigning a BM Unit "i", Line Loss Factor Class "L", and Consumption Component Class

"N" to the Supplier's Metering System Metered Consumption provided, pursuant to

paragraph 3.5.3, 3.5.5 or, as the case may be, 3.5.7, by the Half Hourly Data Collector most

recently appointed by such Supplier to be responsible for the relevant Metering System

"K", where the BM Unit "i" shall be:

(a) the Additional BM Unit "i" notified by the Supplier to the Half Hourly Data

Aggregator in accordance with Section S6.3 for the Metering System "K",

provided that the notification was determined by the Half Hourly Data

Aggregator in accordance with BSCP503 to be a valid notification; or

(b) if no such notification has been made, the BM Unit "i" which is the Base BM

Unit for the Supplier "Z" and GSP Group "H" to which the Metering System

"K" is assigned.

3.6.3 For the purposes of paragraph 3.6.2 and any subsequent processing of Allocated BM Unit's

Metering System Metered Consumption and data derived from such processing pursuant to

the Supplier Volume Allocation Rules the term "Metering System" shall be construed to




3.6.4 Each Supplier shall ensure that the BM Unit's Metered Consumption (BMMCiaNLj) within


Consumption Component Class for line losses) within each Supplier BM Unit "i" of such

Supplier for a particular Line Loss Factor Class "L" and Half Hourly Data Aggregator "a"

shall be determined by the relevant Half Hourly Data Aggregator according to the

following formula and shall be provided to the SVAA:

BMMCiaNLj = NLK ABMMMCiaNKj / 1000

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3.6.5 Each Supplier shall ensure that, for each BM Unit's Metered Consumption (BMMCiaNLj)

value determined pursuant to paragraph 3.6.4, one or more values of BM Unit's Metered

Consumption (Losses) (BMMCLiaNLj) within Consumption Component Class "N" (which

Consumption Component Class shall be a Consumption Component Class for line losses),

within each Supplier BM Unit "i" of such Supplier for a particular Line Loss Factor Class

"L" and Half Hourly Data Aggregator "a" shall be determined by the relevant Half Hourly

Data Aggregator according to the following formula and shall be provided to the SVAA:

BMMCLiaNLj = (vv)L

K ((LLFLj – 1) * ABMMMCiaNLKj) / 1000


Consumption Component Class "N" for which the value of BMMCLiaNLj is to be

determined.

3.7 Estimation of Demand Disconnection Volumes

3.7.1 The provisions of paragraph 3.7.2 shall only apply to Demand Control Impacted Settlement

Periods.

3.7.2 Each Supplier shall ensure that, for each Demand Control Impacted Settlement Period and

each Half Hourly Metering System "K" impacted by a Demand Disconnection, the Half

Hourly Data Collector responsible for that Metering System shall estimate the Half Hourly

Demand Disconnection Volume (HDDKj) for each Settlement Period in accordance with

the following formula and provides this to the relevant Half Hourly Data Aggregator:

HDDKj = max (0, E – SMMCZaKj – NBSVDZaKj)

where:

E is an estimate of the metered data during the Demand Control Impacted Settlement

Period in normal conditions calculated in accordance with BSCP502;

SMMCZaKj is the Supplier’s Metering System Metered Consumption during the Demand

Control Impacted Settlement Period;

NBSVDZaKj is the estimated Non-BM STOR Instruction Volume anticipated to have been

delivered during the Demand Control Impacted Settlement Period; and

3.7.3 The provisions of paragraphs 3.7.4 to 3.7.7 (inclusive) shall only apply to Demand Control

Impacted Settlement Periods and shall apply in the case of a GSP Group "H" where the

relevant Half Hourly Data Aggregator is not aggregating energy values per Supplier BM

Unit in accordance with paragraph 3.6.


the Allocated Supplier’s Demand Disconnection Volume (ASDDHZaNLKj) by assigning a

GSP Group "H", Line Loss Factor Class "L", and Consumption Component Class "N" to

the Half Hourly Demand Disconnection Volume provided, pursuant to paragraph 3.7.2, by

the Half Hourly Data Collector appointed by such Supplier to be responsible for the

relevant Metering System "K" for the relevant Settlement Day.

3.7.5 For the purposes of paragraph 3.7.4 and any subsequent processing of Half Hourly Demand

Disconnection Volume and data derived from such processing pursuant to the Supplier

Volume Allocation Rules the term "Metering System" shall be construed to include

Primary Metering System Numbers and Secondary Metering System Numbers as if such

Primary Metering System Numbers and Secondary Metering System Numbers represented

physical metering systems.

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3.7.6 Each Supplier shall ensure that the Supplier’s Demand Disconnection Volume (SDDHZaNj)

within Consumption Component Class "N" (which Consumption Component Class shall

not be a Consumption Component Class for line losses) within such Supplier "Z" for a

particular GSP Group "H" and Half Hourly Data Aggregator "a" shall be determined by the

relevant Half Hourly Data Aggregator according to the following formula and shall be

provided to the SVAA:

SDDHZaNj = NLK ASDDHZaNLKj / 1000

3.7.7 Each Supplier shall ensure that, for each Supplier’s Demand Disconnection Volume

(SDDHZaNj) value determined pursuant to paragraph 3.7.6, one or more values of Supplier’s

Demand Disconnection Volume (Losses) (SDDLHZaNj) within Consumption Component

Class "N" (which Consumption Component Class shall be a Consumption Component

Class for line losses), within such Supplier "Z" for a particular GSP Group "H" and Half

Hourly Data Aggregator "a" shall be determined by the relevant Half Hourly Data

Aggregator according to the following formula and shall be provided to the SVAA:

SDDLHZaNj = (vv)

LK ((LLFLj – 1) * ASDDHZaNLKj) / 1000


Consumption Component Class "N" for which the value of SDDLHZaNj is to be determined.

3.8 Estimation of BM Unit’s Demand Disconnection Volumes


Group "H" where the relevant Half Hourly Data Aggregator is to aggregate energy values

per Supplier BM Unit in accordance with Section S6, and shall only apply to Demand

Control Impacted Settlement Periods.


the Allocated BM Unit's Demand Disconnection Volume (ABDDiaNLKj) by assigning a BM

Unit "i", Line Loss Factor Class "L", and Consumption Component Class "N" to the

Supplier's Half Hourly Demand Disconnection Volumes provided, pursuant to paragraph

3.7.2, by the Half Hourly Data Collector most recently appointed by such Supplier to be

responsible for the relevant Metering System "K", where the BM Unit "i" shall be:

(a) the Additional BM Unit "i" notified by the Supplier to the Half Hourly Data

Aggregator in accordance with Section S6.3 for the Metering System "K",

provided that the notification was determined by the Half Hourly Data

Aggregator in accordance with BSCP503 to be a valid notification; or


Unit for the Supplier "Z" and GSP Group "H" to which the Metering System

"K" is assigned.

3.8.3 For the purposes of paragraph 3.8.2 and any subsequent processing of Allocated BM Unit's

Half Hourly Demand Disconnection Volume and data derived from such processing

pursuant to the Supplier Volume Allocation Rules the term "Metering System" shall be

construed to include Primary Metering System Numbers and Secondary Metering System

Numbers as if such Primary Metering System Numbers and Secondary Metering System

Numbers represented physical metering systems.

3.8.4 Each Supplier shall ensure that the BM Unit's Demand Disconnection Volume (BMDDiaNj)


not be a Consumption Component Class for line losses) within each Supplier BM Unit "i"

of such Supplier for a particular Half Hourly Data Aggregator "a" shall be determined by

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the relevant Half Hourly Data Aggregator according to the following formula and shall be

provided to the SVAA:

BMDDiaNj = NLK ABDDiaNLKj / 1000

3.8.5 Each Supplier shall ensure that, for each BM Unit's Half Hourly Demand Disconnection

Volume (BMDDiaNj) value determined pursuant to paragraph 3.8.4, one or more values of

BM Unit's Demand Disconnection Volume (Losses) (BMDDLiaNj) within Consumption

Component Class "N" (which Consumption Component Class shall be a Consumption

Component Class for line losses), within each Supplier BM Unit "i" of such Supplier for a

particular Half Hourly Data Aggregator "a" shall be determined by the relevant Half

Hourly Data Aggregator according to the following formula and shall be provided to the

SVAA:

BMDDLiaNj = (vv)

LK ((LLFLj – 1) * ABDDiaNLKj) / 1000


Consumption Component Class "N" for which the value of BMDDLiaNj is to be determined.

3.9 Determination of Allocated Metering System Metered Consumption


Group "H" where the relevant Half Hourly Data Aggregator is to provide energy values for

each:

(a) relevant SVA Metering System in accordance with Section S10.5; or

(b) Metering System on the SVA Storage Facilities Register in accordance with

paragraph 13.


the Allocated Metering System Metered Consumption (AVMMCHZaNLKji) by assigning a

Supplier BM Unit "i", GSP Group "H", Consumption Component Class "N" and Line Loss

Factor Class "L" to the Supplier's Metering System Metered Consumption provided,

pursuant to paragraph 3.5.3, 3.5.5 or, as the case may be, 3.5.7, by the Half Hourly Data

Collector most recently appointed by such Supplier to be responsible for the relevant

Metering System "K" and shall be provided to the SVAA.

3.9.3 For the purposes of paragraph 3.9.2 and any subsequent processing of Allocated Metering

System Metered Consumption and data derived from such processing pursuant to the

Supplier Volume Allocation Rules the term "Metering System" shall be construed to




3.10 Determination of Metering System Delivered Volumes

3.10.1 The provisions of paragraphs 3.10.2 and 3.10.3 shall apply where the relevant Party is to

provide MSID Pair Delivered Volume (MPDVj) per MSID Pair in accordance with

Section S11.

3.10.2 For each Settlement Period and for each relevant Metering System per Settlement Run, the

SVAA shall determine the Metering System Delivered Volume (QVMDKj) from the MSID

Pair Delivered Volume (MPDVj) relating to such MSID Pair and the Metering System

Metered Consumption (VMMCHZaNLKji) for the relevant Metering Systems.

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3.10.3 If MPDVj is greater than or equal to zero the following formulae shall apply:

(a) for the Export MSID in the MSID Pair:

QVMDKj = MIN(MPDVj, VMMCHZaNLKji); and

(b) for the Import MSID in the MSID Pair:

QVMDKj = MPDVj - QVMDExport

where QVMDExport is the value of QVMDKj allocated to the Export MSID in

accordance with paragraph (a), or zero if there is no Export MSID in the MSID

Pair.

3.10.4 If MPDVj is less than zero the following formulae shall apply:

(a) for the Import MSID in the MSID Pair, subject to (c):

QVMDKj = – MIN(–MPDVj, VMMCHZaNLKji);

(b) for the Export MSID in the MSID Pair:

QVMDKj = MPDVj - QVMDImport

where QVMDImport is the value of QVMDKj allocated to the Import MSID in

accordance with paragraph (a); and

(c) if MPDV < –VMMCHZaNLKji and there is no Export MSID in the MSID Pair then

for the Import MSID:

QVMDKj = 0

and the SVAA shall inform the relevant Party and BSCCo that the MSID Pair

Delivered Volume could not be allocated to MSIDs.

3.10.5 For the purposes of paragraph 3.10.2 and any subsequent processing of Metering System

Delivered Volumes and data derived from such processing pursuant to the Supplier

Volume Allocation Rules the term "Metering System" shall be construed to include

Primary Metering System Numbers and Secondary Metering System Numbers as if such

Primary Metering System Numbers and Secondary Metering System Numbers represented

physical metering systems.

4. NON HALF HOURLY DATA COLLECTION AND AGGREGATION

4.1 Supplier’s responsibilities

4.1.1 Each Supplier shall ensure that a Supplier Purchase Matrix for each Settlement Day is

made available to the SVAA in respect of all of such Supplier’s metered Metering Systems

which are not subject to half hourly metering and Unmetered Supplies not subject to

Equivalent Metering.

4.1.2 Each Supplier shall ensure that, where a calculation or determination of a value is specified

in accordance with the provisions of this paragraph 4, its Non Half Hourly Data Collectors

or, as the case may be, Non Half Hourly Data Aggregators shall make such calculation or,

as the case may be, determination in respect of such Supplier's Metering Systems and

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associated data for which each such Non Half Hourly Data Collector or, as the case may

be, Non Half Hourly Data Aggregator is responsible.

4.2 Metered Data

4.2.1 In this paragraph 4 "Metered Data" shall mean only Metered Data in respect of:

(a) metered Metering Systems collected by:

(i) automatic/remote means;

(ii) site meter reading; or

(iii) customer reading;

and which are not subject to half hourly metering;

(b) Unmetered Supplies not subject to Equivalent Metering; and

(c) (i) a Meter reading, in relation to a metered Metering System which is

not subject to half hourly metering, which is agreed between the old

Supplier and the new Supplier in accordance with BSCP504 and is

used for the Settlement Day of a change of Supplier; and

(ii) this paragraph 4.2.1(c) shall only apply to Settlement Days occurring

on or after the Implementation Date of the Approved Modification

that first introduced this paragraph 4.2.1(c).

4.2.2 Each Distribution System Operator shall, in respect of each Unmetered Supply not subject

to Equivalent Metering connected to such Distribution System, provide the then current

Estimated Annual Consumption data for each such Unmetered Supply to the relevant

Supplier's Non Half Hourly Data Collector responsible for such Metering System pursuant

to BSCP520.

4.3 Non Half Hourly Data Collection

4.3.1 Each Supplier shall ensure that each of its Non Half Hourly Data Collectors shall in respect

of each of the Supplier’s metered Metering Systems "K" for which such Non Half Hourly

Data Collector is responsible and which are not subject to half hourly metering:

(a) collect the Metered Data in accordance with BSCP504;

(b) check the Metered Data and provide reports in accordance with BSCP504;

(c) enter the Metered Data in kWh into the relevant data collection system and

calculate Meter Advance values;

(d) receive Daily Profile Coefficients and, from time to time, Period Profile Class

Coefficients from the SVAA;

(e) investigate reports on inconsistencies in Estimated Annual Consumption and

Annualised Advance data provided by the relevant Non Half Hourly Data

Aggregators;

(f) update standing data entries, provided by the relevant Supplier or, as the case

may be, by the SVAA, and Meter Technical Details, as provided by the relevant

Meter Operator or, as the case may be, the Supplier (in accordance with

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BSCP504), to the relevant data collection system to take account of new

information;

(g) determine Estimated Annual Consumption (EACKR) data and Annualised

Advance (AAKR) data pursuant to this paragraph 4.3;

(h) provide the Annualised Advance data, their Effective From Settlement Date and

Effective To Settlement Date, the Estimated Annual Consumption data and their

Effective From Settlement Date, and Metering System details to the relevant

Non Half Hourly Data Aggregators;

(i) provide the validated Metered Data and Metering System reports to the relevant

Supplier and the relevant Distribution System Operator; and

(j) from time to time receive the details of Metering System that have been subject

to Demand Disconnection from Distribution System Operators.

4.3.2 Each Supplier shall ensure that for each metered Metering System "K" for which it is

responsible, the Non Half Hourly Data Collector responsible for such Metering System

shall calculate Meter Advance values (MADVKR) for each Settlement Register and, for this

purpose, the provisions of paragraphs 4.3.3 to 4.3.8 (inclusive) shall apply, except in the

cases where:

(a) such Non Half Hourly Data Collector is supplied with an initial value of

Estimated Annual Consumption (EACKR) together with its Effective From

Settlement Date for such Settlement Register (such date being the Settlement

Day on which the event giving rise to the actions taken pursuant to this

paragraph (a) occurs), which such Supplier undertakes to supply in the event

that:

(i) the Profile Class "P" of such Metering System "K" changes, in

which case the provisions of paragraphs 4.3.9 and 4.3.10 only shall

apply;

(ii) such Metering System "K" is registered as a new metered Metering

System (and for which a Meter Advance has not yet been calculated)

in which case the provisions of paragraph 4.3.11 shall apply;

(iii) the physical meter for such metered Metering System "K" changes

or, as the case may be, is reconfigured, in which case the provisions

of paragraph 4.3.12 shall apply;

(b) such Non Half Hourly Data Collector is notified of a change of Supplier for

such metered Metering System for which a Meter Advance Period as described

in paragraphs 4.3.13 or 4.3.14 is available, in which case:

(i) if the metered Metering System "K" is not subject to half hourly

metering on the Settlement Day of the change of Supplier, then the

provisions of paragraph 4.3.13 shall apply; or

(ii) if the metered Metering System "K" is subject to half hourly

metering on the Settlement Day of the change of Supplier, then the

provisions of paragraph 4.3.14 shall apply;

(c) BSCP504 provides that such Non Half Hourly Data Collector shall and, in

particular circumstances, may, calculate a Deemed Meter Advance, in which

case:

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(i) such Non Half Hourly Data Collector must comply with the

provisions of BSCP504; and

(ii) the provisions of paragraphs 4.3.15 to 4.3.17 shall apply

provided that prior to calculating a Deemed Meter Advance the Non Half

Hourly Data Collector shall, in all circumstances, make reasonable endeavours

to calculate a Meter Advance including taking any steps specified in BSCP504.

(d) the Supplier treats or intends to treat a metered Metering System "K" as Long

Term Vacant, in which case paragraphs 4.3.19 to 4.3.22 (inclusive) shall apply.

4.3.3 Each Supplier shall ensure that, for each Meter Advance (MADVKR), for each such

Supplier's metered Metering System "K", the relevant Non Half Hourly Data Collector

responsible for such Metering System shall calculate the Fraction Of Yearly Consumption

(FYCKR) for the Meter Advance Period for each Settlement Register according to the

following formula:

FYCKR = T DPCHPRT – T DDDPCHPKRT

where:

T DPCHPRT is the sum of the individual Daily Profile Coefficients appropriate to the GSP

Group "H", Time Pattern Regime and Standard Settlement Configuration "R" and Profile

Class "P" applying to the Metering System on each Settlement Day in the Meter Advance

Period as provided by the SVAA and provided pursuant to paragraph 6.8 or paragraph

5.1.7 as applicable; and

T DDDPCHPKRT is the sum of the individual Demand Disconnection Daily Profile

Coefficients appropriate to the GSP Group "H", Time Pattern Regime and Standard

Settlement Configuration "R" and Profile Class "P" applying to the Metering System "K"

on each Settlement Day in the Meter Advance Period as calculated in paragraph 4.3.3A,

and the Non Half Hourly Data Collector shall recalculate the Fraction of Yearly

Consumption upon receipt of any updated information in relation to any relevant Demand

Disconnection Daily Profile Coefficients.

4.3.3A Each Supplier shall ensure that, in respect of each Settlement Day "T", each GSP Group

"H" and each valid combination of Profile Class "P" and Time Pattern Regime within

Standard Settlement Configuration "R", the relevant Non Half Hourly Data Collector

responsible for a Metering System "K" shall determine a Demand Disconnection Daily

Profile Coefficient (DDDPCHPKRT) as:

DDDPCHPKRT = j (PPCCHPRj * (MKj / SPD))

where MKj shall be set to zero for any MSID notified under Section S9.3.1.

4.3.4 Each Supplier shall ensure that a value of Annualised Advance shall be determined from

each Meter Advance by the relevant Non Half Hourly Data Collector responsible for each

such Supplier’s metered Metering System "K" for each Settlement Register within such

Metering System according to the following formula:

if FYCKR 0 then:

AAKR = MADVKR / FYCKR

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where MADVKR is the Meter Advance obtained by the relevant Non Half Hourly Data

Collector for the same Meter Advance Period as employed in the determination of the

Fraction of Yearly Consumption pursuant to paragraph 4.3.3;

but if FYCKR = 0 then

AAKR = 0

and the Effective From Settlement Date for each such value of Annualised Advance shall

be the date of the first Settlement Day in the Meter Advance Period and the Effective To

Settlement Date for each such value of Annualised Advance shall be the date of the last

Settlement Day in the Meter Advance Period. Such values so determined shall replace any

previous Annualised Advance, Effective From Settlement Date and Effective To

Settlement Date determined for such Settlement Days.

4.3.5 NOT USED.

4.3.6 Each Supplier shall ensure that for each of its metered Metering Systems "K", a value for

the Estimated Annual Consumption (EACKR) shall be determined by the relevant Non Half

Hourly Data Collector responsible for such Metering System for each Settlement Register

according to the formulae set out in paragraph 4.3.7.

4.3.7 For the purposes of this paragraph 4.3.7 the Previous Estimated Annual Consumption

(PEACKR) shall be defined as the effective value of EACKR for each Settlement Day in the

Meter Advance Period which applies before a new value is determined in accordance with

this paragraph. An Annualised Advance Adjustment Factor (AAAFKR) and a new

Estimated Annual Consumption shall be determined as follows using the value of

Annualised Advance determined pursuant to paragraph 4.3.4:

(a) AAAFKR = max (0, min ((FYCKR * SPAR), 1.0)); and

(b) EACKR = AAAFKR * AAKR + (1 - AAAFKR) * PEACKR

where SPAR is the value of the Smoothing Parameter set from time to time by the Panel

applicable on the last Settlement Day of the Meter Advance Period. The Effective From

Settlement Date for each such value of Estimated Annual Consumption shall be the date of

the Settlement Day following the last Settlement Day of the Meter Advance Period and

shall replace any previous Estimated Annual Consumption effective on such Settlement

Days.

4.3.8 Each Supplier shall ensure that for each of its metered Metering Systems "K" the Non Half

Hourly Data Collector responsible for such Metering System shall provide the Annualised

Advance and Effective From Settlement Date and Effective To Settlement Date, Estimated

Annual Consumption and Effective From Settlement Date for each Settlement Register

determined pursuant to paragraphs 4.3.4 and 4.3.7 to the relevant Non Half Hourly Data

Aggregator responsible for such Metering System.

4.3.9 In the case where the Profile Class "P" of a metered Metering System "K" changes and the

Settlement Day from which the change of Profile Class is effective does not fall in a Meter

Advance Period, the Supplier responsible for such Metering System shall ensure that the

Non Half Hourly Data Collector responsible for such Metering System shall for each

Settlement Register provide (without adjustment) the initial value of Estimated Annual

Consumption provided pursuant to paragraph 4.3.2(a) and its Effective From Settlement

Date to the relevant Non Half Hourly Data Aggregator responsible for such Metering

System. Such value shall on the Settlement Days it is effective replace the previous

Estimated Annual Consumption effective on such Settlement Days. Once a Meter Advance

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has been calculated such that such change of Profile Class falls within such Meter Advance

Period, the provisions of paragraph 4.3.10 shall apply to such Meter Advance.

4.3.10 In the case where the Profile Class "P" of a metered Metering System "K" changes and the

date of the Settlement Day from which the new Profile Class takes effect falls in a Meter

Advance Period, then the Supplier responsible for such Metering System shall ensure that

the Non Half Hourly Data Collector responsible for such Metering System shall:

(a) determine the value of Annualised Advance for each Settlement Register

pursuant to the provisions of paragraphs 4.3.3 to 4.3.4 (inclusive);

(b) not determine a value of Estimated Annual Consumption for any Settlement

Register within such Metering System "K" and shall not set such value of

Estimated Annual Consumption to zero;

(c) provide the value of Annualised Advance so calculated together with its

Effective From Settlement Date and Effective To Settlement Date and send

unadjusted the initial value of Estimated Annual Consumption provided

pursuant to paragraph 4.3.2(a) and its Effective From Settlement Date to the

relevant Non Half Hourly Data Aggregator responsible for such Metering

System.

4.3.11 In the case where a metered Metering System "K" is a new Metering System for which a

Meter Advance has not yet been calculated the Supplier responsible for such Metering

System shall ensure that the Non Half Hourly Data Collector responsible for such Metering

System shall set the value of Estimated Annual Consumption to be equal to the value of

initial Estimated Annual Consumption provided by such Supplier pursuant to paragraph

4.3.2(a) for each Settlement Register and that such Non Half Hourly Data Collector shall

pass such value unadjusted to the relevant Non Half Hourly Data Aggregator responsible

for such Metering System. The Effective From Settlement Date for such Estimated Annual

Consumption shall be the Settlement Day on which such Metering System is first

energised, as determined from data provided by the relevant SMRA by reference to its

Supplier Meter Registration Service system. The Supplier shall ensure that the relevant

Non Half Hourly Data Collector shall not determine a value of Annualised Advance for

such Settlement Register and shall not set the value of Annualised Advance to zero until a

Meter Advance has been calculated. Once a Meter Advance has been calculated for such

new metered Metering System, the provisions of paragraphs 4.3.3 to 4.3.8 (inclusive) shall

apply.

4.3.12 In the case where for a metered Metering System "K" the physical meter changes or, as the

case may be, is reconfigured, concurrently with a change to the associated Standard

Settlement Configuration "C" and there is a Meter Advance Period ending on the

Settlement Day before the physical meter changes or, as the case may be, is reconfigured,

the Supplier responsible for such Metering System shall ensure that the Non Half Hourly

Data Collector responsible for such Metering System shall determine the values of

Annualised Advance and Estimated Annual Consumption for each old Settlement Register

pursuant to paragraphs 4.3.3 to 4.3.7 (inclusive) and shall provide the Annualised Advance

data together with its Effective From Settlement Date and Effective To Settlement Date for

such old Settlement Register and, unadjusted, the initial Estimated Annual Consumption

together with its Effective From Settlement Date provided by such Supplier pursuant to

paragraph 4.3.2(a) for each new Settlement Register to the relevant Non Half Hourly Data

Aggregator responsible for such Metering System. Such Non Half Hourly Data Collector

shall not be obliged, however, to provide the Estimated Annual Consumption for the old

Settlement Register determined pursuant to paragraph 4.3.7 to the relevant Non Half

Hourly Data Aggregator responsible for such Metering System.

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4.3.13 The provisions of this paragraph 4.3.13 shall apply in the case where there is a Meter

Advance Period ending on the Settlement Day before there is a change of Supplier for a

metered Metering System "K" and the metered Metering System "K" is not subject to half

hourly metering on the Settlement Day of the change of Supplier. For this purpose a Meter

Advance Period shall end, or as the case may be, shall be deemed to end on such

Settlement Day before the change of Supplier in accordance with BSCP504. In this case:

(a) the old Supplier shall ensure that its Non Half Hourly Data Collector

responsible for such Metering System shall:

(i) in accordance with BSCP504 and on request from the new

Supplier’s Non Half Hourly Data Collector provide the Estimated

Annual Consumption for each Settlement Register for such Metering

System effective on such Settlement Day to the new Supplier's Non

Half Hourly Data Collector responsible for such Metering System;

(ii) determine the values of Annualised Advance and Estimated Annual

Consumption for each Settlement Register for such Metering System

pursuant to paragraphs 4.3.3 to 4.3.7 (inclusive); and

(iii) provide the value of Annualised Advance for each Settlement

Register together with its Effective From Settlement Date and

Effective To Settlement Date determined pursuant to paragraph (ii)

above, which values shall be attributable to the old Supplier, to the

old Supplier's relevant Non Half Hourly Data Aggregators

responsible for such Metering System; and

(b) except where paragraph (c) applies, the new Supplier shall ensure that its Non

Half Hourly Data Collector responsible for such Metering System shall:

(i) determine the values of Annualised Advance and Estimated Annual

Consumption for each Settlement Register for such Metering System

pursuant to paragraphs 4.3.3 to 4.3.7 (inclusive) where the Previous

Estimated Annual Consumption shall be that value provided by the

old Supplier’s Non Half Hourly Data Collector pursuant to

paragraph (a) above; and

(ii) provide the value of Estimated Annual Consumption for each

Settlement Register together with its Effective From Settlement Date

determined pursuant to paragraph (i) above, which values shall be

attributable to the new Supplier, to such Supplier's relevant Non Half

Hourly Data Aggregators responsible for such Metering System; and

(c) if any of the circumstances in paragraph 4.3.13A apply, the new Supplier shall:

(i) in accordance with and in the circumstances set out in BSCP504,

send an initial value of Estimated Annual Consumption (EACKR)

for each Settlement Register for such Metering System effective on

such Settlement Day to its Non Half Hourly Data Collector

responsible for such Metering System; and

(ii) ensure that its Non Half Hourly Data Collector responsible for such

Metering System shall provide the initial value of Estimated Annual

Consumption for each Settlement Register together with its Effective

From Settlement Date received pursuant to paragraph (i) above,

which values shall be attributable to the new Supplier, to such

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Supplier's relevant Non Half Hourly Data Aggregators responsible

for such Metering System.

4.3.13A The circumstances referred to in paragraph 4.3.13(c) are that the quantity of energy in

respect of the Metering System is recorded by, and available from, a Meter:

(a) serviced by the DCC; or

(b) which has been installed in compliance with the Smart Metering Equipment

Technical Specifications and the new Supplier and the old Supplier agree that

the process in paragraph 4.3.13(c) shall apply.

4.3.14 The provisions of this paragraph 4.3.14 shall apply in the case where there is a Meter

Advance Period ending on the Settlement Day before there is a change of Supplier for a

metered Metering System "K", and the metered Metering System "K" is subject to half

hourly metering on the Settlement Day of the change of Supplier. For this purpose a Meter

Advance Period shall end, or as the case may be, shall be deemed to end on the Settlement

Day before the change of Supplier in accordance with BSCP504. In this case, the old

Supplier shall ensure that its Non Half Hourly Data Collector responsible for such

Metering System shall:

(a) determine the values of Annualised Advance and Estimated Annual

Consumption for each Settlement Register for such Metering System pursuant

to paragraphs 4.3.3 to 4.3.7 (inclusive); and

(b) provide the value of Annualised Advance for each Settlement Register together

with its Effective From Settlement Date and Effective To Settlement Date

determined pursuant to paragraph (a) above, which values shall be attributable

to the old Supplier, to the old Supplier's relevant Non Half Hourly Data

Aggregators responsible for such Metering System.

4.3.15 Each Supplier shall ensure that for any metered Metering System "K" for which it is

responsible and for which BSCP504 provides that a Deemed Meter Advance must or could

be calculated for a Deemed Meter Advance Period such Deemed Meter Advance may

(where BSCP504 provides that it may) and shall (where BSCP504 provides it must) be

calculated for each Settlement Register in accordance with the following formulae:

(a) Where BSCP504 provides that the Deemed Meter Advance shall be calculated

using an Estimated Annual Consumption:

DMAKR = ∑ T (DPCHPRT *EACKR)

where:

ΣT DPCHPRT is the sum of the individual Daily Profile Coefficients appropriate

to the GSP Group, Time Pattern Regime, Standard Settlement Configuration

and Profile Class applying to the Metering System on each Settlement Day in

the applicable Deemed Meter Advance Period as set out in BSCP504.

(b) Where BSCP504 provides that the Deemed Meter Advance shall be calculated

using an Annualised Advance:

DMAKR = ∑T (DPCHPRT * AAKR)

where:

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ΣT DPCHPRT is the sum of the individual Daily Profile Coefficients appropriate

to the GSP Group, Time Pattern Regime, Standard Settlement Configuration

and Profile Class applying to the Metering System on each Settlement Day in

the applicable Deemed Meter Advance Period as set out in BSCP504.

4.3.16 Where a Deemed Meter Advance has been calculated, each Supplier responsible for a

metered Metering System "K" shall ensure that the relevant Non Half Hourly Data

Collector responsible for such Metering System shall:

(a) determine values of Annualised Advance and Estimated Annual Consumption

for each Settlement Register pursuant to paragraphs 4.3.3 to 4.3.7 (inclusive)

using the value of Deemed Meter Advance determined pursuant to paragraph

4.3.15 in place of the value of Meter Advance and substituting the Meter

Advance Period with the applicable Deemed Meter Advance Period as

described in BSCP504; and

(b) provide the values of Annualised Advance and/or Estimated Annual

Consumption and any further data required to be provided in accordance with

BSCP504 to the relevant Non Half Hourly Data Aggregator responsible for

such Metering System.

4.3.17 Where a Meter Advance has been calculated in accordance with BSCP504 and this has

resulted in a new value of Estimated Annual Consumption which is not consistent with the

last valid Estimated Annual Consumption or Annualised Advance, as the case may be, then

in the circumstances set out in BSCP504, paragraph 4.3.7(b) shall not apply and the Non

Half Hourly Data Collector shall apply a value of Estimated Annual Consumption which is

representative of the most likely rate of generation or demand for that Metering System or,

where this is not available, a value of initial Estimated Annual Consumption (EACKR). The

Effective From Settlement Date of the value of Estimated Annual Consumption or initial

Estimated Annual Consumption described above shall be the day following the end of the

Meter Advance Period or Deemed Meter Advance Period, as the case may be.

4.3.18 Each Supplier shall ensure that each of its Non Half Hourly Data Collectors shall in respect

of such Supplier's Unmetered Supplies for which such Non Half Hourly Data Collector is

responsible and which are not subject to Equivalent Metering set the values of Estimated

Annual Consumption to be those defined in the relevant Unmetered Supply Certificate and

shall, in accordance with BSCP520, pass such value unadjusted to the relevant Non Half

Hourly Data Aggregator responsible for such Unmetered Supply together with the

Effective From Settlement Dates of such Estimated Annual Consumption.

4.3.19 Subject to paragraph 4.3.21, each Supplier which treats or intends to treat a metered

Metering System "K" for which it is responsible as Long Term Vacant shall instruct (in the

manner and form required by BSCP504), and ensure that, its Non Half Hourly Data

Collector responsible for such metered Metering System "K" calculates a Metered Advance

in accordance with the provisions of paragraph 4.3.2 or (where no relevant Metered Data is

available) calculates a Deemed Metered Advance in accordance with the provisions of

paragraphs 4.3.15 to 4.3.16, and an Estimated Annual Consumption (EACKR) for each

Settlement Register (calculated according to the formulae set out in paragraph 4.3.7), and

thereafter for all future calculations replace the Estimated Annual Consumption (EACKR)

with an Estimated Annual Consumption (EACKR) of zero value.

4.3.20 For the purposes of paragraph 4.3.19, the Effective From Settlement Date for the use of an

Estimated Annual Consumption (EACKR) of zero value shall be the earlier of:

(a) the date of the first visit referred to in Section S2.8.3 (a) in respect of which the

appropriate notification referred to in Section S2.8.3(b) was given to the

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Supplier that no access to the metered Metering System "K" had been obtained

by the relevant Non Half Hourly Data Collector; or

(b) if the Supplier receives notification from an owner and/or occupier of a property

on which the metered Metering System "K" is situated that electricity is or will

no longer be consumed on the property, the last date on which electricity is

consumed on that property (which shall be treated for the purposes of this

paragraph 4.3.20 as the "last consumption date"), provided that:

(i) Metered Data (as described in BSCP504) is also received for the last

consumption date;

(ii) the last consumption date is within the applicable timescales

specified in BSCP504; and

(iii) Section S2.8.2 does not apply and the Supplier has complied with

any relevant requirement in BSCP504 relating to the treatment or

entitlement to treat the metered Metering System K as Long Term

Vacant.

4.3.21 Where the metered Metering System "K" is not or can no longer be treated as Long Term

Vacant then the Supplier shall instruct (in the manner and form set out in BSCP504), and

ensure that, its Non Half Hourly Data Collector responsible for such metered Metering

System "K" calculates a Metered Advance in accordance with the provisions of paragraph

4.3.2 or (where no relevant Metered Data is available) calculates a Deemed Meter Advance

in accordance with the provisions of paragraphs 4.3.15 to 4.3.16, and an Estimated Annual

Consumption (EACKR) for each Settlement Register (calculated according to the formulae

set out in paragraph 4.3.7), and thereafter for future calculations replace the zero value

Estimated Annual Consumption (EACKR) with any one of the following:

(a) an Estimated Annual Consumption (EACKR) calculated according to the

formulae set out in paragraph 4.3.7; or

(b) an initial value of Estimated Annual Consumption (EACKR); or

(c) an Estimated Annual Consumption (EACKR) which the Supplier reasonably

believes is representative of the most likely rate of generation or demand for

that metered Metering System "K",

4.3.22 For the purposes of paragraph 4.3.21, the Effective From Settlement Date for the

replacement of the value of the Estimated Annual Consumption (EACKR) or initial value of

Estimated Annual Consumption (EACKR) shall be:

(a) the day following that upon which the metered Metering System "K" is not or

can no longer be treated as Long Term Vacant by reason of Section S2.8.2 (b),

(c) and (d); or

(b) where the Suppler has failed to comply with requirements in BSCP504 or

Section 2.8.5 and relevant Metered Data (as described in BSCP504) has not

been obtained, the date of the last visit by the Non Half Hourly Data Collector

which complies with the requirements of Section S2.8.5 (a) and (b).

4.4 Non Half Hourly Data Aggregation

4.4.1 Each Supplier shall ensure that in respect of each Settlement Day for which an Interim

Information Volume Allocation Run, Initial Volume Allocation Run or a Reconciliation

Volume Allocation Run is being undertaken, each of its Non Half Hourly Data Aggregators

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shall in respect of each of the Settlement Registers within such Supplier’s Metering

Systems, including those Settlement Registers within Unmetered Supplies, for which such

Non Half Hourly Data Aggregator is responsible and which are not subject to Equivalent

Metering:

(a) receive Estimated Annual Consumption data together with their Effective From

Settlement Dates and Annualised Advance data, together with their Effective

From Settlement Dates and Effective To Settlement Dates and Metering System

details provided by the relevant Non Half Hourly Data Collectors responsible

for such Metering System and for each Settlement Register pursuant to

paragraph 4.3;

(b) check the Estimated Annual Consumption and Annualised Advance data

provided by the relevant Non Half Hourly Data Collector in accordance with

BSCP505;

(c) enter the Estimated Annual Consumption and Annualised Advance data as

provided pursuant to paragraph (a) into the relevant data aggregation system;

(d) update standing data entries, including data provided by the SVAA and the

relevant SMRA, to the relevant data aggregation system to take account of new

information;

(e) aggregate annualised Consumption Data in MWh; and

(f) provide the aggregated annualised Consumption Data to the SVAA in the form

of Supplier Purchase Matrices.

4.4.2 Each Supplier shall ensure that each of its Non Half Hourly Data Aggregators shall assign

a GSP Group "H", Supplier "Z", Line Loss Factor Class "L", Profile Class "P" and valid

combination of Time Pattern Regime and Standard Settlement Configuration "R" to each of

such Supplier's Metering Systems for which it is responsible using the data held in the

relevant Supplier Meter Registration Service system.

4.4.3 Each Supplier shall ensure that each of its Non Half Hourly Data Aggregators shall, in

respect of the Settlement Day for which an Interim Information Volume Allocation Run,

Initial Volume Allocation Run or Reconciliation Volume Allocation Run is being

undertaken and in respect only of such Supplier's Metering Systems for which such Non

Half Hourly Data Aggregator is responsible for such Settlement Day, make the

determinations set out in this paragraph 4.4 and, when appropriate, paragraph 4.5. For the

purposes of such determinations, such Supplier shall ensure that the relevant Non Half

Hourly Data Aggregator shall employ:

(a) the values of Annualised Advance effective for such Settlement Day which

have:

(i) been received from any Non Half Hourly Data Collector currently or

previously appointed by such Supplier to be responsible for such

Metering System in respect of all, or any part of, the latest period for

which such Supplier is responsible for such Metering System; and

(ii) which have the valid combination of Time Pattern Regime and

Standard Settlement Configuration "R" for such Metering System

for such Settlement Day according to the data held in the relevant

Supplier Meter Registration System.

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If there is more than one such value of Annualised Advance, only the value

provided by such Non Half Hourly Data Collector with the latest appointment

date on or prior to the date on the day on which the determinations in respect of

such Settlement Day are being undertaken shall be employed. If a value of

Annualised Advance has been identified pursuant to this paragraph (a), then for

the purposes of the determinations in this paragraph 4.4, no other value of

Annualised Advance or value of Estimated Annual Consumption shall be

employed for such Time Pattern Regime and Standard Settlement Configuration

"R" for such Metering System for such Settlement Day;

(b) if such values of Annualised Advance are not available, the values of Estimated

Annual Consumption effective for such Settlement Day which have:

(i) been received from any Non Half Hourly Data Collector currently or

previously appointed by such Supplier to be responsible for such

Metering System in respect of all or any part of the latest period for

which such Supplier is responsible for such Metering System; and

(ii) the valid combination of Time Pattern Regime and Standard

Settlement Configuration "R" for such Metering System for such

Settlement Day according to the data held in the relevant Supplier

Meter Registration System.

If there is more than one such value, only the value of Estimated Annual

Consumption with the latest Effective From Settlement Date shall be employed

or if there remains more than one such value, only the value provided by such

Non Half Hourly Data Collector with the latest appointment date on or prior to

the date on the day on which the determinations in respect of such Settlement

Day are being undertaken shall be employed; or

(c) if no such value of Annualised Advance or Estimated Annual Consumption has

been identified pursuant to paragraph (a) or (b) respectively, then for the

purposes of the determinations in this paragraph 4.4, there shall be deemed to be

no value of Annualised Advance or Estimated Annual Consumption for such

Time Pattern Regime and Standard Settlement Configuration "R" for such

Metering System for such Settlement Day.

4.4.4 Such Supplier shall ensure that the relevant Non Half Hourly Data Aggregator shall in

respect of each relevant Metering System and Settlement Day, employing the Annualised

Advance or, as the case may be, Estimated Annual Consumption in respect of such

Metering System and Settlement Day identified pursuant to paragraph 4.4.3:

(a) if such metered Metering System "K" has a value of Annualised Advance with

an Effective From Settlement Date and an Effective To Settlement Date

between or, as the case may be, on which such Settlement Day falls, and the

Metering System energisation status is determined to be 'energised' by reference

to data provided by the relevant SMRA, count the number of Settlement

Registers within such Metering System as contributing towards the value of

Number Of Non Half Hourly Metering Systems Contributing To The Total

Annualised Advance (NMAHZLPR) and the provisions of paragraphs 4.4.7 and

4.4.8 shall apply and the provisions of paragraphs 4.4.9 to 4.4.16 (inclusive)

shall not apply to such Metering System;

(b) if such metered Metering System "K" has a value of Annualised Advance with


between or, as the case may be, on which such Settlement Day falls, and that

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value is not equal to zero for one or more Settlement Registers within the

Metering System, and the Metering System energisation status is determined to

be 'de-energised' by reference to data provided by the relevant SMRA, count the

number of Settlement Registers within such Metering System as contributing

towards the value of Number Of Non Half Hourly Metering Systems

Contributing To The Total Annualised Advance (NMAHZLPR) and the provisions

of paragraphs 4.4.7 and 4.4.8 shall apply and the provisions of paragraphs 4.4.9

to 4.4.16 (inclusive) shall not apply to such Metering System;

(c) if such metered Metering System "K" does not have a value of Annualised

Advance which is effective for such Settlement Day but does have an Estimated

Annual Consumption which is effective for such Settlement Day and the





Estimated Annual Consumption (NMMEHZLPR) and the provisions of paragraphs

4.4.9 and 4.4.10 shall apply and the provisions of paragraphs 4.4.7, 4.4.8 and

4.4.11 to 4.4.16 (inclusive) shall not apply to such Metering System;

(d) if such metered Metering System "K" has no Annualised Advance or Estimated

Annual Consumption effective for such Settlement Day and the Metering

System energisation status is determined to be 'energised' by reference to data

provided by the relevant SMRA, count the number of Settlement Registers

within such Metered Metering System as contributing towards the value of

Number Of Non Half Hourly Metered Metering Systems Requiring a Default

Estimated Annual Consumption (NMMDEHZLPR) and the provisions of

paragraphs 4.4.11 and 4.4.15 shall apply and the provisions of paragraphs 4.4.7

to 4.4.10 (inclusive), 4.4.12 to 4.4.14 (inclusive) and 4.4.16 shall not apply to

such Metering System;

(e) if such Metering System "K" is classified as an Unmetered Supply and has a

valid Unmetered Supply Certificate effective on the Settlement Day and the



Registers within such Unmetered Supply as contributing towards the value of

Number of Non Half Hourly Unmetered Metering Systems Contributing To The

Total Estimated Annual Consumption (NMUEHZLPR) and the provisions of


to 4.4.11 (inclusive) and 4.4.14 to 4.4.16 (inclusive) shall not apply to such

Unmetered Supply;

(f) if such Metering System "K" is classified as an Unmetered Supply and does not

have a valid Unmetered Supply Certificate effective on the Settlement Day and

the Metering System energisation status is determined to be 'energised' by

reference to data provided by the relevant SMRA, or if such Metering System

"K" is classified as an Unmetered Supply and has an Annualised Advance

effective for such Settlement Day, count the number of Settlement Registers

within such Unmetered Supply as contributing towards the value of Number Of

Non Half Hourly Unmetered Metering Systems Requiring A Default Estimated

Annual Consumption (NMUDEHZLPR) and the provisions of paragraph 4.4.14

and 4.4.16 shall apply and the provisions of paragraphs 4.4.7 to 4.4.13

(inclusive) and 4.4.15 shall not apply to such Unmetered Supply;

(g) if such metered Metering System "K" has a value of Annualised Advance with


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value is equal to zero for all Settlement Registers within the Metering System,

and the Metering System energisation status is determined to be 'de-energised'

by reference to data provided by the relevant SMRA, not count the number of

Settlement Registers within such Metering System as contributing towards any

of the values set out in this paragraph 4.4.4 and the provisions of paragraphs


(h) if such metered Metering System "K" does not have a value of Annualised



Metering System energisation status is determined to be 'de-energised' by

reference to data provided by the relevant SMRA, not count the number of




(i) if such Metering System "K" is classified as an Unmetered Supply and has a

valid Unmetered Supply Certificate which is effective for such Settlement Day

and the Metering System energisation status is determined to be 'de-energised'

by reference to data provided by the relevant SMRA, not count the number of




(j) if such metered Metering System "K" does not have a value of Annualised

Advance or a value of Estimated Annual Consumption which is effective for

such Settlement Day and the Metering System energisation status is determined

to be 'de-energised' by reference to data provided by the relevant SMRA, not

count the number of Settlement Registers within such Metering System as

contributing towards any of the values set out in this paragraph 4.4.4 and the

provisions of paragraphs 4.4.7 to 4.4.16 (inclusive) shall not apply to such

Metering System; or

(k) if such Metering System "K" is classified as an Unmetered Supply and does not

have a valid Unmetered Supply Certificate or an Annualised Advance effective

for such Settlement Day and the Metering System energisation status is

determined to be 'de-energised' by reference to data provided by the relevant

SMRA, not count the number of Settlement Registers within such Metering

System as contributing towards any of the values set out in this paragraph 4.4.4

and the provisions of paragraphs 4.4.7 to 4.4.16 (inclusive) shall not apply to

such Metering System.

4.4.5 Each Supplier shall ensure that its Non Half Hourly Data Aggregators shall maintain the

following data items for each Settlement Class within such Supplier for the Settlement Day

for which an Interim Information Volume Allocation Run, Initial Volume Allocation Run

or Reconciliation Volume Allocation Run is being undertaken for which that Non Half

Hourly Data Aggregator is responsible:

(a) the value of Number Of Non Half Hourly Metering Systems Contributing To

The Total Annualised Advance (NMAHZLPR);

(b) the value of Number Of Non Half Hourly Metering Systems Contributing To

The Total Estimated Annual Consumption (NMMEHZLPR);

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(c) the value of Number Of Non Half Hourly Metered Metering Systems Requiring

A Default Estimated Annual Consumption (NMMDEHZLPR);

(d) the value of Number Of Non Half Hourly Unmetered Metering Systems

Contributing To The Total Estimated Annual Consumption (NMUEHZLPR); and

(e) the value of Number Of Non Half Hourly Unmetered Metering Systems

Requiring A Default Estimated Annual Consumption (NMUDEHZLPR).

4.4.6 Each Supplier shall ensure that each of its Non Half Hourly Data Aggregators shall

maintain the following values according to BSCP505 together with the date of the

Settlement Day from which they shall be effective and the date, if any, of the last

Settlement Day on which they will be effective:

(a) the value of the Threshold Parameter (TP) which shall be provided for the time

being and from time to time by the SVAA and shall be as determined for the

time being and from time to time by the Panel;

(b) the values of Average Fraction of Yearly Consumption (AFYCHPR) by Profile

Class and valid combinations of Time Pattern Regime and Standard Settlement

Configuration within the GSP Group which shall be provided for the time being

and from time to time by the SVAA; and

(c) the values of GSP Group Profile Class Default Estimated Annual Consumption

(GGPCDEACHP) by GSP Group and Profile Class which shall be provided for

the time being and from time to time by the SVAA.


determine the Initial Total Annualised Advance (ITAAHZLPR) and the Total Annualised

Advances (TAAHZLPR) for such Supplier’s non half hourly metered Metering Systems for

which such Non Half Hourly Data Aggregator is responsible for each Settlement Class

"HLPR" within such Supplier "Z" according to the following formulae:

ITAAHZLPR = HZLPRKAAKR

TAAHZLPR = ITAAHZLPR / 1000


determine the value of NMAHZLPR for each Settlement Class "HLPR" within such Supplier

"Z" as equal to the number of metered Metering Systems for which such Non Half Hourly

Data Aggregator is responsible for such Settlement Class for which a value of Annualised

Advance has contributed to the Total Annualised Advance in accordance with paragraph

4.4.7.


determine the Total Estimated Annual Consumption For Non Half Hourly Metered

Metering Systems (MEHZLPR) for such Supplier's non half hourly metered Metering

Systems for which such Non Half Hourly Data Aggregator is responsible for each

Settlement Class "HLPR" within such Supplier "Z" according to the following formula:

MEHZLPR= HZLPRK EACKR


determine the value of NMMEHZLPR for each Settlement Class "HLPR" within such

Supplier "Z" as equal to the number of such Supplier's metered Metering Systems for

which such Non Half Hourly Data Aggregator is responsible for such Settlement Class for

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which a value of Estimated Annual Consumption has contributed to the Total Estimated

Annual Consumption (MEHZLPR) in accordance with paragraph 4.4.9.


determine the value of NMMDEHZLPR for each Settlement Class "HLPR" within such



which there is no value of Estimated Annual Consumption and no value of Annualised

Advance, and which therefore require a value of Default Estimated Annual Consumption

For Metered Metering Systems (DEMHZLPR) to be determined pursuant to paragraph 4.4.15.


determine the Value of Estimated Annual Consumption for Non Half Hourly Unmetered

Metering Systems (UEHZLPR) for such Supplier's Unmetered Supplies for which such Non

Half Hourly Data Aggregator is responsible for each Settlement Class "HLPR" within such

Supplier "Z" according to the following formula:

UEHZLPR = HZLPRK EACKR


determine the value of NMUEHZLPR for each Settlement Class "HLPR" within such

Supplier "Z" as equal to the number of such Supplier's Unmetered Supplies for which such

Non Half Hourly Data Aggregator is responsible for such Settlement Class for which there

is a value of Estimated Annual Consumption.


determine the value of NMUDEHZLPR for each Settlement Class "HLPR" within such



is no value of Estimated Annual Consumption, and which therefore require a value of

Default Estimated Annual Consumption For Unmetered Metering Systems (DEUHZLPR) to

be determined pursuant to paragraph 4.4.16.


determine the value of Default Estimated Annual Consumption For Metered Metering

Systems (DEMHZLPR) for such Supplier's metered Metering Systems for which such Non

Half Hourly Data Aggregator is responsible and for which there is no value of Estimated

Annual Consumption for each Settlement Class "HLPR" within such Supplier "Z"

according to the following formulae:

if ( NMAHZLPR + NMMEHZLPR ) > TP then:

DEMHZLPR = (ITAAHZLPR + MEHZLPR ) / (NMAHZLPR + NMMEHZLPR);

but in all other cases:

DEMHZLPR = GGPCDEACHP * AFYCHPR .


determine the value of Default Estimated Annual Consumption For Unmetered Metering

Systems (DEUHZLPR) for such Supplier's Unmetered Supplies for which such Non Half

Hourly Data Aggregator is responsible and for which there is no Certificate of Supply for

each Settlement Class "HLPR" within such Supplier "Z" according to the following

formulae:

if NMUEHZLPR > TP then:

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DEUHZLPR = (UEHZLPR ) / (NMUEHZLPR);

but in all other cases:

DEUHZLPR = GGPCDEACHP * AFYCHPR


determine the values of Total Metered Estimated Annual Consumption (TMEACHZLPR),

Total Number Of Metered Non Half Hourly Metering Systems Contributing To Total

Metered Estimated Annual Consumption (TMEACCHZLPR), Total Unmetered Consumption

(TUEHZLPR) and Total Number Of Non Half Hourly Unmetered Metering Systems

Contributing To Total Unmetered Consumption (TMUECHZLPR) for such Supplier's

Metering Systems for which such Non Half Hourly Data Aggregator is responsible

according to the following formulae:

TMEACHZLPR = (MEHZLPR + (NMMDEHZLPR * DEMHZLPR)) / 1000;

TMEACCHZLPR = NMMEHZLPR + NMMDEHZLPR ;

TUEHZLPR = (UEHZLPR + (NMUDEHZLPR * DEUHZLPR)) / 1000; and

TMUECHZLPR = NMUEHZLPR + NMUDEHZLPR


determine a Supplier Purchase Matrix (SPMHZaLPR) consisting of the following data for

such Supplier's Metering Systems for which such Non Half Hourly Data Aggregator is

responsible in respect of each Settlement Class "HLPR" within such Supplier "Z":

(a) Number Of Non Half Hourly Metering Systems Contributing To The Total

Annualised Advance (NMAHZLPR);

(b) Number Of Non Half Hourly Metered Metering Systems Requiring A Default

Estimated Annual Consumption (NMMDEHZLPR);

(c) Number Of Non Half Hourly Unmetered Metering Systems Requiring A

Default Estimated Annual Consumption (NMUDEHZLPR);

(d) Total Number Of Metered Non Half Hourly Metering Systems Contributing To

Total Metered Estimated Annual Consumption (TMEACCHZLPR);

(e) Total Number Of Non Half Hourly Unmetered Metering Systems Contributing

To Total Unmetered Consumption (TMUECHZLPR);

(f) Total Annualised Advance (TAAHZLPR);

(g) Total Metered Estimated Annual Consumption (TMEACHZLPR); and

(h) Total Unmetered Consumption (TUEHZLPR).

4.4.19 If a Supplier is notified in writing by a Licensed Distribution System Operator that it

requires the relevant Non Half Hourly Data Aggregator to provide it with Estimated

Annual Consumption data and Metering System details, each Supplier shall ensure that its

relevant Non Half Hourly Data Aggregator shall in accordance with BSCP505, provide the

Estimated Annual Consumption data and Metering System details to each relevant

Licensed Distribution System Operator in respect of Metering Systems located at Boundary

Points on that Licensed Distribution System Operator’s Distribution System(s) and

Associated Distribution System(s).

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4.5 Non Half Hourly Data Aggregation of Demand Disconnection Events

4.5.1 Each Supplier shall ensure that in respect of each Settlement Day that was affected by a

Demand Disconnection Event for which an Interim Information Volume Allocation Run,

Initial Volume Allocation Run or a Reconciliation Volume Allocation Run is being

undertaken, each of its Non Half Hourly Data Aggregators shall in respect of each of the

Settlement Registers within such Supplier’s Metering Systems affected by a Demand

Disconnection Event, including those Settlement Registers within Unmetered Supplies, for

which such Non Half Hourly Data Aggregator is responsible and which are not subject to

Equivalent Metering:

(a) aggregate annualised Consumption Data related to Metering Systems affected

by a Demand Disconnection Event in MWh; and

(b) provide the aggregated annualised Consumption Data to the SVAA in the form

of Supplier Disconnection Matrices.

4.5.2 Each Supplier shall ensure that the relevant Non Half Hourly Data Aggregator excludes

any MSIDs notified under Section S9.3.1 from the processes under this paragraph 4.5 for

each relevant Settlement Period, as though that MSID was not affected by the Demand

Disconnection Event in that Settlement Period.

4.5.3 Such Supplier shall ensure that the relevant Non Half Hourly Data Aggregator shall in

respect of each relevant Metering System and Settlement Day that is affected by a Demand

Disconnection Event pursuant to Section S9.1.2, employing the Annualised Advance or, as

the case may be, Estimated Annual Consumption in respect of such Metering System and

Settlement Day identified pursuant to paragraph 4.4.3:

(a) if such metered Metering System "K" has a value of Annualised Advance with


between or, as the case may be, on which such Settlement Day falls, and the





Annualised Advance (Disconnected) (NMADHZLPR) and the provisions of

paragraphs 4.5.5 and 4.5.6 shall apply and the provisions of paragraphs 4.5.7 to

4.5.12 (inclusive) shall not apply to such Metering System;

(b) if such metered Metering System "K" has a value of Annualised Advance with



value is not equal to zero for one or more Settlement Registers within the

Metering System, and the Metering System energisation status is determined to

be 'de-energised' by reference to data provided by the relevant SMRA, count the

number of Settlement Registers within such Metering System as contributing

towards the value of Number Of Non Half Hourly Metering Systems

Contributing To The Total Annualised Advance (Disconnected) (NMADHZLPR)

and the provisions of paragraphs 4.5.5 and 4.5.6 shall apply and the provisions

of paragraphs 4.5.7 to 4.5.12 (inclusive) shall not apply to such Metering

System;

(c) if such metered Metering System "K" does not have a value of Annualised




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Estimated Annual Consumption (Disconnected) (NMMEDHZLPR) and the

provisions of paragraphs 4.5.7 and 4.5.8 shall apply and the provisions of

paragraphs 4.5.5, 4.5.6 and 4.5.9 to 4.5.12 (inclusive) shall not apply to such

Metering System;

(d) if such metered Metering System "K" has no Annualised Advance or Estimated

Annual Consumption effective for such Settlement Day and the Metering

System energisation status is determined to be 'energised' by reference to data

provided by the relevant SMRA, count the number of Settlement Registers

within such Metered Metering System as contributing towards the value of

Number Of Non Half Hourly Metered Metering Systems Requiring a Default

Estimated Annual Consumption (Disconnected) (NMMDEDHZLPR) and the


paragraphs 4.5.5 to 4.5.8 (inclusive) and 4.5.10 to 4.5.12 (inclusive) shall not

apply to such Metering System;

(e) if such Metering System "K" is classified as an Unmetered Supply and has a

valid Unmetered Supply Certificate effective on the Settlement Day and the



Registers within such Unmetered Supply as contributing towards the value of

Number of Non Half Hourly Unmetered Metering Systems Contributing To The

Total Estimated Annual Consumption (Disconnected) (NMUEDHZLPR) and the


paragraphs 4.5.5 to 4.5.9 (inclusive) and 4.5.12 shall not apply to such

Unmetered Supply; or

(f) if such Metering System "K" is classified as an Unmetered Supply and does not

have a valid Unmetered Supply Certificate effective on the Settlement Day and

the Metering System energisation status is determined to be 'energised' by

reference to data provided by the relevant SMRA, or if such Metering System

"K" is classified as an Unmetered Supply and has an Annualised Advance

effective for such Settlement Day, count the number of Settlement Registers

within such Unmetered Supply as contributing towards the value of Number Of

Non Half Hourly Unmetered Metering Systems Requiring A Default Estimated

Annual Consumption (Disconnected) (NMUDEDHZLPR) and the provisions of


to 4.5.11 shall not apply to such Unmetered Supply.

4.5.4 Each Supplier shall ensure that its Non Half Hourly Data Aggregators shall maintain the

following data items for each Settlement Class within such Supplier for the Settlement Day

for which an Initial Volume Allocation Run or Reconciliation Volume Allocation Run is

being undertaken for which that Non Half Hourly Data Aggregator is responsible:

(a) the value of Number Of Non Half Hourly Metering Systems Contributing To

The Total Annualised Advance (Disconnected) (NMADHZLPR);

(b) the value of Number Of Non Half Hourly Metering Systems Contributing To

The Total Estimated Annual Consumption (Disconnected) (NMMEDHZLPR);

(c) the value of Number Of Non Half Hourly Metered Metering Systems Requiring

A Default Estimated Annual Consumption (Disconnected) (NMMDEDHZLPR);

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(d) the value of Number Of Non Half Hourly Unmetered Metering Systems

Contributing To The Total Estimated Annual Consumption (Disconnected)

(NMUEDHZLPR); and

(e) the value of Number Of Non Half Hourly Unmetered Metering Systems

Requiring A Default Estimated Annual Consumption (Disconnected)

(NMUDEDHZLPR).


determine the Initial Total Annualised Advance (Disconnected) (ITAADHZLPR) and the

Total Annualised Advances (Disconnected) (TAADHZLPR) for such Supplier’s non half

hourly metered Metering Systems for which such Non Half Hourly Data Aggregator is

responsible for each Settlement Class "HLPR" within such Supplier "Z" according to the

following formulae:

ITAADHZLPR = HZLPRKAAKR

TAADHZLPR = ITAADHZLPR / 1000

where such metered Metering Systems have a value of Annualised Advance with an

Effective From Settlement Date on or before and an Effective To Settlement Date on or

after a Settlement Day or Settlement Days that included Settlement Periods affected by a

Demand Disconnection Event.


determine the value of NMADHZLPR for each Settlement Class "HLPR" within such

Supplier "Z" as equal to the number of metered Metering Systems for which such Non Half

Hourly Data Aggregator is responsible for such Settlement Class for which a value of

Annualised Advance has contributed to the Total Annualised Advance (Disconnected) in



determine the Total Estimated Annual Consumption For Non Half Hourly Metered

Metering Systems (Disconnected) (MEDHZLPR) for such Supplier's non half hourly metered

Metering Systems for which such Non Half Hourly Data Aggregator is responsible for each

Settlement Class "HLPR" within such Supplier "Z" according to the following formula:

MEDHZLPR= HZLPRK EACKR

where such metered Metering Systems have a value of Estimated Annual Consumption

with an Effective From Settlement Date before or, as the case may be, on a Settlement Day

that included Settlement Periods affected by a Demand Disconnection Event.


determine the value of NMMEDHZLPR for each Settlement Class "HLPR" within such



which a value of Estimated Annual Consumption has contributed to the Total Estimated

Annual Consumption (Disconnected) (MEDHZLPR) in accordance with paragraph 4.5.7.


determine the value of NMMDEDHZLPR for each Settlement Class "HLPR" within such



which there is no value of Estimated Annual Consumption and no value of Annualised

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Advance, and which therefore require a value of Default Estimated Annual Consumption

For Metered Metering Systems (DEMHZLPR) to be determined pursuant to paragraph 4.4.15.


determine the Value of Estimated Annual Consumption for Non Half Hourly Unmetered

Metering Systems (Disconnected) (UEDHZLPR) for such Supplier's Unmetered Supplies for

which such Non Half Hourly Data Aggregator is responsible for each Settlement Class

"HLPR" within such Supplier "Z" according to the following formula:

UEDHZLPR = HZLPRK EACKR

where such Metering Systems have a value of Estimated Annual Consumption with an

Effective From Settlement Date on or before a Settlement Day that included Settlement

Periods affected by a Demand Disconnection Event.


determine the value of NMUEDHZLPR for each Settlement Class "HLPR" within such



is a value of Estimated Annual Consumption.


determine the value of NMUDEDHZLPR for each Settlement Class "HLPR" within such



is no value of Estimated Annual Consumption, and which therefore require a value of

Default Estimated Annual Consumption For Unmetered Metering Systems (DEUHZLPR) to

be determined pursuant to paragraph 4.4.16.


determine the values of Total Metered Estimated Annual Consumption (Disconnected)

(TMEACDHZLPR), Total Number Of Metered Non Half Hourly Metering Systems

Contributing To Total Metered Estimated Annual Consumption (Disconnected)

(TMEACCDHZLPR), Total Unmetered Consumption (Disconnected) (TUEDHZLPR) and Total

Number Of Non Half Hourly Unmetered Metering Systems Contributing To Total

Unmetered Consumption (Disconnected) (TMUECDHZLPR) for such Supplier's Metering

Systems for which such Non Half Hourly Data Aggregator is responsible according to the

following formulae:

TMEACDHZLPR = (MEDHZLPR + (NMMDEDHZLPR * DEMHZLPR)) / 1000;

TMEACCDHZLPR = NMMEDHZLPR + NMMDEDHZLPR ;

TUEDHZLPR = (UEDHZLPR + (NMUDEDHZLPR * DEUHZLPR)) / 1000; and

TMUECDHZLPR = NMUEDHZLPR + NMUDEDHZLPR


determine a Supplier Disconnection Matrix (SDMHZaLPR) consisting of the following data

for such Supplier's Metering Systems for which such Non Half Hourly Data Aggregator is

responsible in respect of each Settlement Class "HLPR" within such Supplier "Z":

(a) Number Of Non Half Hourly Metering Systems Contributing To The Total

Annualised Advance (Disconnected) (NMADHZLPR);

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(b) Number Of Non Half Hourly Metered Metering Systems Requiring A Default

Estimated Annual Consumption (Disconnected) (NMMDEDHZLPR);

(c) Number Of Non Half Hourly Unmetered Metering Systems Requiring A

Default Estimated Annual Consumption (Disconnected) (NMUDEDHZLPR);

(d) Total Number Of Metered Non Half Hourly Metering Systems Contributing To

Total Metered Estimated Annual Consumption (Disconnected)

(TMEACCDHZLPR);

(e) Total Number Of Non Half Hourly Unmetered Metering Systems Contributing

To Total Unmetered Consumption (Disconnected) (TMUECDHZLPR);

(f) Total Annualised Advance (Disconnected) (TAADHZLPR);

(g) Total Metered Estimated Annual Consumption (Disconnected)

(TMEACDHZLPR); and

(h) Total Unmetered Consumption (Disconnected) (TUEDHZLPR).

The Supplier Disconnection Matrix should only be sent in relation to Metering Systems

and for Settlement Days affected by a Demand Disconnection Event.

5. SUPPLIER VOLUME ALLOCATION DATA INPUT

5.1 Supplier Volume Allocation Standing Data

5.1.1 Each Supplier shall from time to time notify such data items as are specified in BSCP509

as being provided by such Supplier to the SVAA, to the SVAA, and the SVAA shall ensure

that processes are put in place which ensure that such data are input promptly into the

Supplier Volume Allocation System.

5.1.2 Each Supplier shall supply such data as are specified in BSCP507 as being provided by

such Supplier to the SVAA together with the dates of the first and, as the case may be, the

last Settlement Days on which such data are to be effective to the SVAA, and the SVAA

shall ensure that processes are put in place which ensure that such data are input promptly

into the Supplier Volume Allocation System.

5.1.3 With the exception of Line Loss Factor data which shall be notified in accordance with

BSCP128, each Distribution System Operator shall from time to time notify such data as

are specified in BSCP507 and BSCP509 as being provided by such Distribution System

Operator to the SVAA, to the SVAA, and the SVAA shall ensure that processes are put in

place which ensure that such data are input promptly into the Supplier Volume Allocation

System.

5.1.4 The SVAA shall procure the following data from the Profile Administrator (or from

BSCCo where BSCCo provides the Profile Administration Services in accordance with

paragraph C9) and the SVAA shall ensure that processes are put in place which ensure that

such data are input promptly into the Supplier Volume Allocation System:

(a) Matrix Of Regression Coefficients - MRCQ(aa)(nn)j ;

(b) Group Average Annual Consumption - GAACHQ; and

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(c) The identity of the Analysis Class "(aa)" relevant to each GSP Group and

Settlement Day.

5.1.5 The SVAA shall procure such data as are specified in BSCP509 as being required by the

SVAA and which data do not form part of the data specified in paragraphs 5.1.1 to 5.1.4

(inclusive), from a source or sources from time to time agreed by the Panel.

5.1.6 The SVAA shall procure the data specified in BSCP508 as being required by the SVAA

and which data do not form part of the data specified in paragraphs 5.1.1 to 5.1.5

(inclusive), from a source or sources from time to time agreed by the Panel.

5.1.7 The SVAA shall:

(a) hold the Historical Daily Profile Coefficients provided to it in respect of each

GSP Group and such Profile Classes, combinations of Time Pattern Regime and

Standard Settlement Configuration and Settlement Days in each case as shall be

specified by the Panel; and

(b) notify such Historical Daily Profile Coefficients or, as the case may be, any

subset of such Historical Daily Profile Coefficients, in each case as may from

time to time be directed by the Panel, to each Non Half Hourly Data Collector.

5.1.8 The SVAA shall ensure the processes are put in place which ensure that details of:

(a) the Base BM Unit "i"; and

(b) any Additional BM Unit "i"

for each Supplier "Z" within each GSP Group "H" received from time to time from the

CRA are input into the Supplier Volume Allocation System in accordance with BSCP509.

5.1.9 In respect of all data referred to in this paragraph 5.1 which a Party and BSC Agents are

required to notify to the SVAA or which the SVAA is required to procure, the relevant

Party or BSC Agents or, as the case may be, the SVAA, shall ensure:

(a) that all such data is complete and accurate in all material respects;

(b) that any change to all or any of such data is notified promptly to the SVAA; and

(c) any such changed data is consistent with all such data which has not been

changed.

and the SVAA shall amend the data input into the Supplier Volume Allocation System to

reflect any such changes notified to it.

5.1.10 References in the Supplier Volume Allocation Rules to standing data are to such standing

data notified in respect of Supplier Volume Allocation for the time being and from time to

time pursuant to the Supplier Volume Allocation Rules.

5.1.11 The SVAA shall promptly notify all persons involved in Supplier Volume Allocation

entitled to receive such data of amendments to standing data used in Supplier Volume

Allocation.

5.1.12 The SVAA shall carry out, in accordance with BSCP508, the calculations set out in

paragraphs 5.1.12 to 5.1.16 in respect of each GSP Group "H" and each valid combination

of Profile Class "P" and Standard Settlement Configuration Class and Time Pattern Regime

combination "R" except for combinations of GSP Group "H", Profile Class "P" and

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Standard Settlement Configuration and Time Pattern Regime "R" for which values of

Alternative Average Fraction of Yearly Consumption (AAFYCHPR) have been notified to

the SVAA in accordance with BSCP509.

5.1.13 The SVAA shall carry out the calculations in respect of each GSP Group "H" and each

valid combination of Profile Class "P" and Standard Settlement Configuration Class and

Time Pattern Regime combination "R" using the Total Annualised Advance (TAAHZLPR)

from the Supplier Purchase Matrix (SPMHZaLPR) for the latest Volume Allocation Run in

respect of each Settlement Day over the Calculation Period, where the date range for the

Calculation Period has been agreed by the Panel.

5.1.14 The SVAA shall calculate the GSP Group Profile Class Average Estimated Annual

Consumption (GGPCAEACHPC) in respect of each GSP Group "H" and each valid

combination of Profile Class "P" and Standard Settlement Configuration "C" over the

Calculation Period as follows:

(a) determine the Time Pattern Regime Estimated Daily Consumption

(TPREDCHPRT) for each Profile Class "P" and Standard Settlement

Configuration and Time Pattern Regime combination "R" in each GSP Group

"H" for each Settlement Day "T" in the Calculation Period as follows:

TPREDCHPRT = (HPRZLTAAHZLPR) * DPCHPRT * 1000 / (HPR

ZL NMAHZLPR)

where HPRZL is the summation over all Suppliers and Line Loss Factor Classes

for Standard Settlement Configuration and Time Pattern Regime combination

"R" in Profile Class "P" within GSP Group "H";

(b) determine the Time Pattern Regime Average Estimated Annual Consumption

(TPREACHPR) for each Profile Class "P", Standard Settlement Configuration

and Time Pattern Regime combination "R" in each GSP Group "H" as follows:

TPREACHPR = HPRT TPREDCHPRT

where HPRT is the summation over all Settlement Days "T" contained within

the Calculation Period for which one or more values of TAAHZLPR was

determined for Standard Settlement Configuration and Time Pattern Regime

combination "R" in Profile Class "P" within GSP Group "H"; and

(c) determine the GSP Group Profile Class Average Estimated Annual

Consumption (GGPCAEACHPC) for each Profile Class "P" and Standard

Settlement Configuration "C" in each GSP Group "H" as follows:

GGPCAEACHPC = (HPCR TPREACHPR) * Days in Year / DaysHPC

where Days in Year is 365 or, where 29th February appears in the Calculation

Period, 366;

DaysHPC is the number of Settlement Days in the Calculation Period for which

one or more values of TPREACHPR were determined for Profile Class "P" and

Standard Settlement Configuration Class "C" within GSP Group "H"; and

HPCR is the summation over all Standard Settlement Configuration and Time

Pattern Regime combinations "R" valid for Standard Settlement Configuration

"C" and Profile Class "P" within GSP Group "H".

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5.1.15 The SVAA shall calculate the GSP Group Profile Class Default Estimated Annual

Consumption (GGPCDEAC) in respect of each Profile Class "P" within each GSP Group

"H" for the Calculation Period as follows:

(a) determine the Standard Settlement Configuration Estimated Daily Consumption

(SSCEDCHPCT) for each Profile Class "P" and Standard Settlement

Configuration "C" in each GSP Group "H" for each Settlement Day "T" in the

Calculation Period as follows:

SSCEDCHPCT = HPCTR TPREDCHPRT

where HPCTR is the summation of all Standard Settlement Configuration and

Time Pattern Regime combinations "R" valid for Standard Settlement

Configuration "C" in Profile Class "P" within GSP Group "H" for Settlement

Day "T";

(b) determine the Number of Metering Systems Contributing to the Standard

Settlement Configuration Estimated Daily Consumption (NMSSCEDCHPCT) for

each Profile Class "P" and Standard Settlement Configuration "C" in each GSP

Group "H" for each Settlement Day "T" in the Calculation Period as follows:

NMSSCEDCHPCT = HPCZL NMAHZLPR

where HPCZL is the summation over all Suppliers and Line Loss Factor Classes

for any one valid combination of Standard Settlement Configuration and Time

Pattern Regime for Standard Settlement Configuration "C" and Profile Class

"P" within GSP Group "H";

(c) determine the Profile Class Estimated Daily Consumption (PCEDCHPT) for each

Profile Class "P" within each GSP Group "H" for each Settlement Day "T" in

the Calculation Period as follows:

PCEDCHPT = HPTC (SSCEDCHPCT * NMSSCEDCHPCT) / HPT

C

(NMSSCEDCHPCT)

where HPTC is the summation over all Standard Settlement Configurations "C"

for Profile Class "P" within GSP Group "H" for Settlement Day "T"; and

(d) determine the GSP Group Profile Class Default Estimated Annual Consumption

(GGPCDEACHP) for each Profile Class "P" within each GSP Group "H" as

follows:

GGPCDEACHP = HPT PCEDCHPT * Days in Year / DaysHP

where DaysHP is the number of Settlement Days in the Calculation Period for

which one or more values of TAAHZLPR was determined for Profile Class "P"

within GSP Group "H"; and

HPT is the summation over all Settlement Days "T" for Profile Class "P" within

GSP Group "H".

5.1.16 The SVAA shall calculate the Annual Fraction of Yearly Consumption (AFYCHPR) in

respect of each Profile Class "P" and Standard Settlement Configuration and Time Pattern

Regime combination "R" within each GSP Group "H" as follows:

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(a) calculate the Unadjusted Annual Fraction of Consumption (UAFYCHPR) for

each Profile Class "P" and Standard Settlement Configuration and Time Pattern

Regime combination "R" within each GSP Group "H" in accordance with the

following formula:

UAFYCHPR = max ((TPREACHPR / HPC

RTPREACHPR), 0.000001);

(b) calculate an Annual Fraction of Yearly Consumption Adjustment (AFYCAHPC)

for each Profile Class "P" and Standard Settlement Configuration "C" within

GSP Group "H" in accordance with the following formula:

AFYCAHPC = 1 - HPCR UAFYCHPR;

(c) for the Time Pattern Regime and Standard Settlement Configuration

combination "R" that has the largest value of Unadjusted Annual Fraction of

Consumption (UAFYCHPR) for each Profile Class "P" and Standard Settlement

Configuration "C" within a GSP Group "H", calculate the Annual Fraction of

Yearly Consumption (AFYCHPR) in accordance with the following formula:

AFYCHPR = UAFYCHPR + AFYCAHPC; and

(d) for each Time Pattern Regime and Standard Settlement Configuration

combination "R" for Profile Class "P" and Standard Settlement Configuration

"C" within GSP Group "H" other than that to which paragraph (c) applies,

calculate the Annual Fraction of Yearly Consumption (AFYCHPR) in accordance

with the following formula:

AFYCHPR = UAFYCHPR.

5.2 Supplier Volume Allocation Periodic Data

5.2.1 The SVAA shall ensure that processes are put in place which ensure that the GSP Group

Take (GSPGTHj) data notified to it by the CDCA pursuant to Section R5.7 are promptly

input into the Supplier Volume Allocation System.

5.2.2 The SVAA shall procure from the Temperature Provider the following data and the SVAA

shall ensure that processes are put in place which ensure that such data are promptly input

into the Supplier Volume Allocation System:

Grid Supply Point Group Measured Temperature - THT in degrees Fahrenheit;

where the set of THT in respect of GSP Group "H" and Settlement Day "D" are provided

from weather stations at locations for the time being and from time to time agreed by the

Panel.

5.2.2A In addition to the data to be procured by the SVAA in accordance with paragraph 5.2 the

SVAA shall also procure from the Temperature Provider the following data in relation to

Scotland and put in place processes so that such data is input into the Supplier Volume

Allocation System in respect of the two days immediately preceding the BETTA Effective

Date:

Grid Supply Point Group Measured Temperature - THT in degrees Fahrenheit;

Where the set of THT in respect of GSP Group "H" and Settlement Day "D" are provided

from weather stations at locations for the time being and from time to time agreed by the

Panel.

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5.2.3 The SVAA shall procure from the Teleswitch Agent the following data and the SVAA

shall ensure that processes are put in place which ensure that such data are promptly input


Teleswitch Contact Interval Data in respect of each Teleswitch Contact within each

Teleswitch Group and in respect of the UTC Day then being processed.

5.2.4 The SVAA shall ensure that processes are put in place which ensure that the following data

from time to time supplied to it pursuant to paragraphs 3.5, 3.6 and 4.4 are promptly input


(a) Supplier's Metered Consumption - SMCHZaNLj;

(b) Supplier's Metered Consumption (Losses) - SMCLHZaNLj;

(c) BM Unit's Metered Consumption - BMMCiaNLj;

(d) BM Unit's Metered Consumption (Losses) - BMMCLiaNLj; and

(e) Supplier Purchase Matrix - SPMHZaLPR .

5.3 Reconciliation Allocation Data Input

5.3.1 For any Reconciliation Volume Allocation Run for a Settlement Day, each Supplier shall

ensure that, in respect of data which are then currently available but which were not

previously available for use in the immediately preceding Initial Volume Allocation Run or

Reconciliation Volume Allocation Run, as the case may be:

(a) its Half Hourly Data Collectors for that Settlement Day shall provide Supplier's

Metering System Metered Consumption data to the appropriate Half Hourly

Data Aggregators in respect of the relevant Metering Systems;

(b) its Non Half Hourly Data Collectors for that Settlement Day shall provide

Estimated Annual Consumption and Annualised Advance data to the

appropriate Non Half Hourly Data Aggregators in respect of the relevant

Metering Systems, replacing the Estimated Annual Consumptions with

Annualised Advances for Metering Systems for which Metered Data is then

currently available which was not previously available;

(c) its Half Hourly Data Aggregators for that Settlement Day shall provide the

following data to the SVAA which data shall incorporate any revised data made

available:

(i) in the case of a GSP Group "H" and a Half Hourly Data Aggregator

where paragraph 3.6 applies (in accordance with paragraph 3.6.1),

the BM Unit's Metered Consumption and BM Unit's Metered

Consumption (Losses) data, pursuant to paragraph 3.6; and

(ii) in the case of a GSP Group "H" and a Half Hourly Data Aggregator

where paragraph 3.6 does not apply, the Supplier's Metered

Consumption and Supplier's Metered Consumption (Losses) data,

pursuant to paragraph 3.5; and

(d) its Non Half Hourly Data Aggregators for that Settlement Day shall provide

Supplier Purchase Matrix data to the SVAA which data shall incorporate any

revised data made available.

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5.3.2 The SVAA shall ensure that processes are put in place which ensure that the data from time

to time supplied to it pursuant to paragraph 5.3.1 are promptly input into the Supplier

Volume Allocation System.

6. PROFILE COEFFICIENTS

6.1 Making of determinations

6.1.1 The determinations in this paragraph 6 shall be carried out by the SVAA in respect of

Metering Systems and in respect of each Settlement Day for which it is required to make

such determinations and which Settlement Day occurs on or after the Go-live Date.

6.1.2 The SVAA shall ensure that processes are put in place which ensure that values of

Alternative Average Fraction of Yearly Consumption (AAFYCHPR) notified to the SVAA

in accordance with BSCP509 are input promptly into the Supplier Volume Allocation

System.

6.2 Derivation of Settlement Register switching times for each Teleswitch Time Pattern

Regime

6.2.1 The SVAA shall identify each Teleswitch Time Pattern Regime which is associated with

one or more Standard Settlement Configurations of which at least one of such Standard

Settlement Configurations:

(a) defines a teleswitched metering configuration; and

(b) is assigned to a Teleswitch Group.

6.2.2 For the purpose of carrying out the processes set out in this paragraph 6.2 which require the

use of Teleswitch Contact Interval Data, the SVAA shall employ those Teleswitch Contact

Interval Data which:

(a) have been received by the SVAA pursuant to paragraph 5.2.3; and

(b) are in respect of the UTC Days which start or end at spot times which fall

within the Settlement Day then being processed.

6.2.3 If:

(a) the SVAA has not received Teleswitch Contact Interval Data pursuant to

paragraph 5.2.3 in respect of one or more of the UTC Days identified pursuant

to paragraph 6.2.2 by the time specified in BSCP508; or

(b) the SVAA has received the data specified in paragraph (a) by the time specified

in BSCP508 but such data does not include Teleswitch Contact Interval Data in

respect of each Teleswitch Group,

then the matters required to be determined under this paragraph 6.2 for the Settlement Day

being processed shall be determined by reference to such default data as BSCP508 requires

to be employed for such purpose.

6.2.4 In respect of each Teleswitch Time Pattern Regime identified pursuant to paragraph 6.2.1

within each Teleswitch Group, the SVAA shall employ the Teleswitch Register Rules and

Teleswitch Contact Rules in respect of such Teleswitch Time Pattern Regime (which have

been notified to the SVAA by each Supplier required to so notify pursuant to paragraph

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5.1.1) to determine the set of Teleswitch Intervals associated with such Teleswitch Time

Pattern Regime for the Settlement Day being processed as follows:

(a) by reference to the Teleswitch Contact Interval Data in respect of the

Teleswitch Group being processed and the UTC Days identified pursuant to

paragraph 6.2.2, the SVAA shall:

(i) determine the state of each of the Teleswitch Contacts associated

with any such Teleswitch Contact Rule at the start of such

Settlement Day; and

(ii) identify each following spot time of the Settlement Day at which any

of such Teleswitch Contacts associated with any such Teleswitch

Contact Rule change state;

(b) in respect of the spot time that is the start of Settlement Day and each spot time

identified pursuant to paragraph (a), the SVAA shall, in chronological order of

such spot times:

(i) determine whether each such Teleswitch Contact Rule is satisfied for

the period (the "contact period") commencing with such spot time

and ending at the earlier of the next following spot time identified

pursuant to paragraph (a) and the end of such Settlement Day;

(ii) determine whether each such Teleswitch Register Rule is satisfied

for the contact period commencing with such spot time by reference

to the results of the determination pursuant to paragraph (i) for the

associated Teleswitch Contact Rules;

(iii) (A) if any of such Teleswitch Register Rules is satisfied,

determine that the Settlement Register associated with

such Teleswitch Time Pattern Regime is recording

metered consumption for the contact period; or

(B) if none of such Teleswitch Register Rules is satisfied,

determine that the Settlement Register associated with

such Teleswitch Time Pattern Regime is not recording

metered consumption for the contact period;

(iv) if:

(A) the associated Settlement Register commences to record

metered consumption at such spot time; or

(B) such spot time is the start of the Settlement Day and such

Settlement Register is determined pursuant to this

paragraph as recording metered consumption for the

contact period commencing at such spot time,

determine that such spot time is an Unadjusted Interval Start Time

but, in any other case, such spot time shall not be an Unadjusted

Interval Start Time; and

(v) if:

(A) the associated Settlement Register ceases to record

metered consumption at such spot time; or

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(B) such spot time is the end of the Settlement Day and such

Settlement Register is determined pursuant to this

paragraph as recording metered consumption for the

contact period ending at such spot time;

determine that such spot time is an Unadjusted Interval End Time

but, in any other case, such spot time shall not be an Unadjusted

Interval End Time; and

(c) the SVAA shall determine each Teleswitch Interval in such Settlement Day as a

period starting at an Unadjusted Interval Start Time and ending at the next

following Unadjusted Interval End Time.

6.3 Derivation of time pattern data

6.3.1 The SVAA shall carry out the process set out in this paragraph 6.3:

(a) for each Teleswitch Time Pattern Regime in respect of which Teleswitch

Intervals have been determined pursuant to paragraph 6.2 in respect of such

Settlement Day; and

(b) for each Time Pattern Regime in respect of which Clock Intervals have been

received by the SVAA pursuant to paragraph 5.1.1 and which apply in respect

of the Settlement Day then being processed.

6.3.2 The SVAA shall update each Time Pattern Regime identified pursuant to paragraph 6.3.1

to take account of the associated Teleswitch Intervals or, as the case may be, Clock

Intervals that apply in respect of the Settlement Day then being processed.

6.4 Rounding of Time Pattern data

6.4.1 In respect of each Standard Settlement Configuration, the SVAA shall calculate a set of

Adjusted Intervals pursuant to this paragraph 6.4, where subscript "(ai)" refers to a

particular Adjusted Interval, subscript "X" refers to a Time Pattern Regime and subscript

"R" refers to the combination of such a Time Pattern Regime and such Standard Settlement

Configuration. The determinations set out in paragraphs 6.4.2 to 6.4.11 (inclusive) shall be

carried out by the SVAA in the sequential order set out in such paragraphs. The

determinations set out in paragraphs 6.4.2 to 6.4.6 (inclusive) shall be carried out in respect

of a Specimen Settlement Day related to the Settlement Day then being processed and, if

required pursuant to such paragraphs, the next following Specimen Settlement Day related

to the Settlement Day then being processed.

6.4.2 The SVAA shall:

(a) identify all Time Pattern Regimes associated with the Standard Settlement

Configuration being processed;

(b) in respect of each such Time Pattern Regime determine each Unadjusted

Interval Start Time (UISTX(ai)) as the time identified by reference to such Time

Pattern Regime at which Settlement Registers associated with the Time Pattern

Regime commence to record Metered Data and if such Settlement Registers are

identified as recording Metered Data at the start of the Settlement Day, the start

of the Settlement Day shall also be identified as an Unadjusted Interval Start

Time;

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(c) for each Unadjusted Interval Start Time determined in respect of a Time Pattern

Regime pursuant to paragraph (b) determine an associated Unadjusted Interval

End Time (UIETX(ai)) as the earlier of:

(i) the next following time, identified by reference to such Time Pattern

Regime, at which the Settlement Registers associated with the Time

Pattern Regime cease to record Metered Data; and

(ii) the end of the Settlement Day; and

(d) each such period beginning at an Unadjusted Interval Start Time and ending at

its associated Unadjusted Interval End Time shall be known as an "Unadjusted

Interval".

6.4.3 The SVAA shall identify each spot time of the Settlement Day at which an Unadjusted

Interval Start Time or an Unadjusted Interval End Time occurs for one or more of the Time

Pattern Regimes associated with the Standard Settlement Configuration being processed.

6.4.4 The SVAA shall in respect of each spot time identified pursuant to paragraph 6.4.3 carry

out the determinations set out in this paragraph 6.4.4 save in the case where such spot time

occurs at the start of a Settlement Period or, as the case may be, at the end of the Settlement

Day being processed, in which case the provisions of paragraph 6.4.6 shall apply. The

determinations set out in this paragraph 6.4.4 or, as the case may require, paragraph 6.4.6

shall be carried out for each such spot time in turn in chronological order of the occurrence

of all such spot times associated with the Standard Settlement Configuration being

processed. For the purposes of this paragraph 6.4.4 the Settlement Period within which the

spot time under consideration falls shall be denoted as Settlement Period "J":

(a) the Rounded-Up Spot Time associated with the spot time under consideration

shall be determined to be the spot time at the start of the next following

Settlement Period "J+1";

(b) the Rounded-Down Spot Time associated with the spot time under

consideration shall be determined as the start of the Settlement Period "J";

(c) the Unrounded Duration (UDX(ai)) of each Unadjusted Interval starting or ending

at the spot time under consideration shall be determined as the time duration in

minutes between its Unadjusted Interval Start Time and its associated

Unadjusted Interval End Time. For the avoidance of doubt, the Unadjusted

Interval End Time shall be later than the Unadjusted Interval Start Time, and

this determination shall therefore result in a value of the Unrounded Duration

which is a positive number of minutes;

(d) the Rounded-Up Duration (RUDR(ai)) of each Unadjusted Interval starting or

ending at the spot time under consideration shall be determined as follows:

(i) if the Unadjusted Interval ends at such spot time, the Rounded-Up

Duration of such Unadjusted Interval shall be the time duration in

minutes between its associated Adjusted Interval Start Time as

previously determined pursuant to this paragraph 6.4.4 and the

Rounded-Up Spot Time associated with such spot time. In the case

in which such Adjusted Interval Start Time is later in time than such

Rounded-Up Spot Time the Rounded-Up Duration shall be a

negative number of minutes and, in any other case, the Rounded-Up

Duration shall be a positive number of minutes; or

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(ii) if the Unadjusted Interval starts at such spot time, the Rounded-Up


minutes between the Rounded-Up Spot Time associated with the

spot time under consideration and the Interim Adjusted Interval End

Time determined pursuant to paragraph 6.4.5. In the case in which

such Rounded-Up Spot Time is later in time than such Interim

Adjusted Interval End Time the Rounded-Up Duration shall be a

negative number of minutes and, in any other case, the Rounded-Up

Duration shall be a positive number of minutes;

(e) the Rounded-Down Duration (RDDR(ai)) of each Unadjusted Interval starting or

ending at the spot time under consideration shall be determined as follows:

(i) if the Unadjusted Interval ends at such spot time, the Rounded-Down


minutes between its associated Adjusted Interval Start Time as

previously determined pursuant to this paragraph and the Rounded-

Down Spot Time associated with such spot time. In the case in

which such Adjusted Interval Start Time is later in time than such

Rounded-Down Spot Time the Rounded-Down Duration shall be a

negative number of minutes and, in any other case, the Rounded-

Down Duration shall be a positive number of minutes; or

(ii) if the Unadjusted Interval starts at such spot time, the Rounded-

Down Duration of such Unadjusted Interval shall be the time

duration in minutes between the Rounded-Down Spot Time

associated with the spot time under consideration and the Interim

Adjusted Interval End Time determined pursuant to paragraph 6.4.5.

In the case in which such Rounded-Down Spot Time is later in time

than such Interim Adjusted Interval End Time the Rounded-Down

Duration shall be a negative number of minutes and, in any other

case, the Rounded-Down Duration shall be a positive number of

minutes;

(f) for every Unadjusted Interval with an Unadjusted Interval Start Time or an

Unadjusted Interval End Time which falls at such spot time, a corresponding

Adjusted Interval Start Time or, as the case may be, Adjusted Interval End Time

shall be determined as follows. For the purpose of making such determinations

each of the following paragraphs (i) to (vii) (inclusive) shall be considered in

the order set out below. In considering such paragraphs the first such paragraph

encountered where the condition specified in such paragraph is satisfied for

such spot time shall be employed in the determination of the Adjusted Interval

Start Time or, as the case may be, Adjusted Interval End Time and all of the

following such paragraphs shall be ignored:

(i) if the number of such Unadjusted Intervals for which RUDR(ai) < 0 is

less than the number of such Unadjusted Intervals for which

RDDR(ai) <0, then each corresponding Adjusted Interval Start Time

and Adjusted Interval End Time shall be determined to be the start

time of the next following Settlement Period "J+1";

(ii) if the number of such Unadjusted Intervals for which RUDR(ai) < 0 is

greater than the number of such Unadjusted Intervals for which

RDDR(ai) < 0, then each corresponding Adjusted Interval Start Time


time of Settlement Period "J";

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(iii) if the number of such Unadjusted Intervals for which RUDR(ai) = 0 is

less than the number of such Unadjusted Intervals for which

RDDR(ai) = 0, then each corresponding Adjusted Interval Start Time


time of the next following Settlement Period "J+1";

(iv) if the number of such Unadjusted Intervals for which RUDR(ai) = 0 is

greater than the number of such Unadjusted Intervals for which

RDDR(ai) = 0, then each corresponding Adjusted Interval Start Time


time of Settlement Period "J";

(v) if (ai) (RUDR(ai) - UDX(ai))2

< (ai) (RDDR(ai) - UDX(ai))2

then each corresponding Adjusted Interval Start Time and Adjusted

Interval End Time shall be determined to be the start time of the next

following Settlement Period "J+1";

(vi) if (ai) (RUDR(ai) - UDX(ai))2

> (ai) (RDDR(ai) - UDX(ai))2

then each corresponding Adjusted Interval Start Time and Adjusted

Interval End Time shall be determined to be the start time of

Settlement Period "J"; or

(vii) in any other case, each corresponding Adjusted Interval Start Time


time of Settlement Period "J"; and

(g) if a determination set out in paragraph (f) above in respect of a spot time results

in an Adjusted Interval End Time which falls at the same spot time as the

associated Adjusted Interval Start Time falls, then such Adjusted Interval End

Time shall be re-determined such that it falls at the start time of the next

following Settlement Period and such re-determination shall be made before the

next spot time identified pursuant to paragraph 6.4.3 is processed pursuant to

this paragraph.

6.4.5 Where the SVAA is required pursuant to paragraph 6.4.4 to determine an Interim Adjusted

Interval End Time in respect of an Unadjusted Interval, such Interim Adjusted Interval End

Time (AIETX(ai)) shall be determined as follows:

(a) let the Settlement Period within which the relevant UIETX(ai) falls be identified

as Settlement Period J1;

(b) if the duration of the period which begins at the start of Settlement Period J1

and ends at UIETX(ai) is less than half the Settlement Period Duration then the

Interim Adjusted Interval End Time shall be set as the start time of Settlement

Period J1; and

(c) if the duration of the period which begins at the start of Settlement Period J1

and ends at UIETX(ai) is equal to half the Settlement Period Duration and the

start time of Settlement Period J1 is an exact hour then the Interim Adjusted

Interval End Time shall be set as the start time of Settlement Period J1;

but in any other case the Interim Adjusted Interval End Time shall be set as the start time of

the next following Settlement Period (J1+1).

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6.4.6 The provisions of this paragraph 6.4.6 apply in the case where a spot time identified

pursuant to paragraph 6.4.4 occurs at the start of a Settlement Period or, as the case may be,

the end of the Settlement Day being processed. In such case then:

(a) for any Unadjusted Interval Start Time which occurs at such spot time its

associated Adjusted Interval Start Time shall be determined to be that same spot

time; and

(b) for any Unadjusted Interval End Time which occurs at such spot time its

associated Adjusted Interval End Time shall be determined to be that same spot

time.

6.4.7 If the Time Pattern Regime is classified as being in "local time" then the Adjusted Interval

Start Times and Adjusted Interval End Times associated with such Time Pattern Regime

and Standard Settlement Configuration determined pursuant to paragraphs 6.4.2 to 6.4.6

(inclusive) shall be construed as being in UK local time on such Settlement Day "D" or, as

the case may be, the next following Settlement Day "D + 1". For the purposes of this

paragraph 6.4.7 and paragraph 6.4.9 such next following Settlement Day "D + 1" is a

Replica Settlement Day related to Settlement Day "D". The following provisions shall also

apply if the Settlement Day "D" then being processed is a Settlement Day on which there is

a Clock Change:

(a) if there is an additional (repeated) hour or hours in such Settlement Day "D" as

compared with a related Specimen Settlement Day, then any Adjusted Interval

Start Time and Adjusted Interval End Time which would as a result of this

operation occur at an hour spot time or, as the case may be, half hour spot time

that occurs more than once in such Settlement Day shall be construed so that

such Adjusted Interval Start Time or, as the case may be, Adjusted Interval End

Time occurs at the first occurrence of the hour spot time or, as the case may be,

half hour spot time in such Settlement Day "D"; or

(b) if there is an hour or hours fewer in such Settlement Day "D" as compared with

a related Specimen Settlement Day, then each Adjusted Interval Start Time and

Adjusted Interval End Time which would, if this operation were done in respect

of such Specimen Settlement Day, occur at a spot time on such Specimen

Settlement Day and which spot time does not exist on the Settlement Day "D",

shall be adjusted so that it occurs at the first following spot time on such

Settlement Day "D" which does exist.

6.4.8 If the Time Pattern Regime is classified as being in "GMT" as distinct from "local time"

then the Adjusted Interval Start Times and Adjusted Interval End Times determined

pursuant to paragraphs 6.4.2 to 6.4.6 (inclusive) shall be construed as being in Greenwich

Mean Time. Such times shall then be converted to the corresponding UK local time on the

Settlement Day "D" then being processed, taking due account of any Clock Change

applying to UK local time on such Settlement Day "D". For the avoidance of doubt such

adjustments may result in Adjusted Interval Start Times or Adjusted Interval End Times

which fall in the next following Settlement Day "D + 1". For the purposes of this

paragraph 6.4.8 and paragraph 6.4.9 such Settlement Day "D + 1" is a Replica Settlement

Day related to Settlement Day "D".

6.4.9 If any Adjusted Interval Start Time or Adjusted Interval End Time determined pursuant to

paragraphs 6.4.2 to 6.4.8 (inclusive) occurs at a spot time in Settlement Day "D+1", such

Settlement Day being that next following the Settlement Day, "D", on which the associated

Unadjusted Interval Start Time or, as the case may be, Unadjusted Interval End Time falls,

such Adjusted Interval Start Time or, as the case may be, Adjusted Interval End Time shall

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be modified so that it occurs on Settlement Day "D" at the same spot time as it had, before

such modification, occurred on Settlement Day "D+1".

6.4.10 An Adjusted Interval shall be determined as a period of time starting at and including an

Adjusted Interval Start Time and ending on but not including the associated Adjusted

Interval End Time save in the case where a modification has been made pursuant to

paragraph 6.4.9. In such case there shall be two Adjusted Intervals as follows:

(a) a period of time starting at and including the Adjusted Interval Start Time and

ending on but not including the end of the Settlement Day "D"; and

(b) a period of time starting at and including the start time of Settlement Day "D"

and ending on but not including the Adjusted Interval End Time associated with

such Adjusted Interval Start Time.

6.4.11 In respect of each combination of Time Pattern Regime and Standard Settlement

Configuration "R", the SVAA shall determine a Period Time Pattern State Indicator (QRj)

for each Settlement Period as follows:

(a) if the start time of such Settlement Period falls at an Adjusted Interval Start

Time or any time within an Adjusted Interval associated with such Time Pattern

Regime determined pursuant to this paragraph 6.4 then:

QRj = 1; and

(b) in any other case QRj = 0.

6.5 Evaluation of Basic Period Profile Coefficients for each Time Pattern Regime

6.5.1 In respect of each GSP Group for each Settlement Day, the SVAA shall determine the

Noon Effective Temperature (NETH) as:

NETH = 0.57THT + 0.28THT-1 + 0.15THT-2

where THT ,THT-1 and THT-2 are the Grid Supply Point Group Measured Temperatures

procured from the Temperature Provider pursuant to paragraph 5.2.2 for GSP Group "H" in

respect of Settlement Day "D", "D-1" and "D-2" respectively and where Settlement Day

"D" is the then current Settlement Day, Settlement Day "D-1" is the immediately preceding

Settlement Day and Settlement Day "D-2" is the Settlement Day immediately preceding

that designated as "D-1".

6.5.2 In respect of each Settlement Day, the SVAA shall determine the Sunset Variable (S) from

the Time of Sunset data provided pursuant to paragraph 5.1.6 as follows:

(a) the Sunset Time (SUNT) in respect of the Settlement Day is the time duration in

minutes from the start of the Settlement Day to the time of sunset determined

with reference to the Time of Sunset data;

(b) SIX_PM is the time duration in minutes from the start of the Settlement Day to

1800 hours Greenwich Mean Time on that Settlement Day; and

(c) the Sunset Variable (S) shall be determined as:

S = SUNT - SIX_PM.

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6.5.3 In respect of each Profile "Q" of each Profile Class "P" within a GSP Group "H", the

SVAA shall determine a set of Basic Period Profile Coefficients (PHQj) as set out in

paragraphs (a) to (f) (inclusive):

(a) for the purposes of this paragraph the values of MRCQ(aa)(nn)j are the values of the

Matrix of Regression Coefficients supplied for the time being and from time to

time by the Profile Administrator (or by BSCCo where BSCCo provides the

Profile Administration Services in accordance with paragraph C9) where the

subscript "(nn)" represents individual values of MRCQ(aa)(nn)j and such subscript

takes values between 0 and 7 inclusive;

(b) for the avoidance of doubt and for the purpose of this paragraph 6.5 the

subscript "j" represents Settlement Periods of the Settlement Day. In both of the

cases (i) and (ii), the number of Settlement Periods in respect of which values of

MRCQ(aa)(nn)j are supplied by the Profile Administrator (or BSCCo where

BSCCo provides the Profile Administration Services in accordance with

paragraph C9) may not correspond to the number of Settlement Periods in the

Settlement Day under consideration. In such cases the values of MRCQ(aa)(nn)j

supplied shall be employed in the determination of values of Basic Period

Profile Coefficient (PHQj) pursuant to this paragraph 6.5. Such values of Basic

Period Profile Coefficient shall subsequently be allocated to specific Settlement

Periods of the Settlement Day under consideration:

(i) in the case of a Baseload Profile and when there is Clock Change on

the Settlement Day under consideration only, such allocation shall

be made pursuant to paragraph 6.5.4; or

(ii) in the case of a Profile associated with switched load such allocation

shall be made pursuant to paragraph 6.6. For the avoidance of

doubt, in this case (ii) such allocation may not result in a value of

Basic Period Profile Coefficient for every Settlement Period in the

Settlement Day;

(c) the Regression Coefficients (RCHQ(nn)j) shall be determined as equal to the value

of those coefficients MRCQ(aa)(nn)j which apply in respect of the relevant Profile

"Q" and the Analysis Class "(aa)" which is identified by the data procured from

the Profile Administrator pursuant to paragraph 5.1.4 as being relevant to the

given Settlement Day and GSP Group;

(d) for the avoidance of doubt, a value of RCHQ(nn)j shall not be determined pursuant

to paragraph (c) and shall not be set to zero in respect of any Settlement Period

"j" for which a value of MRCQ(aa)(nn)j is not defined. This paragraph (d) shall

also apply mutatis mutandis in respect of the determinations of values of

Estimated Regional Average Demand Per Customer (yHQj) and Basic Period

Profile Coefficient pursuant to paragraphs (e) and (f);

(e) the Estimated Regional Average Demand Per Customer (yHQj) shall be

determined as:

yHQj = RCHQ0j +( RCHQ1j * MonT )+ (RCHQ2j * WedT)+ (RCHQ3j * ThuT)+

(RCHQ4j * FriT)+ (RCHQ5j * NETH )+ (RCHQ6j * S) +(RCHQ7j * (S)2);

where MonT = 1 if Settlement Day "D" is a Monday or in any other case MonT =

0; and

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WedT, ThuT and FriT are determined mutatis mutandis to MonT but as if

references to Settlement Day "D" were to a Wednesday, a Thursday or, as the

case may be, a Friday; and

(f) in respect of each value of Estimated Regional Demand Per Customer

determined pursuant to paragraph (e) a value of Basic Period Profile Coefficient

(PHQj) shall be determined as:

PHQj = max(yHQj / (GAACHQ * 2000), 0)

where GAACHQ is the Group Average Annual Consumption procured, for the

time being and from time to time, from the Profile Administrator (or from

BSCCo where BSCCo the Profile Administration Services in accordance with

paragraph C9) pursuant to paragraph 5.1.4.

6.5.4 If the Settlement Day "D" is a Settlement Day on which there is a Clock Change then each

set of Basic Period Profile Coefficients corresponding to a Profile "Q" determined pursuant

to paragraph 6.5.3 shall be modified as follows, save where the Profile "Q" is a switched

load Profile in which case the relevant set of Basic Period Profile Coefficients shall not be

modified. In the circumstances described in this paragraph, the value of subscript "j" for

each value of Basic Period Profile Coefficient determined pursuant to paragraph 6.5.3 and

which is to be modified pursuant to this paragraph shall, prior to such modification only,

denote the Settlement Period "j" of the related Specimen Settlement Day to which such

value corresponds. The terms "lost", "fewer" and "additional" when applied to hours in the

Settlement Day "D" on which there is a Clock Change shall be construed as a comparison

with such Specimen Settlement Day:

(a) if there is an hour or hours fewer in the Settlement Day "D" then the relevant

Basic Period Profile Coefficients in respect of the Settlement Periods

corresponding to the hours lost on such Settlement Day "D" shall be deleted and

each such value of the resulting reduced set of Basic Period Profile Coefficients

shall be re-labelled with new values of subscript "j" in the same order as the

original set so that each value of the set corresponds to a Settlement Period that

exists on such Settlement Day "D" and each such Settlement Period is

associated with one value of the Basic Period Profile Coefficient set;

(b) if there is an additional (repeated) hour or hours in the Settlement Day "D" then

the relevant Basic Period Profile Coefficients in respect of the second

occurrence of any hour or hours shall be determined by linear interpolation

pursuant to paragraph 3.6 of Annex X-2 save in the circumstances described in

paragraph (c) in which case the determination described there shall be

performed. The resulting increased set of Basic Period Profile Coefficients

shall be re-labelled with new values of subscript "j" in the same order as the

original set with the insertion of the additional values of Basic Period Profile

Coefficient at the appropriate point in the sequence of values to correspond to

the second occurrence of any hour or hours so that each value of the set

corresponds to a Settlement Period that exists on such Settlement Day "D" and

each such Settlement Period is associated with one value of the Basic Period

Profile Coefficient set. For this purpose each Settlement Period (including

those in respect of the second occurrence of any hour or hours) on such

Settlement Day "D" starting from the Settlement Period immediately preceding

the second occurrence of any hour or hours to the Settlement Period

immediately following such second occurrence of any hour or hours shall be

labelled in chronological order with ascending equally spaced values of zn,

starting from z0. For the purposes of paragraph 3.6 of Annex X-2:

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x0 shall take the value of z0;

x1 shall take the value of zN where N is the highest value of n;

each ascending value of xi shall take the next ascending value of zn starting with

z1 and ending with zN-1, each corresponding to one of the Settlement Periods for

which a value of Basic Period Profile Coefficient is required to be determined,

and the related spot value yi shall be the required value of such Basic Period

Profile Coefficient;

y0 shall take the value of the Basic Period Profile Coefficient for the Settlement

Period labelled z0; and


Period labelled zN; or

(c) if there is an additional (repeated) hour or hours in the Settlement Day "D" and

the Clock Change causing such additional hour(s) takes place at the end of the

Settlement Day "D" then the relevant Basic Period Profile Coefficients in

respect of the second occurrence of any hour or hours shall be determined as

follows. The resulting increased set of Basic Period Profile Coefficients shall be

re-labelled with new values of subscript "j" in the same manner as described in

paragraph (b). For the purposes of this paragraph (c) each Settlement Period

(including those in respect of the second occurrence of any hour or hours) on

such Settlement Day "D" starting from the Settlement Period which

immediately precedes the Settlement Period which itself immediately precedes

the second occurrence of any hour or hours to the last Settlement Period of the

Settlement Day "D" shall be labelled in chronological order with ascending

equally spaced values of zn; starting from z0 . For the purposes of paragraph 3.6

of Annex X-2:



each ascending value of xi shall take the next ascending value of zn starting with

z2 and ending with zN where N is the highest value of n, each corresponding to

one of the Settlement Periods for which a value of Basic Period Profile

Coefficient is required to be determined, and the related spot value yi shall be

the required value of such Basic Period Profile Coefficient;


Period labelled z0; y1 shall take the value of the Basic Period Profile Coefficient

for the Settlement Period labelled z1; and

yi = max( y1 + (y1 - y0) * (i-1), 0).

6.6 Calculation of Normal Register Profile Coefficients and Low Register Profile

Coefficients for Switched Load Metering Systems

6.6.1 The SVAA shall carry out the determinations set out in this paragraph 6.6 in respect of

each Settlement Day "D", each GSP Group "H" and each valid combination of Profile

Class "P" and Standard Settlement Configuration "C" for Switched Load Metering

Systems.

6.6.2 In respect of each Standard Settlement Configuration "C" identified pursuant to paragraph

6.6.1, the SVAA shall determine a Switched Load State Indicator (SQCj) as follows:

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(a) if for any Time Pattern Regime associated with the switched load within such

Standard Settlement Configuration:

QRj = 1 then SQCj =1; and

(b) in any other case SQCj = 0


6.6.1 the SVAA shall determine a set of Modified Switched Load State Indicators

(SQNEWCj) pursuant to paragraphs 6.6.4 to 6.6.10 (inclusive). For the purposes of such

paragraphs each Settlement Period in a Settlement Day shall be ordered in chronological

order of such Settlement Periods and shall be labelled with ascending integer values of j,

the first Settlement Period of such Settlement Day being labelled as j = 1.

6.6.4 If the set of Switched Load State Indicators (SQCj) associated with the Standard Settlement

Configuration then being processed has a value of zero for each Settlement Period "j" of

the Settlement Day then being processed, then the SVAA shall determine a Modified

Switched Load State Indicator for each such Settlement Period as follows:

(a) for first two Settlement Periods of such Settlement Day, such Settlement

Periods being labelled as j=1 and j =2 respectively, then:

SQNEWC1 = 1 and SQNEWC2 = 1; and

(b) for every other Settlement Period of such Settlement Day:

SQNEWCj = SQCj

6.6.5 Paragraph 6.6.6 shall apply in the case where the set of Switched Load State Indicators

associated with the Standard Settlement Configuration and Settlement Day then being

processed has:

(a) a value of one for a single Settlement Period of such Settlement Day (for the

purposes of paragraph 6.6.6 such Settlement Period being labelled "J1"); and

(b) a value of zero for every other Settlement Period of the Settlement Day then

being processed.

6.6.6 Where this paragraph applies then the SVAA shall determine a Modified Switched Load

State Indicator (SQNEWCj) for each Settlement Period of the Settlement Day then being

processed as follows:

(a) if the Settlement Period labelled as "J1" is the last Settlement Period of the

Settlement Day then being processed then:

(i) for the Settlement Period labelled as "J1-1" only, being the

Settlement Period immediately preceding that Settlement Period

labelled "J1" pursuant to paragraph 6.6.5 in the chronological order

of Settlement Periods:

SQNEWC J1-1 = 1 ; and

(ii) for every other Settlement Period of such Settlement Day:

SQNEWCj = SQCj ; or

(b) in any other case:

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(i) for the Settlement Period labelled as "J1+1" only, being the

Settlement Period next following that Settlement Period labelled

"J1" pursuant to paragraph 6.6.5 in the chronological order of

Settlement Periods:

SQNEWC J1+1 = 1 ; and

(ii) for every other Settlement Period of such Settlement Day:

SQNEWCj = SQCj

6.6.7 If the set of Switched Load State Indicators (SQCj) associated with the Standard Settlement

Configuration and Settlement Day then being processed have values which satisfy the

condition that:

j SQCj > 47

then the SVAA shall determine a Modified Switched Load State Indicator (SQNEWCj) for

each Settlement Period of such Settlement Day as follows:

(a) for the purposes of this paragraph the SVAA shall label each such Settlement

Period in the chronological order of such Settlement Periods for which the

condition that SQCj = 1 is true with ascending integer values of "J" commencing

with a value of J = 1 but shall not so label any Settlement Period for which such

condition is not true;

(b) for each Settlement Period "j" which is labelled with a value of "J" pursuant to

paragraph (a) and where such value is greater than forty-seven, then:

SQNEWCj = 0 ; and

(c) for every other Settlement Period of such Settlement Day:

SQNEWCj = SQCj

6.6.8 Paragraph 6.6.9 shall apply in the case where the set of Switched Load State Indicators

associated with the Standard Settlement Configuration and Settlement Day then being

processed has:

(a) a value of one for each Settlement Period "j" of the Settlement Day then being

processed; and

(b) such Settlement Day is a Settlement Day on which there is a Clock Change and

there are less than 48 Settlement Periods in such Settlement Day.

6.6.9 Where this paragraph applies then the SVAA shall determine a Modified Switched Load

State Indicator (SQNEWCj) for each Settlement Period of the Settlement Day then being


(a) for the last Settlement Period "jlast" of such Settlement Day:

SQNEWC jlast = 0 ; and

(b) for every other Settlement Period of such Settlement Day:

SQNEWCj = SQCj

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6.6.10 In the case where the provisions of paragraphs 6.6.4, 6.6.6, 6.6.7 or, as the case may be,

6.6.9 do not apply, the SVAA shall determine values of Modified Switched Load State

Indicator (SQNEWCj) for each Settlement Period of the Settlement Day then being


SQNEWCj = SQCj

6.6.11 The SVAA shall determine the On Period Duration (ODC) as:

ODC = j SQNEWCj

6.6.12 The SVAA shall identify the Longest Off Period as the longest period of contiguous

Settlement Periods in the Settlement Day being processed for which the condition that

SQNEWCj = 0 for each such Settlement Period "j" is true, provided that:

(a) if for both the first Settlement Period and the last Settlement Period of the

Settlement Day being processed the condition SQNEWCj = 0 is true for both

such Settlement Periods, then:

(i) if for every Settlement Period of such Settlement Day the condition

SQNEWCj = 0 is true the SVAA shall not determine Normal Register

Profile Coefficients or Low Register Coefficients pursuant to this

paragraph for the combination of Profile Class, Standard Settlement

Configuration, GSP Group and Settlement Day then being

processed; or

(ii) in any other case, for the purposes of identifying the Longest Off

Period, the two periods identified as follows shall be considered as a

single period of contiguous Settlement Periods in such Settlement

Day for which the condition that SQNEWCj = 0 for each such

Settlement Period "j" is true:

(A) the period commencing at the start of the first Settlement

Period of such Settlement Day and ending at the start

time of the next following Settlement Period in

chronological order of Settlement Periods for which

SQNEWCj = 1; and

(B) the period commencing at the start of the last Settlement

Period "j" of such Settlement Day for which SQNEWCj

=0 and SQNEWCj-1 = 1 and ending at the end of such

Settlement Day;

(b) if there is no Settlement Period "j" of such Settlement Day for which SQNEWCj

= 0, the SVAA shall identify that there is no Longest Off Period and shall

perform the actions specified in paragraph 6.6.14 (a); and

(c) if there are two or more separate periods of equal duration each of which would,

if that other period or, as the case may be, those other periods of equal duration

did not exist, satisfy the condition to be the Longest Off Period pursuant to this

paragraph, the SVAA shall identify that there is no unique Longest Off Period

and shall identify the Longest On Period pursuant to paragraph 6.6.13.

6.6.13 In the case in which paragraph 6.6.12(c) applies, the SVAA shall identify the Longest On

Period as the longest period of contiguous Settlement Periods in the Settlement Day being

processed for which the condition that SQNEWCj = 1 for each such Settlement Period "j" is

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true, provided that if there are two or more separate periods of equal duration each of

which would, if that other period or, as the case may be, those other periods of equal

duration did not exist, satisfy the condition to be the Longest On Period pursuant to this

paragraph, the SVAA shall identify the last such period in chronological order of such

periods as the Longest On Period.


6.6.1, the SVAA shall label those Settlement Periods of the Settlement Day for which

SQNEWCj has a value of 1 as follows:

(a) if the SVAA has identified pursuant to paragraph 6.6.12(b) that there is no

Longest Off Period, the SVAA shall label the first Settlement Period of such

Settlement Day as J=1 and then shall label the subsequent Settlement Periods in

that Settlement Day in ascending chronological order with ascending integer

values of J so that each Settlement Period of the Settlement Day for which

SQNEWCj = 1 is labelled with a unique value J;

(b) if the Longest Off Period identified pursuant to paragraph 6.6.12 comprises the

two periods specified in paragraph 6.6.12(a)(ii), the SVAA shall label the first

Settlement Period of the Settlement Day for which SQNEWCj = 1 as J=1 and

then shall label the subsequent Settlement Periods in that Settlement Day for

which SQNEWCj = 1 in ascending chronological order with ascending integer

values of J so that each Settlement Period of the Settlement Day for which

SQNEWCj = 1 is labelled with a unique value J;

(c) if the SVAA identifies that there is no unique Longest Off Period pursuant to

paragraph 6.6.12(c) and therefore identifies a Longest On Period pursuant to

paragraph 6.6.13, the SVAA shall label the first Settlement Period of such

Longest On Period in the chronological order of Settlement Periods as J=1 and

then shall label the other Settlement Periods of such Settlement Day for which

SQNEWCj = 1 pursuant to paragraph 6.6.15; or

(d) in any other case, the SVAA shall label the Settlement Period immediately

following the last Settlement Period of the Longest Off Period in chronological

order of Settlement Periods as J=1 and then shall label the other Settlement

Periods of such Settlement Day for which SQNEWCj = 1 pursuant to paragraph

6.6.15.

6.6.15 In the circumstances when this paragraph 6.6.15 applies pursuant to paragraph 6.6.14(c) or

paragraph 6.6.14(d) the SVAA shall:

(a) label with ascending integer values of J each Settlement Period subsequent to

that labelled as J=1 pursuant to paragraph 6.6.14(c) or 6.6.14(d), as the case

may be, in the Settlement Day being processed for which SQNEWCj = 1

counting forwards in time up to and including the last such Settlement Period of

such Settlement Day and for the purposes of this paragraph the value of J for

this last such Settlement Period is referred to as "End_J";

(b) label the first Settlement Period of the Settlement Day for which SQNEWCj =1

and which has not been labelled with a value of J pursuant to paragraph (a) with

the value J = End_J + 1; and

(c) then label the subsequent Settlement Periods in the Settlement Day for which

SQNEWCj =1 and which have not been labelled with a value of J pursuant to

paragraph (a) or (b) in ascending chronological order with ascending integer

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values of J so that each Settlement Period in the Settlement Day for which

SQNEWCj = 1 is labelled with a unique value J.

6.6.16 In respect of each Profile Class "P" and Standard Settlement Configuration "C" within a

GSP Group "H" identified pursuant to paragraph 6.6.1, the SVAA shall:

(a) identify the set of Basic Period Profile Coefficients (PHQj) which correspond to

the particular switched load profile "Q" of such Profile Class and for which the

number of values of PHQj is equal to the On Period Duration; and

(b) determine the set of values of Switched Load Profile Coefficient (SLPHPCj) as

follows:

(i) for the Settlement Period identified by J=1 pursuant to paragraph

6.6.14 the Switched Load Profile Coefficient (SLPHPCj ) shall take

the first value of PHQj from the set of PHQj determined pursuant to

paragraph (a) counting in ascending order of j values of PHQj; and

(ii) for each Settlement Period identified by the next ascending value of

J pursuant to paragraph 6.6.14 or, as the case may be, paragraph

6.6.15 the Switched Load Profile Coefficient SLPHPCj shall take the

next value of PHQj from the set of PHQj determined pursuant to

paragraph (a) counting in ascending order of j values of PHQj which

have not already been used in the determination of a value of

SLPHPCj pursuant to this paragraph (b) until there has been

determined a value of SLPHPCj for each Settlement Period identified

by a value J.

6.6.17 In respect of each Profile Class "P" and Standard Settlement Configuration "C" within a

GSP Group "H" identified pursuant to paragraph 6.6.1 using the set of values of Basic

Period Profile Coefficient (PHQj ) which correspond to the Baseload Profile of the

associated Profile Class "P" (such values being the "Baseload Profile Coefficients

(BAPHQj)"), the SVAA shall:

(a) determine the Low Fraction Consumption (HHPC) as follows:

K1HPC =ON BAPHQj ;

K2HPC= OFF BAPHQj ; and

HHPC= K1HPC/ K2HPC

where ON is the summation over all Settlement Periods in the Settlement Day

for which SQNEWCj = 1; and

OFF is the summation over all Settlement Periods in the Settlement Day for

which SQNEWCj= 0;

(b) determine the Low Fraction (LOWFHPC) as the sum of the Average Fraction Of

Yearly Consumption (AFYCHPR) for all Time Pattern Regimes "X" associated

with the Standard Settlement Configuration "C" which are associated with

switched load, save in the case where values of Alternate Average Fraction of

Yearly Consumption (AAFYCHPR) have been notified to the SVAA for Profile

Class "P" and Standard Settlement Configuration "C" within a GSP Group "H"

in accordance with paragraph 6.1.2, in which case determine the Low Fraction

(LOWFHPC) as the sum of the Alternate Average Fraction Of Yearly

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Consumption (AAFYCHPR) for all Time Pattern Regimes "X" associated with

the Standard Settlement Configuration "C" which are associated with switched

load;

(c) determine the Normal Fraction (NFHPC ) as the sum of the Average Fraction Of

Yearly Consumption (AFYCHPR) for all Time Pattern Regimes "X" associated

with the Standard Settlement Configuration "C" which are not associated with

switched load, save in the case where values of Alternate Average Fraction of

Yearly Consumption (AAFYCHPR) have been notified to the SVAA for Profile

Class "P" and Standard Settlement Configuration "C" within a GSP Group "H"

in accordance with paragraph 6.1.2, in which case determine the Normal

Fraction (NFHPC) as the sum of the Alternate Average Fraction Of Yearly

Consumption (AAFYCHPR) for all Time Pattern Regimes "X" associated with

the Standard Settlement Configuration "C" which are not associated with

switched load;

(d) determine the Base Fraction (BFHPC) and the Switched Fraction (SWHPC) as

follows:

BFHPC = (1 + HHPC) * NFHPC ; and

SWFHPC = LOWFHPC – (HHPC * NFHPC); and

(e) in respect of each Settlement Period of the Settlement Day determine the

Normal Register Profile Coefficients (NRPCHPCj) and the Low Register Profile

Coefficients (LRPCHPCj) as follows:

(i) if for such Settlement Period "j", SQCj = 1, then:

LRPCHPCj = max(((BAPHQj * BFHPC) + (SLPHPCj * SWFHPC)), 0); and

NRPCHPCj = 0; or

(ii) if for such Settlement Period "j", SQCj = 0, then:

LRPCHPCj = 0; and

NRPCHPCj = max(( BAPHQj * BFHPC), 0)

6.7 Calculation of Period Profile Class Coefficients for each Time Pattern Regime

6.7.1 In respect of each Settlement Day, each GSP Group "H" and each valid combination of

Profile Class "P" and Standard Settlement Configuration "C", the SVAA shall determine

the Period Profile Class Coefficients (PPCCHPRj) for each combination of Time Pattern

Regime associated with such Standard Settlement Configuration and such Standard

Settlement Configuration "R" as follows:

(a) if the Profile Class "P" represents Switched Load Metering Systems then:

(i) if the combination of Standard Settlement Configuration and Time

Pattern Regime "R" is associated with meter registers which measure

switched load within such Switched Load Metering Systems, then:

PPCCHPRj = LRPCHPCj * QRj/ AFYCHPR

save in the case where values of Alternate Average Fraction of

Yearly Consumption (AAFYCHPR) have been notified to the SVAA

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for Profile Class "P" and Standard Settlement Configuration "C"

within a GSP Group "H" in accordance with paragraph 6.1.2, in

which case:

PPCCHPRj = LRPCHPCj * QRj/AAFYCHPR; or

(ii) if the combination of Standard Settlement Configuration and Time

Pattern Regime "R" is associated with meter registers within such

Switched Load Metering Systems which measure loads other than

the switched loads, then:

PPCCHPRj = NRPCHPCj * QRj/ AFYCHPR

save in the case where values of Alternate Average Fraction of

Yearly Consumption (AAFYCHPR) have been notified to the SVAA

for Profile Class "P" and Standard Settlement Configuration "C"

within a GSP Group "H" in accordance with paragraph 6.1.2, in

which case:

PPCCHPRj = NRPCHPCj * QRj/ AAFYCHPR; or

(b) in any other case,

PPCCHPRj = PHQj * QRj/AFYCHPR

save in the case where values of Alternate Average Fraction of Yearly

Consumption (AAFYCHPR) have been notified to the SVAA for Profile Class

"P" and Standard Settlement Configuration "C" within a GSP Group "H" in

accordance with paragraph 6.1.2, in which case

PPCCHPRj = PHQj * QRj/AAFYCHPR;

where PHQj are the Basic Period Profile Coefficients determined pursuant to paragraph 6.5

for the profile "Q" associated with the Profile Class "P".

6.7.2 For all Settlement Days that include at least one Demand Control Impacted Settlement

Period, the SVAA shall send the relevant Period Profile Class Coefficients (PPCCHPRj)

calculated under paragraph 6.7.1 to all Non Half Hourly Data Collectors.

6.8 Calculation of Daily Profile Coefficients

6.8.1 In respect of each Settlement Day "T", each GSP Group "H" and each valid combination of

Profile Class "P" and Time Pattern Regime within Standard Settlement Configuration "R",

the SVAA shall determine a Daily Profile Coefficient (DPCHPRT) as:

DPCHPRT = j PPCCHPRj

and the SVAA shall notify the values of Daily Profile Coefficient so determined to each

Non Half Hourly Data Collector.

7. HALF HOURLY METERING SYSTEM CONSUMPTION

7.1 Determination of Half Hourly Consumption (Non Losses)

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7.1.1 For each Supplier's Metered Consumption (SMCHZaNLj) value provided pursuant to

paragraph 3.5.11, the SVAA shall determine the BM Unit's Metered Consumption

(BMMCiaNLj) by assigning the Supplier's Metered Consumption value to the BM Unit "i"

which is the Base BM Unit for the Supplier "Z" and GSP Group "H" to which the value of

Supplier's Metered Consumption applies.

7.1.1A For each Supplier's Demand Disconnection Volume (SDDHZaNj) value provided pursuant to

paragraph 3.7.6, the SVAA shall determine the BM Unit's Demand Disconnection Volume

(BMDDiaNj) by assigning the Supplier's Demand Disconnection Volume value to the BM

Unit "i" which is the Base BM Unit for the Supplier "Z" and GSP Group "H" to which the

value of Supplier's Demand Disconnection Volume applies.

7.1.1B For each Allocated Metering System Metered Consumption (AVMMCHZaNLKji) value

provided pursuant to paragraph 3.9.2, the SVAA shall determine the Metering System

Metered Consumption (VMMCHZaNLKji) within Consumption Component Class "N" (which

Consumption Component Class shall not be a Consumption Component Class for line

losses) within Supplier BM Unit "i" for such Supplier "Z" for a particular GSP Group "H",

Metering System "K" and Half Hourly Data Aggregator "a" according to the following

formula:

VMMCHZaNLKji = AVMMCHZaNLKji / 1000

7.1.1C For each Metering System Metered Consumption (VMMCHZaNLKji) value associated with a

Secondary BM Unit in the SVA Metering System Register, determined pursuant to

paragraph 7.1.1B, the SVAA shall determine the Secondary BM Unit Metered

Consumption (VBMMCi2aNLKji) by assigning the Metering System Metered Consumption

value to the relevant Secondary BM Unit "i2" as allocated by the Virtual Lead Party and

recorded in the SVA Metering System Register in accordance with Sections S10.2 and

BSCP602.

7.1.1D For each Metering System Delivered Volume (QVMDKj) value associated with a

Secondary BM Unit in the SVA Metering System Register, determined pursuant to

paragraph 3.10, the SVAA shall determine the Secondary BM Unit Delivered Volume

(QVBMDi2NLKji) by assigning the Metering System Delivered Volume value to the relevant

Secondary BM Unit "i2" as allocated by the Virtual Lead Party in accordance with Section

S10.2 and BSCP602, Supplier BM Unit "i", Line Loss Factor Class "L" and Consumption

Component Class "N".

7.1.1E For each Metering System Delivered Volume (QVMDKj) value for a Metering System

associated with the NETSO in the SVA Metering System Register and determined pursuant

to paragraph 3.10, the SVAA shall determine the ABSVD BM Unit Delivered Volume

(AQVMDiNLKj) by assigning the Metering System Delivered Volume value to the relevant

Supplier BM Unit "i" as recorded in the SVA Metering System Register, Line Loss Factor

Class "L" and Consumption Component Class "N".

7.1.1E Pursuant to paragraph 3.9.2, for each Allocated Metering System Metered Consumption

(AVMMCHZaNLKji) value for a Metering System in the SVA Storage Facilities Register, the

SVAA shall determine the Storage Metering System Metered Consumption

(SVMMCHZaNLKji) within Consumption Component Class "N" (which Consumption

Component Class shall not be a Consumption Component Class for line losses) within

Supplier BM Unit "i" for such Supplier "Z" for a particular GSP Group "H", Metering

System "K" and Half Hourly Data Aggregator "a" according to the following formula:

SVMMCHZaNLKji = AVMMCHZaNLKji / 1000

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7.1.2 The SVAA shall determine the Half Hourly Consumption (Non Losses) (CiNj) within


Consumption Component Class for line losses) for each Supplier BM Unit "i" according to


CiNj = aL BMMCiaNLj

where BM Unit's Metered Consumption (BMMCiaNLj) are determined pursuant to

paragraphs 3.6.4 and 7.1.1.

7.1.3 For each Demand Control Impacted Settlement Period the SVAA shall determine the Half

Hourly Disconnection (Non Losses) (DiNj) within Consumption Component Class "N"

(which Consumption Component Class shall not be a Consumption Component Class for

line losses) for each Supplier BM Unit "i" according to the following formula:

DiNj = a BMDDiaNj

where BM Unit's Demand Disconnection Volume (BMDDiaNj) are determined pursuant to

paragraphs 3.8.4 and 7.1.1A.

7.1.4 The SVAA shall determine the Secondary Half Hourly Consumption (Non Losses) (Vi2Nj)


not be a Consumption Component Class for line losses) for each Secondary BM Unit "i2"

according to the following formula:

Vi2Nj = aK VBMMCi2aNLKji

where Secondary BM Unit Metered Consumption (VBMMCi2aNLKji) is determined pursuant

to paragraph 7.1.1B.

The SVAA shall provide the relevant Virtual Lead Party, as recorded in the SVA Metering

System Register, with the Secondary Half Hourly Consumption (Non Losses) (Vi2Nj) for

each Metering System "K" in the relevant Secondary BM Unit "i2" for each Settlement

Period "j" for each Volume Allocation Run, where received.

7.1.5 The SVAA shall determine the Secondary Half Hourly Delivered (Non Losses) (VDi2NKji)


not be a Consumption Component Class for line losses) for each Metering System "K" for

each Secondary BM Unit "i2" and Supplier BM unit "i" according to the following

formula:

VDi2NKji = QVBMDi2NLKji

where Secondary BM Unit Metered Consumption (QVBMDi2NLKji) is determined pursuant

to paragraph 7.1.1C.

7.1.6 The SVAA shall determine the MSID ABSVD (Non Losses) (MSABSVDiNKj) within


Consumption Component Class for line losses) for each Metering System "K" for each

Supplier BM unit "i" according to the following formula:

MSABSVDiNKj = AQVMDiNLKj

where ABSVD BM Unit Metered Consumption (AQVMDiNLKj) is determined pursuant to

paragraph 7.1.1C.

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7.1.7 The SVAA shall provide the relevant Supplier, as recorded in the SVA Metering System

Register, with the Secondary Half Hourly Delivered (Non Losses) (VDi2NKji) within



Secondary BM Unit "i2" and Supplier BM unit "i" for each Volume Allocation Run where

Customer Consent Flag status, as recorded in the SVA Metering System Register, has been

marked as TRUE.


Register, with the MSID ABSVD (Non Losses) (MSABSVDiNKj) within Consumption

Component Class "N" (which Consumption Component Class shall not be a Consumption

Component Class for line losses) for each Metering System "K" for each Supplier BM unit

"i" for each Volume Allocation Run where Customer Consent Flag status, as recorded in

the SVA Metering System Register, has been marked as TRUE.

7.2 Determination of Half Hourly Consumption (Losses) by Supplier

7.2.1 For each Supplier's Metered Consumption (Losses) (SMCLHZaNLj) value provided pursuant

to paragraph 3.5.12, the SVAA shall determine the BM Unit's Metered Consumption

(Losses) (BMMCLiaNLj) by assigning the Supplier's Metered Consumption (Losses) value

to the BM Unit "i" which is the Base BM Unit for the Supplier "Z" and GSP Group "H" to

which the value of Supplier's Metered Consumption (Losses) applies.

7.2.1A For each Supplier's Demand Disconnection Volume (Losses) (SDDLHZaNj) value provided

pursuant to paragraph 3.7.7, the SVAA shall determine the BM Unit's Demand

Disconnection Volume (Losses) (BMDDLiaNj) by assigning the Supplier's Demand

Disconnection Volume (Losses) value to the BM Unit "i" which is the Base BM Unit for

the Supplier "Z" and GSP Group "H" to which the value of Supplier's Demand

Disconnection Volume applies.

7.2.2 The SVAA shall determine the Half Hourly Consumption (Losses) (CLOSSiNj) within

Consumption Component Class "N" (which Consumption Component Class shall be a

Consumption Component Class for line losses) for each Supplier BM Unit "i" according to


CLOSSiNj = aL BMMCLiaNLj

where BM Unit's Metered Consumption (Losses) (BMMCLiaNLj) are determined pursuant

to paragraphs 3.6.5 and 7.2.1.

7.2.3 For each Demand Control Impacted Settlement Period the SVAA shall determine the Half

Hourly Disconnection (Losses) (DLOSSiNj) within Consumption Component Class "N"

(which Consumption Component Class shall not be a Consumption Component Class for

line losses) for each Supplier BM Unit "i" according to the following formula:

DLOSSiNj = a BMDDLiaNj

where BM Unit's Demand Disconnection Volume (Losses) (BMDDLiaNj) are determined

pursuant to paragraphs 3.8.5 and 7.2.1A.

7.2.4 The SVAA shall determine the Secondary Half Hourly Consumption (Losses) (VLOSSi2Nj)

within Consumption Component Class "N" (which Consumption Component Class shall be

a Consumption Component Class for line losses) for each Secondary BM Unit "i2"


VLOSSi2Nj = (vv)LK ((LLFLj - 1) * VBMMCi2aNLKji)

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where Secondary BM Unit Metered Consumption (VBMMCi2aNLKji) is determined pursuant

to paragraph 7.1.1B and "(vv)" is the Consumption Component Class (not for line losses)

associated with the Consumption Component Class "N" for which the value of VLOSSi2Nj

is to be determined.

The SVAA shall provide the relevant Virtual Lead Party, as recorded in the SVA Metering

System Register, with the Secondary Half Hourly Consumption (Losses) (VLOSSi2Nj) for

each Metering System "K" in the relevant Secondary BM Unit "i2" for each Settlement

Period "j" for each Volume Allocation Run, where received.

7.2.5 The SVAA shall determine the Secondary Half Hourly Delivered (Losses) (VDLOSSi2NKji)


a Consumption Component Class for line losses) for each Metering System "K" for each

Secondary BM Unit "i2" and Supplier BM Unit "i" according to the following formula:

VDLOSSi2NKji = (vv)LK ((LLFLj - 1) * QVBMDi2NLKji)

where Secondary BM Unit Delivered Volume (QVBMDi2NLKji) is determined pursuant to

paragraph 7.1.1C and "(vv)" is the Consumption Component Class (not for line losses)

associated with the Consumption Component Class "N" for which the value of

VDLOSSi2NKji is to be determined.

7.2.6 The SVAA shall determine the MSID ABSVD (Losses) (MSABSVDLiNKj) within

Consumption Component Class "N" (which Consumption Component Class shall be a


Supplier BM Unit "i" according to the following formula:

MSABSVDLiNKj = ((vv)L ((LLFLj - 1) * (vv)

PR AQVMDiNLKj))

where ABSVD BM Unit Delivered Volume (AQVMDiNLKj) is determined pursuant to

paragraph 7.1.1C and "(vv)" is the Consumption Component Class (not for line losses)

associated with the Consumption Component Class "N" for which the value of

MSABSVDLiNKj is to be determined.


Register, with the Secondary Half Hourly Delivered (Losses) (VDLOSSi2NKji) within



Secondary BM Unit "i2" and Supplier BM unit "i" for each Volume Allocation Run where

Customer Consent Flag status, as recorded in the SVA Metering System Register, has been

marked as TRUE.


Register, with the MSID ABSVD (Losses) (MSABSVDLiNKj) within Consumption

Component Class "N" (which Consumption Component Class shall not be a Consumption

Component Class for line losses) for each Metering System "K" for each Supplier BM unit

"i" for each Volume Allocation Run where Customer Consent Flag status, as recorded in

the SVA Metering System Register, has been marked as TRUE.

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8. NON HALF HOURLY METERING SYSTEM CONSUMPTION

8.1 Settlement Period consumption by Supplier

8.1.1 For each Supplier Purchase Matrix (SPMHZaLPR) value provided pursuant to paragraph 4.4,

the SVAA shall determine the BM Unit Purchase Matrix (BMPMiaLPR) by assigning a BM

Unit "i" to the Supplier Purchase Matrix value, where BM Unit "i" shall be:

(a) the Additional BM Unit "i" notified by the Supplier "Z" to the SVAA in

accordance with Section S6.3 for the GSP Group "H", Profile Class "P" and

Standard Settlement Configuration "R", provided that the notification was

determined by the SVAA in accordance with BSCP507 to be a valid

notification; or


Unit for the Supplier "Z" and GSP Group "H".

8.1.2 The SVAA shall determine BM Unit's Profiled Consumption (BMPCiLPRj) for each

Supplier BM Unit "i" for the Consumption Data only according to the following formula:

BMPCiLPRj = a (BMPMiaLPR * PPCCHPRj)

where PPCCHPRj is the Period Profile Class Coefficient for the GSP Group "H" associated

with the Supplier BM Unit "i".

8.1.3 The SVAA shall determine Half Hourly Consumption (Non Losses) (CiNj) for each

Supplier BM Unit "i" for Consumption Component Class "N" (which Consumption

Component Class shall not be a Consumption Component Class for line losses) according

to the following formula:

CiNj = NLPR BMPCiLPRj – N(n)

LPR BMPDiLPRj

where "N(n)" is a Consumption Component Class for which the data aggregation type is

"N".

8.1.4 For each Half Hourly Consumption (Non Losses) (CiNj) value determined pursuant to

paragraph 8.1.3, the SVAA shall determine the Half Hourly Consumption (Losses)

(CLOSSiNj) for each Supplier BM Unit "i" for Consumption Component Class "N" (which

Consumption Component Class shall be a Consumption Component Class for line losses)


CLOSSiNj = (vv)L ((LLFLj - 1) * (vv)

PR BMPCiLPRj) – (vvn)L ((LLFLj - 1) * (vvn)

PR

BMPDiLPRj)

where "(vv)" is the Consumption Component Class (not for line losses) associated with

Consumption Component Class "N" for which a value of CLOSSiNj is to be determined and

where "(vvn)" is the Consumption Component Class (not for line losses) associated with

Consumption Component Class "N(n)" for which a value of CLOSSiNj is to be determined.

8.2 Settlement Period disconnection by Supplier

8.2.1 For each Supplier Disconnection Matrix (SDMHZaLPR) value provided pursuant to paragraph

4.5, the SVAA shall determine the BM Unit Disconnection Matrix (BMDMiaLPR) by

assigning a BM Unit "i" to the Supplier Disconnection Matrix value, where BM Unit "i"

shall be:

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(a) the Additional BM Unit "i" notified by the Supplier "Z" to the SVAA in

accordance with Section S6.3 for the GSP Group "H", Profile Class "P" and

Standard Settlement Configuration "R", provided that the notification was

determined by the SVAA in accordance with BSCP507 to be a valid

notification; or


Unit for the Supplier "Z" and GSP Group "H".

8.2.2 The SVAA shall determine BM Unit's Profiled Disconnection (BMPDiLPRj) for each

Supplier BM Unit "i" for the Consumption Data only according to the following formula:

BMPDiLPRj = a (BMDMiaLPR * PPCCHPRj* (MKj / SPD))

where PPCCHPRj is the Period Profile Class Coefficient for the GSP Group "H" associated

with the Supplier BM Unit "i".

8.2.3 The SVAA shall determine Half Hourly Disconnection (Non Losses) (DiNj) for each

Supplier BM Unit "i" for Consumption Component Class "N" (which Consumption

Component Class shall not be a Consumption Component Class for line losses) according


DiNj = NLPR BMPDiLPRj

8.2.4 For each Half Hourly Disconnection (Non Losses) (DiNj) value determined pursuant to

paragraph 8.2.3, the SVAA shall determine the Half Hourly Disconnection (Losses)

(DLOSSiNj) for each Supplier BM Unit "i" for Consumption Component Class "N" (which

Consumption Component Class shall be a Consumption Component Class for line losses)


DLOSSiNj = (vv)L ((LLFLj - 1) * (vv)

PR BMPDiLPRj)


Consumption Component Class "N" for which a value of DLOSSiNj is to be determined.

9. GSP GROUP CORRECTION

9.1 Determination of GSP Group Half Hourly Consumption

9.1.1 The GSP Group Half Hourly Consumption (GCHNj) for each Consumption Component

Class "N" within GSP Group "H" shall be determined by the SVAA according to the

following formula:

GCHNj = Hi CiNj + H

i CLOSSiNj

where Half Hourly Consumption (Non Losses) (CiNj) and Half Hourly Consumption

(Losses) (CLOSSiNj) are calculated pursuant to paragraphs 7 and 8.

9.2 Determination of GSP Group Correction Factor

9.2.1 The GSP Group Correction Factor (CFHj) shall be determined by the SVAA for each GSP

Group "H" in accordance with the following formulae:

if for every Consumption Component Class "N", the GSP Group Correction Scaling

Weight (WTN ) is equal to zero or if N (GCHNj * WTN) is equal to zero, then:

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CFHj = 1; or

in any other case:

CFHj = 1 + (GSPGTHj - N GCHNj) / (N (GCHNj * WTN))

9.2.2 If for any GSP Group "H", the following condition applies, then the GSP Group Correction

Factor shall be referred by the SVAA to the Panel:

CFHj = 1 and GSPGTHj N GCHNj

and the Panel shall determine a replacement GSP Group Correction Factor to be applied in

such case or shall determine such other course of action as it may decide is appropriate.

9.3 Determination of Corrected Component

9.3.1 The Corrected Component (CORCiNj) for each Consumption Component Class "N" within

Supplier BM Unit "i" shall be determined by the SVAA according to the following

formula:

CORCiNj = (CiNj + CLOSS iNj ) * (1 + (CFHj - 1) * WTN)

where WTN is the associated GSP Group Correction Scaling Weight and CFHj is the value

of GSP Group Correction Factor determined pursuant to paragraph 9.2 for the GSP Group

"H" associated with the Supplier BM Unit "i".

9.3.2 The Corrected Disconnection Component (CORDCiNj) for each Consumption Component

Class "N" within Supplier BM Unit "i" shall be determined by the SVAA according to the

following formula:

CORDCiNj = (DiNj + DLOSS iNj ) * (1 + (CFHj - 1) * WTN)




9.3.3 The SVAA shall provide the SAA with the Corrected Component (CORCiNj) for each

Consumption Component Class "N" for each Supplier BM Unit "i" for each Settlement

Period "j" for each Volume Allocation Run.

9.3.4 The Secondary Corrected Component (VCORCi2Nj) for each Consumption Component

Class "N" within Secondary BM Unit "i2" shall be determined by the SVAA according to


VCORCi2Nj = (Vi2Nj + VLOSS i2Nj ) * (1 + (CFHj - 1) * WTN)



"H" associated with the Secondary BM Unit "i2".

9.3.5 The Corrected MSID ABSVD Component (CORABSVDCiNKj) for each Consumption

Component Class "N" within Supplier BM Unit "i" shall be determined by the SVAA


CORABSVDCiNKj = (MSABSVDiNKj + MSABSVDLiNKj) * (1 + (CFHj - 1) * WTN)

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9.3.6 The Secondary Corrected Delivered Component (VCORDCi2NKji) for each Consumption

Component Class "N" within Metering System "K" within Secondary BM Unit "i2" and

Supplier BM Unit "i" shall be determined by the SVAA according to the following

formula:

VCORDCi2NKji = (VDi2NKji + VDLOSS i2NKji ) * (1 + (CFHj - 1) * WTN)



"H" associated with the Secondary BM Unit "i2".

9.4 Determination of Supplier Deemed Take

9.4.1 The Supplier Deemed Take (SDT HZj) shall be determined by the SVAA according to the

following formula:

SDTHZj = HZi (N CORCiNj)

9.5 Determination of Non Half Hourly Supplier Deemed Take

9.5.1 The Non Half Hourly Supplier Deemed Take (NHHSDTHZj) within GSP Group "H" shall

be determined by the SVAA according to the following formula:

NHHSDTHZj = HZi (N(n) CORCiNj)

9.6 Determination of BM Unit Allocated Demand Volume

9.6.1 In respect of each Supplier BM Unit "i", the SVAA shall determine the BM Unit Allocated

Demand Volume (BMUADVij) for each Settlement Period "j" according the following

formula:

BMUADVij = N CORCiNj

9.6.1A In respect of each Supplier BM Unit "i", the SVAA shall determine the BM Unit Allocated

Demand Disconnection Volume (BMUADDVij) for each Settlement Period "j" according


BMUADDVij = N CORDCiNj

9.6.1B In respect of each Secondary BM Unit "i2", the SVAA shall determine the Secondary BM

Unit Demand Volume (VBMUDVi2j) for each Settlement Period "j" according the

following formula:

VBMUDVi2j = N VCORCi2Nj

where N is the summation over all Consumption Component Classes for SVA Metering

Systems in Secondary BM Units.9.6.1C In respect of each Secondary BM Unit "i2"

and Supplier BM Unit "i", the SVAA shall determine the Secondary BM Unit Supplier

Delivered Volume (VBMUSDVi2ji) for each Settlement Period "j" according the following

formula:

VBMUSDVi2ji = iK N VCORDCi2NKji

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where N is the summation over all Consumption Component Classes in a given Metering

System and iK is the summation over all SVA Metering Systems allocated to Supplier

BM Unit "i".

9.6.1C In respect of each Supplier BM Unit "i", the SVAA shall determine the Supplier BM Unit

Non BM ABSVD (SNBABSVDij) for each Settlement Period "j" according the following

formula:

SNBABSVDij = N CORABSVDCiNKj

9.6.2 The SVAA shall provide the SAA with the BM Unit Allocated Demand Volume

(BMUADVij) and the BM Unit Allocated Demand Disconnection Volume (BMUADDVij)

for each Supplier BM Unit "i" for each Settlement Period "j" for each Volume Allocation

Run.

9.6.3 The SVAA shall provide the SAA with the Secondary BM Unit Demand Volume

(VBMUDVi2j) for each Secondary BM Unit "i2" for each Settlement Period "j" for each

Volume Allocation Run.

9.6.4 The SVAA shall provide the SAA with the Secondary BM Unit Supplier Delivered

Volume (VBMUSDVi2ji) for each Secondary BM Unit "i2" and Supplier BM Unit "I" for

each Settlement Period "j" for each Volume Allocation Run.

9.6.5 Where the SVAA has determined non zero Supplier BM Unit Non BM ABSVD

(SNBABSVDij), the SVAA shall provide such data to the SAA for each BM Unit "i" for

each Settlement Period "j" for each Volume Allocation Run.

9.7 Determination of Supplier Cap Take

9.7.1 The Supplier Cap Take (SCTHZj) shall be determined by the SVAA according to the

following formula:

SCTHZj = max (HZi N(AI) CORCiNj , 0)

9A Determination of the Supplier Quarterly Volume Report

9A.1 The SVAA shall determine Half Hourly Consumption (Non Losses) by Profile Class

(CiN(c)Pj) for each Supplier BM Unit "i" for Profile Class "P" (for which the associated non

half hourly active import Consumption Component Class "N(c)" shall not be a

Consumption Component Class for line losses) according to the following formula:

CiN(c)Pj = NLR BMPCiLPRj

9A.2 For each Half Hourly Consumption (Non Losses) by Profile Class (CiN(c)Pj) value

determined pursuant to paragraph 9A.1 the SVAA shall determine the Half Hourly

Consumption (Losses) by Profile Class (CLOSSiN(c)Pj) for each Supplier BM Unit "i" for

Profile Class "P" (for which the associated non half hourly active import Consumption

Component Class "N(c)" shall be a Consumption Component Class for line losses)


CLOSSiN(c)Pj = (vv)L ((LLFLj - 1) * (vv)

R BMPCiLPRj)


Profile Class "P" for which a value of CLOSSiN(c)Pj is to be determined.

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9A.3 The Corrected Component by Profile Class (CORCiN(c)Pj) for each Profile Class "P" within

a non half hourly active import Consumption Component Class "N(c)" within Supplier BM

Unit "i" shall be determined by the SVAA according to the following formula:

CORCiN(c)Pj = (CiN(c)Pj + CLOSSiN(c)Pj) * (1 + (CFHj - 1) * WTN)




9A.4 The Quarterly Supplier Energy Volume (CORCZqG) for each Supplier Volume Reporting

Group "G" in calendar quarter "q" shall be determined as:

(a) ΣZqGiNPj CORCiN(c)Pj over the relevant Consumption Component Classes and

Profile Classes for each of Supplier Volume Reporting Groups 1 to 3 for each

Supplier "Z"; and

(b) ΣZqGiNPj

CORCiNj over the relevant Consumption Component Classes for each of

Supplier Volume Reporting Groups 4 to 8 for each Supplier "Z".

9A.5 The Quarterly Metering Systems by Supplier (NMZqG) for each Supplier "Z" in Supplier

Volume Reporting Group "G" in calendar quarter "q" shall be determined by the

calculation:

ΣZqGHd NMZHGd / d(q)

where NMZHGd is the total number of Metering Systems registered to Supplier "Z" in

Supplier Volume Reporting Group "G" on day "d", summed over all GSP Groups and all

days in calendar quarter "q", and d(q) is the number of days in calendar quarter "q".

10. VOLUME ALLOCATION RUNS

10.1 Supplier Volume Allocation Runs

10.1.1 For each Settlement Period in any Settlement Day and for each Supplier BM Unit, the

SVAA shall determine or re-determine the BM Unit Allocated Demand Volumes and

provide the same to the SAA and to each other person entitled thereto in accordance with

BSCP508:

(a) on each occasion on which an Interim Information Volume Allocation Run,

Initial Volume Allocation Run or a Timetabled Reconciliation Volume

Allocation Run is required in relation to that Settlement Day, in accordance

with the Settlement Calendar; and

(b) on each occasion on which a Post Final Volume Allocation Run is required by

the Panel in accordance with the timetable specified by the Panel in accordance

with Section W4.2.3.

10.1.2 For each Volume Allocation Run the SVAA shall use the relevant value of GSP Group

Take (GSPGTHj) which is derived from the corresponding Volume Allocation Run

provided by the CDCA in accordance with Section R5.7.

10.2 Adjustment of BM Unit Allocated Demand Volumes

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10.2.1 The SVAA shall carry out Reconciliation Volume Allocation Runs for each Settlement

Day in accordance with the provisions of this paragraph 10.2.

10.2.2 The SVAA shall recalculate the Supplier Deemed Takes and Non Half Hourly Supplier

Deemed Takes pursuant to the requirements of the Supplier Volume Allocation Rules but

in each case using the then current values of the Supplier Volume Allocation variables

required in respect of such Settlement Day.

10.2.3 The SVAA shall recalculate the BM Unit Allocated Demand Volumes pursuant to

paragraph 9.6 employing the then current values of the data pursuant to the Supplier

Volume Allocation Rules or re-determined pursuant to paragraph 10.2.2.

11. TRADING DISPUTES

11.1 Provision of Information

11.1.1 Subject to any obligations of confidentiality, the SVAA shall give BSCCo, any other Party

or any other BSC Agent which raises a Trading Dispute pursuant to Section W all such

explanations, documents, data and information relating to Supplier Volume Allocation as

may be required for the purposes of resolving such Dispute.

11.2 Rectification of Errors

11.2.1 The provisions of Section U2.5 and U2.6, and the provisions of Section W1.7, shall apply

in relation to the rectification (or otherwise) of errors in relation to Supplier Volume

Allocation.

12. DELAYS AND FAILURES

12.1 Aggregated Half Hourly Consumption Data

12.1.1 The provisions of paragraph 12.1.2 apply if, for any reason, on or before such time as may

be specified in BSCP508 for this purpose any of the variables referred to in paragraphs 3.5

or 3.6 shall not have been determined in respect of the relevant Settlement Period by the

operation of half hourly data aggregation in accordance with this Annex S-2.


(a) the SVAA shall take such actions as are specified in BSCP508 to ascertain the

values of the variables referred to in paragraphs 3.5 and 3.6 from the relevant

Half Hourly Data Aggregator and/or Supplier;

(b) if all attempts to ascertain such values fail, the SVAA shall derive the missing

variables from the data for the previous run in respect of that Settlement Day,

provided that:

(i) if this is the Initial Volume Allocation Run or the data for the

previous run is not available for any other reason, data for the

Settlement Day that most nearly corresponds to the characteristics of

the Settlement Day for which variables are to be determined shall be

used; and

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(ii) in the case where there is no such identifiable Settlement Day, the

SVAA shall carry out the Volume Allocation Run or, as the case

may, the Reconciliation Volume Allocation Run without the missing

half hourly data.


be specified in BSCP503 for this purpose any of the variables referred to in paragraph 3.9

shall not have been determined in respect of the relevant Settlement Period by the operation

of half hourly data aggregation in accordance with this Annex S-2.



values of the variables referred to in paragraph 3.9 from the relevant Half

Hourly Data Aggregator;

(b) if all attempts to ascertain such values fail, the SVAA shall derive the missing

variables from the data for the previous run in respect of that Settlement Day,

provided that if this is the Initial Volume Allocation Run or the data for the

previous run is not available for any other reason, the SVAA shall carry out the

Volume Allocation Run or, as the case may, the Reconciliation Volume

Allocation Run without the missing half hourly data.


be specified in BSCP602 for this purpose any of the variables referred to in paragraph 3.10

shall not have been determined in respect of the relevant Settlement Period by the operation

of half hourly data aggregation in accordance with this Annex S-2.



values of the variables referred to in paragraph 3.10 from the relevant Virtual

Lead Party;

(b) if all attempts to ascertain such values fail, the SVAA shall carry out the

Volume Allocation Run or, as the case may, the Reconciliation Volume

Allocation Run without the missing half hourly data.

12.2 Aggregated Estimated Annual Consumptions and Annualised Advances


be specified in BSCP508 for this purpose the SVAA becomes aware that any of the

variables referred to in paragraph 4.4 shall not have been determined in respect of the

relevant Settlement Day by the operation of non half hourly data aggregation in accordance

with this Annex S-2.

12.2.2 Where this paragraph 12.2.2 apply, the SVAA shall take such actions as are specified in

BSCP508 to ascertain the values of the variables referred to in paragraph 4.4 from the

relevant Non Half Hourly Data Aggregator and/or Supplier, provided that:

(i) if all attempts to ascertain such values fail, the SVAA shall derive the missing

variables from the data for the previous run in respect of the relevant Settlement

Day; and

(ii) if this is the Initial Volume Allocation Run, the most recent data for the

previous Settlement Day shall be used.

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12.3 BM Unit Allocated Demand Volumes, DUoS Report and TUoS Report

12.3.1 The provisions of paragraph 12.3.2 apply if, for any reason, the operation of the Supplier

Volume Allocation System fails to determine BM Unit Allocated Demand Volumes, the

DUoS Report or the TUoS Report in respect of any Settlement Period or, as the case may,

Settlement Day before the expiry of such time as may be specified in BSCP508 for this

purpose.

12.3.2 Where this paragraph 12.3.2 applies, unless the SVAA rectifies the failure so as to permit

the operation of the Supplier Volume Allocation System to determine BM Unit Allocated

Demand Volumes, the DUoS Report or, as the case may be, the TUoS Report on or before

the Settlement Day immediately following the relevant Settlement Day specified for this

purpose, BSCCo shall determine the Supplier Deemed Take and the BM Unit Allocated

Demand Volumes for the relevant Settlement Periods, using where practicable any relevant

data determined or supplied pursuant to this Annex S-2 that is available to enable

calculation of the Supplier Deemed Take and the BM Unit Allocated Demand Volume

amount in respect of any individual Supplier.

12.3.3 Where paragraph 12.3.2 applies the SVAA shall send the values of BM Unit Allocated

Demand Volumes for each Settlement Period determined pursuant to paragraph 12.3.2 to

the SAA in accordance with paragraph 9.6.2.

12.4 Obligation to assist

12.4.1 Each Supplier shall provide all such advice and assistance as BSCCo or the SVAA may

reasonably require to permit the determination of the variables in accordance with

paragraphs 12.1.2 and 12.2.2.

13. DETERMINATION OF PERIOD BM UNIT GROSS STORAGE DEMAND FOR

SVA STORAGE FACILITIES

13.1 General

13.1.1 This paragraph 13 describes the processes and calculations needed to provide certain data

to the NETSO for the purpose of calculating Transmission Network Use of System

Charges and Balancing Services Use of System Charges relating to the operation by

the NETSO of the Transmission System. For the avoidance of doubt, such data are

not used for the purposes of calculating Trading Charges.

13.2 Declarations

13.2.1 Where a Supplier intends to register a Metering System on the SVA Storage Facilities

Register, it shall submit a Declaration on behalf of the relevant SVA Storage Facility

Operator to the SVAA in accordance with BSCP508, and shall keep the SVAA informed of

any amendments or updates to that Declaration made by the SVA Storage Facility

Operator.

13.2.2 Each SVA Storage Facility Operator who is a BSC Party acknowledges and agrees that:

(a) the information contained in any Declaration submitted to the SVAA on their

behalf is accurate and complete in all material respects; and

(b) they will promptly notify the Supplier(s) who is the Registrant of the Metering

System(s) on the Declaration of any amendments or updates to the Declaration.

13.3 Suppliers’ Responsibilities

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13.3.1 Subject to paragraph 13.3.2, each Supplier shall ensure that Metered Data for each

Settlement Period of each Settlement Day are made available to the SVAA pursuant to this

paragraph 13.2, in respect of all of such Supplier’s Metering Systems which are listed on

the SVA Storage Facilities Register and subject to half hourly metering.

13.3.2 If:

(a) a SVA Generator provides Export Active Energy through a SVA Metering

System and such Export Active Energy is allocated between two or more

Suppliers; and/or

(b) a SVA Customer consumes Import Active Energy through a SVA Metering

System and such Import Active Energy is allocated between two or more

Suppliers,

each such Supplier shall ensure that Metered Data for each Settlement Period of each

Settlement Day shall be made available to the SVAA pursuant to this paragraph 13.3 in

respect of all of such Supplier’s Metering System Numbers associated with Metering

Systems which are listed on the SVA Storage Facilities Register and subject to half hourly

metering.

13.3.3 For the purposes of paragraph 13, Metered Data shall not include Unmetered Supplies

subject to Equivalent Metering.

13.4 Half Hourly Data Aggregator’s Responsibilities

13.4.1 Each Supplier shall ensure that each of its Half Hourly Data Aggregators shall in

respect of that Supplier’s Metering Systems listed on the SVA Storage Facilities

Register for which that Half Hourly Data Aggregator is responsible and in respect

of a particular Settlement Day:

(a) receive half hourly Supplier's Metering System Metered Consumption

from the relevant Half Hourly Data Collectors;

(b) undertake checks and provide reports in accordance with BSCP503; and

(c) provide to the SVAA the Supplier’s Metering System Metered

Consumption.

13.4.2 In respect of Metering Systems relating to SVA Storage Facilities, for any

Reconciliation Volume Allocation Run for a Settlement Day, each Supplier shall

ensure that:

(a) in respect of data which are then currently available but which were not

previously available for use in the immediately preceding Initial Volume

Allocation Run or Reconciliation Volume Allocation Run, as the case

may be;

(b) its Half Hourly Data Aggregators shall, for that Settlement Day, provide to the

SVAA in the case of a GSP Group "H" and a Half Hourly Data Aggregator, the

Supplier's Metered Consumption and Supplier's Metered Consumption (Losses)

data, pursuant to paragraph 13.4.1 which data shall incorporate any revised data

made available.

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13.5 SVAA Responsibilities

13.5.1 The SVAA shall determine the Half Hourly Storage Consumption (Non Losses (SCiNj)


not be a Consumption Component Class for line losses or for active export) for each

Supplier BM Unit "i" according to the following formula:

SCiNj = ∑aL SVMMCHZaNLKji

13.5.2 The SVAA shall determine the Half Hourly Storage Consumption (Losses) (SCLOSSiNj)


a Consumption Component Class for line losses) for each Supplier BM Unit "i" according


SCLOSSiNj = ∑(vv)LK ((LLFij - 1) * SVMMCHaNLKji)

where Storage Metering System Metered Consumption (SVMMCHZaNLKji) is determined pursuant to

paragraph 7.1.1E and "(vv)" is the Consumption Component Class (not for line losses or

active export) associated with the Consumption Component Class "N" for which the value

of VLOSSi2Nj is to be determined.

13.5.3 The Storage Corrected Component (SCORCiNj) for each Consumption Component Class

"N" within Supplier BM Unit "i" shall be determined by the SVAA according to the

following formula:

SCORCiNj = (SCiNj + SCLOSSiNj) * (1 + (CFHj - 1) * WTN)

where WTN is the associated GSP Group Correction Scaling Weight and CFHj is the value of GSP

Group Correction Factor determined pursuant to paragraph 9.2 for the GSP Group "H"

associated with the Supplier BM Unit "i".

13.5.4 The Period BM Unit Gross Storage Demand (SDBMUimj) shall be determined by the

SVAA by aggregating the Storage Corrected Components (SCORCiNj) for each Supplier

BM Unit "i", Measurement Class "m" and Settlement Period "j":

SDBMUimj =∑SCORCiNj

13.6 Supplier Volume Allocation Runs

13.6.1 For each Settlement Period in any Settlement Day and for each Supplier BM Unit, the

SVAA shall determine or re-determine the Period BM Unit Gross Storage Demand and

provide the same to NETSO in accordance with BSCP508:

(a) on each occasion on which an Interim Information Volume Allocation Run,

Initial Volume Allocation Run or a Timetabled Reconciliation Volume

Allocation Run is required in relation to that Settlement Day, in accordance

with the Settlement Calendar; and

(b) on each occasion on which a Post Final Volume Allocation Run is required by

the Panel in accordance with the timetable specified by the Panel in accordance

with Section W4.2.3.

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13.7 General Responsibilities in respect of SVA Storage Facilities

13.7.1 In respect of SVA Storage Facilities, and in each case in accordance with BSCP508, the

SVAA shall:

(a) validate Declarations submitted by Suppliers pursuant to paragraph 13.2.1;

(b) register any SVA Storage Facilities that are subject to a valid Declaration;

(c) undertake monthly validity checks of SVA Storage Facilities;

(d) provide reports and information to BSCCo including submissions and

validations made pursuant to this paragraph 13 and associated calculations and

data; and

(e) maintain and publish a record of all SVA Storage Facilities that have a current

and valid Declaration.

13.7.2 In respect of SVA Storage Facilities, and in each case in accordance with BSCP508,

BSCCo shall:

(a) undertake analysis of the reports and data provided to it by the SVAA under

paragraph 13.7.1(d) and investigate, including seeking representations from the

relevant Supplier and SVA Storage Facility Operator, whether there is any

evidence suggesting that a Declaration is no longer valid either in its entirety or

in respect of any Metering System to which that Declaration relates;

(b) having regard to any representations made under paragraph 13.7.2(a), report its

findings from any analysis undertaken under paragraph 13.7.2(a) to the Panel;

and

(c) provide to NETSO such data as NETSO may request in relation to an SVA

Storage Facility as is reasonably necessary to enable it to achieve assurance that

TNUOS and/or BSUOS charges are calculated accurately.

13.7.3 BSCCo shall undertake the analysis and investigations referred to in paragraph 13.7.2(a)

following receipt of a report from the SVAA pursuant to paragraph 13.7.1(c) or otherwise

where notified by the Panel, a Party, SVA Storage Facility Operator or interested persons

pursuant to BSCP508.

13.8 Powers of the Panel

13.8.1 In order to provide assurance that the provisions of this paragraph 13 have been complied

with including with respect to the validity of Declarations and the accuracy and

completeness of data and information submitted pursuant to this paragraph 13, the Panel

shall be entitled to:

(a) receive such reports, information and data as it considers reasonably necessary;

and

(b) require BSCCo to undertake analysis or investigations of such reports,

information and data pursuant to paragraph 13.7.2.

13.8.2 Following a report by BSCCo under paragraph 13.7.2(b), the Panel may require Metering

System(s) to be excluded from a Declaration or a Declaration to be invalidated in its

entirety in which case:

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(a) the SVAA shall amend the SVA Storage Facilities Register accordingly; and

(b) for the purposes of the calculations undertaken by the SVAA under this

paragraph 13, a reference to an SVA Storage Facility shall be deemed to

exclude such Metering Systems as from such date determined by the Panel.

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T – 1 of 76 Effective Date: 1 April 2020

SECTION T: SETTLEMENT AND TRADING CHARGES

1. GENERAL

1.1 Introduction

1.1.1 This Section T sets out:

(a) the basis on which Trading Charges for each Imbalance Party and the NETSO

will be determined;

(b) the data required in order to determine such Trading Charges, and the

intermediate quantities which are involved in such calculation;

(c) the processes to be undertaken by the SAA for and in connection with the

determination of Trading Charges.

1.2 Obligation and entitlement of Parties

1.2.1 Subject to the provisions of the Code, each Imbalance Party and the NETSO shall be liable

to pay to, or shall be entitled to be paid by, the BSC Clearer an amount in respect of

Trading Charges for each Settlement Day as determined in accordance with this Section T.

1.2.2 For the purposes of paragraph 1.2.1, the Trading Charges for a Party are as follows:

(a) for each Imbalance Party and each Settlement Day:

(i) the Daily Party BM Unit Cashflow for that Imbalance Party, which

shall be an amount representing either a credit or a debit to that

Imbalance Party (as determined in accordance with paragraph 1.2.3);

(ii) the Daily Party Non-Delivery Charge for that Imbalance Party,

which shall be an amount representing a debit to that Imbalance

Party;

(iii) the Daily Party Energy Imbalance Cashflow for that Imbalance

Party, which shall be an amount representing either a credit or a

debit to that Imbalance Party (as determined in accordance with

paragraph 1.2.3);

(iv) the Daily Party Information Imbalance Charge for that Imbalance

Party, which shall be an amount representing a debit to that

Imbalance Party; and

(v) the Daily Party Residual Settlement Cashflow for that Imbalance

Party, which shall be an amount representing either a credit or a

debit to that Imbalance Party (as determined in accordance with

paragraph 1.2.3);

(vi) the Daily Party RR Cashflow for that Imbalance Party; and

(vii) the Daily Party RR Instruction Deviation Cashflow for that

Imbalance Party.

and, for each Imbalance Party and each Settlement Day, the amounts referred to

in paragraphs (i) to (vii) shall be netted, in accordance with paragraph 5.3.3, to

produce a single credit or debit amount for each Imbalance Party;

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(b) in respect of the NETSO and for each Settlement Day, the Daily System

Operator Cashflow, which shall be a single credit or debit amount (as

determined in accordance with paragraph 1.2.3).


(a) in relation to each of:

(i) the Daily Party BM Unit Cashflow;

(ii) the Daily Party Residual Settlement Cashflow;

(iii) the Daily Party RR Cashflow; and

(iv) the Daily Party RR Instruction Deviation Cashflow,

a positive value of any such Cashflow represents a credit to the relevant Party

and a negative value of any such Cashflow represents a debit to the relevant

Party; and

(b) in relation to each of:

(i) the Daily Party Energy Imbalance Cashflow;

(ii) the Daily System Operator Cashflow,

a positive value of any such Cashflow represents a debit to the relevant Party

and a negative value of any such Cashflow represents a credit to the relevant

Party.

1.2.4 For the avoidance of doubt, the Daily Party Non-Delivery Charge and the Daily Party

Information Imbalance Charge shall have positive values and shall represent a debit to the

relevant Imbalance Party.

1.3 Data requirements

1.3.1 This paragraph 1.3 sets out data required from different persons in order to make the

determinations and calculations set out in this Section T.

1.3.2 Data required from the NETSO are:

(a) Final Physical Notification Data;

(b) Bid-Offer Data;

(c) Acceptance Data;

(d) Balancing Services Adjustment Data;

(e) Applicable Balancing Services Volume Data;

(f) Loss of Load Probability and associated data; and

(g) Replacement Reserve Auction Result Data.

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1.3.3 Data required from the CDCA are:

(a) BM Unit Metered Volumes for BM Units other than Supplier BM Units,

Interconnector BM Units and Secondary BM Units;

(b) Interconnector Metered Volumes; and

(c) the GSP Group Take for each GSP Group.

1.3.4 Data required from the ECVAA are:

(a) Metered Volume Fixed Reallocations by BM Unit and Subsidiary Energy

Account;

(b) Metered Volume Percentage Reallocations by BM Unit and Subsidiary Energy

Account; and

(c) the Account Bilateral Contract Volume for each Energy Account.

1.3.5 Data required from Interconnector Administrators are BM Unit Metered Volumes for the

Interconnector BM Units of each Interconnector User for each Interconnector.

1.3.6 Data required from the SVAA are:

(a) for each Supplier, the BM Unit Allocated Demand Volume; and

(b) for each Secondary BM Unit, the Secondary BM Unit Demand Volume and the

Secondary BM Unit Supplier Delivered Volume.

(c) for each Supplier BM Unit, the Supplier BM Unit Non BM ABSVD.

1.3.7 Data required from the CRA are data registered in CRS and relevant to Settlement.

1.3.8 Data required from the Market Index Data Provider(s) are Market Index Data.

1.3.9 Data required from the TLFA are Transmission Loss Factors for all BM Units.

1.4 Data receipt and validation

1.4.1 Whenever the SAA is required to carry out a Settlement Run, the SAA shall receive and

validate (in accordance with BSCP01) the data for the relevant Settlement Day described in

paragraph 1.3.

1.4.2 Subject to paragraphs 1.4.6, if by the time the SAA is to carry out the Interim Information

Settlement Run complete and valid data have not been received by the SAA in accordance

with paragraph 1.3 in respect of the relevant Settlement Day, then:

(a) where the invalid or missing data are not, in the SAA's opinion, a significant

proportion of the data required to carry out the Interim Information Settlement

Run in respect of that Settlement Day, the SAA shall inform BSCCo and shall

input default data (in accordance with BSCP01) for the purposes of producing

the Interim Information Settlement Run;

(b) where the invalid or missing data are, in the SAA's opinion, a significant

proportion of the data required to carry out the Interim Information Settlement

Run in respect of that Settlement Day:

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(i) if the SAA considers that the invalid data will be corrected and re-

submitted or the missing data will be submitted by the end of the

next following Business Day, the SAA shall inform BSCCo and

shall delay the Interim Information Settlement Run until such data is

corrected and re-submitted or submitted (as the case may be);

(ii) if:

(1) the SAA does not consider that the invalid data will be

corrected and re-submitted or the missing data will be

submitted by the end of the next following Business Day;

or

(2) in the case of paragraph (i) above, the SAA does not

receive such data by the end of the next following

Business Day,

the SAA shall inform BSCCo and BSCCo shall determine whether default data

should be substituted for the invalid or missing data (in accordance with

BSCP01) for the purposes of producing the Interim Information Settlement Run

or whether production of the Interim Information Settlement Run should be

delayed for a specified period in order that complete and valid data may be

obtained by the SAA;

(c) the SAA shall continue to request the person responsible for submitting such

data to resubmit and/or correct the data.

1.4.3 For the purposes of paragraph 1.4.2, "significant" shall be interpreted having regard to the

purpose for which the Interim Information Settlement Run is produced, namely to provide

a reasonably accurate reflection of what is expected to be contained in the Initial Settlement

Run in respect of the relevant Settlement Day (taking into account the fact that the Interim

Information Settlement Run does not include any data in respect of Supplier Volume

Allocation).

1.4.4 Paragraph 1.4.2 shall not apply to data in respect of Supplier Volume Allocation.

1.4.5 Subject to paragraphs 1.4.6 and 1.4.7, if at any time from the Business Day prior to the day

on which the SAA is to carry out the Initial Settlement Run the SAA forms the view that it

does not expect to receive substantially complete and valid data in accordance with

paragraph 1.3 in respect of the relevant Settlement Day in time to carry out such Settlement

Run in accordance with the Settlement Calendar, then:

(a) the SAA shall inform BSCCo; and

(b) BSCCo shall determine whether default data should be substituted for the

invalid or missing data (in accordance with BSCP01) for the purposes of

producing the Initial Settlement Run or whether production of the Initial

Settlement Run should be delayed for a specified period in order that complete

and valid data may be obtained by the SAA.

1.4.6 Where and for so long as any of paragraphs (a), (b), (c) or (d) of Section K5.4.6 applies in

respect of an Interconnector, all BM Unit Metered Volumes for the Interconnector BM

Units of each Interconnector User for that Interconnector (whether or not any such volumes

are submitted under paragraph 1.3.5) shall be set to zero.

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1.4.7 For those Supplier BM Units or Secondary BM Units with no associated SVA Metering

Systems (and in respect of which no data is submitted by the SVAA as a result), the BM

Unit Metered Volume shall be zero.

1.4.8 Where Supplier BM Unit Non BM ABSVD has not been received in time for the Interim

Information Settlement Run, or any subsequent Settlement Run, paragraphs 1.4.2 and 1.4.5

shall not apply.

1.5 Market Index Definition Statement

1.5.1 The Panel shall establish by no later than the commencement date, and have in force at all

times thereafter, a statement having regard to the principles set out in paragraph 1.5.3 and

which is approved by the Authority (such statement, as revised from time to time in

accordance with this paragraph 1.5, being the "Market Index Definition Statement").

1.5.2 The Market Index Definition Statement shall contain the following:

(a) nomination of the particular entity or entities (each a "Market Index Data

Provider") which shall be responsible for making available Market Index Data

in respect of each Settlement Period for the purposes of paragraph 4.4;

(b) full definition of the particular data and methodology to be used by the Market

Index Data Provider(s) in determining the Market Index Data for each

Settlement Period (including, where applicable, identification of the particular

products, period of trading and any relevant weighting to be applied); and

(c) definition and determination, for the purposes of paragraph 4.3A.1, of a

minimum liquidity requirement per Settlement Period (expressed in MWh) in

respect of each Market Index Data Provider individually (in each case, an

"Individual Liquidity Threshold") which, for the avoidance of doubt, may be

zero in any case and may vary in any case according to the Settlement Period

and/or the Settlement Day or otherwise.

1.5.3 The principles referred to in paragraph 1.5.1 are:

(a) the Market Index Data is to be used in Settlement to calculate a price (expressed

in £/MWh) in respect of each Settlement Period (in accordance with paragraphs

4.4.2(b) and 4.4.3(b)) which reflects the price of wholesale electricity in Great

Britain for delivery in respect of that Settlement Period in the short term market,

in circumstances where the levels of liquidity in the market during that period

and in respect thereof are not exceptionally low;

(b) for the purposes of paragraph 1.5.3(a):

(i) 'reflects' means 'provides a reasonable reflection of';

(ii) references to the 'market' are to the market in general and not to any

particular market or particular type of market (organised or

otherwise);

(iii) 'short term' is to be taken as meaning, in respect of a Settlement

Period, a period of hours or days immediately prior to the

Submission Deadline but in any event no more than three Business

Days prior to the Submission Deadline;

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(iv) 'delivery' refers to transactions where the intended method of

performance is by way of submission of Energy Contract Volume

Notifications or Metered Volume Reallocation Notifications; and

(v) the price of wholesale electricity for delivery in respect of a

Settlement Period may include the price for a block of Settlement

Periods which include that Settlement Period, provided the block

comprises no more than 24 hours in total.

1.5.4 The Panel shall review the Market Index Definition Statement:

(a) from time to time, and in any event at least once every 12 months; and/or

(b) if any change in circumstances occurs or is expected to occur which affects or is

likely to affect in any material way the provision of Market Index Data by a

Market Index Data Provider; and/or

(c) where necessary in order to give full and timely effect to any relevant Approved

Modification by the Implementation Date for that Approved Modification,

by reference to the principles set out in paragraph 1.5.3, and shall make such revisions to

the Market Index Definition Statement as may be determined by it and approved by the

Authority following such review.

1.5.5 In establishing and reviewing the Market Index Definition Statement, the Panel shall:

(a) investigate what data exists and is available in respect of the market referred to

in paragraph 1.5.3;

(b) consult with Parties and other interested parties in connection with the Market

Index Definition Statement and have due regard to any representations made

and not withdrawn during such consultations;

(c) provide to the Authority copies of any written representations so made and not

withdrawn.

1.5.6 Where a revised Market Index Definition Statement is approved by the Authority:

(a) such revised Market Index Definition Statement shall be effective from such

date as the Panel shall determine with the approval of the Authority (and shall

apply in respect of Settlement Days from that date); and

(b) the Panel Secretary shall give notice of such date to each Party, the SAA and

the BMRA.

1.5.7 BSCCo shall ensure that a copy of the Market Index Definition Statement (as revised from

time to time) is:

(a) sent to each Party, the SAA and the BMRA; and

(b) published, and made available on request to any person.

1.5.8 For the purposes of this paragraph 1.5, the "commencement date" is the Settlement Day

with effect from which, pursuant to paragraphs 4.4.2(b) and 4.4.3(b), Market Index Price

and Market Index Volume data is first to be applied in determining energy imbalance

prices for the purposes of Settlement.

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1.6 Provision of Market Index Data

1.6.1 The Market Index Data to be provided by each Market Index Data Provider in respect of

each Settlement Period shall comprise for that Settlement Period:

(a) a volume expressed in MWh; and

(b) a price expressed in £/MWh,

in each case determined in accordance with the Market Index Definition Statement.

1.6.2 For each Settlement Period, each Market Index Data Provider will determine its Market

Index Data in accordance with the Market Index Definition Statement and submit such data

to:

(a) the BMRA, such as to be received by the BMRA no later than the end of the

Settlement Period to which the data pertains;

(b) the SAA and BSCCo, by way of daily report containing the data separately for

each Settlement Period in the Settlement Day to which the data pertains and

such as to be received by the SAA and BSCCo no later than the end of the

Business Day next following the relevant Settlement Day.

1.6.3 Without prejudice to paragraph 4.3A.1, if in respect of a Settlement Period and a Market

Index Data Provider the Individual Liquidity Threshold for that Market Index Data

Provider (as determined in accordance with the Market Index Definition Statement)

exceeds the Market Index Volume which would otherwise have been submitted by it, the

Market Index Data Provider will instead submit a Market Index Volume with a value of

zero.

1.6.4 Without prejudice to any rights or remedies available to BSCCo under the Market Index

Data Provider Contract, if a Market Index Data Provider is unable to determine and/or

submit its Market Index Data or to do so within the timescales set out in paragraph 1.6.2, it

will:

(a) inform BSCCo, the BMRA and the SAA immediately, giving details of the

cause of such inability, when it expects to be able to determine and submit such

data and the Settlement Periods likely to be affected;

(b) endeavour to determine and submit such data as soon as it reasonably can, in

which case such data shall be taken into account in the next Settlement Run for

the relevant Settlement Day after such submission.

1.6.5 In respect of any Settlement Day for which the SAA does not receive Market Index Data

from a Market Index Data Provider:

(a) the provisions of paragraph 1.4, other than paragraph 1.4.1, shall not apply (and

the default rules under paragraph 4.3A.1 shall apply instead); and

(b) the SAA shall inform BSCCo.

1.6.6 Without prejudice to Section W1.3.2(c)(iv), where, following the submission by a Market

Index Data Provider of Market Index Data in respect of a Settlement Period in accordance

with paragraph 1.6.2, a change is made to any underlying data item of the Market Index

Data Provider such that the Market Index Data so submitted is no longer the data which

would have been submitted by it in respect of that Settlement Period in accordance with the

Market Index Definition Statement:

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(a) the Market Index Data Provider will promptly:

(i) inform BSCCo of such change and its effect on the Market Index

Data;

(ii) resubmit the Market Index Data for the relevant Settlement Period(s)

taking account of such change; and

(b) where the Market Index Data Provider resubmits any Market Index Data as

provided in paragraph (a)(ii) above, such revised Market Index Data shall be

taken into account in the next Settlement Run for the relevant Settlement Day

after such submission.

1.6.7 It shall be the responsibility of BSCCo to enter into a contract with each person nominated

as a Market Index Data Provider for the provision of Market Index Data in accordance with

this paragraph 1.6 and for these purposes:

(a) a Market Index Data Provider shall not be considered to be a 'BSC Agent' under

the Code;

(b) notwithstanding paragraph 1.6.7(a), the provisions of Sections E2.1.2, E2.2.4,

E2.2.5, E2.2.6, E2.4, E2.6 and Section E3 shall apply to each Market Index

Data Provider Contract and to the provision of Market Index Data as if

references to BSC Agent included the Market Index Data Provider and

references to a BSC Agent Contract included the Market Index Data Provider

Contract subject to the following:

(i) provisions in Section E2 and E3 relating to the selection and

appointment of BSC Agents shall not apply (the selection and

appointment of Market Index Data Provider(s) being prescribed in

the Market Index Definition Statement);

(ii) references in Section E2 and E3 to BSC Service Descriptions shall

be disregarded; and

(iii) the provisions of Section E3.2 apply to a Market Index Data

Provider in its capacity as such and not in any other capacity which

it may have under the Code.

1.6.8 It is recognised that a Market Index Data Provider may (but need not) be a Party; where a

Market Index Data Provider is a Party:

(a) such Party shall have no rights, benefits, obligations or liability in its capacity as

Market Index Data Provider to or against any other Party under the Code, but

without prejudice to its rights and obligations:

(i) as Market Index Data Provider under its Market Index Data Provider

Contract; and

(ii) in any other capacity under the Code;

(b) references to Party or Parties in the Code shall be construed as excluding any

Market Index Data Provider (which is a Party) in its capacity as a Market Index

Data Provider (but as including such person in any other capacity it may have

under the Code);

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(c) the provision of Market Index Data shall be made pursuant to the Market Index

Data Provider Contract and not pursuant to the Code and, accordingly, such

data shall not be considered relevant party data for the purposes of Section

H4.6;

(d) the provision, disclosure and use of any market data relating to a Party which is

used in or in connection with the determination of Market Index Data by a

Market Index Data Provider shall not be considered or construed as being made

pursuant to any provision of the Code.

1.6.9 Notwithstanding paragraph 1.6.7(a):

(a) Section H4.6 shall apply to Market Index Data Providers as if references to

BSC Agents included Market Index Data Providers and references to BSC

Agent Contracts included Market Index Data Provider Contracts;

(b) references to BSC Agents and BSC Agent Contracts in Section W shall be

deemed to include, respectively, Market Index Data Providers and Market Index

Data Provider Contracts.


(a) references to a Market Index Data Provider are to a Market Index Data Provider

nominated in the version of the Market Index Definition Statement prevailing at

the time in question;

(b) in respect of a Market Index Data Provider, references to Market Index Data are

to such data as that Market Index Data Provider is to submit in accordance with

the Market Index Definition Statement.

1.6A Loss of Load Probability Calculation Statement

1.6A.1 The Panel shall establish and maintain a "Loss of Load Probability Calculation

Statement" which shall be a document approved by the Authority setting out:

(a) in respect of the Static LoLP Function Methodology, the method for calculating

a LoLP function; and

(b) the method for calculating a Loss of Load Probability value pursuant to the

Static LoLP Function Methodology and the Dynamic LoLP Function

Methodology.

1.6A.2 The Loss of Load Probability Calculation Statement shall include:

(a) the constant parameters to be used in the determination of Loss of Load

Probability;

(b) where applicable, the range of values used to determine Loss of Load

Probability values and functions; and

(c) the processes to follow for reviewing, updating and publishing parameters that

are to be performed by the NETSO on a regular basis.

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1.6A.3 The Panel shall review the Loss of Load Probability Calculation Statement:

(a) from time to time; and/or

(b) subject to paragraph 1.6A.4, where it considers necessary in order to give full

and timely effect to any relevant Approved Modification by the Implementation

Date for that Approved Modification,

and shall make such revisions to the Loss of Load Probability Calculation Statement as

may be determined by it and approved by the Authority following such review.

1.6A.4 In reviewing the Loss of Load Probability Calculation Statement the Panel shall:

(a) consult with Parties and other interested parties and have due regard to any

representations made and not withdrawn during such consultation; and

(b) provide to the Authority copies of any written representations so made and not

withdrawn.

1.6A.5 Where a revised Loss of Load Probability Calculation Statement is approved by the

Authority:

(a) such revised Loss of Load Probability Calculation Statement shall be effective

from such date as the Panel shall determine with the approval of the Authority

(and shall apply in respect of Settlement Days from that date); and

(b) the Panel Secretary shall give notice of such date to the NETSO and each Party.

1.6A.6 BSCCo shall ensure that a copy of the Loss of Load Probability Calculation Statement (as

revised from time to time) is:

(a) sent to the NETSO and each Party; and

(b) published, and made available on request to any person.

1.6A.7 The Panel shall not delegate its power to determine changes to the Loss of Load Probability

Calculation Statement (subject to the approval of the Authority) but it may delegate its

responsibility to maintain and review the Loss of Load Probability Calculation Statement.

1.7 Single imbalance price

1.7.1 Where, for the purposes of any Contingency Provisions, a single imbalance price is to

apply in relation to any Settlement Period:

(a) paragraph 1.7.1A or paragraph 1.7.2 shall apply;

(b) the provisions of paragraphs 4.4.2 and 4.4.3 in relation to the determination of

System Buy Price and System Sell Price shall not apply; and

(c) for all purposes of the Code, the System Buy Price and the System Sell Price for

that Settlement Period shall be the same and shall have the value established in

accordance with paragraphs 1.7.1A or (as applicable) 1.7.2 (and shall be

deemed to have been determined under paragraph 4.4).

1.7.1A Where a single imbalance price is to apply in relation to a relevant Settlement Period for

the purposes of Section G3 or Section G4, the Panel shall, subject to the approval of the

Authority, determine that single imbalance price in accordance with this paragraph 1.7.1A

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