PAB147 25 April 2013 PAB147 Open Session 25 April 2013 PAB147/ - - PowerPoint PPT Presentation

PAB147

25 April 2013

PAB147 Open Session

25 April 2013

PAB147/ 01b

Non-confidential Settlement Risk Report

Tabled 25 April 2013

PAB147/ 05

Risk Evaluation Methodology 2014/ 2015 – Post I ndustry Consultation

Melinda Anderson 25 April 2013

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PAB endorsed the 2014/2015 issue of the Risk Evaluation Methodology (REM) for industry consultation on 28 January 2013. The REM was published on 1 March 2013 for a 3 week consultation. We received four responses from BSC Parties which represented views from:

» Suppliers (NHH & HH); and » Party Agents (NHH & HH).

REM Consultation

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Consultation responses

Question Participant Response Question 1

Do you agree with the proposed methodology? 100% agreed with the proposed methodology.

Question 2

For each area where you disagree, please provide an alternative methodology. N/A

Question 3

Please provide any additional comments you may have on the content of the REM One respondent provided comments (discussed next).

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» Npower said that while the Settlement Risk Report details the measures in place for Suppliers and Meter Operator Agents it fails to capture the role Distributors have in relation Settlement Risks (An example of this risk is SR0028). » They also suggested further consideration of the risks associated with customer appointed agents and their impact on supplier’s performance is required to capture current market conditions. » Npower said they would welcome further information and assurance that the risks posed by Smart metering are being considered. » Npower said that in support of transparency and understanding of the methodology a plain English version of this document would be appreciated. In particular it was noted that the number of acronyms in the document creates unnecessary confusion for first time readers.

Comments

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» The first two comments will be addressed through the annual review of the Risk Evaluation Register (RER) in June 2013; » Npower have been assured that we will/do consider the risks posed by Smart metering; » The final comment about readability of the document has been discussed both with the respondent and internally; » As a result, acronyms are re-introduced more frequently so that a reader can commence reading the Methodology from any section without having to refer back to where the acronym was first established; and » Links to often referred to documents have been added to the reference section for easy access.

Our response

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» The PAB is invited to: »

NOTE the responses received from industry consultation;

»

NOTE the minor amendments made to improve readability of the REM;

»

APPROVE the REM; and

»

AGREE that the REM is published on the ELEXON website.

Recommendations

Panel Update

Verbal 25 April 2013