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A British Electricity Market 30 June 2004 30/06/04 A British - - PowerPoint PPT Presentation
A British Electricity Market A British Electricity Market 30 June 2004 30/06/04 A British Electricity Market AGENDA Ofgem & DTI introductions Opportunities for GB trading Implications of BETTA Overview of Transition
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– NGT – SHETL – SPTL – ELEXON
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– GB trading based on England & Wales arrangements – GB transmission access for all parties – Split of transmission functions between system operation and transmission ownership
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– no competitive market – reliance on administered arrangements – vertically integrated companies remained in being
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Belfas t
NIE
Coylton
NGC
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– enables legal environment in which BETTA proposals will be implemented
– Legal framework for implementation in place from 1 September 04 – target date for introduction 1 April 2005
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– Enduring Codes and licences – Transitional text in Codes and licences – Detailed transition plan – 3 months ahead – High – level plan for remainder of transitional period
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– DTI RIA Estimated £13 per customer in Scotland, – help to fuel poor and those on lower incomes, – competition and choice for all GB consumers
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– One set of rules for supplying customers across GB – Removal of barriers to entry in Scotland e.g. the administered arrangements to support the interconnector – Real opportunities for suppliers – Good for all classes of customers
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– common arrangements for access to transmission system – unified pricing methodology – recovery of GB transmission costs from GB charging base – provision of visibly non-discriminatory access through creation of independent GB system operator
– Scottish generators will no longer have to pay separate charges for use
– Access to GB market
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– Essential investment in transmission networks – Access to liquid GB market – Competition for output of renewable generation
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Supply Generation Distribution Transmission
Framework Agreement
BSC
Framework Agreement
CUSC
NGT’s Grid Code
Bilateral Contracts
Settlement Agreement for Scotland
Trading Code
Electricity Act
(as amended)
Scottish Grid Code
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Supply Generation Distribution Transmission
Framework Agreement
BSC
Framework Agreement
CUSC Grid Code
Bilateral Contracts
Electricity Act
(further amended)
Framework Agreement
New SO- TO Code
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– Trading of wholesale electricity – Enforced contractually by Framework Agreement
– Terms for access to and use of the transmission system – Enforced contractually by a Framework Agreement – Requires compliance with the Grid Code
– Specifies technical parameters by connectees – Specifies data communication requirements
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– this is the same agreement – only it’s scope will have changed
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– connection agreement – mandatory services agreements
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– removal of constraint of access to interconnector – increase in demand for renewables connection in Scotland
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– recognise metering registered under SAS – recognise two Scottish GSP Groups – recognise Scottish non-half-hourly metering arrangements – ELEXON as GB BSC company
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– regional differences where necessary – prudent retention of definitions of large, medium & small generation – review Panel membership – Derogations – Balancing mechanism not scheduling and despatch
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– Access agreement no longer required – Use of system agreements no longer required
– Balancing & Settlement arrangements apply (IEA, IA) – Connection agreement required with NGT – Operational agreement required with NGT
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– users contract with the GB system operator – GB system operator contracts with transmission owners for services – STC provides “back-off” for user-facing obligations
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generators
– provide small transmission connected generators in Scotland with a discount against transmission use of system charges:
– amendment to the GB CUSC to relieve licence exempt transmission connected generators from the obligation to become a party to the BSC:
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Royal Assent Commencement of Powers “go-active” Go Live Power(s) in use 21JUL AUGUST SEPTEMBER APRIL
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– GB Transmission Despatch (NGT) – GB Outage Planning (NGT) – GB Connections Process (NGT) – GB charging arrangements (NGT) – GB Investment Planning (NGT) – GB Settlement and Metering (ELEXON) – Transmission owner user facing activities (SPTL/SHETL) – Run-off of existing arrangements (SPTL/SHETL)
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Integrated Testing (NGT/SP/SSE, NGT/ELEXON)
Training Cut-over
Transitional Arrangements
Go Live Go Active Royal Assent
Transition of Legal Framework and Industry Codes Start of Transition
Agreements Shadowing Connections Process
Commercial Arrangements
Jul 04 Aug 04 Oct 04 Jan 05
1st April 05
Parallel Running
J J A S O N J F M A
4 weeks ahead: start of enhanced shadow operation
GO-LIVE
12 weeks ahead – GB Zonal Margin reporting 13 week ahead shadowing
D
GBSO Shadows Scottish SOs GBSO Manages OP SP\SSE Manage OP
DNOs\Generators Contact SP\SSE
DNOs\Generators Contact GBSO
Highlights:
Data Obligations
provide Data
until Go Live. Go Live 1st April 05
J J A S O N D J F M A
GO - LIVE
6 Monthly Reactive Services Market Tender (will be GB wide)
D - 3
Live PN data submission GB Balancing Annual Standing Reserve Market Tender (will be GB wide)
(Inc. Black Start)
Highlights:
All BMUs Registered (from Elexon Plan)
Market Tender Tender Assessment
Identify Requirements
Reactive and Reserve
BS \ AS Contracts effective Tender Award
J J A S O N D J F M A
SCADA Data required shadowing
GO LIVE
Highlights:
D - 7
Testing and Trialing (Procedures \Facilities)
Training
Despatch process
Installation of Control facilities
J J A S O N D J F M A
M J J
Publish Charges GB Charges Effective
2 Month Notice Period
GO - LIVE
Form of Price Controls Known
GB Formal Charging Methodology Consultation Charge Calculation
Highlights:
Licence Condition:150 Days notice required for tariff change
Methodology Approved
Users with a Connection Agreement connected or connecting before Go Live
Agreement)
Users with a Connection Offer connecting after Go Live
Any new Connection or Modification application made from 1 Jan. 2005
A M J J A S O N D J F M A
GBSO Receives New Applications
GO - LIVE
GBSO Shadows SP/SSE Transitioning of Existing Agreements SP/SSE Continue to make Offers until Go Live Existing Agreements - Discussion/Prep
GO - ACTIVE A B C
GB SQSS Access Policy Decision Info Provided by TOs. Contact established with users
Agreement and Construction Agreement (where appropriate)
be made to the GBSO from Go Live
BETTA Issues Nigel Brooks, Issues Manager Tel - 01926 656028, email - nigel.brooks@ngtuk.com Contracts and Agreements Guy Phillips, Senior Commercial Analyst Tel - 01926 656339, email - guy.phillips@ngtuk.com Nigel Williams, Programme Director, BETTA Tel - 01926 656952, email - nigel.williams@ngtuk.com
Alec Morrison BETTA Programme Manager Scottish Hydro-Electric Transmission Limited (SHETL) Implications of BETTA
[BETTA Seminar 30th June 2004]
CONTENT
WHAT ROLE WILL SHETL PERFORM? Up until BETTA Go-Live (1st April 2005) SHETL will continue to process your connection applications in the usual manner (“ its business as usual”). At BETTA Go-Live the contractual arrangements between SHETL and transmission Users will formally transfer to the GBSO.
transmission Agreements.
vary any distribution Agreement to remove any transmission reference.
User and GBSO-TO contractual framework. Post BETTA Go-Live SHETL will remain the north of Scotland Transmission business.
CONTRACTUAL RUN-OFF
and interconnector contracts will be run-off.
enduring contractual framework (e.g. CUSC, MSA, BSC, GBGC)
WHAT ROLE WILL NGT PERFORM?
transmission and distribution connected (where appropriate).
BETTA legal framework for switching on at BETTA Go-Live.
GBSO will be required to enter into a Scottish Embedded Generator Agreement (SEGA).
WHAT WILL USERS NEED TO DO?
WHAT WILL USERS NEED TO DO?
SUMMARY
SHETL (TO): Craig Neill, Contracts Manager, Tel. 01738 456463 NGT (GBSO): Nigel Brooks, BETTA Issues Manager, Tel. 01926 656028
SPT is supportive of BETTA and is working with Ofgem/DTI and the other transmission licensees to deliver BETTA. BETTA must deliver:
renewables
BETTA is a fundamental restructuring of the transmission sector:
Grid Control SHETL Grid Control SPT Grid Control NGC Grid Control GBSO
Scottish TOs - Infrastructure Investment
NGC - Infrastructure Investment GBSO – Network Security New Connections
Liaison with User Notification when TO takes control Switching Instructions Switching Safety Permitting Releases control to TO
Discuss mutual work Execute outage Plan & request TO Outages User Outage Request Agree TO Outages Publish System Outage Plan
TO offer of connection Offer of Connection Pre-Application Feasibility Request
Acceptance of TO offer Request for TO connection offer Offer Acceptance Formal Application
The information in this presentation has been collated by ELEXON and while all due care has been taken to ensure the accuracy of this information, ELEXON accepts no responsibility for errors.
(GB BSC in place on 1 September 2004 - Go Active)
A M J J A S O N D J F M 2005 2004
Data Acquisition Testing & Trialling Cutover Panel Election CSDs for Go Active Go Active
A M J J A S O N D J F M 2005 2004
Data Acquisition
All data entities submitted
31 October 2004
All data entities registered (inc BM Units)
30 November 2004 1 April 2004
Voluntary commencement
Go Active
A M J J A S O N D J F M 2005 2004
Level 1 Tests Level 2 Tests Level 3 Tests
CDCA Data Set Complete
Cutover Tests End to End Tests Limited Parallel Running Go Active
TIME 13 July Deadline for nominations 16 July Voting Papers Issued Votes received 9 Aug 13 Aug Results announced Go Active
21 June Request for nominations Sent to BSC Parties and Prospective GB Parties
Created to allow evidence obtained under SAS to be used under GB BSC Transitional Code Subsidiary Documents Entry Process, Accreditation and Certification Document BETTA Data Take on Procedures Created to allow effective acquisition of Scottish data Testing Document Optional to include obligations relating to Testing Cutover Document Optional to include obligations relating to Cutover Any other document required for smooth transition to BETTA Optional as required
BETTA Go Active TIME Consultation on TCSDs issued 17 June Responses back 14 July Special GB Panel Meeting 2 Sept Approval of TCSDs Experts review Consultation and document 27 July ISG Members act as “experts”
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– BETTA Issues Manager Nigel Brooks 01926 656 028 – Contracts and Agreements Guy Phillips 01926 656 339
– Operational Issues George Spowart 0141 776 2431 – BETTA Programme Director Dave Thornton 01698 413 485
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