Meeting slides

Report
Cross-Codes Forum
18 October 2013
Evacuation Muster Point
If there is an alarm, follow the
instructions of the Fire Wardens
The evacuation point is here…
Update on BSC
Modifications
David Kemp
18 October 2013
Active BSC Modifications
Mod
3
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
Awaiting Implementation
a Partial Shutdown
P283
Reinforcing the Commissioning of Metering Equipment Processes
P286
Revised treatment of RCRC for generation BM Units
P291
REMIT Inside Information Reporting Platform for GB Electricity
Awaiting Implementation
P292
Awaiting Implementation
P294
Amending Supplier & Meter Operator Agent responsibilities for smart Meter
Technical Details
Addition of Offshore Transmission System and OTSUA to the definition of the Total
System
P295
Submission and publication of Transparency regulation data via the BMRS
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
Awaiting Implementation
With Authority
Report Phase
Assessment Procedure
Awaiting Implementation
Assessment Procedure
BSC Modifications – P272 (1 of 2)
P272
Who will be impacted by P272?
•
Suppliers
•
DCs
•
MOAs
•
Distributors
• 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
4
Mandatory Half
Hourly
Settlement for
Profile Classes 58
Phase
With Authority
Contact
David Kemp
020 7380 4303
[email protected]
xon.co.uk
BSC Modifications – P272 (2 of 2)
• 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
P272
Mandatory Half
Hourly
Settlement for
Profile Classes 58
Phase
With Authority
Contact
David Kemp
020 7380 4303
[email protected]
xon.co.uk
5
BSC Modifications – P276 (1 of 1)
Who will be impacted by P276?
•
BSC Trading Parties
• 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)
6
P276
Introduce an
additional
trigger/threshold
for suspending
the market in the
event of a Partial
Shutdown
Phase
Awaiting
Implementation
Contact
ELEXON
Change
elexon.change@
elexon.co.uk
BSC Modifications – P283 (1 of 1)
P283
Who will be impacted by P283?
•
Metering System Registrants
•
Distributors
•
MOAs
• 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
7
• Authority: Better facilitates ABOs (b), (c) and (d)
Reinforcing the
Commissioning
of Metering
Equipment
Process
Phase
Awaiting
Implementation
Contact
Claire Anthony
020 7380 4293
[email protected]
lexon.co.uk
BSC Modifications – P286 (1 of 2)
Who will be impacted by P286?
•
Generators
•
Indirect: Other BSC Trading Parties
• 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
P286
Revised
treatment of
RCRC for
generation BM
Units
Phase
With Authority
• Proposed Solution:
• Exclude generation BM Units from RCRC
• Generation BM Unit: BM Unit in a delivering Trading Unit
8
Contact
David Kemp
020 7380 4303
[email protected]
xon.co.uk
BSC Modifications – P286 (2 of 2)
• Panel’s Recommendation: Approve
• Recommend implementation on 1 April 2015
P286
Revised
treatment of
RCRC for
generation BM
Units
• Currently with Authority for decision
Phase
With Authority
Contact
David Kemp
020 7380 4303
[email protected]
xon.co.uk
9
BSC Modifications – P291 (1 of 1)
P291
Who will be impacted by P291?
•
Transmission Company
•
BSC Parties
• 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)
10
REMIT Inside
Information
Reporting
Platform for GB
Electricity
Phase
Awaiting
Implementation
Contact
David Kemp
020 7380 4303
[email protected]
xon.co.uk
BSC Modifications – P292 (1 of 1)
P292
Who will be impacted by P292?
•
Suppliers
•
NHHMOAs
•
LDSOs
•
NHHDCs
• 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)
11
Amending
Supplier & Meter
Operator Agent
responsibilities
for smart Meter
Technical Details
Phase
Awaiting
Implementation
Contact
Simon Fox
020 7380 4299
[email protected]
n.co.uk
BSC Modifications – P294 (1 of 2)
P294
Who will be impacted by P294?
•
Offshore Generators
•
Transmission Company
• 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
Addition of
Offshore
Transmission
System and
OTSUA to the
definition of the
Total System
Phase
Report Phase
• 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
12
Contact
David Barber
020 7380 4327
[email protected]
exon.co.uk
BSC Modifications – P294 (2 of 2)
• Panel’s initial Recommendation: Approve
• Final Recommendation at November meeting
• Recommend implementation 5WD after Approval
P294
Addition of
Offshore
Transmission
System and
OTSUA to the
definition of the
Total System
Phase
Report Phase
Contact
David Barber
020 7380 4327
[email protected]
exon.co.uk
13
BSC Modifications – P295 (1 of 2)
P295
Who will be impacted by P295?
•
Transmission Company
•
Potential: Interconnector Administrators
• 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
14
Submission and
publication of
Transparency
regulation data
via the BMRS
Phase
Assessment
Procedure
Contact
Talia Addy
020 7380 4043
[email protected]
n.co.uk
BSC Modifications – P295 (2 of 2)
• Undergoing assessment by Workgroup
P295
• Proposing implementation on 31 December 2014
Submission and
publication of
Transparency
regulation data
via the BMRS
• Report Phase Consultation will be issued in November
Phase
• Assessment Report to Panel in November
Assessment
Procedure
Contact
Talia Addy
020 7380 4043
[email protected]
n.co.uk
15
BSC Modifications – P296 (1 of 1)
Who will be impacted by P296?
•
BSC Panel
• 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)
16
P296
Introduction of a
‘Fast Track’
Modification Process
following the
outcomes of the
Code Governance
Review (Phase 2)
Phase
Awaiting
Implementation
Contact
Claire Anthony
020 7380 4293
[email protected]
lexon.co.uk
BSC Modifications – P297 (1 of 2)
Who will be impacted by P297?
•
Transmission Company
• 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
P297
Receipt and
Publication of
New and Revised
Dynamic Data
Items
Phase
Assessment
Procedure
Contact
Claire Anthony
020 7380 4293
[email protected]
lexon.co.uk
17
BSC Modifications – P297 (2 of 2)
• Undergoing assessment by Workgroup
• Proposing implementation on 6 November 2014
Receipt and
Publication of
New and Revised
Dynamic Data
Items
• Currently out for Assessment Consultation
Phase
• Assessment Report to Panel in November
• Responses due by 24 October
• Report Phase Consultation will be issued in November
18
P297
Assessment
Procedure
Contact
Claire Anthony
020 7380 4293
[email protected]
lexon.co.uk
Consultations
• 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
19
Where can I find more information?
www.elexon.co.uk/change/modifications/
20
Any Questions?
Adam Lattimore
020 7380 4363
[email protected]
David Barber
020 7380 4327
[email protected]
Simon Fox
020 7380 4299
[email protected]
Claire Anthony
020 7380 4293
[email protected]
David Kemp
020 7380 4303
[email protected]
Talia Addy
020 7380 4043
[email protected]
[email protected]
21
CUSC Changes
Place your chosen
image here. The four
corners must just
cover the arrow tips.
For covers, the three
pictures should be the
same size and in a
straight line.
Adam Hipgrave
Cross Codes Forum
18 October 2013
CUSC Modifications Process
Change
raised
Urgent
process
Panel
decision on
progression
Workgroup
assessment
Industry
consultation
Panel
Vote
Final report
to Ofgem
optional
Appeal to
Competition
Commission
Ofgem
decision to
approve or
reject
23
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
24
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.
25
CUSC Modifications (3)
 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 Selfgovernance.
 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.
26
CUSC Modifications (4)
 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.
27
CUSC Modifications (5)
 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.
28
CUSC Modifications (6)
 CMP222 – User Commitment for Non-Generation Users
 Generation user commitment for pre- and postcommissioning 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.
29
CUSC Modifications (7)
 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
 Raised September 2013.
 First Workgroup meeting to be held on the 18th October.
30
CUSC Modifications (8)
 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.
 Raised September 2013.
 First Workgroup meeting to be held on the 24th October.
31
Contact Information
Email:
• [email protected]
Website:
• http://www.nationalgrid.com/uk/Electricity/Codes/systemcode/
32
Any questions?
Place your chosen
image here. The four
corners must just
cover the arrow tips.
For covers, the three
pictures should be the
same size and in a
straight line.
Adam Hipgrave
National Grid
Commercial Analyst - European Code Development
Transmission Network Services | Markets & Balancing Development
National Grid House, Warwick Technology Park, Warwick, CV34 6DA
T: 01926 656191 M: 07825193568
E: [email protected]
Grid Code Changes
Place your chosen
image here. The four
corners must just
cover the arrow tips.
For covers, the three
pictures should be the
same size and in a
straight line.
Adam Hipgrave
Cross Codes Forum
18 October 2013
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).
35
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.
36
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.
37
GC0035 Frequency Changes during Large
Disturbances and their effect on the total system
 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
38
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
39
Contact Information
Email:
• [email protected]
Website:
• http://www.nationalgrid.com/uk/Electricity/Codes/gridcode/
40
Any questions?
Place your chosen
image here. The four
corners must just
cover the arrow tips.
For covers, the three
pictures should be the
same size and in a
straight line.
Adam Hipgrave
National Grid
Commercial Analyst - European Code Development
Transmission Network Services | Markets & Balancing Development
National Grid House, Warwick Technology Park, Warwick, CV34 6DA
T: 01926 656191 M: 07825193568
E: [email protected]
DCUSA Change Proposals
Update
Michael Walls
Governance 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
Induction
training
sessions
Next DCUSA
Release 7
November 2013
Smart Metering
31 Change Proposals in
progress
Theft of
Electricity (CoP)
21 of those are
Charging Related
Code
Administration
Code of Practice
DCUSA Change Process - Overview
Parties
Pre-Change Process
(Charging methodology
changes)
Panel
Secretariat
Ofgem
CP raised
Initial
Assessment
Modelling
Resource
Working Group
Assessment
Industry
Consultation
Change Report
Party Voting
Change
Declaration
Implementation
Authority
Consent
Overview of the DCMF MIG Pre-Change Process
Originator
DCMF MIG
DCMF
Issue submitted
Issue defined
Recommendation
DCUSA
Decision
From Pre-Change Process to formal DCUSA Change Process
Modelling Resource
Industry Consultation
CP Raised
Working Group
Change Report
Outcome
Voting
Implemented
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 Summary
Status
CDCM
EDCM
CCCM
WG: Pre
Consultation
7 (DCP 133, 159, 160, 161,
165, 178, 179)
1 (DCP 138)
1 (DCP 172)
WG: Consultation
1 (DCP 158)
WG: Post
Consultation
8 ( DCP 137, 123, 117, 168,
169, 173, 174, 180)
Billing
3 (DCP 162, 166,
167)
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)
Rejected
1 (DCP 164)
1 (DCP 139)
Total
28
3
1 (DCP 140)
4 (DCP 141, 145,
143, 149)
5
9
Charging Methodology CPs: Definition Stage
DCP
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
DCP 137
Introduction of locational tariffs for the export from HV
generators in areas identified as generation dominated.
Impact analysis to be completed in
January 2014
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
Charging Methodology CPs: Definition Stage
DCP
Title
Status
DCP 160
Non-Half Hourly (NHH) Notional Capacity
Awaiting outcome of DCP 165
before progressing
DCP 161
Excess Capacity Charges
DCP 165
Voltage Level Approach to Unit Charges in the CDCM
DCP 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.
Additional examples for the Common Connection Charging
Methodology to illustrate ‘remote reinforcement and remote
reconfiguration’
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 drafting a
consultation which will be issued
shortly
DCP 162 Non-Secure Connections in the Common Connections Charging
Working Group reviewing
Methodology
consultation responses
DCP 167
DCP 168
Awaiting outcome of DCP 179
before determining how to
progress
Working Group reviewing
consultation responses
Working Group reviewing
consultation responses
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
Change Report will be issued to
Parties for voting today
DCP 174
Qualification and application of LV sub-station tariffs
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: 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
DCUSA Contacts
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
Supply Point Administration Agreement
(SPAA) Update
Verena Leckebusch
Governance Services Coordinator – ElectraLink Ltd.
Email: [email protected]
Tel: 020 7432 2840
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)
56
SPAA Governance
Executive Committee
Change
Board
Expert
Group
GPEG
MAMCoP
SPAA Board
Theft of
Gas
Forum
TRAS
Code Administrator and Secretariat (CAS)
57
FACC
SPAA Change Process
Last date for
submission of CPs
Provide Comments
Change Pack Issued
D - 19
Change Board
Formal Minutes
If CP modified
proposer to send
confirmation to SPAA
CCA
Issue comments and
voting indications
D-8
Appeals Close
D+5
D-5
D+4
D + 15
Key
D - 18
Ofgem to say if
disagree on the need
SPAA CCA
D-0
for Authority Consent
Ofgem Receive
Change Pack
SPAA Party
D -18 – D-0
Ofgem
58
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 Arrangements
 Theft 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 2014
 Theft 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 Activities
Ofgem 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 - Excerpt
CP Number
Name
Status
CP 13/239
Smart Consequential Changes
Gas Smart Metering System Operator (SMO) Retrospective Update
Awaiting implementation
Process
Smart changes to Schedule 31 'Procedure for the resolution of Crossed Appeal Window Open
Meters'
Gas Smart Metering Retrospective Update Process
Rejected (Published as SPAA
Guideline)
Amendment to Schedule 20 to update with new Meter Mechanism
Implemented (SPAA 9.5)
codes
Inclusion of SMSO Id as MDD Market Participant
Implemented (SPAA 9.6)
Amendment to Schedule 23 for the Foundation Stage of the Smart
Implemented (SPAA 9.6)
Metering Implementation Programme
RGMA Changes for Smart
Appeal Window Open
TRAS
TRAS Arrangements: TRAS Product
Awaiting Implementation
MAM 13/002
MAM 12/001
MAMCoP
Ensuring Supply Contracts Are In Place Before Meter Fits
Approve MAMCoP version 3.0
Deferred
Awaiting Implementation
CP 13/243
CP 12/227
Further Changes
Changes to the Debt Assignment Protocol Process
Mandating Schedule 22 for Small Transporters
Deferred
Awaiting Implementation
CP 13/241
CP 13/240
CP 13/237
CP 13/236
CP 13/235
CP 13/234
CP 13/231
Questions or Comments
Verena Leckebusch
Governance Services Coordinator – ElectraLink Ltd.
Email: [email protected]
Tel: 020 7432 2840
The Supplier Obligation
and Setting CfD
Payments
Mark Bygraves, Director of Strategy
and Development
18 October 2013
Content
• 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
64
ELEXON and our Settlement Agent Role
•
ELEXON’s existing balancing and settlement role
•
•
ELEXON’s new Settlement Agent (SA) role for EMR
•
•
•
Role driven by contract with CP, Supplier Obligation Regulations and CfD Ts&Cs
DECC publications:
•
•
65
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)
•
•
We make sure that payment for imbalances in wholesale electricity supply and
demand is settled accurately, fairly and efficiently
CfD Supplier Obligation Policy update and response to call for evidence 7 August
More information in October consultation
Contract for Difference (CfD)
Source: UK Government White Paper, July 2011, licensed under the Open Government
Licence v1.0
66
CFD Flows
CfD Contract
£ CfD Payment
SP>RP
CfD
Generator
£ CfD if RP>SP
Licence Obligation
£ CfD Costs Levy
CfD
Counterparty
(CP)
Collateral if RP>SP
£ Operating Costs Levy
Licensed
Suppliers
Collateral & Backstops
Reconciliation £
Services
Contract
BSCCo
(ELEXON)
Generation Volumes
Supplier Volumes
Settlement
Agent
(ELEXON)
Reference Price (RP) Data
• 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
67
Lifecycle of CfD Generation Project
Phase 1
Phase 2
Phase 3
Phase 4
Phase 5
Phase 6
•Policy
Framework
Established
•Legislation
Takes Effect
•Stakeholders
Prepare for GoLive
•Allocation
Process
•Application,
assessment and
CfD contract
award
•CfD is signed by
CP
•Project Achieves
Financial Close
•Substantial
Financial
Commitment
Satisfied
•Commissioning
of project begins
•Conditions
Precedent
satisfied under
contract
•Generation
commences
•Payments start
under the CfD
•Updates to
contractual
parameters
(indexation,
reference prices)
•Contract expires
•Potential for
contract
variation (e.g.
change in law)
•Contract
termination
Counterparty
Generator
Settlement Agent
Counterparty
Counterparty
Generator
DECC
Setting of eligibility
criteria and
technology
allocation
parameters
Strike Prices
•
•
•
•
68
Delivery Body (NG)
Generator
Managing the
process for
application and
allocation of CfDs
Offer contract
Counterparty
Generator
Generator
Reserve fund(s)
and collateral
Invoicing and data
reconciliation
Handling receipts
and payments
Manage disputes
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
How is Generator CfD Payment and
Supplier Obligation Calculated?
1. For each
CFD/FIDe:
Strike
Price –
Ref. Price
Strike price: technology specific,
as adjusted by CFD/FIDe terms
Reference price: day ahead or
season ahead
2. For each
Supplier:
Total CfD
Costs
Total payments to Generators
under CfDs and FIDe
And operating costs of Counterparty and the Settlement Agent
69
MWh
Generation metered volumes
from BSC (HH volumes), private
wire arrangements or NI
Supplier’s
Market
Share
Based on volume of eligible
electricity supplied each HH
EII volumes discounted
CfD
Payment
Calculated half
hourly, payable daily
Supplier
Obligation
Calculated half
hourly
How are CfD Payments from Suppliers
Collected in Meantime?
Total CfD
Costs
Forecast
In advance, CP forecasts total
annual CfD/FIDe costs
Market
Demand
Forecast
CP forecasts total annual
electricity demand
EII eligible volumes
discounted
£/MWh
“Fixed”
POA Levy
CP derives annual Fixed Rate
Levy expressed in £/MWh
Really a Payment on Account
or POA
• 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)
70
Backstops to Ensure Certainty of Funds to
Pay Generators
CP can withhold payments to Suppliers if insufficient funds. So:
Reserve Fund
Collateral
• To cover Supplier Default
• Cash and Letters of Credit, not PCG
• Amount based on time between billing period and payment for that period
Insolvency
Reserve Fund
• 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
Mutualisation
• 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
SOLR/ESCA
71
• 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
• Supplier of Last Resort – effective mainly to cover small Suppliers
• Energy Supply Company Administration regime – appointment of energy administrator to
run the Supplier
Next Steps
• 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:
•
•
•
•
•
72
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
Cross-Codes Electricity
Forum:
Smart Update
Victoria Moxham
18 October 2013
Recap
Source: www.gov.uk
74
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
75
SMIP working groups
76
Source: www.gov.uk
Publications & updates
• 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/transitionsmart-meters
77
Publications & updates
• 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-cuttheir-energy-bills/supporting-pages/smart-meters
78
BSC Changes
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/
79
Profiling and Settlement Review Group
(PSRG)
• 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
80
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
Where to find further information
• 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-reviewgroup-psrg/
81
European Network Codes
Place your chosen
image here. The four
corners must just
cover the arrow tips.
For covers, the three
pictures should be the
same size and in a
straight line.
Adam Hipgrave
Cross Codes Forum
18 October 2013
Europe in a nutshell
The challenge: Achieving a harmonised European energy market
83
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
Sustainability
Competitiveness
84
European Network Code Development Process
Commission
starts
development
process
1 year?
ACER
develops
FWGL
Commission
invites
ENTSO
to develop
Network
Code
ENTSO
develops
Network
Code
ACER
reviews
Network
Code
Comitology
Commission
Stakeholder Engagement
6 months
To fit work
programme
1 year
3 months
By 2014
Network Code
becomes Law
85
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/systemc
ode/workingstandinggroups/JointEuroSG/
 DECC / Ofgem Stakeholder Group
 http://www.ofgem.gov.uk/Europe/stakeholdergroup/Pages/index.aspx
86
The Priority Network Codes
Grid Connection
Codes
Market Codes
System
Operation Codes
Requirements for
Generators
CACM
Operational
Security
Demand Connection
Code
Forward Capacity
Allocation
Operational Planning
and Scheduling
HVDC
Balancing
Load-Frequency
Control and Reserves
87
European Network Code Development Status: October 2013
EC invites
ENTSO-E
to develop
Network
Code
ACER
develops
FWGL
3 months
ENTSO-E
develops
Network
Code
ACER
reviews
Network
Code
1 year (?)
ACER recommends
Network Code to EC
Comitology
Revisions to
Code after
Opinion
ACER
revises
opinion
FCA
Op Sch & Plan
Grid Connection
CACM
System Operation
Network Code
becomes Law
Balancing
Member State
Implementation
Transparency
Regulations
12 months
Op Sec
To fit work
programme
6 months
Developed by EC*
6
7
8
Approval Public
Consultation
9
10
Revise
Code
11
12
Preparation
† Gov.
5
CACM Guide.
Drafting
4
RFG
3
DCC
2
LFCR
Balancing
HVDC
1
Member State
Approval
Council & Parliament
Approval
Approval
* 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.
88
KEY
Activities undertaken by ACER
Activities undertaken by ENTSO-E
Activities undertaken by European Commission
To put it another way…
Comitology process - led by Commission
Entry into Force / Applicability of Requirements
TODAY
TODAY
Commission drafting of
Governance Guidelines
ACER
Review
Revision of Code
based on ACER
Opinion
Cons
ultatio Finalise drafting
n
Initial drafting
Finalise
drafting
ACER
Review
ENTSO-E
Revisions
Consult
ation
Electricity Balancing
Initial drafting
Framewo
rk
Guideline
s on
Balancin
ACER
Review
Applies
Dec
Oct
Nov
Sep
Jul
Aug
Jun
Apr
May
Mar
Jan
Feb
Dec
Oct
Nov
Sep
Jul
Aug
Jun
Apr
May
Mar
Jan
Feb
Dec
Oct
Nov
Sep
Jul
Aug
Jun
Apr
May
Comitology
IA, text review &
translations
Cross Border
Committee
Pre-Comitology
Cross Border
Committee
Initial Drafting
Implementation period of 'at least 18 months' and the same as OS (TBC)
IA, text review &
translations
Consult
Finalise drafting
ation
Implementation period of 24 months (Assumed the same as CACM)
Parliament
and Council
Comitology
Cross Border
Committee
Pre-Comitology
ACER
Review
Implementation period of 'a minimum of 18 months' (TBC)
Parliament
and Council
Comitology
Pre-Comitology
Finalise drafting
Parliament
and Council
Cross Border
Committee
IA, text review & translations
ACER
Review
Implementation period assumed 18 months (Nothing stated in NC)
Comitology
Cross Border
Committee
IA, text review & translations
ACER
Review
Parliament
and Council
Comitology
IA, text review &
translations
Pre-Comitology
Consult
ation
Mar
Jan
Feb
Dec
Oct
Nov
Sep
Jul
Pre-Comitology
ENTSO-E Drafting
Call
for
Stake
holder
evide
Implementation period of 36 months (TBC)
Parliament
and Council
ENTSO-E Drafting
HVDC
Aug
Jun
Apr
May
Mar
Jan
Comitology (estimated)
Consult
Finalise drafting
ation
Initial Drafting
Implementation period of 36 months (TBC)
Parliament
and Council
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
Implementation period of 24 months (TBC)
Parliament
and Council
Impact Assessment, text review
Cross Border Committee
and translations
ENTSO-E
Revisions
2016
Comitology (estimated)
ENTSO-E Drafting
Forward Capacity
Allocation
Feb
Dec
Pre-Comitology
ACER
Review
2016
Comitology (estimated)
ENTSO-E Drafting
Load Frequency
Control & Reserves
Refinement of
MOP
Cross Border
Committee
Pre-Comitology
ACER
Review
Initial
Consult
drafti
Finalise drafting
ation
ng
Consult
Initial drafting
ation
ACER
Review
Impact Assessment, text review
Cross Border Committee
and translations
ENTSO-E Drafting
Operational Planning
& Scheduling
Oct
Pre-Comitology
ENTSO-E Drafting
Operational Security
Nov
Sep
Jul
Jun
Aug
Finalise
MOP
Merge CACM and Gov. Guide; IA,
text review and translations
ENTSO-E Drafting
Demand Connection
Code
In Force
Apr
May
Mar
Feb
Dec
ACER
Review
2015
Implementation period of 18 months as specified in Regulation
Public
Consult
ation on
MOP
Review
Finalise
Jan
Oct
Nov
Sep
ENTSO-E
Drafting
Me
Parliamentary Approval
mb
Drafts Manual
er
of Procedures
Stat
2014
Review
Requirements for
Generators
Comitology
Drafting of
Regulation
(started as an ERGEG
document, later become a
Commission document)
ACER
Review
Capacity Allocation
and Congestion
Management
2013
Agree
revisio
ns
Revie
Transparency
Regulations
Jul
Network Code
Aug
2012
Phased Introduction over 6 years
Parliament
and Council
Until c.2021
Comitology
IA, text review &
Cross Border Committee
translations
Parliament
and Council
Implementation period of 36 months
(assumed same as RFG/DCC)
Until c.June
2018
89
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
90
European Code Coordination Application Forum
 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
91
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
92
Any questions?
Place your chosen
image here. The four
corners must just
cover the arrow tips.
For covers, the three
pictures should be the
same size and in a
straight line.
Adam Hipgrave
National Grid
Commercial Analyst - European Code Development
Transmission Network Services | Markets & Balancing Development
National Grid House, Warwick Technology Park, Warwick, CV34 6DA
T: 01926 656191 M: 07825193568
E: [email protected]

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