BSC Panel 194 9 February 2012 Report on Progress of Modification - - PowerPoint PPT Presentation

BSC Panel 194

9 February 2012

Report on Progress of Modification Proposals

Adam Richardson 9 February 2012

2

Modifications Overview New Definition

• Assessment

P272, P274, P275, P276, P277, P278, P280, P281 Report Standing Issue 43 With Authority

• Authority

Determined

• Self-Gov

Determined

3

Modifications Overview

Mod. Title IWA Assessment Report Panel Recommendation Ofgem Decision Decision By Impl. Date Decision By Fall Back

• Impl. date

P266 Improving the allocation of Reactive Power flows between Import and Export Metering Systems 14- Oct-10 10-Feb-11 10-Mar- 11 Sent: 14-Mar-11 Rec'd: 15- Apr-11 29-Apr-11 23-Feb- 12 Approve Approve P268 Clarify the P/C status process for exempt BM Units 10- Feb-11 14-Jul-11 11-Aug- 11 Sent: 16-Aug-11 Rec’d: 19- Sept-11 13-Oct-11 23-Feb- 12 Approve Alt Approve Alt P269 Prevention of Base Trading Unit BMUs’ Account Status Flipping from Consumption to Production’ 10- Mar-11 14-Jul-11 11-Aug- 11 11-Aug-11 N/A

• 23-Feb-

12 Approve N/A P272 Mandatory Half Hourly Settlement for Profile Classes 5-8 09- Jun-11 12-Jan-12 P273 Make the SVA Funding Share Calculation robust to changes in Scaling Weights 11- Aug-11

• 08-Sept-

11 08-Sept-11 N/A

• 23-Feb-

12 Approve N/A P274 Cessation of Compensatory Adjustments 13- Oct-11 12-Apr-12 P275 Extending BSC Performance Assurance 13- Oct-11 08-Mar-12 P276 Introduce an additional trigger/threshold for suspending the market in the event of a Partial Shutdown 13- Oct-11 04-May-12 P277 Allow Interconnector BM Units to choose their P/C Status 13- Oct-11 08-Mar-12 P278 Treatment of Transmission Losses for Interconnector Users 13- Oct-11 08-Mar-12 P279 Correcting the BSC description of the CDCA to SVAA interface for GSP Group net Export 13- Oct-11

• 08-Dec-

11 08-Dec-11 N/A

• 10-Jan-

12

• Approve

P280 Introduction of new Measurement Classes 08- Dec-11 12-Apr-12 P281 Change of BSCCo Board of Directors & Chairman 12- Jan-12 04-May-12

Minutes of Meeting 193 & Actions Arising BSC Panel

Adam Richardson 9 February 2012

Chairman’s Report BSC Panel

Andrew Pinder 9 February 2012

ELEXON Report

Peter Haigh 9 February 2012

Smart Update BSC Panel

Chris Rowell 09 February 2012

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Regulatory Design Plan

• The Smart Energy Code

(and associated framework agreement)

• The new licence conditions

in other parties’ licences and changes to existing codes

• The DCC prohibition order
• The DCC licence
• The DCC licence application regulations

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Smart Metering: Small Supplier Exemption Consultation

PROPOSAL

• Small Suppliers (< 250,000 meters)
• Meters meet Advanced Domestic Meter (ADM) definition
• Installed in period Mar 2012 - (SMETS?) [date in 2012]
• Customer remains with installing supplier

metering system NOT required to be replaced with a compliant meter prior to end of life

AUG 2011 LICENCE CONSULTATION ALL Suppliers to install a compliant smart meter

by completion of roll out Evidence on installation

13 Jan

Questions

• n policy

27 Jan Separate discussion: Time limited exemption for large Suppliers?

CLOSED

10

Smart Metering: ALL Supplier Exemption Consultation

PROPOSAL

• ALL Suppliers
• Meters meet Advanced Domestic Meter (ADM) definition
• Installed in period Mar 2012 - (SMETS) [date in 2012]
• Applies to meter

metering system NOT required to be replaced with a compliant meter prior to [date between 2020-2026]

AUG 2011 LICENCE CONSULTATION ALL Suppliers to install a compliant smart meter

by completion of roll out Evidence on installation

30 Jan

Questions

• n policy

13 Feb

OPEN

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Briefing Event – 14 Feb Smarter Markets: Propositions

7 Mar

Improving Market processes 5. Settlement Arrangements (HH settlement) 6. Change of Supplier process (next day) 7. Data Processing & aggregation (central) 8. Code Consolidation (SEC to form retail code) Enabling Retail Market Development 1. Time of use tariffs (to reduce consumption) 2. Demand-side response (to reduce costs) 3. Energy Services (to increase consumer benefits) 4. Payment Methods (increased options)

Source: Ofgem Consultation - Promoting Smarter Energy Markets (15 Dec 2011)

OPEN

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Smart Budget

Released Funds Spend this month (January) Committed Spend (to end March 2012) Smart Support

£464k £38k £255k

Smart Opportunities

£36k £0 £19k

TOTAL

£500k £38k £274k

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Smart in the Headlines Smart meters for energy to be voluntary

Plans to force households to have energy smart meters installed have been shelved over health and privacy fears.

Smart meters could lead to huge rise in energy bills

Committee of MPs concludes that installation of intelligent meters is open to abuse by suppliers

DECC Statement:

You may well have seen the Daily Telegraph article published 1 February entitled “Smart meters for energy to be voluntary”. The article goes on to state that officials are devising plans to allow people to reject smart meters. This is not the case. There have been no changes to our plans for smart meters to be rolled out as standard across the country by 2019 We have always positioned the obligation on suppliers as being to “take all reasonable steps” to complete the rollout and made clear that where individual customers have strong reservations we would not expect suppliers to obtain warrants simply to install smart meters. We continue to stress in the media that the rollout of smart meters is an important national programme which will bring big benefits to consumers and the nation

Distribution Report

David Lane 9 February 2012

National Grid Update

Ian Pashley 9 February 2012

European Update: Ofgem

Jon Dixon 9 February 2012

194/04 Including the East-West Interconnector as a BMRA Fuel Type

Dean Riddell 9 February 2012

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• Balancing Mechanism Reporting Service (BMRS) reports on the

three existing Interconnectors

• New Interconnector between Wales and Ireland (the East-West

Interconnector) due to become operational in 2012

• To individually report Interconnector data on the BMRS
• A Fuel Type Category relating to the Interconnector must be approved
• Relevant system and documentation changes must be made
• BSC Section Q allows the Panel to approve Fuel Type Categories

for further Interconnectors without change to the BSC

Background

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• Request Panel approve a BMRA Fuel Type Category relating to the

East-West Interconnector with effect from 28 June 2012

• Aligns with June 2012 BSC Systems Release, the last prior to go-live
• Recommend no consultation
• It is clear the BMRS should report data relating to new Interconnector
• No scope to implement associated changes in a different Release prior

to Interconnector go-live, and no benefit in considering a standalone implementation

• Section Q gives Panel discretion on whether to consult on the decision

to approve a BMRA Fuel Type Category for a new Interconnector

Approval of BMRA Fuel Type Category

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• System and documentation changes needed to enable BMRS

reporting of East-West Interconnector data

• Cost of BMRS system changes estimated at £64,000
• Change Proposal to ISG following approval of Fuel Type Category
• Updated ISG in January and ISG has reviewed CP and redlining
• Ask to approve for implementation in June 2012 Release
• Self evident (without changes systems/documentation inconsistent

with approval of Fuel Type Category for new Interconnector) so we will recommend no industry Impact Assessment

• No issues raised by the ISG
• Request Panel endorse approach for progression of CP

Approach for associated changes

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The BSC Panel is invited to: a) APPROVE the East-West Interconnector as a Fuel Type Category under paragraph 6.1.18(l) of Section Q of the BSC; b) NOTE that we will raise a CP to implement the associated document and system changes in the June 2012 BSC Systems Release; and c) ENDORSE our proposed approach to the progression of this CP

Recommendations

194/05 Business Strategy Approval

David Jones 9 February 2012

Timetable

Nov Dec Jan Feb Mar A

Board Parties Panel Note Process & Key Themes Review draft Strategy Consider comments & revisions Review Budget & Strategy Consider comments & Approve Strategy Issue for comment Workshop Consider Panel comments & approve budget 1 5 8 9 7 3 2 4 Request to vary timetable 6

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The BSC Panel is invited to: a) NOTE the comments received on the Business Plan; b) NOTE the actions taken by ELEXON to address the comments received and the revised Business Strategy and Budget; c) APPROVE the Business Strategy; d) NOTE that the Board will be asked to approve the budget to deliver this strategy and that provision may need to be made for governance changes.

Recommendation

194/06 Revisions to Panel Committee Chairs

Adam Richardson 9 February 2012

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The BSC Panel is invited to: a) APPROVE the appointment of Jonathan Priestly as the new TDC chairman from 1 March 2012; b) APPROVE the appointment of Douglas Alexander as the new PAB chairman from 1 March 2012: and c) APPROVE the appointment of Jonathan Priestly as the new Q8C chairman from 1 March 2012;

Revisions to Panel Committee Chairs

194/07 Report on Issue 43

Kathryn Coffin 9 February 2012

‘Provision of on-site generation during planned outages’

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• Proposer highlights a planned 4-week distribution outage where:
• Large customer paid for on-site generator to maintain supply
• Distributor connected generator on its side of Settlement Meter
• Generation was metered as consumption in Settlement
• Supplier billed customer for consumption recorded by Meter
• Customer contacted Supplier to complain about ‘double-billing’

Issue 43: The scenario

29

• Group has focused on 3 key questions:
• When/how can the Issue 43 scenario arise?
• Does its frequency/materiality justify a rule change to prevent it?
• Can/should you ‘correct’ the Settlement volume under the existing rules?
• To help it answer these, the Group has:
• Issued a Request for Information from Suppliers and Distributors
• Noted ELEXON’s advice on ‘correcting’ the Settlement volume

Issue 43: Group’s discussions

30

• Group has concluded that the Issue 43 scenario is:
• Only possible where Distributor connects generator on Distributor side
• f Meter and charges customer for this generation
• So rare that disproportionate to introduce rules to cover it
• Group has also concluded that:
• Whether scenario is a BSC ‘error’ depends on exactly where the

generator was connected on Distributor side of Meter

• Method for correcting any ‘error’ depends on a variety of factors,

including whether Supplier knows the ‘correct’ volume

Issue 43: Conclusions

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The BSC Panel is invited to: a) NOTE the Issue Group’s discussions and conclusions; b) NOTE the Group does not recommend a BSC change; and c) NOTE that Issue 43 is closed

Issue 43: Recommendations

Panel Elections Engagement Strategy

Adam Richardson 9 February 2012

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• Timeline
• May 2012. Correspondence to establish Trading Party Group and Election

Timetable

• June 2012. Invitation to nominate.
• Nominations accepted 2 July to 23 July 2012
• Voting papers sent out 24 to 31 July 2012
• Voting 1 to 21 August 2012
• Results published no later than 15 September 2012
• New Panel sits in October 2012

Panel Elections Engagement Strategy

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• Publicity
• Newscast
• ELEXON website
• Overview of how the election works
• Candidate Page
• Structured opportunity to ask the candidates questions

Panel Elections Engagement Strategy

Panel Arrangements for Meetings held during Olympic Period

Adam Richardson 9 February 2012

36

• Meetings affected
• July and August
• Plan
• Teleconference
• Book rooms outside of London to use as a contingency
• ELEXON Staff will have to teleconference into that meeting.
• Points to note
• BSC Annual Meeting – usually July 2012
• Communication to industry
• Update website
• Newscast

Panel Arrangements for Meetings held during Olympic Period

Any Other Business

Confidential Closed Session

Minutes of Meeting 193 Confidential Session

Adam Richardson 9 February 2012

Any Other Business

Next Scheduled Meeting 8 March 2012