Cross-Codes Forum 18 October 2013. Evacuation Muster Point If there is an alarm, follow the...

Cross-Codes Forum18 October 2013

Evacuation Muster Point

If there is an alarm, follow the instructions of the Fire WardensThe evacuation point is here…

Update on BSC Modifications

David Kemp

18 October 2013

4

Active BSC Modifications

Mod Title Phase

P272 Mandatory Half Hourly Settlement for Profile Classes 5-8 With Authority

P276 Introduce an additional trigger/threshold for suspending the market in the event of a Partial Shutdown

Awaiting Implementation

P283 Reinforcing the Commissioning of Metering Equipment ProcessesAwaiting

Implementation

P286 Revised treatment of RCRC for generation BM Units With Authority

P291 REMIT Inside Information Reporting Platform for GB ElectricityAwaiting

Implementation

P292 Amending Supplier & Meter Operator Agent responsibilities for smart Meter Technical Details


P294 Addition of Offshore Transmission System and OTSUA to the definition of the Total System Report Phase

P295 Submission and publication of Transparency regulation data via the BMRS Assessment Procedure

P296 Introduction of a ‘Fast Track’ Modification Process following the outcomes of the Code Governance Review (Phase 2)


P297 Receipt and Publication of New and Revised Dynamic Data Items Assessment Procedure

5

• Issue:• HH Settlement for PCs 5-8 not currently enforced• New meters in PCs 5-8 must be ‘advance/smart’• All PC 5-8 meters to be ‘advanced/smart’ by 2014

• Proposed Solution:• All SVA Metering Systems for PCs 5-8 will be settled

as HH from April 2014

• Alternative Solution:• As Proposed, but from April 2015

BSC Modifications – P272 (1 of 2)

P272Mandatory Half Hourly Settlement for Profile Classes 5-8

Phase

With Authority

ContactDavid Kemp020 7380 [email protected]

Who will be impacted by P272?• Suppliers • DCs • MOAs • Distributors

mailto:[email protected]


6

• Panel’s Recommendation: Reject both Proposed and Alternative

• Recommend implementation on 1 April 2014 (Pro) or 1 April 2015 (Alt)

• Currently with Authority for decision


P272Mandatory Half Hourly Settlement for Profile Classes 5-8

Phase

With Authority




7

• Issue:• Partial Shutdown would suspend entire Market• Disproportionate for small localised Partial

Shutdowns

• Approved Solution:• Introduce Market Suspension Threshold• If not met, Market continues as normal• Does not affect Total Shutdowns

• Approved for implementation on 31 March 2014• Authority: Better facilitates ABOs (b), (c) and (d)


P276Introduce an additional trigger/threshold for suspending the market in the event of a Partial Shutdown

PhaseAwaiting

Implementation

ContactELEXON [email protected]

Who will be impacted by P276?• BSC Trading

Parties



8

• Issue:• Hard to perform full commissioning of Metering

Equipment • Some equipment not within control of Registrant or

MOA when commissioning required

• Approved Solution:• Relevant SO responsible for commissioning CTs/VTs &

providing certificates/records• MOAs would assess performance; notify Registrant of

potential uncontrolled risks• Registrant works with SO to minimise risks

• Approved for implementation on 6 November 2014• Authority: Better facilitates ABOs (b), (c) and (d)


P283Reinforcing the Commissioning of Metering Equipment Process

PhaseAwaiting

Implementation

ContactClaire Anthony020 7380 [email protected]

Who will be impacted by P283?• Metering System Registrants • Distributors • MOAs



9

• Issue:• CMP201 proposes to remove BSUoS from generation

BM Units• If approved, creates potentially anomalous situation

where Parties liable for RCRC but not liable for BSUoS

• Proposed Solution:• Exclude generation BM Units from RCRC

• Generation BM Unit: BM Unit in a delivering Trading Unit


P286Revised treatment of RCRC for generation BM Units

Phase

With Authority


Who will be impacted by P286?• Generators • Indirect: Other BSC Trading Parties



10

• Panel’s Recommendation: Approve

• Recommend implementation on 1 April 2015

• Currently with Authority for decision


P286Revised treatment of RCRC for generation BM Units

Phase

With Authority




11

• Issue:• REMIT requires public reporting of inside information• Preference for use of central reporting platforms

• Approved Solution:• Place an inside information reporting platform on

BMRS• Messages submitted via Grid Code or ELEXON Portal

• Approved for implementation on 31 December 2014• Authority: Better facilitates ABOs (b), (c) and (d)


P291REMIT Inside Information Reporting Platform for GB Electricity

PhaseAwaiting

Implementation


Who will be impacted by P291?• Transmission Company • BSC Parties



12

• Issue:• New operating model – only Suppliers will be able to

configure Smart Meters under the DCC • This has a direct impact on responsibilities for

sending MTDs

• Approved Solution:• Provide ‘hook’ in Code to enable implementation of

detailed requirements (CP1388/CP1395)

• Approved for implementation on 26 June 2014• Authority: Better facilitates ABO (d)


P292Amending Supplier & Meter Operator Agent responsibilities for smart Meter Technical Details

PhaseAwaiting

Implementation

ContactSimon Fox020 7380 [email protected]

Who will be impacted by P292?• Suppliers • NHHMOAs • LDSOs • NHHDCs



13

• Issue:• Offshore generator required to install metering at

Boundary Point during development• This metering becomes defunct when Offshore

Transmission Assets are transferred to the OFTO

• Proposed Solution:• Amend definition of ‘Total System’

• Include ‘Offshore Transmission System’ and ‘OTSUA’• Address confusion between BSC and Grid Code

• Remove requirement to install metering at Boundary Point


P294Addition of Offshore Transmission System and OTSUA to the definition of the Total System

Phase

Report Phase

ContactDavid Barber020 7380 [email protected]

Who will be impacted by P294?• Offshore Generators • Transmission Company



14

• Panel’s initial Recommendation: Approve• Final Recommendation at November meeting

• Recommend implementation 5WD after Approval


P294Addition of Offshore Transmission System and OTSUA to the definition of the Total System

Phase

Report Phase

ContactDavid Barber020 7380 [email protected]



15

• Issue:• Transparency regulation requires data to be

published on EMFIP• TSOs provide this information to ENTSO-E

• Proposed Solution:• BMRA act as data provider for National Grid’s data• Data also published on BMRS

• Potential Alternative Solution:• As Proposed, but with Interconnector data also

published on BMRS• Int. Administrators to submit info to BMRA in parallel

with submitting to ENTSO-E


P295Submission and publication of Transparency regulation data via the BMRS

Phase

Assessment Procedure

ContactTalia Addy020 7380 [email protected]

Who will be impacted by P295?• Transmission Company • Potential: Interconnector

Administrators



16

• Undergoing assessment by Workgroup• Assessment Report to Panel in November

• Proposing implementation on 31 December 2014

• Report Phase Consultation will be issued in November


P295Submission and publication of Transparency regulation data via the BMRS

Phase


ContactTalia Addy020 7380 [email protected]



17

• Issue:• CGR2 introduces new ‘Fast Track’ Modifications• Required to be introduced into BSC

• Approved Solution:• Introduce new ‘Fast Track’ process into BSC

• Used to progress minor housekeeping changes quickly

• Approved for implementation on 6 November 2013• Authority: Better facilitates ABOs (a) and (d)


P296Introduction of a ‘Fast Track’ Modification Process following the outcomes of the Code Governance Review (Phase 2)

PhaseAwaiting

Implementation


Who will be impacted by P296?• BSC Panel



18

• Issue:• Grid Code EBS Group has made changes to the

Dynamic Data Set

• Proposed Solution:• Amend BSC to ensure data on BMRS corresponds

with data submitted to Transmission Company by Parties


P297Receipt and Publication of New and Revised Dynamic Data Items

Phase



Who will be impacted by P297?• Transmission Company



19

• Undergoing assessment by Workgroup• Assessment Report to Panel in November

• Proposing implementation on 6 November 2014

• Currently out for Assessment Consultation• Responses due by 24 October

• Report Phase Consultation will be issued in November


P297Receipt and Publication of New and Revised Dynamic Data Items

Phase





20

• Current Consultations:• P297 Assessment Consultation – responses due by 24 October

• Upcoming Consultations:• P295 Report Phase Consultation – November• P297 Report Phase Consultation – November

This will be your final chance to comment on these Modifications

Consultations

21

Where can I find more information?

www.elexon.co.uk/change/modifications/

http://www.elexon.co.uk/change/modifications/

http://www.elexon.co.uk/change/modifications/

22

Any Questions?

Adam Lattimore020 7380 [email protected]

Claire Anthony 020 7380 4293

[email protected]

David Barber020 7380 [email protected]

David Kemp020 7380 4303

[email protected]

Simon Fox020 7380 [email protected]

Talia Addy 020 7380 4043

[email protected]

[email protected]










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CUSC Changes

Adam Hipgrave

Cross Codes Forum

18 October 2013

24

CUSC Modifications Process

Change raised

Panel decision on progression

Industry consultation

Final report to Ofgem

Ofgem decision to approve or

reject

Appeal to Competition Commission

Workgroup assessment

Urgent process

optional

PanelVote

25

CUSC Modifications

CMP201 – Removal of BSUoS charges from Generators

Seeks to align GB arrangements with other EU Member States by removing BSUoS charges from GB Generators.

Panel voted on 26 April 2013 and Final Report sent to Ofgem on 9 May 2013.

Ofgem will be publishing their Impact Assessment shortly

26

CUSC Modifications (2)

CMP213 – Project TransmiT TNUoS Developments

Made up of 3 main elements – Network Capacity Sharing, Inclusion of HDVC in the charging calculation and inclusion of island links into the charging methodology.

Complex and extensive Workgroup process.

26 Workgroup Alternative CUSC Modifications (WACM)

Panel voted in May that 8 of the 26 WACMs better facilitated the Objectives.

Final Report sent to Ofgem on 14 June 2014.

Impact Assessment closed on the 10th October 2013, awaiting Ofgem decision.

27


CMP218 – Changes required for use of new banking product to hold Users’ cash securities

Seeks to facilitate the use of a new banking product by NGET.

Raised in March 2013 and is being progressed as Self-governance.

Code Administrator Consultation closed on 4 July 2013.

The Panel voted unanimously that CMP220 better facilitates the Applicable CUSC Objectives.

Implemented on 16th October 2013.

28


CMP219 – CMP192 Post Implementation Clarifications

Seeks to address issues with the legal text for CMP192 (Arrangements for Enduring Generation User Commitment) identified following its implementation.

Raised in June 2013.

Code Administrator Consultation was published on the 2 October 2013 and closes on 30th October2013.

Being progressed as self-governance; Panel Determination Vote to be carried out in November.

29


CMP221 – Interruption Compensation in the absence of Market Suspension during Partial Shutdown

Seeks to extend the existing CUSC compensation to cover Settlement Periods during a Partial Shutdown where market operations continue.

Raised in September 2013.

Code Administrator Consultation was published on the 1st October and closes on 29th October.

30


CMP222 – User Commitment for Non-Generation Users

Generation user commitment for pre- and post-commissioning sites was introduced into the CUSC in April 2012 for April 2013 go-live.

Seeks to introduce enduring user commitment arrangements for interconnector and demand users by April 2015.

Raised September 2013.

First Workgroup meeting to be held on the 18th October.

31


CMP223 – Arrangements for Relevant Distributed Generators under the Enduring Generation User Commitment.

Seeks to address issues associated with the way liability and security terms and conditions are set and calculated for distribution connected generators



32


CMP224 – Cap on the Total TNUoS Target Revenue to be recovered from Generation Users

Seeks to ensure that the average annual generation transmission charges remain within the current prescribed European Commission range until December 2014, and within the revised range (if modified after ACER’s review) that may come into force from 1st January 2015.



33

Contact Information

Email:

• [email protected]

Website:

• http://www.nationalgrid.com/uk/Electricity/Codes/systemcode/


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


Any questions?

Adam Hipgrave

National GridCommercial Analyst - European Code Development

Transmission Network Services | Markets & Balancing DevelopmentNational Grid House, Warwick Technology Park, Warwick, CV34 6DA

T: 01926 656191 M: 07825193568E: [email protected]


Grid Code Changes

Adam Hipgrave

Cross Codes Forum

18 October 2013

36

GC0042 Information on Embedded Small Power Stations and Impact on Demand

The Workgroup determined that further information than what is currently provided under PC.A.4.3.2 is required to enable National Grid to efficiently plan and securely operate the transmission system.

A list of additional requirements was agreed upon for each Embedded Small Power Stations (ESPS) of 1 MW and above

The Distribution code will be be reviewed to enable the DNOs to capture any additional information that they are currently not entitled to receive

Implementation date for the above information to be submitted was

agreed to be the Calendar Week 24 data submission beginning 2015.

Workgroup Report was presented at the September GCRP.

Industry Consultation anticipated early 2014 (in line with the DCode).

37

GC0050 Demand Control and OC6

The Workgroup was tasked with assessing the existing capabilities of the industry to implement Demand Control instructions and evaluate whether current requirements are still fit for purpose.

The Workgroup determined and assessed:

The need for, and requirements of, Demand Control Instructions

Existing capabilities of the DNOs to implement Demand Control Instructions

The costs, benefits and risks of any actions necessary to ensure that DNOs can implement the required Demand Control Instructions in the required timescales under future system requirements

Demand Reduction tests ongoing during October

GC0050 Workgroup Report to be presented to January GCRP.

38

GC0063 Power Available

The Workgroup have defined and critically reviewed the deficiencies

A number of options have been considered, and the Workgroup are likely to recommend the submission of Power Available as an operational metering

signal which would be fed to the National Grid Control Centre via SCADA with the definition of MEL used to indicate electrically connected capacity.

There are still questions regarding the costs of implementation, and retrospective application that require further analysis

The Workgroup is expected to present the Workgroup Report at the November GCRP and carry out an Industry Consultation during December.

39

The joint DCRP and GCRP Workgroup is examining how the maximum rate of change of frequency (RoCoF) seen by the electricity networks in GB is likely to increase, and how this impacts on the effectiveness of RoCoF based Loss of Mains (LOM) protection.

Phase 1 (5-50MW Total Registered Capacity)

Workgroup report presented in July

Recommended changing RoCoF to 1Hzs-1 measured over 500ms

Industry Consultation closed on 27 September

Workgroup are reviewing the responses before presenting their recommendation to Ofgem

Phase 2

Incorporates sub 5MW machines, inverter technology and multi-machine islands

Requests for proposals for two independent studies will be published soon

Workgroup will develop RoCoF withstand requirements

GC0035 Frequency Changes during Large Disturbances and their effect on the total system

40

Other areas of note

GC0033 (Offshore Wind Farms not connected to an Offshore Transmission System)

The Authority decision is expected on 22 October

GC0037 (BMU Configurations Offshore)

National Grid are reviewing the Industry Consultation response

GC0071, 72 and 73 (Code Governance Phase 2 Modifications)

The Authority decision is expected on 18 October

41

Contact Information

Email:

• [email protected]

Website:

• http://www.nationalgrid.com/uk/Electricity/Codes/gridcode/


http://www.nationalgrid.com/uk/Electricity/Codes/gridcode/


Any questions?

Adam Hipgrave




DCUSA Change Proposals Update

Michael WallsGovernance Services Senior Analyst – ElectraLink Ltd.

Email: [email protected] Tel: 020 7432 3014


What is the DCUSA?

• The Distribution Connection and Use of System Agreement is a multi-party contract between the licensed electricity distributors, suppliers and generators of Great Britain

• The DCUSA defines the rules for connecting and using the UK’s electricity network distribution systems

• It is essentially a legal contract which commenced on 6 October 2006

• Parties to the DCUSA include: DNOs, Suppliers, IDNOs, DG, Gas Suppliers and OTSO

Current DCUSA Activities

DCUSA website review Smart Metering

31 Change Proposals in progress

21 of those are Charging Related

Induction training sessions

Theft of Electricity (CoP)

Code Administration

Code of Practice

Next DCUSA Release 7

November 2013

DCUSA Change Process - OverviewPre-Change Process (Charging methodology changes)

CP raised

Initial Assessment

Industry Consultation

Working Group Assessment

Change Report

Implementation

Authority Consent

Change Declaration

Party Voting

Parties

Panel

Secretariat

Ofgem

ModellingResource

Overview of the DCMF MIG Pre-Change Process

DCMF MIG

CP Raised

Working Group

Outcome

Change Report

Implemented

DCMF

Industry Consultation

Decision

Voting

Originator

Issue submitted Issue defined Recommendation

DCUSA

From Pre-Change Process to formal DCUSA Change Process

Modelling Resource

Overview of Common Distribution Charging Methodologies in DCUSA Open Governance - CDCM and EDCM

• The governance and change management processes for the Common Distribution Charging Methodology (CDCM) were implemented into the DCUSA on 01 January 2010.

• The governance and change management processes for the EHV Distribution Charging Methodology (EDCM) (import) were implemented into the DCUSA on 01 April 2012.

• The governance and change management processes for the Common Connection Charging Methodology (CCCM) were implemented on 30 October 2012.

• The governance and change management processes for the EDCM (export) were implemented on 01 April 2013.

• As the methodologies will be common among all DNOs, this brings about many improvements, such as:

– More transparency, and as the complexities of the methodologies have been agreed, dialogue among all Parties have to be taken into account for any change; and

– When there is a change brought about by any Party, all DNOs must implement it and model the changes.

The National Terms of Connection

• Unless otherwise agreed, the NTC is the connection agreement between the end user and the distributor

• When you enter into your electricity supply contract with your supplier, you are also entering into a connection agreement with your electricity network operator on these terms

Charging Methodology CP SummaryStatus CDCM EDCM CCCM Billing

WG: Pre Consultation

7 (DCP 133, 159, 160, 161, 165, 178, 179)

1 (DCP 138) 1 (DCP 172)

WG: Consultation 1 (DCP 158) 3 (DCP 162, 166, 167)

WG: Post Consultation

8 ( DCP 137, 123, 117, 168, 169, 173, 174, 180)

Change Report

Voting

Awaiting Consent

Approved: Awaiting Implementation

1 (DCP 118) 5 (DCP 142, 144, 146, 147, 148)

Approved: Implemented

10 (DCP 130, 126, 131, 132, 134, 136, 150, 163, 128,

129)

1(DCP 152) 1 (DCP 140)

Rejected 1 (DCP 164) 1 (DCP 139) 4 (DCP 141, 145, 143, 149)

Total 28 3 5 9

Charging Methodology CPs: Definition StageDCP Title Status

DCP 117 Treatment of ‘Load related new connections & reinforcement (net of contributions)’ in the Price Control

Working Group considering progression routes for the CP

DCP 123 Revenue Matching Methodology Change Awaiting consultancy support

DCP 133 500 MW network common model for CDCM input Impact analysis to be completed in January 2014

DCP 137 Introduction of locational tariffs for the export from HV generators in areas identified as generation dominated.

Awaiting consultancy support

DCP 138 Implementation of alternative network use factor (NUF) calculation method in EDCM

Awaiting Ofgem decision on Network Use Factor proposals

DCP 158 DNO DUoS re EDNOs Working Group reviewing consultation responses

DCP 159 Volumes data in the CDCM Awaiting consultancy support

DCP Title Status

DCP 160 Non-Half Hourly (NHH) Notional Capacity Awaiting outcome of DCP 165 before progressing

DCP 161 Excess Capacity Charges Working Group is drafting a consultation which will be issued

shortlyDCP 162 Non-Secure Connections in the Common Connections Charging

MethodologyWorking Group reviewing

consultation responses

DCP 165 Voltage Level Approach to Unit Charges in the CDCM Awaiting outcome of DCP 179 before determining how to

progressDCP 166 Additional text for the DNO Common Connection Charging

Methodology to provide clarity where a customer requests a supply voltage in excess of the ‘minimum scheme’ for the

capacity requested.

Working Group reviewing consultation responses

DCP 167 Additional examples for the Common Connection Charging Methodology to illustrate ‘remote reinforcement and remote

reconfiguration’

Working Group reviewing consultation responses

DCP 168 The Administration of Use of System charges relating to connections from Embedded Distribution Network Operator

(EDNO) systems to Unmetered Supplies (UMS) for LA customers.

Working Group is reviewing the consultation responses and

determining how to progress

Charging Methodology CPs: Definition Stage

DCP Title Status

DCP 169 Seasonal Time of Day (SToD) HH Metered Tariffs in the CDCM Awaiting the progression of DCP 123

DCP 172 Clarification of way in which voltage rise is used in determining the New Network Capacity

Working Group drafting consultation document

DCP 173 Retrospective changes of Tariff (LLFC / Unique Identifier) The Working Group will issue a second consultation on legal text

and progression routes in due course

DCP 174 Qualification and application of LV sub-station tariffs Change Report will be issued to Parties for voting today

DCP 178 Notification period for change to use of system charges Working Group drafting consultation document

DCP 179 Amending the CDCM tariff structure Awaiting consultancy support

DCP 180 Further reduction in the volatility of Use of System Charges Working Group reviewing consultation responses

Charging Methodology CPs: Definition Stage

Charging Methodology CPs: Implemented DCP Title Status

DCP 142 Using D2021 for all invoices/credit notes if it is used at all Implemented 1 October 2013

DCP 144 Prohibiting rounding of HH data Implemented 1 October 2013

DCP 146 HH invoice runs Implemented 1 October 2013

DCP 147 Preventing UoS invoices containing non-UoS elements Implemented 1 October 2013

DCP 148 Rebilling to be done via credit/rebill Implemented 1 October 2013

DCP 171 Housekeeping re Black Yellow Green Implemented 1 October 2013

DCP 177 Housekeeping change relating to DCP 127 to allow Gas Suppliers accession to DCUSA

Implemented 1 October 2013

DCP 184 Housekeeping change following implementation of DCP127 Implemented 1 October 2013

Charging Methodology CPs and DCMF/DCMF MIG

– Roz Timperley [email protected]

– Michael Walls [email protected]

DCUSA CPs, CCCM CPs and DCUSA SIG

– Claire Hynes [email protected]

Telephone – 0207 432 3011

DCUSA Contacts




Supply Point Administration Agreement (SPAA) Update

Verena LeckebuschGovernance Services Coordinator – ElectraLink Ltd.



Supply Point Administration Agreement (SPAA) Multi-party agreement: inter-operational arrangements between gas suppliers &

transporters

Domestic gas suppliers and gas transporters required to accede

SPAA - Agreement 24 Sections: Administration and governance arrangements 34 Schedules (mandatory/elective/voluntary): Pre-payment arrangements,

erroneous transfers, duplicate meter points, crossed meters, Metering Schedule data, Theft of Gas arrangements et al.

Market Domain Data (incl. market participant short codes, meter and converter models)

SPAA Products Review of Gas Metering Arrangements (RGMA) AMR Processes Code of Practice for Gas Meter Asset Managers (MAMCoP)

57

SPAA Governance

58

Executive Committee

Change Board

Expert Group GPEG MAMCoP Theft of

Gas TRAS Forum FACC

SPAA Board

Code Administrator and Secretariat (CAS)

SPAA Change Process

59

Last date for submission of CPs

Provide Comments Change Board

Appeals Close

Formal Minutes

Issue comments and voting indications

Change Pack IssuedIf CP modified

proposer to send confirmation to SPAA

CCA

D - 19

D - 18

D - 8

D - 5

D - 0

D + 4

D + 5

D + 15

SPAA CCA

SPAA Party

Key

Ofgem Receive Change Pack

Ofgem to say if disagree on the need

for Authority Consent

D -18 – D-0

Ofgem

Current SPAA Activities Smart Consequential Changes Background

Smart Metering Implementation Programme “Legacy System Changes (Enduring)” 2011 Cross-code Smart Working Issues Group (SWIG): identification changes UNC, iGT UNC & SPAA

SPAA Changes Modifications to SPAA & SPAA Products (RGMA, MDD): smart meter values and market

participants (values and procedures for retrospective changes)

Theft of Gas ArrangementsTheft of Gas Code of Practice (CoP)

Implemented in March 2013 Further enhancements (e.g. unregistered & shipper-less sites; Data Protection Act)

Version 2.0 to be implemented in February 2014Theft Risk Assessment Service (TRAS)

Supply Licence condition: Service to assist efforts to detect theft by using data to profile the risk of gas theft at premises

Ongoing; CP 13/239 on TRAS arrangements awaiting implementation

Current SPAA ActivitiesOfgem Code Governance Review (CGR) Phase 2 Aim to reduce red tape and ensure consistency across codes Changes to enact CGR2 final proposals/ Licence conditions due by 31 December 2013

Code of Practice for Gas Meter Asset Managers (MAMCoP) Version 3.0 to be implemented in November (MAM CP 12/001) MAM CP 13/002 ‘Ensuring Supply Contracts Are In Place Before Meter Fits’ Audit and Governance Review in view of Registration Agent re-procurement in 2014

Ofgem Approved Meter Installers (OAMI) OAMI = registered meter installers Ofgem codes of practice Opportunities to bring OAMI under SPAA governance? (current contract still runs until 2016)

Further Activities: reconciliation MDD and UK Link data; review Metering Schedule Report

SPAA Change Register - ExcerptCP Number Name Status

Smart Consequential ChangesCP 13/241 Gas Smart Metering System Operator (SMO) Retrospective Update

ProcessAwaiting implementation

CP 13/240 Smart changes to Schedule 31 'Procedure for the resolution of Crossed Meters'

Appeal Window Open

CP 13/237 Gas Smart Metering Retrospective Update Process Rejected (Published as SPAA Guideline)

CP 13/236 Amendment to Schedule 20 to update with new Meter Mechanism codes

Implemented (SPAA 9.5)

CP 13/235 Inclusion of SMSO Id as MDD Market Participant Implemented (SPAA 9.6)CP 13/234 Amendment to Schedule 23 for the Foundation Stage of the Smart

Metering Implementation ProgrammeImplemented (SPAA 9.6)

CP 13/231 RGMA Changes for Smart Appeal Window OpenTRAS

CP 13/239 TRAS Arrangements: TRAS Product Awaiting Implementation

MAMCoPMAM 13/002 Ensuring Supply Contracts Are In Place Before Meter Fits DeferredMAM 12/001 Approve MAMCoP version 3.0 Awaiting Implementation

Further ChangesCP 13/243 Changes to the Debt Assignment Protocol Process DeferredCP 12/227 Mandating Schedule 22 for Small Transporters Awaiting Implementation

Questions or Comments

Verena LeckebuschGovernance Services Coordinator – ElectraLink Ltd.



The Supplier Obligation and

Setting CfD Payments

Mark Bygraves, Director of Strategy and Development

18 October 2013

65

• Background to ELEXON and to our CfD Settlement Agent role

• How is Generator CfD payment and Supplier Obligation calculated

• How is Supplier Obligation collected in the meantime (Fixed vs Variable Levy)

• Backstops to provide certainty of payment to Generators

• Next Steps

Content

66

• ELEXON’s existing balancing and settlement role• We make sure that payment for imbalances in wholesale electricity

supply and demand is settled accurately, fairly and efficiently

• ELEXON’s new Settlement Agent (SA) role for EMR• April 2013 DECC confirmed intention to appoint ELEXON as SA for CfD

& CM• DECC: “ELEXON’s expertise and the fact that it already collects and

processes the data that will be required for this work puts it in a unique position in the electricity market to fulfil the role as settlement agent for EMR”

• SA role to be separate from BSC role (both not for profit) • Role driven by contract with CP, Supplier Obligation Regulations and

CfD Ts&Cs

• DECC publications:• CfD Supplier Obligation Policy update and response to call for evidence

7 August• More information in October consultation

ELEXON and our Settlement Agent Role

67

Contract for Difference (CfD)

Source: UK Government White Paper, July 2011, licensed under the Open Government Licence v1.0

68

CFD Flows

CfD Generato

r

Services Contract

Settlement Agent

(ELEXON)

CfD Counter-

party(CP)

Licensed

Suppliers

BSCCo(ELEXON

)

Generation Volumes

Supplier Volumes

Reconciliation £

Collateral & Backstops

£ Operating Costs Levy

£ CfD Payment SP>RP

£ CfD if RP>SP

Collateral if RP>SP

Licence Obligation

CfD Contract

Reference Price (RP) Data

£ CfD Costs Levy

• Supplier Obligation: to ensure that CP can meet its contractual obligations and provide certainty to Generators they will be paid

• Non payment is breach of Supply Licence

69

• Allocation Process begins as First Come First Served. Moves to auction in future

• HMT Levy Control Framework is a financial cap, so limits number of projects• Early or special projects (“FIDe”) have own negotiation with DECC, avoiding

Phases 1 & 2• Collection of levy from Suppliers not shown

Lifecycle of CfD Generation Project

Phase 1•Policy Framework Established

•Legislation Takes Effect

•Stakeholders Prepare for Go-Live

Phase 2•Allocation Process

•Application, assessment and CfD contract award

•CfD is signed by CP

Phase 3•Project Achieves Financial Close

•Substantial Financial Commitment Satisfied

•Commissioning of project begins

Phase 4•Conditions Precedent satisfied under contract

•Generation commences

Phase 5•Payments start under the CfD

•Updates to contractual parameters (indexation, reference prices)

•Contract expires

Phase 6•Potential for contract variation (e.g. change in law)

•Contract termination

Setting of eligibility criteria and technology

allocation parametersStrike Prices

Managing the process for

application and allocation of

CfDs Offer contract

Delivery Body (NG)

Generator

Settlement AgentCounterparty

Generator

DECC CounterpartyGenerator

CounterpartyGenerator

CounterpartyGenerator

Reserve fund(s) and collateral Invoicing and

data reconciliation

Handling receipts and payments

Manage disputes

70

How is Generator CfD Payment and Supplier Obligation Calculated?

Strike Price –

Ref. Price

MWhCfD

Payment

Strike price: technology specific, as adjusted by CFD/FIDe termsReference price: day ahead or season ahead

Generation metered volumes from BSC (HH volumes), private wire arrangements or NI

Calculated half hourly, payable daily

Total payments to Generators under CfDs and FIDe And operating costs of Counter-party and the Settlement Agent

Total CfD Costs

Supplier’s Market

Share

Supplier Obligatio

n

Based on volume of eligible electricity supplied each HHEII volumes discounted

Calculated half hourly

1. For each CFD/FIDe:

2. For each Supplier:

71

• Fixed POA Levy £/MWh designed to provide Suppliers with some certainty on costs to include in customer tariffs

• Suppliers charged using POA x Supplier’s actual Gross Demand for each HH (aggregated into daily billing periods)

• Billing period of 1 day; invoiced 7 days after; payable within 5 days

• CP also estimates operating costs of CP (incl SA) to derive separate Operating Cost Levy (£/MWh)

How are CfD Payments from Suppliers Collected in Meantime?

Total CfD

Costs Forecast

Market Demand Forecast

£/MWh “Fixed”

POA Levy

In advance, CP forecasts total annual CfD/FIDe costs

CP forecasts total annual electricity demandEII eligible volumes discounted

CP derives annual Fixed Rate Levy expressed in £/MWhReally a Payment on Account or POA

72

Backstops to Ensure Certainty of Funds to

Pay Generators

• Acts as working capital and held in cash• Lump sum determined by CP’s model, paid annually and reconciled• Suppliers pay based on market share

Reserve Fund

• To cover Supplier Default• Cash and Letters of Credit, not PCG• Amount based on time between billing period and payment for that period Collateral

• Cash and Letters of Credit, not PCG• Called upon when Suppliers’ collateral exhausted• Lump sum paid annually, amount based on potential exposure if small Supplier(s) default

Insolvency Reserve Fund

• Used to recover unpaid levy of defaulting Supplier(s)• Tops up Insolvency Fund• From non insolvent Suppliers, based on market share at time of mutualisation

Mutualisation

• Supplier of Last Resort – effective mainly to cover small Suppliers• Energy Supply Company Administration regime – appointment of energy administrator to run the Supplier SOLR/ESCA

CP can withhold payments to Suppliers if insufficient funds. So:

73

• ELEXON is currently:• Identifying requirements of the settlement system• Identifying changes to BSC to provide relevant information to

SA• Preparing to establish new EMR SA business

• Further information on Supplier Obligation in October consultation

• Primary legislation in force this winter and Secondary Regulations in force “July 2014”*; Payments ready to flow “End 2014”*

* Source “CfD Supplier Obligation Policy update and response to call for evidence” 7 Aug

• Industry needs to know:• Timing of first CfD/FIDe payments• Timing of first levy collection, and of collection of backstop

funds• Amount of levy rates (CfD and Op costs) and amount of

backstops• Timing of notification of levy rates and backstops, to include

in tariffs• Over recovery pay back to Supplier

Next Steps

Cross-Codes Electricity Forum:

Smart Update

Victoria Moxham

18 October 2013

75

Recap

Source: www.gov.uk

76

August: Key roles announced

Data and Communications Company• Capita PLC• Under licence regulated by Ofgem

Smart energy code administrator and secretariat • Gemserv

Data Service Provider• GCI IT UK Limited

Communications Service Provider• Arquiva Limited• Scotland & North of England

Communications Service Provider• Telefonica UK Limited• Wales & rest of England

77

SMIP working groups

Source: www.gov.uk

78

• Ofgem’s response to DECC’s open letter on proposed amendments to non-domestic roll-out licence conditions (23 Aug)

• Supplier reporting to Ofgem during the smart meter roll-out (30 July)

• Ofgem’s response to DECC’s further consultation the Foundation Smart Market (7 June)

• Ofgem’s response to the Department of Energy and Climate Change’s (DECC) consultation on the draft legal text to support transitional arrangements for Smart Metering (20 May)

https://www.ofgem.gov.uk/electricity/retail-market/metering/transition-smart-meters

Publications & updates

79

• Smart Meters statistics (26 Sep)• Designation of the Smart Energy Code and charging

methodology (23 Sep)• Foundation Smart Market: The Government Response to the

Consultation on the Foundation Smart Market and Further Consultation (27 Aug)

• Smart metering equipment technical specifications: second version (24 July)

https://www.gov.uk/government/policies/helping-households-to-cut-their-energy-bills/supporting-pages/smart-meters

Publications & updates

80

Modification Proposal P292• ‘Amending Supplier & Meter Operator Agent

responsibilities for smart Meter Technical Details’ • Approved by Ofgem in June• Will enable the changes to Supplier and Non-Half-Hourly

Meter Operator Agent (NHHMOA) responsibilities for smart Meter Technical Details (MTD) proposed by the Department of Energy and Climate Change’s smart metering operating model

• Due to be implemented June 2014

• http://www.elexon.co.uk/mod-proposal/p292/• http://www.elexon.co.uk/release/june-2014-release/

BSC Changes

http://www.elexon.co.uk/mod-proposal/p292/

http://www.elexon.co.uk/mod-proposal/p292/

http://www.elexon.co.uk/release/june-2014-release/

http://www.elexon.co.uk/release/june-2014-release/

81

• ELEXON is reviewing the BSC profiling and settlement arrangements in light of the recent advances in metering and the rollout of smart meters developments

• PSRG established in March 2010 by the Supplier Volume Allocation Group (SVG) to assist in this review

• Current focus (Stage 2): how to maintain accuracy, equitability and efficiency of the profiling and settlement processes

Profiling and Settlement Review Group (PSRG)

Improving the existing profiling

approach

Mandating half hourly

settlement

Reducing the settlement timetable

How GSP Group Correction Factor could be applied

to half hourly meters

82

• Monthly updates provided by ELEXON to the BSC Panel• http://www.elexon.co.uk/group/the-panel/

• Smart metering pages on the ELEXON website• http://www.elexon.co.uk/reference/smart-metering/

• Profiling and Settlement Review Group• http://www.elexon.co.uk/group/profiling-and-settlement-revie

w-group-psrg/

Where to find further information

http://www.elexon.co.uk/group/the-panel/

http://www.elexon.co.uk/group/the-panel/

http://www.elexon.co.uk/reference/smart-metering/

http://www.elexon.co.uk/reference/smart-metering/

http://www.elexon.co.uk/group/profiling-and-settlement-review-group-psrg/




European Network Codes

Adam HipgraveCross Codes Forum18 October 2013

84

Europe in a nutshell

84 The challenge: Achieving a harmonised European energy market

85

The Third Energy Package

3 regulations and 2 directives.

Adopted July 2009, law since March 2011

Key step forward in developing a (more) harmonised European energy market

Separation of ownership of monopoly energy transmission activities

Formation of European Transmission System bodies, ENTSOG and ENTSO-E

Formation of ACER – Agency for Cooperation of Energy Regulators

Security of supply

CompetitivenessSustainability

86

European Network Code Development Process

By 2014Network Code becomes Law

Commission starts

development process

Comitology Commission

1 year?

Stakeholder Engagement

ACERdevelops

FWGL

6 months

Commission invites ENTSO

to develop Network

Code

To fit work programme

ENTSO develops Network

Code

1 year

ACER reviewsNetwork

Code

3 months

87

How to get involved

ENTSO-E workshops and consultations

http://www.entsoe.eu

Joint European Standing Group: GB stakeholder workshops and consultations facilitated by National Grid

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

DECC / Ofgem Stakeholder Group

http://www.ofgem.gov.uk/Europe/stakeholder-group/Pages/index.aspx

http://www.entsoe.eu/





88

The Priority Network Codes

Grid Connection Codes

Requirements for Generators


Demand Connection Code


HVDCHVDC

Market Codes

CACMCACM

Forward Capacity Allocation


BalancingBalancing

System Operation Codes

Operational Security

Operational Security

Operational Planning and Scheduling

Operational Planning and Scheduling

Load-Frequency Control and Reserves

Load-Frequency Control and Reserves

89

6 monthsTo fit work programme 12 months 3 months 1 year (?)

Ba

lan

cin

g

FC

A

Op

Sc

h &

Pla

n

LF

CR

Network Codebecomes Law

Member StateImplementation

ENTSO-E develops Network

Code

EC invites ENTSO-E

to develop Network

Code

ACERdevelops

FWGL

1 2 3 4 5 6 7 8 9 10 11 12

Drafting Public Consultation

Revise Code

ApprovalApproval

ACER recommends Network Code to ECACER

reviewsNetwork

Code

DC

C

HV

DC

Op

Se

c

RF

G

Revisions to Code after

Opinion

ACER revises opinion

Tra

ns

pa

ren

cy

Re

gu

lati

on

sGrid Connection

CACM

System Operation

Balancing

Developed by EC*

PreparationMember State

ApprovalCouncil & Parliament

Approval

CA

CM

† G

ov.

Gu

ide.

* Areas developed by EC follow a different development process and there are no Framework Guidelines.† Governance Guidelines prepared by Commission are being merged with CACM NC.

Comitology

European Network Code Development Status: October 2013

90

To put it another way…

KEY

Activities undertaken by ACER

Activities undertaken by ENTSO-E

Activities undertaken by European Commission

Comitology process - led by Commission

TODAY Entry into Force / Applicability of Requirements

TODAY

Au

g

Se

p

No

v

Ja

n

Fe

b

Ju

l

Se

p

No

v

De

c

Ja

n

Fe

b

Ma

r

Ap

r

Ma

y

Ju

n

Ju

l

Au

g

Se

p

Oc

t

No

v

De

c

Fe

b

Ma

r

Ap

r

Ma

y

Ju

n

Ju

l

Au

g

Se

p

Oc

t

No

v

De

c

Ja

n

Fe

b

Ma

r

Ap

r

Ma

y

Ju

n

Ju

l

Au

g

Se

p

Oc

t

No

v

De

c

Ja

n

Fe

b

Ma

r

Ap

r

Ma

y

Ju

n

Ju

l

Au

g

Se

p

Oc

t

No

v

De

c

Re

vie

w

ACER Review

ENTSO-E Drafting

Implementation period of 36 months (TBC)


Re

vie

w

Cross Border Committee

Until c.June 2018

Until c.2021Cross Border Committee

Parliament and Council

ACER Review

Comitology

IA, text review & translationsCross Border Committee


Comitology

Load Frequency Control & Reserves

ENTSO-E Drafting

Initial draftingConsult

ationFinalise drafting

HVDCCall for

Stakeholder evide

Electricity Balancing

Framework

Guidelines on

Balancin

ENTSO-E Drafting

Initial DraftingConsult

ation


ACER ReviewInitial drafting

Consultation

Finalise drafting

Operational Planning & Scheduling

Initial drafti

ng

Consultation

Finalise draftingOperational Security

ENTSO-E DraftingACER

Review

ENTSO-E DraftingACER

ReviewConsultatio

nFinalise drafting

Impact Assessment, text review and translations

AC

ER

R

ev

iew

Parliamentary Approval

Commission drafting of Governance Guidelines

Re

vie

Finalise Ag

ree

re

vis

ion

s

Member

Stat

ENTSO-E Drafting

De

c

Ap

r

Ma

y

Ju

n

Au

g

Oc

t


Capacity Allocation and Congestion

Management

ACER Review

ACER Review

Revision of Code based on ACER

Opinion


Drafting of Regulation

(started as an ERGEG document, later become a Commission document)

Network Code

Transparency Regulations

2012

Comitology

Ju

l

Oc

t

Ma

r

Public Consultation on

MOP

2016

Ap

plie

s

2014 2015

Implementation period of 18 months as specified in Regulation

Refinement of MOP

Ja

n

2013

In F

orc

e

Drafts Manualof Procedures

Finalise drafting

Consultation

Initial Drafting


Comitology (estimated)


Pre-Comitology

Finalise drafting

ACER Review

ACER Review

ENTSO-E Revisions

ENTSO-E Revisions

Pre-Comitology

ENTSO-E Drafting

ENTSO-E Drafting

Initial draftingConsult

ation

Finalise MOP

ACER Review





Impact Assessment, text review and translations

Merge CACM and Gov. Guide; IA, text review and translations

Pre-Comitology

Pre-Comitology

IA, text review & translations


Implementation period assumed 18 months (Nothing stated in NC)




ComitologyPre-Comitology


Implementation period of 'at least 18 months' and the same as OS (TBC)

Comitology



2016

Implementation period of 'a minimum of 18 months' (TBC)

Pre-Comitology

Implementation period of 24 months (Assumed the same as CACM)

Comitology



Pre-Comitology


Phased Introduction over 6 years


Cross Border CommitteeParliament and Council

ComitologyPre-ComitologyImplementation period of 36 months

(assumed same as RFG/DCC)


Pre-Comitology

Finalise drafting

Comitology timescales for all Codes updated based on ENTSO-E workplan (page 6)https://www.entsoe.eu/fileadmin/user_upload/_library/consultations/Work_Program_2014/130701-_draft_ENTSO-E_Work_Programme_2013_through_2014_Assembly_Approved.pdf

91

Application of ENCs to GB Codes

European Network Codes due to become law during 2014 in a phased manner

GB will have 18 months – 3 years to demonstrate compliance (varies code-by-code)

Alignment with GB Codes will aid application and compliance

GB Code panels will retain their role to make changes to individual codes – strong feedback from all parties was to use existing processes

A complex programme with a significant risk, which needs cross-code coordination

92

Advises the Code Panels on coordination of application of European Network Codes to GB Codes

No firm legal or governance role

Constituted as a joint standing group of 7 code panels Grid Code, CUSC, BSC, SQSS, STC, D-Code,

DCUSA

Membership: 7 industry members representing Code Panels

National Grid, Consumer Futures, DECC, Ofgem

Chair appointed by DECC and Ofgem

European Code Coordination Application Forum

93

Summary

European Codes will supersede GB Codes

Network Codes become EU Law ‘by 2014’

Codes have varying compliance periods (typically 2014-17)

Significant workload and changes over the next few years

Complete development of Codes

Apply them to the GB Framework

Implement changes to the GB Operations and Market

Ample opportunity to get your thoughts heard

JESG / ENTSO-E consultations /DECC-Ofgem stakeholder group


Any questions?

Adam Hipgrave




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