Reference is made to the Balancing and Settlement Code and, in particular, to the definition of “BSC Procedure” in Section X, Annex X-1 thereof.
This is BSC Procedure 14, Version 8.0 relating to the processing of Manifest Error Claims.
This BSC Procedure is effective from 29 March 2019.
This BSC Procedure has been approved by the Panel.

Intellectual Property Rights, Copyright and Disclaimer

The copyright and other intellectual property rights in this document are vested in ELEXON or appear with the consent of the copyright owner. These materials are made available for you for the purposes of your participation in the electricity industry. If you have an interest in the electricity industry, you may view, download, copy, distribute, modify, transmit, publish, sell or create derivative works (in whatever format) from this document or in other cases use for personal academic or other non-commercial purposes. All copyright and other proprietary notices contained in the document must be retained on any copy you make.

All other rights of the copyright owner not expressly dealt with above are reserved.

No representation, warranty or guarantee is made that the information in this document is accurate or complete. While care is taken in the collection and provision of this information, ELEXON Limited shall not be liable for any errors, omissions, misstatements or mistakes in any information or damages resulting from the use of this information or action taken in reliance on it.

AMENDMENT RECORD

Version	Date	Description of Changes	Changes Included	Mods/ Panel/ Committee Refs
1.0	09/08/02	New Procedure	CP735	48/023
2.0	24/06/03	Changes for the CVA June 03 Release	CP735 (variation from original CP)	Panel 48/023
3.0	30/06/04	Change Proposals for the CVA Programme June 04 Release	CP989	ISG40/003
4.0	03/11/04	Change Proposal for the CVA Programme Nov 04 Release – incorporating peer review comments	CP1032	TDC58/03
5.0	23/02/05	CVA Programme Feb 05 Release	BETTA 6.3 P159	78/007
6.0	28/02/08	February 08 Release	CP1198	TDC104/04
7.0	07/11/13	November 2013 Release	CP1399	TDC183/02
8.0	29/03/19	29 March 2019 Standalone Release	P369	P285/12

1 Introduction

1.1 Purpose and Scope of the Procedure

This Procedure describes the steps to be taken in order to process a Manifest Error claim, from the initial raising of such a claim by the Lead Party of an affected BM Unit or the National Electricity Transmission System Operator (NETSO), to the final settlement of any payments in relation to the claim.

1.2 Main Users of the Procedure and their Responsibilities

The main users of this procedure are:

(a) Trading Parties

(b) The NETSO

(d) The BSC Panel (or Panel Committee)² and its secretariat

(e) The Balancing Mechanism Reporting Agent (BMRA)

(f) The Settlement Administration Agent (SAA)

(g) The Funds Administration Agent (FAA)

All of the above have a responsibility for fulfilling their obligations under the Balancing and Settlement Code (BSC), either directly or via other contractual arrangements with signatories to the BSC, in respect of ensuring adherence to the Manifest Error claims process.

1.3 Key Milestones

The key milestones in this procedure are as follows:

(a) Raising and Flagging of Manifest Error claims (claims to be raised within 4 hours of the relevant Bid/Offer Acceptance Time, and notifications of such claims to be made within specified timescales);

(b) Investigation and collation of evidence in respect of Manifest Error claims. Where possible presentation of this information to the Panel/Panel Committee for adjudication and determination of any replacement Bid/Offer prices should be in such time as to allow these prices to be replaced prior to the relevant Initial Settlement Run;

(c) Raising claims for payment of an error compensation amount (as defined under BSC Section Q7.6.2) in relation to Manifest Errors. This must be done within 5 WD of the adjudication made in respect of Manifest Errors as described in paragraph (b) above; and

(d) Effecting payments in relation to Manifest Error claims (e.g. of any error compensation amount and/or fees to be paid by the Raising Party).

1.4 Balancing and Settlement Code Provision

This BSCP should be read in conjunction with the Code. This BSCP has been produced in accordance with the provisions of the Code. In the event of an inconsistency between the provisions of this BSCP and the Code, the provisions of the Code shall prevail.

1.5 Associated BSCP Procedures

The main BSCPs that interface with this procedure are detailed below:

BSCP11 – Trading Disputes.

BSCP38 – Authorisations.

1.6 Overview of Manifest Error Treatment in the BSC

BSC Section Q7 states that a Manifest Error claim may be raised by the Lead Party of a BM Unit in relation to a single Bid-Offer Pair; or by the NETSO in relation to a single Bid-Offer Acceptance (and, therefore, may be in relation to more than one Bid-Offer Pair). Such a Manifest Error may arise if a Lead Party submits an erroneously priced Bid/Offer in relation to one of its BM Units, and this Bid/Offer is accepted; or, if the NETSO erroneously accepts a Bid/Offer.

A Lead Party may raise a Manifest Error claim by giving notice of such claim to the NETSO. Within 15 minutes of the claim being raised the NETSO notifies BSCCo and the BMRA (although in practice, the NETSO enters the data directly into the BMRA system).

The NETSO may raise a Manifest Error claim by giving notice of such claim to BSCCo (Cc: the affected Lead Party) and the BMRA.

The information placed on the BMRS in relation to the claim includes the identity of the BM Unit concerned, the relevant Settlement Period, and the Bid Price or Offer Price to which the claimed error relates.

Claims must be raised as soon as is reasonably practicable, but in any event within 4 hours of the relevant Bid-Offer Acceptance Time. It is the responsibility of the Raising Party to ensure that the claim is made within this 4-hour time limit. For the purposes of determining whether or not this 4-hour time constraint has been complied with, claims will be deemed to have been received at the time of sending of the relevant email/fax.

Parties raising a Manifest Error claim are required to pay a non-returnable fee of £5000 (or such other amount determined by the Panel under Section Q7.2.3 of the BSC). Where a claim is raised outside of the 4-hour time limit, the Raising Party will still be required to pay this fee.

Manifest Error claims are considered by the Panel (or a Committee appointed by the Panel) in accordance with Section Q7.4 of the BSC. The Panel (or Panel Committee) is responsible for determining whether a Manifest Error occurred, and (in consultation with the NETSO) the replacement price which should be substituted for both the Bid Price and the Offer Price of the erroneously accepted Bid-Offer Pair should the Manifest Error claim be upheld.

The affected Lead Party may also raise a claim for payment of an error compensation amount in relation to the Manifest Error. If such a claim is raised, the Panel (or Panel Committee)³ determines (broadly speaking):

in the case of an Offer that is the subject of a Manifest Error claim, whether the avoidable costs associated with the change in output arising from the physical response from the affected BM Unit exceeded the amount paid to the Lead Party by virtue of replacing the Offer Price with the replacement Offer Price; or
in the case of a Bid that is the subject of a Manifest Error claim, whether the avoidable costs associated with the change in output arising from the physical response from the affected BM Unit was less than the amount paid by the Lead Party by virtue of replacing the Bid Price with the replacement Bid Price;

and in each case what additional payments are to be made to the affected Lead Party to cover such difference.

In practice, error compensation payments that amount to less than £500 will not be processed.

In the case of a Manifest Error on the part of the NETSO, any error compensation amount payable to the Lead Party shall be recovered from the NETSO. In the case of a Manifest Error on the part of the Lead Party, the error compensation amount shall be recovered from each Trading Party (in accordance with its Party Daily Reallocation Proportions).

2 Acronyms and Definitions

2.1 Acronyms

The terms used in this BSCP are defined as follows:

BMRA	Balancing Mechanism Reporting Agent
BMRS	Balancing Mechanism Reporting Service
BMU	Balancing Mechanism Unit
BOA	Bid-Offer Acceptance
BSC	Balancing & Settlement Code (“the Code”)
BSCCo	Balancing & Settlement Code Company (i.e. ELEXON)
DS	Disputes Secretary
FAA	Funds Administration Agent
NETSO	National Electricity Transmission System Operator as the holder of the Transmission Licence and any reference to "NETSO", "NGESO", "National Grid Company" or "NGC" in the Code or any Subsidiary Document shall have the same meaning.
SAA	Settlement Administration Agent
TDC	Trading Disputes Committee
WD(s)	Working Day(s)

2.2 Definitions

Lead Party The BSC Party registered to the BMU that is the subject of the Manifest Error claim.

Raising Party The Party (i.e. the NETSO or the Lead Party) that originally raises the Manifest Error claim.

Affected Party In relation to a particular Manifest Error claim, whichever of the NETSO or the relevant Lead Party did not raise that claim.

From hereon within this procedure, the Panel Committee to whom the BSC Panel has delegated authority for its obligations under BSC Section Q7 (i.e. the TDC) shall be referred to directly.

Similarly the DS shall be referred to directly where that role fulfils in practice the obligations of the Panel Secretary or BSCCo as referred to in BSC Section Q7.

3 Interface and Timetable Information

3.1 Manifest Error Claims raised by the Lead Party

REF.	WHEN	ACTION	FROM	TO	INFORMATION REQUIRED	METHOD
3.1.1	As soon as reasonably practicable after becoming aware of the error, but in any event within 4 hours of the relevant Bid-Offer Acceptance Time	Make a claim for a Manifest Error⁴	BSC (Lead) Party for BM Unit under claim	NETSO	Completed Lead Party Manifest Error Claim Form (F14/01)	Email/fax
3.1.2	Within 15 minutes of receipt of the claim in 3.1.1	Validate claim to confirm that it has been raised within the above timescales and notify the Raising Party⁵	NETSO	BSC (Lead) Party	Lead Party Manifest Error Claim Form (F14/01) signed by the NETSO	Email/fax
3.1.3	The same timescales as 3.1.2	Notify BSCCo	NETSO	DS	Lead Party Manifest Error Claim Form (F14/01) signed by the NETSO	Email/fax
3.1.4	The same timescales as 3.1.2	Place Lead Party Manifest Error claim information on BMRS⁶	NETSO	BMRA	Identity of BM Unit, relevant Settlement Period and the Bid Price or Offer Price to which the claim relates	Electronic

3.2 Manifest Error Claims raised by the NETSO

REF.	WHEN	ACTION	FROM	TO	INFORMATION REQUIRED	METHOD
3.2.1	As soon as is reasonably practicable after becoming aware of the error, but in any event within 4 hours of the relevant Bid-Offer Acceptance time	Make a claim for a Manifest Error⁷,⁸	NETSO	DS, : BSC (Lead) Party for BM Unit under claim	Completed NETSO Manifest Error Claim Form (F14/02) In the event of a BOA number not being generated (e.g. when a BOA is issued via telephone during an outage), the NETSO should provide details of the relevant BOA as required under Manifest Error Claim Form (F14/02).	Email/fax
3.2.2	Within 15 minutes of 3.2.1	Place the NETSO Manifest Error claim information on BMRS⁹	NETSO	BMRA	Identity of BM Unit, relevant Settlement Period(s) and the Bid Price(s) or Offer Price(s) to which the claim relates	Electronic
3.2.3	The same timescales as 3.2.2	Confirm receipt	BSC (Lead) Party	NETSO, Cc: DS	The NETSO Manifest Error Claim Form (F14/02) signed by the Lead Party	Email/fax

3.3 Investigation and Adjudication of Manifest Error Claims

REF.	WHEN	ACTION	FROM	TO	INFORMATION REQUIRED	METHOD
3.3.1	On the same Working Day of receipt of the Manifest Error Claim Form received in accordance with 3.1.3 or 3.2.1¹⁰.	Validate the Manifest Error Claim Form to confirm that it was originally raised within 4 hours of the relevant Bid-Offer Acceptance Time	DS		Lead Party Manifest Error Claim Form (F14/01) or the NETSO Manifest Error Claim Form (F14/02)	Internal process¹¹
3.3.2	On the same WD as 3.3.1	Notify Receipt of Manifest Error Claim Form at the DS, issuing log number¹² If a manifest Error Claim request information from the Raising Party in accordance with Section Q7.4.3(a)(i) of the BSC	DS	BSC (Lead) Party or the NETSO (whichever is the Raising Party)	Notification of Receipt of Manifest Error Claim Form by the DS (F14/03) In the event of a BOA number not being generated (e.g. when a BOA is issued via telephone during an outage), the Disputes Secretary should provide details of the relevant BOA as required under Notification of Manifest Error Claim Form (F14/03).	Email/fax
3.3.3	On the same WD as 3.3.1	Consider if there is a scheduled TDC meeting prior to the Initial Settlement Run (and in such time as to allow sufficient information to be collated for the TDC to consider the Manifest Error). If yes, include Manifest Error claim as agenda item. If no, notify TDC of a requirement to meet, or participate in a telephone meeting, in order to consider the Manifest Error claim	DS	TDC Chairman, TDC Secretary, TDC Members (via TDC Secretary)	TDC meeting dates Settlement Calendar	Verbal/email
3.3.4	Within 5 WD of 3.3.2	Provide the evidence and supporting information requested under 3.3.2	BSC (Lead) Party or NETSO	DS	Information required under Section Q7.4.3(a)(i) of the BSC	Email/fax
3.3.5	Within 1 WD of 3.3.4	Forward response provided by the Raising Party in 3.3.4 above to the Affected Party and Request information from the NETSO in accordance with Section Q7.5.2(a) of the BSC	DS	Affected Party NETSO	Information required under Section Q7.4.3(a)(i) of the BSC Information required under Section Q7.5.2(a) of the BSC	Email/fax
3.3.6	Within 3 WD of 3.3.5	In accordance with Section Q7.4.3(a)(ii) of the BSC, provide comments in response to the information submitted by the Raising Party under 3.3.4 above Provide information requested under 3.3.5 above in accordance with Section Q7.5.2(a) of the BSC	Affected Party NETSO	DS	Agreement/disagreement to the Manifest Error claim details submitted under 3.3.4 above Information required under Section Q7.5.2(a) of the BSC	Email/fax
3.3.7	At least 2 WD prior to the Initial Settlement Run	Reach consensus or a majority decision on whether (or not) the Manifest Error claim is valid Or If a Manifest Error claim is valid reach consensus or a majority decision on whether (or not) a Manifest Error occurred and if so, the replacement price(s) for the Error Bid/Offer Pair(s)¹³. Instruct TDC Secretary to raise the Manifest Error Finding Form Or Defer decision and instruct DS (via TDC Secretary) to seek further information under 3.3.2 or 3.3.5 above, and continue as from 3.3.2 or from 3.3.5 (calling emergency TDC meeting if required)	TDC	TDC Secretary DS (via TDC Secretary)	Determination of TDC Details of further information required	At TDC meeting
3.3.8	On the same WD as 3.3.7	Notify BSCCo Finance Department to invoice Raising Party for Manifest Error claim fee in accordance with BSC Section Q7.4.3 (g)	DS	BSCCo	Raising Party, Manifest Error Log Number, Settlement Date/Period, Amount (£)	Email
3.3.9	Within 1 WD of 3.3.8	Complete TDC Finding Form and request signature of TDC Chair	TDC Secretary	TDC Chair	TDC Manifest Error Finding Form (F14/04)	In person/fax
3.3.10	Within 1 WD of 3.3.8	Sign TDC Finding Form and return to TDC Secretary	TDC Chair	TDC Secretary	Signed TDC Manifest Error Finding Form (F14/04)	In person/fax/ email
3.3.11	Within 1 WD of 3.3.8 where appropriate	Communicate TDC decision¹⁴	TDC Secretary	DS, NETSO, BSC (Lead) Party and all BSC Parties	Signed TDC Manifest Error Finding Form (F14/04) to DS, Raising and Affected Party ELEXON Circular to all other BSC Parties	Email/fax
3.3.12	By 12:00 on the working day before the Initial Settlement Run	Instruct the SAA to amend the Offer Price and Bid Price of the Error Bid-Offer Pair(s), to equal the replacement prices as determined by TDC	DS	SAA	Signed Instruction to Resolve Manifest Error Form (F14/05)	Email/fax
3.3.13	Within 1 WD of 3.3.12	Provide confirmation that replacement prices have been/will be included in the appropriate Initial Settlement Run¹⁵	SAA	DS	Confirmation that prices have been/will be included in the appropriate Initial Settlement Run, which is achieved by the SAA completing and returning the Instruction to Resolve Manifest Error form (F14/05).	Verbal agreement backed up with subsequent email

3.4 Claims for Payment of an Error Compensation Amount

REF.	WHEN	ACTION	FROM	TO	INFORMATION REQUIRED	METHOD
3.4.1	Within 5 WD of 3.3.11	If required submit claim for payment of error compensation amount (“compensation claim”)	BSC (Lead) Party	DS	Authorised¹⁶ Claim for Payment of Error Compensation Amount Form (F14/06) plus supporting documentation required in accordance with Section Q7.6.4 (and G2.2.1) of the BSC	Email/fax
3.4.2	Within 1 WD of 3.4.1.	Validate compensation claim for authorised signature and the timescales detailed in 3.4.1	DS		Claim for Payment of Error Compensation Amount Form (F14/06).	Internal process
3.4.3	Within 1 WD of 3.4.1	Acknowledge compensation claim¹⁷	DS	BSC (Lead) Party	Acknowledgement of Manifest Error Compensation Claim Form (F14/07)	Email/fax
3.4.4	Within 1 WD of 3.4.1 if appropriate	Where the original Manifest Error claim was raised by the NETSO in accordance with 3.2.1, notify the NETSO that a compensation claim has been raised	DS	NETSO	Acknowledgement of Manifest Error Compensation Claim Form (F14/07)	Email/fax
3.4.5	For the next appropriate TDC meeting	Place compensation claim on meeting agenda	DS	TDC Secretary, TDC Chairman	Claiming Party, Manifest Error Log Number	Internal process
3.4.6	Next appropriate TDC meeting	Submit claim	DS	TDC	Details of compensation claim and supporting documentation submitted under 3.4.1. TDC Manifest Error Finding Form (F14/04)	In person
3.4.7	TDC meeting	Consider claim¹⁸ and determine: 1) The values in accordance with BSC Section Q7.6.3; 2) The Avoidable Costs in accordance with BSC Section G2.1.2; 3) Whether any adjustments or reconciliation should be made in relation to the associated Ad-Hoc Trading Charges in accordance with BSC Section G1.2.1(b).	TDC		TDC determination	At TDC meeting
3.4.8	Within 5 WD of 3.4.7	Communicate decision of TDC	TDC Chairman via the TDC Secretary	DS, BSC (Lead) Party, NETSO¹⁹, Trading Parties²⁰	Signed TDC Finding Form for Compensation Claims arising out of Manifest Errors (F14/08)	Email/fax
3.4.9	Within 10 WD of 3.4.8	Calculate error compensation amount in accordance with BSC Section Q7.6.2 and notify BSC (Lead) Party²¹	DS	BSC (Lead) Party	Error compensation amount	Email/fax
3.4.10	Within 5 WD of 3.4.9	Finalise Ad Hoc Trading Charge details with BSCCo, and complete Form F14/09	DS	BSCCo	Ad Hoc Trading Charge Payment Authorisation Form (F14/09)	Internal BSCCo process
3.4.11	Within 1 WD of 3.4.10	Obtain signature of TDC Chair to authorise payment of Ad Hoc Trading Charge	DS	TDC Chair	Ad Hoc Trading Charge Payment Authorisation Form (F14/09)	In person/fax
3.4.12	Within 1 WD of 3.4.11	Instruct FAA to action Ad-Hoc Trading Charge in accordance with BSC Section Q7.6.5	DS	FAA	Ad Hoc Trading Charge Payment Authorisation Form (F14/09)	Email/fax
3.4.13	As required by the Payment Authorisation Form	Implement the instructions in the Payment Authorisation Form and issue notification to affected Parties and the DS	FAA	Affected Parties and DS	Advice note and Ad Hoc Trading Charge Payment Authorisation Form (F14/09)	Letter

4 Appendices

4.1 Lead Party Manifest Error Claim Form (F14/01)

Lead Party Manifest Error Claim Form

For completion by the Raising Party

To: NETSO Control Centre

Fax: _________________________ Email: ______________________________________

From: Company Name ____________________________________________________________

Location __________________________________________________________________

Fax: _________________________ Email: ______________________________________

Date of Claim: ____________________________

Time of Claim: ____________________

Claim Details: * Delete as appropriate

Affected BM Unit
BSC (Lead) Party of BMU
Affected Settlement Day
Affected Settlement Period
Affected Bid-Offer Pair Number²²
Affected Bid/Offer* Price
Relevant Bid-Offer Acceptance Time(s)
Relevant Bid-Offer Acceptance Number(s)

Additional Relevant Information: ______________________________________________________

_________________________________________________________________________________

Manifest Error Claim Made by (name): ____________________Signature: _____________________

For completion by the NETSO

Received By (signature): ____________________________________

Date and Time of Receipt: ________________________________ Valid: Y/N

Claims (where notice has been given in accordance with this BSCP and Section Q7.2 of the Code) should be notified to the DS, and where the claim is deemed valid a notice placed on the BMRS within 15 minutes of receipt.

DS Contact details: Fax _________________________ Email________________________________

For Completion by the DS

DS Log Number: ___________________

Date/Time received at DS: ________________________

4.2 NETSO Manifest Error Claim Form (F14/02)

NETSO Manifest Error Claim Form

For completion by the NETSO

To: Disputes Secretary

Fax: _________________________ Email: _______________________________________

Cc: Company Name of BSC (Lead) Party ____________________________________________

Location ___________________________________________________________________

Fax: _________________________ Email: _______________________________________

From: NETSO Control Centre

Fax: _________________________ Email: _______________________________________

Date of Claim: ____________________________

Time of Claim: ____________________

Claim Details: * Delete as appropriate

Error Acceptance Volume Pairs:

(complete if BOA number unavailable)

Affected BM Unit	From	From	To	To
BSC (Lead) Party of BMU	MW	Time	MW	Time
Affected Settlement Day
Affected Settlement Period(s)
Affected Bid-Offer Pair Number(s)
Affected Bid/Offer* Price(s)
Bid/Offer* Price 1
Bid/Offer* Price 2
Bid/Offer* Price 3
Bid/Offer* Price 4
Bid/Offer* Price 5
Relevant Bid-Offer Acceptance Time
Relevant Bid-Offer Acceptance Number²³

Additional Relevant Information: ______________________________________________________

__________________________________________________________________________________

Manifest Error Claim Made by (name): ____________________Signature: ___________________

For completion by the Receiving (Lead) Party

(To be returned to the NETSO : DS, within 15 minutes of receipt.)

Received By (signature): ____________________________________

Date and Time of Receipt: ________________________________

For completion by the DS

DS Log Number: ___________________

Date/Time Claim initially received at DS: ________________________ Valid: Y/N

4.3 Notification of Receipt of Manifest Error Claim Form by the DS (F14/03)

Notification of Receipt of Manifest Error Claim Form by the DS

For completion by the DS

To: 1) (name) ___________________________________________

NETSO

Fax: _________________________ Email: ____________________________________

2) (name) ___________________________________________

Lead Party Company Name _________________________________________________

Fax: _________________________ Email: _____________________________________

From: Disputes Secretary

Date: ____________________________

Claim Details: * Delete as appropriate

Error Acceptance Volume Pairs:

(complete if BOA number unavailable)

Affected BM Unit	From	From	To	To
BSC (Lead) Party of BMU	MW	Time	MW	Time
Affected Settlement Day(s)
Affected Settlement Period(s)
Affected Bid-Offer Pair Number(s)
Affected Bid/Offer* Price(s)
Bid/Offer* Price 1
Bid/Offer* Price 2
Bid/Offer* Price 3
Bid/Offer* Price 4
Bid/Offer* Price 5
Relevant Bid-Offer Acceptance Time
Relevant Bid-Offer Acceptance Number

The claim raised by (company) ____________________________ on (date) __________________ at (time) ____________ has/has not* been raised within 4 hours of the Bid-Offer Acceptance Time and has therefore been determined to be Valid/Invalid* by the Disputes Secretary for raising a claim under the Balancing and Settlement Code (BSC). * DS to delete as appropriate

Your Manifest Error Log number is: ______________________________

(To be quoted in all subsequent correspondence)

For valid claims the following information is now requested:

1. Supporting information from the Raising Party in accordance with section 3.3.2 of this procedure

2. Information from the NETSO in accordance with section 3.3.2 of this procedure

Deadline Date for reply: _________________________________________

If you require any further information on this Manifest Error claim please contact: ________________

Telephone: __________________ Fax: __________________ Email: __________________________

DS Log Number: ___________________

Date Initial Settlement Run due to be completed: ________________________

4.4 TDC Manifest Error Finding Form (F14/04)

TDC Manifest Error Finding Form

For completion by the TDC Secretary

To: Disputes Secretary

Copy To: _________________________________________________________________________

Raising and Affected Party

Email/fax: _______________________________________________________________________

From: Trading Disputes Committee

TDC Meeting Number: ________________________ Date: ___________________________

Manifest Error Log Number(s) For Settlement Day and Time Period

___________________________ ____________________________________

The Trading Dispute Committee Findings are:

__________________________________________________________________________________

Signed: _____________________________________ Date: ________________________

Chairman, Trading Disputes Committee

4.5 Instruction to Resolve Manifest Error (F14/05)

Instruction to Resolve Manifest Error

For completion by the DS

To: SAA

Copy To: _________________________________________________________________________

Email/fax: _______________________________________________________________________

From: Disputes Secretary

Date: _______________________________

DS Log Number of Manifest Error: ____________________

In accordance with the Trading Disputes Committee ruling dated _______________ please update the erroneously accepted Bid/Offer price(s) with the replacement Bid/Offer price(s) outlined in the table below:

Affected BM Unit²⁴	Settlement Day	Settlement Period	Erroneous Bid/Offer Pair Number	*Erroneous Bid/Offer Volume (MWh)**	*Erroneous Bid/Offer Price (£/MWh)**	Replacement Bid Price (£/MWh)	Replacement Offer Price (£/MWh)

* Delete as applicable

Additional Instructions/Notes: ____________________________________________________________________________________________________________________________________________________________________

__________________________________________________________________________________

Signature of TDC Chair: ______________________________________________________________

For completion by the SAA

I confirm that the above information has been included in the Initial Settlement Run for Settlement Date _______________ and that this run was/is due to be executed on Calendar Date _________________.²⁵

Signed: _________________________________ Print Name: ________________________________

Date: ___________________________________

4.6 Claim for Payment of Error Compensation Amount (F14/06)

Claim for Payment of Error Compensation Amount

For completion by the BSC (Lead) Party making claim

To: Disputes Secretary

Fax: _________________________ Email: _______________________________________

From: Name _____________________________________________________________________

Authorised Signature: ________________________________________________________________

Company: _________________________________________________________________________

Location: __________________________________________________________________________

Telephone: __________________ Fax: __________________ Email: __________________________

Date Submitted: ________________________________

Manifest Error Log Number: ___________________________________________

To be quoted in all correspondence

BM Unit: __________________________

Settlement Date: ___________________________ Period: ______________________

Claimed net quantity change (in MWh) in Export or Import: _____________________

This value shall be negative where it represents an increase in net Imports or a reduction in net Exports, and otherwise positive.

Supporting Information (or attach separately): ____________________________________________

__________________________________________________________________________________

Avoidable Costs (in £): _______________________________________

Explanation / Supporting Information (or attach separately): _________________________________

__________________________________________________________________________________

Error Compensation Amount: ______________________________________

For completion by the DS

DS Log Number: ___________________ Date received at DS: _____________________

Date of Meeting at which TDC heard Manifest Error Claim: __________________ Valid: Y/N

4.7 Acknowledgement of Manifest Error Compensation Claim (F14/07)

Acknowledgement of Manifest Error Compensation Claim

For completion by the DS

To: (name) ___________________________________________

Lead Party Company Name ____________________________________________

Fax: _________________________ Email: _______________________________

Copy To: NETSO*

*Delete if not appropriate (only required where the original Manifest Error claim was raised by the NETSO using Form F14/02)

Fax: _________________________ Email: _______________________________

From: Disputes Secretary

Date: ____________________________

Your compensation claim raised on (date) _________________________ relating to Manifest Error Log Number _____________, BM Unit ______________, Settlement Date _____________________ and Period _________ has/has not* been raised within the timescales defined within this BSCP and Section Q7.6.1 of the Code and has therefore been determined to be Valid/Invalid* by the Disputes Secretary.

* DS to delete as appropriate

Manifest Error claim raised by (Company) __________________________

This is the raising party of the original Manifest Error claim via form F14/01 or F14/02

All valid claims are submitted to the TDC for determination and must be supported with the information detailed in the BSC Sections Q7.6.4 (and G2.2.1). Should you wish to make any further submissions, please provide to the DS by (date) _______________________.

If you require any further information on this compensation claim please contact: _______________

Telephone: __________________ Fax: __________________ Email: ________________________

DS Log Number: ___________________

TDC meeting held on Manifest Error: Y/N TDC Meeting Date at which compensation claim will be heard: ____________________

4.8 TDC Finding Form for Compensation Claims arising out of Manifest Errors (F14/08)

TDC Finding Form for Compensation Claims arising out of Manifest Errors

For completion by TDC Secretary

To: Disputes Secretary

Copy To: _________________________________________________________________________

Email/fax: _______________________________________________________________________

From: TDC

TDC Meeting Number: ________________________ Date: ___________________________

Manifest Error Log Number(s) For Settlement Day and Time Period

___________________________ ____________________________________

The TDC findings are:

__________________________________________________________________________________

Signed: _____________________________________ Date: ________________________

Chairman, Trading Disputes Committee

Signed: _____________________________________ Date: ________________________

BSCCo Chief Executive

4.9 Ad Hoc Trading Charge Payment Authorisation Form (F14/09)

Ad Hoc Trading Charge Payment Authorisation Form

For completion by the TDC Secretary

To: FAA

Email/fax: _______________________________________________________________________

Copy To: _________________________________________________________________________

From: TDC/BSCCo

BSC (Lead) Party making claim:

Date:

Manifest Error Log Number

Settlement Date

Value of Ad Hoc Trading Charge Payment (Net of Interest)

Reason for Ad Hoc Trading Charge: ____________________________________________________

__________________________________________________________________________________

Proposed Date for Recovery (in accordance with BSC Section N 6.9.1 (b)): _____________________

__________________________________________________________________________________

Method of Recovery: From ______________________________________

Method of Recompense: To ________________________________________

Interest as per ²⁶

RECOMMENDED BY: APPROVED BY:

Signed: ________________________________ Signed: __________________________

(TDC Chairman) (BSCCo Chief Executive)

Date: ________________________________ Date: __________________________

4.10 Format of BMRS Lead Party Manifest Error Claim Notification

The following states the form of the text that the NETSO should enter as a free-text message into the BMRS System:

“A Manifest Error claim has been raised by [insert Lead party name] in relation to an accepted [Bid/Offer*] for BM Unit [insert BM Unit ID] for Settlement Period(s) [insert affected Settlement Period(s)] on [insert affected Settlement Day]. The affected [Bid/Offer*] price is [insert relevant price].”

*State which applies

4.11 Format of BMRS NETSO Manifest Error Claim Notification

The following states the form of the text that the NETSO should enter as a free-text message into the BMRS System:

“A Manifest Error claim has been raised by the NETSO in relation to an accepted [Bid/Offer*] for BM Unit [insert BM Unit ID] for Settlement Period(s) [insert affected Settlement Period(s)] on [insert affected Settlement Day]. The affected [Bid/Offer*] price is [insert relevant price].”

*State which applies

4.12 Manifest Error Claim Fee

A fee of £5,000 (or the value determined by the Panel under Section Q7.2.3 of the BSC) shall be payable to BSCCo for all valid Manifest Error claims received by the DS. This fee, which shall not be reimbursed in any circumstances, shall be invoiced by BSCCo in accordance with Section Q7.4.3(g).

4.13 Withdrawing a Manifest Error Claim or Claim for Payment of Error Compensation Amount

Withdrawal/closure requests will only be accepted by the DS where these are made in writing by an Authorised Signatory²⁷ and the request is received prior to the claim being submitted to the TDC for consideration. Withdrawal requests do not impact on the fee payable under 4.12 above.

All withdrawal/closure requests for Manifest Error claims submitted to the DS will be reported to the TDC at its next scheduled meeting. The TDC may still wish to consider the Manifest Error claim.

4.14 Determining Replacement Prices for Utilisation in the Correction of Manifest Errors

In determining the replacement prices to be used in the processing of a Manifest Error, a number of steps need to be followed:

Step 1: Identify the acceptance quantities for which replacement Offers and/or Bids need to be determined.

Step 2: Identify the replacement Offers and Bids to use.

Step 3: Determine the weighted average replacement price.

The approach to be followed differs depending upon the circumstances of the Manifest Error. If, for example, the Acceptance associated with the Manifest Error was necessarily issued to a BM Unit with particular dynamic characteristics (for example because energy was needed in short timescales to control system frequency) then the detailed dynamics of possible replacement Offers and Bids should be given more consideration in the identification of possible replacement Offers and Bids. In other cases, a more approximate simplified approach should be adopted which it is intended will reduce the administrative burden of processing the Manifest Error. The flow diagram overleaf identifies the main steps involved.

Step 1: Identifying Acceptance Quantities for Replacement

Under the BSC, a particular Acceptance may result in the acceptance of one or more Bids and/or Offers. Furthermore, depending upon the nature of any Manifest Error, one or more of the Bids and/or Offers accepted as a result of an Acceptance relating to the Manifest Error may form part of an Error Bid/Offer Pair.

Step 1a – Identification of Accepted Bid Volume and/or Accepted Offer Volume

In order to determine the appropriate replacement price for a particular Error Bid/Offer Pair, the quantity of accepted Offers and/or Bids that need to be “replaced” should first be determined. This quantity is initially determined as a power profile of the relevant Accepted Offer Volume and/or Accepted Bid Volume associated with each Error Bid/Offer Pair.

For more straightforward²⁸ Manifest Errors, the erroneous Accepted Offer Volume and/or Accepted Bid Volume associated with the Error Bid/Offer Pair may be determined simply as being equal to the Accepted Bid Volume and/or Accepted Offer Volume for each Error Bid/Offer Pair associated with the relevant Acceptance. There are, however, a number of more complex situations that may arise in which the determination of these quantities is less straightforward. The more complex scenarios considered in this procedure are as follows:

1) Two Acceptances, each resulting in the acceptance of a particular Bid-Offer Pair. One Acceptance being entirely erroneous, the other entirely correct;

2) Two Acceptances each resulting in the acceptance of a particular Bid-Offer Pair, both Acceptances being erroneous;

3) A single Acceptance accepting both one Bid-Offer Pair correctly and a different Bid-Offer Pair in the same Settlement Period erroneously;

4) A single Acceptance accepting the same part (i.e. Offer part or Bid Part) of a single Bid-Offer Pair, partly correctly and partly erroneously.

5) A single Acceptance accepting part of the Offer of a Bid-Offer Pair correctly, and part of the Bid incorrectly.

The approach to be adopted in each of these cases is discussed in turn below:

1) In the first case, Section Q7.5.2(a)(ii) of the BSC implies that the “correct” acceptance should be disregarded for the purposes of the determination of the replacement quantities. This is because Q7.5.2(a)(ii) refers effectively only to the identification of other Bid/Offer Pairs which would have been accepted by the NETSO if it had not accepted (by the relevant Acceptance). Hence, for example, if Acceptance k erroneously accepts 5 units of Bid-Offer Pair n, and Acceptance m correctly accepts 6 units of Bid-Offer Pair n, the quantity of replacement Offers or Bids is 5 units.

2) In the case where two Manifest Errors affect a single Bid-Offer Pair, the application of the rules in the BSC would appear to be ambiguous. It is not clear whether based on a strict reading of the BSC, the replacement price to be used should be based on the first or second Manifest Error.

3) In case 3, those quantities of other Bid-Offer Pairs correctly accepted by an Acceptance, which has also erroneously accepted part of a different Bid-Offer Pair, may be disregarded for the purposes of processing the Manifest Error claim. Q7.5.2(a)(ii) includes the words: “…if it had not accepted (by the relevant Acceptance) the Error Bid/Offer Pair”. This only requires consideration of the acceptance insofar as it relates to of the Error Bid Offer Pair(s), and not to other Bid-Offer Pairs.

4) In case, 4, it is assumed that a single Acceptance has both correctly accepted part of a particular Offer (or Bid) and erroneously accepted part of the same Offer (or Bid). For example this may arise if the NETSO wished to accept an Offer for 10 minutes, but in practice did so for 20. In this case, because the entire Bid-Offer Pair is an Error Bid-Offer Pair, then again from Q7.5.2(a)(ii), it would be appropriate to determine a replacement price taking into account the entire quantity of accepted Offer (or Bid) from that Bid-Offer Pair (i.e. including that part of the Offer (or Bid) that was correctly accepted).

5) In case 5, it is assumed that a single Acceptance results in the erroneous Acceptance of an Offer from a particular Bid-Offer Pair, and partly in the correct Acceptance of a Bid from the same Bid-Offer Pair. Given that both the Bid and the Offer form part of the Bid-Offer Pair, this case is very similar to case 4 and based upon the an interpretation of the existing BSC rules, the correctly accepted Bid (or Offer) quantity would be taken into account in determining the replacement price.

Whilst some consideration has been given to ensuring the above list covers the set of possible scenarios, it is possible that there may be other scenarios that may arise that have not been identified. To the extent that this is the case, then it would be necessary to determine the replacement quantities based upon consideration of the detailed circumstances of each particular case.

Step 1b – Conversion of Accepted Bid Volume and/or Accepted Offer Volume into MWh replacement quantity

The approach used in determining the replacement price should, by default, but not in all cases, adopt a simplified approach in order to assist in the determination of the alternative Bids and Offers that were “available” to the NETSO. Under the simplified approach the Accepted Bid Volumes and Accepted Offer Volumes associated with a particular Error Bid/Offer Pair would be integrated over the Settlement Period in order to determine a single MWh new error quantity.

This simplified approach should not be adopted where spot MW values that adequately represent the system requirements at the time of the erroneous Bid-Offer Acceptance could not have been met by the BM Unit(s) indicated by the simplified approach.

Step 2: Identifying Replacement Bids and Offers

In determining the replacement Offer and Bids available to the NETSO, the following process should be followed:

If Step 1b) above has been followed then:

Step 2a) - convert the MWh quantity of energy determined under Step 1b) to a power equivalent (by dividing by ½ an hour).

Step 2b) - based on a subset of dynamic and other data (specifically, only MIL, MEL, run-up and run-down rates, Notice to Deviate from Zero, Notice to Deliver Offers/Bids and FPN - taking into account other acceptances), identify the quantity of power that could have been delivered by other Offers (or, if the power value is negative, then Bids) at the end of each relevant Settlement Period, assuming that the acceptance was issued at the Bid-Offer Acceptance time of the Acceptance associated with the Manifest Error. This delivers a list of alternative Offers or Bids from other BM Units, and the quantity of replacement MW available at the end of each relevant Settlement Period.

Step 2c) - identify which of the replacement Offers or Bids would have been chosen in accordance with Q7.5.2(a)(ii). In following this step, it is proposed that unless the Panel (in consultation with the NETSO) reasonably believes that (i) some or all of those Offer or Bids would not have been chosen, (ii) certain quantities of other Offer or Bids would have been chosen, or (iii) the aggregate quantity of the replacement Offers or Bids determined at the end of the Settlement Period does not reasonably reflect the quantity required to be determined, then Bids and Offers would be selected from those determined to be available in price merit order. This means that for Offers, the cheapest would be selected such that the aggregate MW quantity of Offers is equal to the MW quantity of the Manifest Error identified in Step 2a. In the case of Bids, the most expensive Bids are identified. If any of the criteria (i-iii) are met, then the Panel (in consultation with the NETSO) will determine the quantities of those Offers and Bids that are available, and/or the replacement quantity to be selected.

If Step 1b) above has not been followed then:

Step 2d) - Identify which of the replacement Offers or Bids would have been chosen in accordance with Q7.5.2(a)(ii).

It is recognised that this is a subjective process that will require detailed consideration of the exact nature of the particular Manifest Error in question. It is noted that it may not always be appropriate to identify replacement MW to match the entire power profile identified in Step 1a), and indeed in some cases the exact power profile may be exceeded.

It is not considered practicable to further document the selection process at this stage. Instead, it is envisaged that a “case law” approach to selection of replacement prices in such circumstances should be permitted to emerge.

Step 3: Determining Replacement Prices

Determine the replacement price based upon the MW (or MWh) weighted average of the replacement Offers or Bids available identified.

Simplified Example

The following example is included to further explain the approach proposed if Step 1b) is taken. The following diagram shows the power profile of a Manifest Error relative to FPN over two Settlement Periods.

The erroneous acceptance results in the acceptance of both Bids and Offers in each Settlement Period. There is a net overall quantity of accepted Offers in SP1 and of Bids in SP2. For the purposes of this example, these are assumed to be +10MWh and –5MWh respectively.

These net energy quantities are converted to a power value equivalent of +20MW and –10MW for Settlement Periods SP1 and SP2 respectively.

For SP1, a list of potentially available Offers is constructed, identifying the quantity of additional power (arising from a reduction in demand or increase in generation) that BM Units participating in the balancing mechanism could deliver. In constructing this list a subset of dynamic and other data is used (as described above). For the purposes of this example, the following replacement Offers are assumed to be available:

BM Unit Power Level Price £/MWh

BMU1 8MW 5MW@ £20/MWh, 3MW@ £50/MWh

BMU2 50MW £25/MWh

BMU3 10MW £30/MWh

etc.

The NETSO further identifies that BMU2 was not available because it was operating behind an export constraint. Hence, the replacement Offers selected are as follows:

5MW from BMU1 @ £20/MWh

5MW from BMU3 @ £30/MWh.

Hence, the MW weighted average replacement price is £25/MWh.

A similar exercise is conducted by selecting replacement Bids in SP2.

1 The Disputes Secretary (as defined under BSCP11) shall undertake the obligations of BSCCo and the Panel Secretary as referred to in BSC Section Q7, and shall be responsible for liaison with the relevant secretariat function in respect of 1.2(d) above.

2 The BSC Panel, in accordance with BSC Section Q 7.4.2, may appoint a Panel Committee to discharge its functions in respect of Manifest Errors. At its meeting of 22 March 2001 the BSC Panel delegated authority for adjudication of Manifest Error claims and determination of replacement Bid/Offer Prices to the Trading Disputes Committee, with effect from NETA Go-live.

3 At its meeting of 3 May 2001 the BSC Panel delegated authority to the Trading Disputes Committee to determine the error compensation amount in respect of Manifest Error claims.

4 The Manifest Error claim relates to a particular Bid-Offer Pair

5 The NETSO will invalidate all claims raised to it which are outside the timescales defined in 3.1.1. For the avoidance of doubt, BSCCo should still be notified of the claim and the Manifest Error claiming fee will still be payable by the Raising Party. Where a BSC Party has a disagreement with the NETSO over these timescales, then that BSC Party shall immediately raise a Query to the DS in accordance with BSCP11.

6 In the event of the BMRS being down, where a claim for Manifest Error is made within office hours, the NETSO shall request that ELEXON send out a circular notifying participants of such a claim. Where a claim is made outside of office hours, the NETSO will not be deemed to be in breach of 3.1.4.

7 The DS will invalidate all Manifest Error Claims raised to it by the NETSO which are outside the timescales defined in 3.2.1. For the avoidance of doubt the Manifest Error Raising Fee will still be payable by the NETSO.

8 The Manifest Error claim relates to a particular Bid-Offer Acceptance.

9 In the event of the BMRS being down, where a claim for Manifest Error is made within office hours, the NETSO shall request that ELEXON send out a circular notifying participants of such claim. Where a Manifest Error claim is made outside of office hours, the NETSO will not be deemed to be in breach of 3.2.2.

10 This BSCP recognises that both the NETSO and the BSC (Lead) Party will operate on 24-hour timescales in accordance with Balancing Mechanism requirements but the DS will only operate on normal Working Day timescales. Therefore all actions on the DS begin from the first Working Day of receipt of a Manifest Error Claim Form.

11 At this point the DS will seek confirmation from the NETSO and/or the BSC (Lead) Party that all other obligations under 3.1 and 3.2 above have been met. Any breach of these obligations will be flagged to the TDC when it considers the Manifest Error claim.

12 Where either party has a disagreement regarding this determination then a Query shall be immediately raised to the DS in accordance with BSCP11.

13 Section 4.14 of this procedure provides details of the methodology to be adopted by the TDC in determining replacement prices.

14 Outcome of TDC decision and replacement prices to be detailed on both the Finding Forms and the ELEXON Circular.

15 Where it is not possible to include the results of the TDC decision in the Initial Settlement Run, a reason and statement as to when the decision will be implemented must be provided to the DS.

16 The Authorisations applicable to BSCP11 (i.e. those detailed under BSCP38) shall be used for the purposes of validating compensation claims.

17 The DS will take no further action where the DS finds that the compensation claim is invalid. Any disagreement over this determination shall be notified to the DS in writing.

18 The TDC may request additional information in accordance with Sections Q7.6.4(c) and G2.2.1(b) of the BSC.

19 The NETSO will only be notified where the Manifest Error was on the part of the NETSO.

20 Trading Parties will only be notified where the Manifest Error was on the part of the BSC (Lead) Party.

21 Error compensation payments that amount to less than £500 will not be processed.

22 A single Manifest Error claim must be made for each single Error Bid-Offer pair. If there is a need to raise Manifest Error claims for more than one Error Bid-Offer Pair, please use one form for each Error Bid-Offer Pair.

23 A single Manifest Error claim may be made for one or more Error Bid-Offer Pairs in a single Bid-Offer Acceptance. If there is a need to raise Manifest Error claims for more than one Bid-Offer Acceptance, please use one form for each Bid-Offer Acceptance.

24 The Affected BM Unit column will contain the BM Unit Id and NOT the NETSO BM Unit Name/Id or any other identifier

25Where it is not possible to include the results of the TDC decision in the Initial Settlement Run, a reason and statement as to when the decision will be implemented must be provided to the Disputes Secretary.

26 Interest will be applied to the sums above at BSCCo Bankers Base Rate for the period from the original payment date for settlement to the final date when settlement of such payment is made.

27 In accordance with the Authorisations applicable to BSCP11 (i.e. as detailed under BSCP38).

28 i.e. where only a single acceptance affects the Error Bid/Offer Pair and all associated accepted quantities are erroneous.

CONTENTS

BSCP 14: Processing of Manifest Error Claims

1 Introduction

1.1 Purpose and Scope of the Procedure

1.2 Main Users of the Procedure and their Responsibilities

1.3 Key Milestones

1.4 Balancing and Settlement Code Provision

1.5 Associated BSCP Procedures

1.6 Overview of Manifest Error Treatment in the BSC

2 Acronyms and Definitions

2.1 Acronyms

2.2 Definitions

3 Interface and Timetable Information

3.1 Manifest Error Claims raised by the Lead Party

3.2 Manifest Error Claims raised by the NETSO

3.3 Investigation and Adjudication of Manifest Error Claims

3.4 Claims for Payment of an Error Compensation Amount

4 Appendices

4.1 Lead Party Manifest Error Claim Form (F14/01)

4.2 NETSO Manifest Error Claim Form (F14/02)

4.3 Notification of Receipt of Manifest Error Claim Form by the DS (F14/03)

4.4 TDC Manifest Error Finding Form (F14/04)

4.5 Instruction to Resolve Manifest Error (F14/05)

4.6 Claim for Payment of Error Compensation Amount (F14/06)

4.7 Acknowledgement of Manifest Error Compensation Claim (F14/07)

4.8 TDC Finding Form for Compensation Claims arising out of Manifest Errors (F14/08)

4.9 Ad Hoc Trading Charge Payment Authorisation Form (F14/09)

4.10 Format of BMRS Lead Party Manifest Error Claim Notification

4.11 Format of BMRS NETSO Manifest Error Claim Notification

4.12 Manifest Error Claim Fee

4.13 Withdrawing a Manifest Error Claim or Claim for Payment of Error Compensation Amount

4.14 Determining Replacement Prices for Utilisation in the Correction of Manifest Errors