Balancing and Settlement Code
Corrections to Bid-Offer Acceptance Related Data
Corrections to Bid-Offer Acceptance Related Data
1. Reference is made to the Balancing and Settlement Code dated Code Effective Date and, in particular, to the definition of “BSC Procedure” in Section X, Annex X-1 thereof.
2. This is BSC Procedure 18, Version 15.0 relating to Corrections to Bid-Offer Acceptance Related Data.
3. This BSC Procedure is effective from 07 December 2022.
4. This BSC Procedure has been approved by the BSC Panel.
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Version | Date | Description of Changes | Changes Included | Mods/ Panel/ Committee Refs |
1.0 | 30/06/04 | Designated version | CP995 | |
2.0 | BETTA Effective Date | BETTA 6.3 rebadging changes for the CVA Feb 05 Release | | BETTA 6.3 |
3.0 | 02/11/05 | CVA Programme November 05 Release | P172 | Panel |
4.0 | 05/11/09 | November 09 Release | CP1176 (Part) | ISG68/02 SVG67/02 |
| | | CP1283 | ISG100/01 |
| | | P217 | Panel 142/06 |
| | | P231 | Panel 155/04 |
5.0 | 04/11/10 | November 10 Release | P257 | Panel |
6.0 | 31/03/14 | Modification P276 | P276 | ISG154/03 |
7.0 | 26/06/14 | June 2014 Release | CP1400 | ISG151/04 |
8.0 | 26/02/15 | February 2015 Release | CP1392 | ISG149/06 |
9.0 | 05/11/15 | November 2015 Release | P323 | P245/06 |
10.0 | 29/03/19 | 29 March 2019 Standalone Release | P369 | P285/12 |
11.0 | 27/06/19 | June 2019 Release | P367 Self-Governance | SVG219/02 ISG216/01 |
12.0 | 11/12/19 | December 2019 Standalone Release | CP1517 | ISG220/01 |
13.0 | 27/02/20 | February 2020 Release | P394 Self Governance | P297/07 |
14.0 | 24/10/2022 | September 2022 Special Release | P447 | P330c/01 |
15.0 | 07/12/2022 | December 2022 Special Release | P448 | P330C/02 |
1.1 Scope and Purpose of the Procedure
This BSC Procedure (BSCP) defines the processes that BSCCo, the Settlement Administration Agent (SAA), the National Electricity Transmission System Operator (NETSO) and BSC Parties will use. This is specifically to input corrections to erroneous Final Physical Notification (FPN), Bid-Offer Data (BOD), Bid-Offer Acceptance Level (BOAL) and Bid-Offer Acceptance Level Flagged (BOALF) data (collectively referred to as the ‘Bid-Offer Acceptance Related Data’) and Replacement Reserve data within the Settlement Administration Agent (SAA) systems or Balancing Mechanism Reporting Agent (BMRA) systems. For the avoidance of doubt, the correction of erroneous Bid-Offer Acceptance Data or Replacement Reserve Data means correcting incorrect data, or removing non-applicable data (e.g. Winter Contingency Offers) or inserting missing data. All changes relating to volume (MW, Time and Duration) are submitted by the NETSO with agreement of the affected BSC Parties (except for Winter Contingency Notifications), and are authorised by BSCCo.
Each
Network Gas Supply Emergency Acceptance, which will entered into
Settlement using a similar process to
Emergency Instructions, will be reviewed after the event by the
Network Gas Supply Emergency Settlement Validation Committee, which may direct changes to FPNs,
Bid-Offer Data and/or
Acceptance Data relating to the
Network Gas Supply Emergency Acceptance. Such changes will implemented in SAA in the next available
Settlement Run.
See Appendix 1 for further details of the
Settlement process for
Network Gas Supply Emergency Acceptances, and
Appendix 2 for draft Terms of Reference for the
Network Gas Supply Emergency Settlement Validation Committee.
This procedure also defines the process that BSCCo, the Settlement Administration Agent and the NETSO will use to input manual corrections to erroneous SO-Flagged data fields within the BOALF data changes are submitted by the NETSO and are authorised by BSCCo, agreement is not required from BSC Parties because they are not directly impacted by a flag change.
This BSCP describes the key interfaces and timetables for inputting changes to the affected BMRA and SAA systems. All corrections to the Bid-Offer Acceptance related data and to Replacement Reserve data must have the consent of the associated BSC Parties (aside from SO-Flag changes, Network Gas Supply Emergency Acceptances and Winter Contingency Notifications) and corrections must be applied before the Initial Settlement Run (SF). If consent, or in the case of Winter Contingency Notification or SO-Flag correction notification from the NETSO, is not received prior to SF then the data corrections must be raised as a Trading Dispute and progressed through the Trading Disputes process in accordance with BSCP11.
1.2 Main Users of the Procedure and their Responsibilities
The main users of this BSCP are:
BSCCo – witness and authorise the correction process for each change made (including SO-Flag changes and Winter Contingency Notifications) and confirm that any corrections made are in accordance with the changes agreed (excluding SO-Flag changes and Winter Contingency Notifications) between the affected BSC Parties and the NETSO.
BSC Parties – confirm that settlement error has occurred and agree to the proposed corrections (excluding SO-Flag changes and Winter Contingency Notifications).
NETSO – submit corrections directly to the SAA for manual update prior to the Initial Settlement Run, except for any Network Gas Supply Emergency Acceptances which must be actioned prior to the Interim Information Settlement Run (II), if notified to the SAA by the end of the second full working day after the relevant Settlement Date. After the Initial Settlement Run (SF), all corrections (except for Acceptance Data relating to Network Gas Supply Emergency Acceptances) must be submitted using the Trading Disputes process detailed in BSCP11.
BMRA – receives corrections via electronic transfer (FTP) directly from the NETSO.
SAA – receives corrections from NETSO or BMRA and determines the most appropriate changes to be made to the database in order to ensure that the data concerning the Bid-Offer Acceptance or Replacement Reserve data accurately reflects the steps taken by the affected BSC Parties and / or the SO-Flag field is correctly reflected in the database.
The remaining sections in this document are:
Section 3 - Interface and Timetable Information: this section defines in more detail the requirements of each business process.
1.4 Balancing and Settlement Code Provision
This BSCP should be read in conjunction with the BSC and in particular Sections Q, T, U and W. This BSCP has been produced in accordance with the provisions of the BSC. In the event of an inconsistency between the provisions of this BSCP and the BSC, the provisions of the BSC shall prevail.
1.5 Associated BSC Procedures
BSCP01 Overview of Trading Arrangements
1.6 Acronyms and Definitions
The terms used in this BSCP are defined as follows;
BOA | Bid-Offer Acceptance |
BOAL | Bid-Offer Acceptance Level |
BOALF | Bid-Offer Acceptance Level Flagged |
BOD | Bid-Offer Data |
BSAD | Balancing Services Adjustment Data |
BSC | Balancing and Settlement Code |
BSCCo | Balancing and Settlement Code Company |
BSCP | Balancing and Settlement Code Procedure |
FPN | Final Physical Notification |
II | Interim Information Settlement Run completed 5 Working Days after the Settlement Day |
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. |
Network Gas Supply Emergency Acceptance | an instruction to reduce or discontinue the offtake of gas issued by a Gas Transporter for the purpose of Load Shedding during Stage 2 or higher of a Network Gas Supply Emergency, where the effect of such instruction is to limit the amount of electricity that can be produced by one or more Generating Units within one or more BM Units. |
RR | Replacement Reserve |
SAA | Settlement Administration Agent |
SD | Settlement Day |
SF | Initial Settlement Run completed 16 Working Days after the Settlement Day |
UNC | The Uniform Network Code |
Winter Contingency Offer | A Bid Offer Acceptance which relates to a Winter Contingency BM Unit and which must be removed from Settlement so that the Offer volume can instead be Settled as Balancing Services Adjustment Data (BSAD) and Applicable Balancing Services Volume Data (ABSVD), in accordance with Approved Modification P447. |
Winter Contingency Notification | Details of the data correction required to remove a Winter Contingency Offer from Settlement. |
WD | Working Day |
Full definitions of the above acronyms are, where appropriate, included in the BSC.
Full definitions of the above acronyms are, where appropriate, included in the Balancing and Settlement Code.
3. Interface and Timetable Information
3.1 Identification and Agreement of Changes to Data (excluding changes arising from Emergency Instructions)
REF | WHEN | ACTION | FROM | TO | INFORMATION REQUIRED | METHOD |
3.1.1 | No less than 8 WD before SF Run. | Identify that a data correction is required to data submitted to SAA. | BSC Party or NETSO | NETSO | | E-mail or fax, NETSO Internal reporting. |
3.1.2 | Within 1 WD of 3.1.1. | Review proposed data correction and determine if data correction request is valid. | NETSO | | Proposed data correction. | Internal Process. |
3.1.3 | Within 2 WD of 3.1.2. | Provide details of proposed data correction and agree action to be taken. | NETSO | BSC Party | Proposed data correction. | Telephone contact with authorised personnel at BSC Party followed by e-mail. |
3.1.3a | Within 5 WD of 3.1.2 | Provide details of Winter Contingency Notification or SO-Flag correction data | NETSO | SAA BSCCo | Proposed data correction | E-mail. |
3.1.4 | By 15:00 hrs within 2 WD of 3.1.3. | Agreed Data Correction received by the NETSO. Proceed to Section 3.2.1. | BSC Party | NETSO | Refer to Section 3.2.1. | E-mail. |
3.1.5 | 15:00 hrs within 2 WD of 3.1.3. | No agreement reached on proposed corrections Proceed to BSCP11. | NETSO or BSC Party | BSCCo, NETSO or BSC Party as appropriate. | Refer to BSCP11. | E-mail. |
3.2 (a) Corrections of SAA databases for FPN, BOD and RR data)
REF. | WHEN | ACTION | FROM | TO | INFORMATION REQUIRED | METHOD |
3.2.1 | Following 3.1.4 and 2 WD before SF Run. | Provide SAA with FPN, BOD and/or RR data correction. | NETSO | SAA BSCCo | Receive Request for Data Change (SAA-I033). | E-mail. |
3.2.2 | Up to 1 WD before SF Run. | Update SAA database and confirm database updates have been implemented. | SAA | BSCCo NETSO | Report Confirmation of Data Change (SAA-I036). | E-mail. |
3.2.3 | Following 3.1.3a and up to 1WD before SF Run | Update SAA database and confirm database updates have been implemented | SAA | BSCCo NETSO | Report Confirmation of Data Change | E-Mail. |
3.2 (b) Corrections of BMRA and SAA databases (for BOA Changes excluding Emergency Instructions)
Changes to BOALF data (excluding those arising from Emergency Instructions) are applied to the BMRA and SAA databases using an automated process as follows:
REF. | WHEN | ACTION | FROM | TO | INFORMATION REQUIRED | METHOD |
3.2.3 | Following 3.1.4 and 2 WD before SF Run. | Provide BMRA BOA data correction | NETSO | BMRA | Balancing Mechanism Data (BMRA‑I002) | Electronic. |
3.2.4 | Following 3.2.3. | Provide SAA with BOA data correction | BMRA | SAA | SAA Balancing Mechanism Data (SAA‑I003) | Electronic. |
3.4. Corrections to SAA Databases arising from Emergency Instructions
The process is triggered by the issue of an Emergency Instruction by the NETSO.
In accordance with the
Grid Code and
Section Q5.1.3(b) of the BSC,
Emergency Instructions issued in respect of a
BM Unit shall be treated as Bid-
Offer Acceptances, except certain Black Start processes, Maximum Generation Service and Emergency De-
energisation Instructions.
The NETSO identifies Emergency Instructions as being either:
BSC Annex T-1 details how Emergency Instructions are treated in the Energy Imbalance Price calculations.
As well as Emergency Instructions, steps 3.4.6 to 3.4.11 may also be used to enter Acceptance Data for Network Gas Supply Emergency Acceptances into SAA databases, in accordance with process steps 3.5.3, 3.5.8 and / or 3.5.13 below.
REF. | WHEN | ACTION | FROM | TO | INFORMATION REQUIRED | METHOD |
3.4.1 | As soon as possible after issuing Emergency Instruction | Send details of Emergency Acceptance to BMRA and BSCCo. | NETSO | BMRA BSCCo | Receive System Related Data (BMRA-I003) Time of Emergency Instruction Affected BM Unit (s)q | E-mail. . Phone/Fax/E-mail. |
3.4.2 | Upon receipt of information following 3.4.1 | Publish notice on BMRS | BMRA | BMRS Users | Publish System Related Data (BMRA-I005) Time of Emergency Instruction Affected BM Unit (s) | Electronic. |
3.4.3 | Upon receipt of information following 3.4.1 | Log details of Emergency Acceptance and allocate reference number. | BSCCo | | Details of Emergency Acceptance. BSC Service Desk reference number. | Internal Process. |
3.4.4 | As soon as possible after 3.4.3 | Provide reference number for Emergency Acceptance. | BSCCo | NETSO | BSC Service Desk reference number. | Phone/Fax/E-mail. |
3.4.5 | After 3.4.1 and where possible, at least 1 WD prior to II Run | Identify and agree Emergency Instruction related Acceptance with BSCCo and Party. | NETSO | BSCCo Party | Acceptance Data arising from Emergency Instruction | Phone/Fax/E-mail. |
| | Decide whether it is to be treated as ‘Emergency Flagged’. | NETSO | | Decision on whether the Emergency Acceptance is to be treated as ‘Emergency Flagged’. | Internal Process. |
3.4.6 | After 3.4.5 and where possible at least 1 WD prior to II Run | Send Acceptance Data and details of approach for settling Emergency Instruction to the BMRA, SAA and BSCCo. | NETSO | BMRA SAA BSCCo | Receive System Related Data (BMRA-I003) Receive Request for Data Change (SAA-I033) Acceptance Data arising from Emergency Instruction Specify whether the Emergency Acceptance is to be treated as ‘Emergency Flagged’. | E-mail.. Phone/Fax/E-mail. |
3.4.7 | Upon receipt of information after 3.4.6 | Publish details of Acceptance Data to be entered into Settlement and whether it is to be treated as ‘ Emergency Flagged’6 | BMRA | BMRS Users | Publish System Related Data (BMRA-I005) Acceptance Data arising from Emergency Instruction | Electronic. |
3.4.8 | Upon receipt of information after 3.4.6 | Acknowledge receipt of Acceptance Data and approach for settling Emergency Instruction. | BSCCo | NETSO | Acknowledgement of receipt | Phone/Fax/E-mail. |
3.4.9 | Upon receipt of information after 3.4.6 | Request authorisation to input post event Acceptance Data in SAA Database. | SAA | BSCCo | Report Recommended Data Change (SAA-I034) | Phone/Fax/E-mail. |
3.4.10 | As soon as possible after 3.4.9 | Authorise input of post event Acceptance Data in SAA Database. | BSCCo | SAA | Receive Instruction for Data Change (SAA-I035) Acceptance Data arising from Emergency Instruction. | Phone/Fax/E-mail. |
3.4.11 | As soon as possible after 3.4.10 and where possible, prior to II run | Enter post event Acceptance Data into SAA Database and provide confirmation Database has been updated. | SAA | BSCCo NETSO | Acceptance Data arising from Emergency Instruction Report Confirmation of Data Change (SAA-I036). | Internal Process. Phone/Fax/E-mail. |
3.5. Network Gas Supply Emergency Acceptances
The process is triggered by the issue of an instruction to the
Lead Party of a
BM Unit which contains
Generating Unit(s) to reduce or discontinue the offtake of gas by a
Gas Transporter for the purpose of
Load Shedding during
Stage 2 or higher of a
Network Gas Supply Emergency. In accordance with Section Q5.1.3 of the BSC, such instruction in respect of a
BM Unit shall be called a ‘
Network Gas Supply Emergency Acceptance’ and shall be treated as a Bid-
Offer Acceptance. See
Appendix 1 for further details.
REF. | WHEN | ACTION | FROM | TO | INFORMATION REQUIRED | METHOD |
3.5.1 | Without undue delay after receipt of an instruction to reduce or discontinue the offtake of gas | Inform BSCCo of the instruction. | Lead Party | BSCCo NETSO | Details of instruction including, but not limited to: | Phone/Fax/E-mail. |
3.5.2 | After 3.5.1 and no later than the end of the 2nd full working day after the Start Date in the instruction | NETSO constructs Acceptance Data relating to the Network Gas Supply Emergency Acceptance. Acceptance Data relating to Network Gas Supply Emergency Acceptances shall always be treated as System Flagged. | NETSO | | Information provided in 3.5.1, and other available data e.g. copy of notice or recording of telephone call from Gas Transporter to affected station | Internal Process. |
3.5.3 | After 3.5.2 | Process Settlement Data into Settlement, in accordance with steps 3.4.6 to 3.4.11. | | | | |
3.5.4 | After 3.5.3 | Repeat steps 3.5.2 to 3.5.3 as required. A lengthy Network Gas Supply Emergency Acceptance may require data for multiple Bid Offer Acceptance Numbers for each of multiple Settlement Days. | | | | |
3.5.5 | After 3.5.4 | Receive notification of the end of the Network Gas Supply Emergency. | | Lead Party | Network Gas Supply Restoration Time | Phone/Fax/E-mail. |
3.5.6 | After 3.5.5 | Inform BSCCo and the NETSO of the end of the Network Gas Supply Emergency. | Lead Party | NETSO BSCCo | Network Gas Supply Restoration Time | Phone/Fax/E-mail. |
3.5.7 | After 3.5.6 | Construct final element of Acceptance Data to cover the return to the BM Unit’s FPN (in accordance with submitted Dynamic Data. | NETSO | | | Internal Process. |
3.5.8 | After 3.5.7 | Submit final element of Network Gas Supply Emergency Acceptance, in accordance with steps 3.4.6 to 3.4.11. | | | | |
3.5.9 | After 3.5.8 | Request evidence to demonstrate that Final Physical Notifications and Bid Prices gave rise to Trading Charges consistent with Network Gas Supply Emergency Adjustment Principles | Network Gas Supply Emergency Settlement Validation Committee | Lead Party Subsidiary Parties | Request for information | Fax/E-mail |
3.5.10 | After 3.5. | Provide evidence to demonstrate that Final Physical Notifications and Bid Prices gave rise to Trading Charges consistent with Network Gas Supply Emergency Adjustment Principles | Lead Party and each Subsidiary Party to affected BM Unit(s) | Network Gas Supply Emergency Settlement Validation Committee | Information required to justify Physical Notifications and Bid Prices (including but not limited to that listed in Section G6.1.2 of the BSC) | Fax/E-mail |
3.5.11 | After 3.5.10 | Network Gas Supply Emergency Settlement Validation Committee considers evidence and decides whether to direct changes to FPNs, Bid Prices or Acceptance Data | | | As supplied in 3.5.10 | Internal process |
3.5.12 | After 3.5.11 | Provide written details of any agreed changes to data, and the reasons for them | Network Gas Supply Emergency Settlement Validation Committee | BSCCo Lead Party Subsidiary Parties | | Fax/E-mail |
3.5.13 | After 3.5.12, if changes are required to Acceptance Data | Submit changes to Acceptance Data into Settlement, in accordance with steps 3.4.6 to 3.4.11. | | | | |
3.5.14 | After 3.5.12, if changes are required to FPNs and/or Bid Price Data | Submit changes to FPNs and/or Bid Offer Data into Settlement, in accordance with steps in 3.2(a)11. | | | | |
Appendix 1 – Process for Settlement of Network Gas Supply Emergency Acceptances
Approved Modification P448 Alternative introduced a process (described in
section 3.5 of this Procedure) by which a
Load Shedding instruction issued to a gas-fired generator during
Stage 2 or higher of a
Network Gas Supply Emergency can be treated as a type of
Acceptance (a
Network Gas Supply Emergency Acceptance) for purposes of the
Code. The intent of this process is to protect the affected generators (and/or their associated Lead Parties and
Subsidiary Parties) from the Imbalance Charges they would otherwise have incurred if prevented by the
Load Shedding instruction from delivering
electricity they had contracted to deliver prior to receipt of that instruction.
The term Network Gas Supply Emergency is defined in the Procedure for Network Gas Supply Emergency issued by National Grid Gas plc. The term does not include Local Gas Supply Emergencies (which therefore fall outside the scope of the NGSEA process), but does include all of the following:
This Appendix provides additional information on the roles of the Lead Party (or associated Subsidiary Parties) and the Network Gas Supply Emergency Settlement Validation Committee in ensuring that these Acceptances are correctly settled. The Appendices use the following acronyms (in addition to those used in the body of the Procedure):
NGSEA | Network Gas Supply Emergency Acceptance |
NGSESVC | Network Gas Supply Emergency Settlement Validation Committee |
What types of BM Unit can use the process?
The process for Settlement of NGSEAs is open both to transmission-connected power stations (registered in a CVA BM Unit) and embedded power stations (registered in a CVA BM Unit or a Supplier BM Unit), provided that the Lead Party and/or associated Subsidiary Parties are able to demonstrate to the NGSESVC that the affected power stations had a firmly agreed contracted position prior to receipt of the Load Shedding instruction. This is necessary because the intent of P448 Alternative is to protect Lead Parties and Subsidiary Parties from Imbalance Charges only to the extent that they relate to such contracted positions. See below for further details of the criteria that the NGSESVC is required to take into account when considering whether a contracted position was sufficiently firmly agreed.
Where possible, the NETSO will deem the Acceptance Data relating to an NGSEA. Where the NETSO cannot do this (perhaps because the Lead Party does not submit Physical Notifications for this BM Unit) the NGSESVC will construct Acceptance Data from scratch. However, the nature of the NGSESVC process is that this will take longer, and the NGSEA will therefore not be Settled until a later Reconciliation Run.
Overview of Settlement process for NGSEAs
The process for
Settlement of NGSEAs is described in
section 3.5 of this Procedure, and can be summarised as follows:
1. In the first instance, the NETSO is responsible for constructing Acceptance Data for the NGSEA, which shows the reduction in output (relative to the FPN) arising from the Load Shedding instruction. If the Load Shedding continues for a protracted period of time NETSO may need to construct Acceptance Data for multiple Settlement Days, and multiple Bid Offer Acceptance Numbers per Settlement Day. The NETSO may do this on a rolling basis, creating further Acceptance Data for each day as it becomes certain that Load Shedding has continued into that day. Where possible the NETSO should submit Acceptance Data prior to the Interim Information (II) run for each Settlement Day, but where this is not possible the data may be entered into Initial Settlement (SF) or subsequent Reconciliation Runs.
2.Entering the
Acceptance Data into
Settlement (in accordance with
section 3.5 of this Procedure) will have the effect of ensuring that, in relation to the
Accepted Bid Volume (calculated as the difference between the FPN and the
Acceptance Data):
The Lead Party and/or associated Subsidiary Parties are not subject to Imbalance Charges; and
The Lead Party must pay the Bid Price (or be paid it, if the price is negative). This payment is intended to reflect the financial benefit to them of not being required to burn the gas and generate the electricity).
3.The intended purpose of these cash flows is to mitigate the risk of generators subject to Load Shedding (and/or their associated Lead Parties and Subsidiary Parties) being exposed to excessive Trading Charges as a result of events outside of their control. They are not intended to allow generators (and/or their associated Lead Parties and Subsidiary Parties) to benefit financially. To provide assurance of this, the NGSESVC will examine the Settlement Data relating to each NGSEA (and accompanying data provided by the Lead Party and/or Subsidiary Parties), and may amend data (for purposes of Settlement) as follows:
Amend the FPN up or down, to better reflect the contracted position prior to receiving the Load Shedding instruction;
Amend the Bid Price up or down, to better reflect the Avoidable Costs saved by the generator as a direct result of reducing their generation to comply with the Load Shedding instruction;
Amend the Acceptance Data constructed by the NETSO to better reflect the Load Shedding instruction(s) issued to the affected power station(s), and their subsequent return to the level of FPN. For example, the NGSESVC would need to do this if it had made a reduction to the FPN which had the effect of reducing the Run-Up time required to return to the FPN Final following the end of Load Shedding;
Create FPN Data or Bid Offer Data, where none was submitted under Grid Code processes; and/or
Create Acceptance Data, where the NETSO was not able to do so.
If a Lead Party or Subsidiary Party disagrees with the changes made to Settlement data by the NGSESVC, they may appeal their decision to the Authority.
Role of the Lead Party and/or Subsidiary Party
When a power station is subject to Load Shedding in Stage 2 or higher of a Network Gas Supply Emergency, the Lead Party of the BM Unit must inform the NETSO and BSCCo without undue delay. If the Lead Party is not directly involved in operation of the power station they may need to ensure that the generator informs them, so that they can inform the NETSO and BSCCo. If there is a delay in providing this notification it may prevent the NETSO from constructing Acceptance Data, and hence prevent or delay the Lead Party (and/or other parties involved) receiving any protection from Imbalance Charges.
During the period of Load Shedding the Lead Party can continue to update Physical Notifications, Bid Offer Data and Dynamic Data in accordance with the provisions of the Grid Code. However, in accordance with those Grid Code provisions, Physical Notifications for the period of Load Shedding should reflect the firm contracted position of the BM Unit prior to receipt of the Load Shedding instruction. In particular:
The Lead Party may submit Physical Notifications (for periods where they have not already done so), but these Physical Notifications must match the firm contracted position prior to receipt of the Load Shedding instruction; and
The Lead Party may increase or reduce the level of existing Physical Notifications, but only to bring them in line with the firm contracted position prior to receipt of the Load Shedding instruction.
The Lead Party (and any associated Subsidiary Parties) must also retain (and provide on request) any records that will allow the NGSESVC to validate their Physical Notifications and Bid Price.
Demonstrating that Physical Notifications reflect a firm contracted position
One of the roles of the NGSESVC is to verify that the Final Physical Notifications (used to calculate the Accepted Bid Volume) do reflect the BM Unit’s firm contracted position prior to receipt of the Load Shedding instruction. The Lead Party and/or associated Subsidiary Parties are therefore required to provide the NGSESVC with records demonstrating that, prior to the power station receiving the Load Shedding instruction:
They knew that the power station intended to generate at the level reflected in the BM Unit’s Final Physical Notification; and
This level of generation was reflected in firm power contracts. The P448 Alternative allows the NGSESVC to treat a power contract as firm if either:
The agreed level of generation was reflected in Energy Contract Volume Notifications (i.e. as a direct result of the power station’s planned generation they either notified the sale of that energy volume, or decided not to notify the purchase of that energy volume); or
The level of generation was agreed between the Lead Party and a Third Party Generator, provided that the agreement (e.g. Power Purchase Agreement) requires the Third Party Generator to pay the Lead Party the System Buy Price in relation to quantities of Active Energy that are not delivered.
With relation to point (i) above, Energy Contract Volume Notifications (and the contracts to which they relate) do not identify a BM Unit, so the Lead Party and/or Subsidiary Party will need to have other evidence demonstrating that they did intend (prior to the Load Shedding instruction) to deliver them using the power station that received the Load Shedding instruction. For example, such evidence could take the form of:
Internal records demonstrating that the decision to enter into the contract was made as a result of that power station notifying its intended level of generation; or
Evidence of the ‘merit order’ in which the party generally despatched the units available to it, demonstrating that the contract in question would have been delivered with the power station subject to Load Shedding.
Appendix 2 - Draft Terms of Reference for the NGSESVC
This document is a draft set of terms of reference for a
Network Gas Supply Emergency Settlement Validation Committee (NGSESVC) established for the purpose of verifying that
Trading Charges relating to
Network Gas Supply Emergency Acceptances are consistent with the
Network Gas Supply Emergency Adjustment Principles set out in
Section G6.1.3 of the
Code.
This document is provided for guidance only. The Panel retains the discretion whether or not to establish any such NGSESVC and the form any such Committee would take.
Unless otherwise stated, words and expressions used in these Terms of Reference shall have the meanings attributed to them under the Balancing and Settlement Code (‘the Code’). References to Sections are to Sections of the Code.
1. ESTABLISHMENT AND PURPOSE
1.1.1 A
Panel Committee has been established by the
Panel pursuant to
Section B5.1.1.
1.1.2 The Committee is known as the Network Gas Supply Emergency Settlement Validation Committee (NGSESVC).
1.1.3 The NGSESVC has been established in order to discharge the
Panel's functions under
Sections G6 as further described in these Terms of Reference.
1.1.4 For the purposes of
Section B5.5.1(a), the
Panel has delegated its decision-making functions under
Sections G6 to the NGSESVC, as further described in these Terms of Reference, and accordingly, for the purposes of the
Code:
(a) decisions of the NGSESVC under these Terms of Reference are binding on Parties;
(b) [there is no right of reference or appeal to the Panel in respect of any decision of the NGSESVC] - to be determined by the Panel at the time; and
(c) the Panel is not responsible for overseeing or reviewing any decision of the NGSESVC.
1.1.5 The NGSESVC shall remain in existence until such time as it has discharged its functions as described in these Terms of Reference or, if sooner, until the Panel determines that it shall cease to be established.
1.2.1 The NGSESVC is established in order to, pursuant to
Section G6:
(a) validate whether the Trading Charges calculated in relation to each Network Gas Supply Emergency Acceptance can reasonably be regarded as complying with the Network Gas Supply Emergency Adjustment Principles; and
(b) determine whether the Trading Charges relating to each Network Gas Supply Emergency Acceptance could be made more consistent with the Network Gas Supply Emergency Adjustment Principles by amending (for purposes of Settlement) Final Physical Notifications, Bid Prices or Acceptance Data.
1.2.2 The NGSESVC shall discharge all the functions of the
Panel as set out in
Section G6
1.2.3 The NGSESVC shall not have any powers, functions or duties by virtue of the Panel's delegation of functions as described in these Terms of Reference save as set out in these Terms of Reference.
2.1.1 The NGSESVC is to comprise [X] members.
2.1.2 The Panel may replace any member of the NGSESVC at any time if, in the Panel's opinion, such member is unwilling or unable to carry out his or her duties in accordance with these Terms of Reference.
2.2.1 The Panel has appointed [X] to be the Chair of the NGSESVC (the 'Chair').
2.2.2 If, at any time, such person is unwilling or unable to act as the Chair and/or as a member of the NGSESVC for whatever reason, such person shall cease to be a member of the NGSESVC and the Panel shall appoint a new member (being a person with similar skills and qualifications, where possible) in place of such member, and that new member shall be appointed as the Chair.
2.2.3 In addition to his responsibilities as a member of the NGSESVC, the Chair shall be responsible for the matters described in
paragraph 5.2 (and, for the purposes of
Section B5.1.4 and
B5.5.1(a), the
Panel expressly requires and permits the delegation of those functions to the Chair).
2.3.1 There shall be a secretary to the NGSESVC (the 'Secretary') who shall be a person nominated and provided by BSCCo and approved by the Chair from time to time.
2.3.2 The Secretary shall provide such administrative and secretarial support to the NGSESVC and the Chair as the NGSESVC and the Chair may require.
3.1.1 The NGSESVC shall act in accordance with these Terms of Reference (as modified from time to time by the Panel).
3.1.2 In accordance with
Section B5.3.1, the provisions of
Section B1.2 shall apply to the NGSESVC in the conduct of its business as it applies in relation to the
Panel and to the extent applicable to functions of the NGSESVC.
3.1.3 The NGSESVC shall not act as an expert or an arbitrator and the Arbitration Act 1996 shall not apply to any decision made pursuant to
Section G6.
3.2.1 Each member of the NGSESVC shall act impartially and shall not be representative of, and shall act without undue regard to, the particular interests of any particular person or class of persons (including his employer).
3.2.2 Each member of the NGSESVC shall disclose to the Panel from time to time any interests of such member which constitute, in such member's reasonable opinion, an actual or perceived conflict of interest in the discharge of its functions as a member of the NGSESVC, and the Panel shall determine whether such member may continue to hold office or whether to replace such member.
3.2.3 The
Panel may require confirmation from any member of the NGSESVC and/or his employer in terms equivalent to those set out in
Section B2.8.2.
3.2.4 Unless otherwise agreed by the Panel, a member of the NGSESVC shall not be entitled to appoint an alternate or otherwise delegate any of its responsibilities as a member of the NGSESVC to any other person.
3.3.1 Where the Chair is assigned functions under these Terms of Reference, the provisions of paragraphs
3.1 and
3.2 shall apply to the Chair in the discharge of those functions, as if references to the NGSESVC were references to the Chair.
4. REMUNERATION AND LIABILITIES
4.1.1 Each member of the NGSESVC shall be entitled to be paid by BSCCo such remuneration, benefits and expenses as may be included in its terms of engagement with BSCCo.
4.1.2 For the avoidance of doubt, any payments by
BSCCo pursuant to
paragraph 4.1.1 shall be
BSC Costs.
4.2 Liabilities and indemnities
4.2.1
BSCCo shall indemnify and keep indemnified each member of the NGSESVC and the Secretary (as an 'indemnity beneficiary') in accordance with
Section B2.9.1.
4.2.2 The provisions of
Section B2.9 shall apply to each member of the NGSESVC and the Secretary (as an 'indemnity beneficiary').
5.1.1 The NGSESVC shall discharge the functions assigned to the
Panel under
Section G6 save for those matters which are assigned to the Chair as set out in
paragraph 5.2 below.
5.1.2 Without prejudice to the generality of the foregoing, the functions of the NGSESVC shall include the following, in relation to each Network Gas Supply Emergency Acceptance:
(a) determining what volumes of Active Energy the relevant Lead Party or Subsidiary Party intended prior to the Network Gas Supply Emergency Acceptance Time (or can reasonably be inferred to have intended) to deliver using Generating Units affected by the Network Gas Supply Emergency Acceptance;
(b) determining the net saving in Avoidable Costs as a result of the Network Gas Supply Emergency Acceptance;
(c) validating whether the Trading Charges calculated in relation to the Network Gas Supply Emergency Acceptance can reasonably be regarded as complying with the Network Gas Supply Emergency Adjustment Principles; and
(d) determining whether the Trading Charges relating to the Network Gas Supply Emergency Acceptance could be made more consistent with the Network Gas Supply Emergency Adjustment Principles by amending and/or creating data as follows for purposes of Settlement:
(i) the Final Physical Notification;
(ii) the Bid Price and other Bid-Offer Data; and/or
(iii) the Acceptance Data; and
(e) providing reasons in writing for any determination to amend data for purposes of Settlement.
5.1.3 The NGSESVC shall implement the procedures ascribed in
Section G6 and
BSC Procedure BSCP18 in relation to the functions listed in
paragraph 5.1.2; and may determine and implement such further detailed procedures, guidance and indicative timetables, consistent with such procedures, as it sees fit.
5.1.4 The NGSESVC may do anything necessary for or reasonably incidental to the discharge of the functions assigned to it under these Terms of Reference.
5.1.5 Without prejudice to the generality of the foregoing, for the purposes of discharging its functions hereunder (and not for any other purpose):
(a) the NGSESVC may use and disclose such data as it sees fit, subject to and in accordance with
Section B3.3, and for these purposes, the
Panel's decision-making powers under
Section B3.3 are delegated to the NGSESVC and further delegated to the Chair as set out in
paragraph 5.2 below; and
(b) the NGSESVC may request BSCCo to procure such expert or external advice and assistance as it considers appropriate.
5.1.6 Subject to the delegation of certain functions to the Chair as set out in
paragraph 5.2 below, the NGSESVC shall not further delegate to any person any of its powers, responsibilities and functions save as expressly permitted by the
Code or the
Panel (but without prejudice to paragraph 5.3).
5.1.7 The NGSESVC shall endeavour to perform its functions in relation to all Network Gas Supply Emergency Acceptances in a timely fashion.
5.2.1 In addition to their duties as a member of the NGSESVC, the Chair shall be responsible for the following functions:
(a) scheduling meetings of the NGSESVC (as they see fit or as requested by any other member of the NGSESVC);
(b) setting the agenda for and chairing meetings of the NGSESVC;
(c) deciding the application of procedural rules to individual Lead Parties and Subsidiary Parties and determining any procedural issues relating to individual Lead Parties and Subsidiary Parties (within the parameters of the Code and BSC Procedure BSCP18, and within the parameters of any more detailed procedures established by the NGSESVC) including any variation or extension of time;
(d) determining the grouping of Network Gas Supply Emergency Acceptances and the order in which they should be considered by the NGSESVC;
(e) determining whether other persons should attend meetings of the NGSESVC and where appropriate inviting such persons to attend and speak at any meeting;
(f) taking such other steps and determining such other matters or queries as may be ascribed to the Chair; and
(g) determining such other procedural or ancillary matters and queries at any stage as may be necessary to ensure the proper, timely and efficient conduct of the functions of the NGSESVC.
5.2.2 Where the Chair is to discharge any function assigned to him as Chair pursuant to
paragraph 5.2.1, it shall not be necessary to hold a meeting of the NGSESVC for that purpose (except in the case of chairing meetings of the NGSESVC).
5.2.3 Where a function of the Chair is the determination of a matter, the Chair shall record any decision made in the exercise of such functions and shall report such decisions to the next meeting of the NGSESVC.
5.2.4 The decision of the Chair in relation to any matters or queries to be determined by the Chair pursuant to this
paragraph 5.2 shall be final and binding on Parties, the NGSESVC and the
Panel.
5.3.1 In addition to any functions assigned to
BSCCo under
Section G6,
BSCCo shall:
(a) provide or arrange for the provision of such facilities, resources and other support as may be required by the NGSESVC and/or the Chair to enable them to discharge their respective functions as described in these Terms of Reference;
(b) provide secretarial and administrative services in connection with meetings of the NGSESVC;
(c) at the request of the NGSESVC or the Chair, procure such expert or external advice and assistance as may be so requested; and
(d) keep BSC Parties informed of the operation of the NGSESVC, including the publication of data on the determinations of the NGSESVC, as it sees fit to disclose in accordance with
Section B3.3.
6.1.1 Subject to the matters prescribed in
paragraph 6.2 below, the NGSESVC shall determine the manner in which the proceedings and business of the NGSESVC shall be conducted (including the frequency and convening of meetings, the circulation of NGSESVC papers and the minuting of meetings) and, for the purposes of
Section B5.4, the provisions of
Section B4 (in relation to the
Panel) shall not apply to the NGSESVC.
6.2.1 Any matter of the NGSESVC to be decided shall:
(a) be put to the vote at the request of any member of the NGSESVC; and
(b) be decided by simple majority vote (and, for these purposes, each member shall hold one vote).
6.2.2 A resolution in writing signed by or on behalf of all the NGSESVC members in respect of any business of the NGSESVC shall be valid and effectual as if it had been agreed to at a duly convened meeting of the NGSESVC.
6.3.2 The Authority shall be entitled to receive notice of, and to appoint one or more representatives to attend.