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BSCP201: Black Start and Fuel Security Contingency Provisions and Claims Processes

v 8.0
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Balancing and Settlement Code

BSC Procedure

Black Start and Fuel Security Contingency Provisions and Claims Processes

BSCP201

Version 8.0

Date: 29 June 2023

BSCP201 relating to Black Start and Fuel Security Contingency Provisions

1. 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.

2. This is BSC Procedure 201, Version 8.0 relating to Black Start and Fuel Security contingency provisions.

3. This BSC Procedure is effective from 29 June 2023.

4. This BSC Procedure has been approved by the BSC Panel.

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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 Change

Changes Included

Mods/Panel/Committee Refs.

1.0

5 November 2009

First Published

P231 & P232

BSC Panel ref 160/08

2.0

31 March 2014

Modification P276

P276

Panel ref: P221/07

3.0

26 February 2015

February 15 Release

CP1425

Panel ref: P232/06

4.0

1 November 2018

November 18 Release

CP1504

Panel ref: P277/05

5.0

29 March 2019

March 19 Standalone Release

P369

P285/12

6.0

28 May 2020

May 20 Standalone Release

P403 Self-Governance

P302/14

7.0

1 September 2021

1 September 2021 Non-Standard Release

P420

P316/05

8.0

29 June 2023

29 June 2023 Release

CP1580

P338/04

1 Introduction

1.1 Purpose and Scope of the Procedure

This BSC Procedure (BSCP) describes the steps to be taken during and following a Black Start Period or a Fuel Security Code event, and supports the rules set out in BSC Section G ‘Contingencies’. It includes the steps required to restore normal BSC market operations, if these have been suspended during a Black Start. It also includes the steps required for BSC Parties to optionally raise claims for excess costs in certain circumstances. It highlights the responsibilities and actions required by industry participants to ensure this is done efficiently and effectively.

1.1.1 Black Start Event

a) What is a Black Start?

A Black Start, as defined in the Grid Code, is a recovery process for restoring electricity on the Total System (defined in the Grid Code as comprising the Transmission System, Distribution Systems and other User Systems).

The majority of Power Stations need electricity to start up and operate their generators. If the Total System shuts down (de-energises), these Power Stations will be unable to keep their generators running and will stop producing electricity. This will result in blackouts as Suppliers become unable to supply their customers.

Certain Power Stations are registered under their bilateral agreements with the National Electricity Transmission System Operator (NETSO) as having a Black Start Capability, meaning that at least one of the Power Station’s Gensets does not require an external source of electricity in order to generate. The NETSO can therefore call on these Black Start Stations under the Grid Code to initiate or assist a Black Start restoration if the Total System shuts down. It can do this by invoking Local Joint Restoration Plans with Black Start Stations, Network Operators and other Grid Code Users to energise part of the Total System, meet complementary local Demand and thereby form a Power Island. Each of the separate De-Synchronised Islands are gradually expanded and connected to each other (Re-Synchronised), and Demand is selectively reconnected, until the Total System is fully energised and operating normally.

As well as instructing those Grid Code Users with Local Joint Restoration Plans, the (NETSO) may also issue instructions under the Grid Code to other Grid Code Users as the system begins to re-energise.

There are two types of Black Start event that could occur:

    • A Total Shutdown of the Total System; or

    • A Partial Shutdown of one or more parts of the Total System.

The processes by which the NETSO determines the existence of a Total Shutdown or a Partial Shutdown, and by which it restores the Total System, are set out in Operating Code (OC) 9 of the Grid Code and not in the BSC. Definitions of the above bold terms can be found in the Grid Code.

b) How does a Black Start impact the BSC?

The trigger for invoking the BSC’s Black Start provisions is the NETSO’s determination and notification under Grid Code OC9 that a Total Shutdown or a Partial Shutdown exists, and that it intends to implement a Black Start.

The provisions of BSC Section G3 ‘Black Start’ are concerned only with determining:

    • If and when normal BSC market operations shall be suspended;

    • How and when normal BSC market operations, if suspended, shall resume; and

    • Claims for black start compensation amounts, as submitted by the Lead Parties of BM Units which have received black start instructions from the NETSO (as defined in BSC Section G3).

To do this, BSC Section G3 uses two key concepts:

    • A Black Start Period (during which the BSC’s Black Start contingency provisions apply, but normal BSC market operations are not necessarily suspended); and

    • A Market Suspension Period (during which normal BSC market operations are suspended).

For the purposes of the BSC:

    • If there is a Total Shutdown, then both a Black Start Period and a Market Suspension Period will exist. The Market Suspension Period will last for the entire duration of the Black Start Period.

    • If there is a Partial Shutdown, then a Black Start Period (but not necessarily a Market Suspension Period) will exist. A Market Suspension Period will only exist if, at any time during the Partial Shutdown, the Market Suspension Threshold specified in BSC Section G3 is met. In practice, there may therefore be a Market Suspension Period for some, all or none of the Black Start Period. If the Market Suspension Threshold is met, then the Market Suspension Period will last for the remaining duration of the Black Start Period.

c) What happens if there is a Market Suspension Period?

Normal BSC market operations will be suspended for the duration of the Market Suspension Period. This includes:

    • Suspending the operation of the Balancing Mechanism (including the submission and acceptance of Bids and Offers);

    • Suspending the TERRE Market (including the submission and activation of Replacement Reserve bids);

    • Suspending the notification of contract volumes (Energy Contract Volume Notifications and Metered Volume Reallocation Notifications);

    • Suspending the calculation of Energy Indebtedness, and thereby Parties’ credit positions; and

    • Suspending the normal imbalance pricing calculations and applying a Contingency Imbalance Price (as defined in Section 1.6 of this BSCP) to all Parties’ Metered Volumes.

All generators will be despatched by the NETSO for the duration of the Market Suspension Period. All instructions given by the NETSO to Grid Code Users during the Market Suspension Period will be deemed to be Emergency Instructions under the Grid Code (unless the NETSO specifies otherwise) and will represent black start instructions as defined in BSC Section G3. The Lead Party of any BM Unit which receives a black start instruction will be eligible to claim a black start compensation amount under the BSC, regardless of whether or not the BM Unit relates to a Black Start Station.

The Market Suspension Period and the Black Start Period will both end, and normal BSC market operations will resume, at a point determined by the BSC Panel after consultation with the NETSO (this will be some time after the restoration of the Total System under the Grid Code, so that participants can prepare for a return to normal BSC market operations).

d) What happens if there is no Market Suspension Period?

Normal BSC market operations including the Balancing Mechanism, the TERRE Market, the submission of contract notifications, credit positions and the normal imbalance pricing calculations will continue.

Only those instructions issued by the NETSO in accordance with Balancing Code (BC) 2.9.1.2(e)(i) of the Grid Code1 shall represent black start instructions as defined in BSC Section G3. The Lead Party of any BM Unit which receives such a black start instruction will be eligible to claim a black start compensation amount under the BSC.

The following instructions from the NETSO will be deemed to be Emergency Instructions under the Grid Code and black start instructions as defined in BSC Section G3:

    • Any instructions to Black Start Stations and to Network Operators which are part of an invoked Local Joint Restoration Plan (unless the NETSO specifies otherwise); and

    • In Scotland, any instructions to Gensets that are not at Black Start Stations, but which are part of an invoked Local Joint Restoration Plan and are instructed in accordance with the provisions of that Local Joint Restoration Plan.

The NETSO may issue other types of Emergency Instructions to other Grid Code Users. Where these are issued in accordance with Grid Code BC2.9.1.2(e)(i), they shall represent black start instructions as defined in BSC Section G3. Otherwise they shall not represent black start instructions and the normal Grid Code, BSC and CUSC provisions for these Emergency Instructions shall apply.

The NETSO will also continue to issue Bid Offer Acceptances (BOAs) and activate Replacement Reserve bids. These will not represent black start instructions, and the normal Grid Code and BSC provisions for BOAs and Replacement Reserve activations shall apply.

The Black Start Period will end when the NETSO determines that the Total System has returned to normal operation under the Grid Code.

e) What is the black start compensation amount?

The Lead Party of any BM Unit which is given a black start instruction during a Black Start Period may submit a claim for a black start compensation amount.

The black start compensation amount is:

    • The Lead Party’s Avoidable Costs; minus

    • The imbalance charges received, or reduction in imbalance charges paid, for the black start compensation volume.

Avoidable Costs are the amount of net costs of operating the BM Unit which would not have been incurred but for the black start instruction.

The black start compensation volume is the net change in the BM Unit’s Exports or Imports resulting from the Lead Party’s compliance with the black start instruction.

The calculation for determining the amount of imbalance charges to deduct from the Lead Party’s Avoidable Costs will be based on the relevant Contingency Imbalance Price(s) for any Settlement Periods which fall within a Market Suspension Period (when all contract positions are zero).

If, for any Settlement Periods which fall within a Black Start Period but not within a Market Suspension Period, the BM Unit is the subject of a Metered Volume Reallocation Notification, the calculation takes account of the imbalance charges incurred/paid by both the Lead Party and the Subsidiary Party(ies) and is based on the relevant imbalance prices and the Parties’ contract positions. The compensation is claimed by the Lead Party and any redistribution of funds between the Lead Party and Subsidiary Party(ies) is outside the BSC arrangements.

The terms “black start instruction”, “black start compensation amount” and “black start compensation volume” are defined in BSC Section G3. BSC Section G2 sets out what is included in, and excluded from, Avoidable Costs.

This BSCP provides a claims process for black start compensation amounts incurred as a result of black start instructions.

1.1.2 Fuel Security Code Event

A Fuel Security Code (FSC) event occurs when the Secretary of State exercises their powers under sections 34 and 35 of the Electricity Act 1989, to direct power stations or the NETSO to operate in specific ways (for example a power station with a particular fuel could generate more or less energy in order to balance the electricity grid, rather than a power station which would otherwise provide that service). A FSC ‘direction’ can be issued to one or multiple participants and a single FSC direction or several distinct FSC directions can be issued over the course of an event.

In a FSC event Generators (or the recipient of instructions from the Secretary of State) can claim Exceptional Costs. With this in mind, the BSC states that the FSC provisions supersede that of the BSC, and a BSC Party will not be in breach of the BSC for following a FSC direction.

Generally (but not always), the Secretary of State issues instructions via the NETSO, who informs the relevant BSC Party. However, there is no means for BSCCo to be aware of FSC directions as the Secretary of State does not provide information on FSC directions to BSCCo.

To avoid a BSC Party being placed in default if they have defaulted as a direct consequence of a FSC direction, the BSC Party must notify BSCCo. BSCCo will not be liable for actions relating to any incomplete information. Additionally the NETSO will use its discretion to inform BSCCo that a FSC direction has been issued to a BSC Party.

This BSCP does not contain provisions for a situation where a Fuel Security Code event could disrupt normal market operations. However, when BSC Section G 4.1 applies, the Secretary of State, after consultation with the Authority, can authorise that a Contingency Imbalance Price shall apply for a determined period (BSC Section G 4.2) and can authorise historic limits on balancing mechanism prices (BSC Section G 4.3). The Secretary of State can also authorise a revision or reduction of the Credit Assessment Price (BSC Section G 4.4). Refer to BSC Section G 4 for further details.

In the case of a FSC event, an application can be made by the Lead Party of a BM Unit who has received a direction from the Secretary of State (or, if empowered by the Secretary of State to do so, the NETSO) for exceptional costs arising from that direction either in anticipation of a Fuel Security Event period (if the direction does not specify the date of commencement of a Fuel Security Event period, or such date is in the future, or such date is subsequently rescinded before it is reached) or during a Fuel Security Event period.

An application for compensation can only be made for ‘Exceptional Costs’ (as defined in the FSC) actually incurred (i.e. no advance payments). This BSCP provides a claims process for Exceptional Costs incurred as a result of a FSC instruction.

1.2 Main Users of this Procedure and their Responsibilities

This procedure is to be used by:

    • BSCCo;

    • The NETSO;

    • BSC Parties;

    • BSC Agents;

    • The BSC Panel;

    • The Claims Committee; and

    • The Authority.

1.2.1 BSCCo

BSCCo shall:

    • Communicate that a Total Shutdown or Partial Shutdown exists and that the NETSO intends to implement a Black Start;

    • Determine and communicate the Settlement Period and Settlement Day representing the start of the Total Shutdown or Partial Shutdown, and therefore of the Black Start Period;

    • Determine and communicate the Settlement Period and Settlement Day representing the start of any Market Suspension Period, and therefore of the suspension of normal BSC market operations;

    • Where there is a Market Suspension Period, communicate the Settlement Period and Settlement Day from which the BSC Panel has determined that normal BSC market operations shall resume (and that the Settlement Period immediately before this shall be the end of the Market Suspension Period and of the Black Start Period);

    • Where there is no Market Suspension Period, determine and communicate the Settlement Period and Settlement Day representing the end of the Black Start Period;

    • Communicate the status of the Transmission System during a Black Start Period;

    • Communicate the status of the BSC Systems during a Black Start Period;

    • Provide administrative assistance to the BSC Panel;

    • Provide administrative assistance to the Claims Committee;

    • Calculate (for the determination and approval of the Panel), in accordance with BSC Section T1.7, the Contingency Imbalance Price(s) that shall apply during a Market Suspension Period;

    • Publish the total amount (£) claimed for and the total amount (£) approved by the Claims Committee; and

    • Inform BSC Parties of the time and method of cost recovery.

1.2.2 NETSO

The NETSO shall:

    • Determine and notify BSCCo that a Total Shutdown or a Partial Shutdown exists and that it intends to implement a Black Start under the Grid Code;

    • Determine and inform BSCCo of the time and date from which the Total Shutdown or Partial Shutdown commenced;

    • Monitor the Market Suspension Threshold during a Partial Shutdown in accordance with BSC Section G3 and, if applicable, notify BSCCo of the time and date on which the Market Suspension Threshold was met;

    • Inform BSCCo of the operation of the Transmission System during a Black Start Period;

    • Advise the BSC Panel (if there is a Market Suspension Period) or BSCCo (if there is no Market Suspension Period) of the time and date that the Total System could return to normal operation under the Grid Code;

    • Where there is a Market Suspension Period, advise the Panel (at any time up to one hour before normal BSC market operations would otherwise resume) if the Total System can no longer return to normal operation at that time and date;

    • Where there is a Market Suspension Period, advise the Panel on preparing to resume normal BSC market operations for the purposes of BSC Sections Q and P;

    • Where there is no Market Suspension Period, inform BSCCo of the time and date that the Total System returned to normal operation under the Grid Code; and

    • Communicate any circumstances which may affect the calculation of a Contingency Imbalance Price.

1.2.3 BSC Parties

BSC Parties shall:

    • Where there is a Market Suspension Period, submit Physical Notifications under the Grid Code that are to apply following the end of the Market Suspension Period;

    • Inform BSCCo if a credit default situation occurs as the result of a FSC direction;

    • Inform the Panel of factors relevant to the timing of the recommencement of normal BSC market operations (in response to Panel consultation or otherwise);

    • Request time extensions for claims submissions when required;

    • Submit claims for black start compensation amounts incurred due to a black start instruction and Exceptional Costs incurred due to a Fuel Security Code direction; and

    • Withdraw claims from the claims process (if chosen to do so).

1.2.4 BSC Agents

The BSC Agent responsible for the BSC Services shall:

    • Communicate the status of the BSC Systems to BSCCo;

    • Where there is a Market Suspension Period, send forward contract notification reports to BSC Parties before the end of the Market Suspension Period informing them of their contractual position for Settlement Periods after the end of the Market Suspension Period;

    • Apply the relevant Contingency Imbalance Price(s) to all Settlement Periods within a Market Suspension Period;

    • Ensure the value of Energy Indebtedness is set to zero / nullified for all Settlement Days within a Market Suspension Period;

    • Where there is a Market Suspension Period, provide a revised timetable for system settlement runs, reporting and payments to restore the timetable to normal efficiently and securely; and

    • Perform settlement of claims when requested.

1.2.5 The Panel

The BSC Panel shall:

    • Where there is a Market Suspension Period and after industry consultation, determine the Settlement Day and Settlement Period from which normal BSC market operations will resume (and the Settlement Period immediately before this shall represent the end of both the Market Suspension Period and the Black Start Period);

    • Where there is a Market Suspension Period and after industry consultation, determine the methodology (in accordance with BSC Section T1.7.1A) to be used to calculate the Contingency Imbalance Price(s);

    • Appoint a Claims Committee to process Black Start and Fuel Security compensation claims; and

    • Make determinations on time-extension requests for the submission of claims and, if required, request further information from the Claimant (BSC Party) regarding time-extension requests (this action could be delegated to the Claims Committee).

1.2.6 Claims Committee

The Claims Committee shall:

    • Request further information from the Claimant (BSC Party) regarding their claim submission;

    • Determine the process required for validating each submitted claim; and

    • Validate and assess each claim and determine the amount payable to the Claimant (BSC Party).

1.2.7 The Authority

The Authority shall:

    • Determine whether any Contingency Imbalance Price(s) required and proposed by the BSC Panel shall be used;

    • For successful claims pertaining to Fuel Security Event periods, determine the time-frame and method of payment to the Claimant (BSC Party); and

    • For successful claims pertaining to Fuel Security Event periods, determine the method of cost recovery from the industry.

1.3 Key Milestones

This procedure has the following key milestones:

    • The determination of the Settlement Period for when the market is to return to normal operations following a Market Suspension Period;

    • The determination of the Settlement Period representing the end of the Black Start Period (where there has been a Market Suspension Period, this shall be the same Settlement Period referred to above);

    • The determination of the Contingency Imbalance Price(s) to apply during a Market Suspension Period; and

    • The determination of claims for compensation resulting from a “black start instruction” or a Fuel Security direction.

1.4 Balancing and Settlement Code Provision

This BSCP should be read in conjunction with the BSC and in particular Sections G, N6.6, R, T1.4 and T1.7. It should also be read in conjunction with Grid Code BC2 and Grid Code OC9.

In the event of any inconsistency between the provisions of this BSCP and the BSC, or between this BSCP the Grid Code, the provisions of the relevant code shall prevail.

1.5 Related BSC Procedures

There are no related BSC Procedures.

1.6 Acronyms and Definitions

1.6.1 Acronyms

BC

Balancing Code (part of the Grid Code)

BM

Balancing Mechanism

BMRS

Balancing Mechanism Reporting Service

BSC

Balancing and Settlement Code

BSCCo

Balancing and Settlement Code Company

BSCP

Balancing and Settlement Code Procedure

BSUoS

Balancing Services Use of System

CDCA

Central Data Collection Agent

CUSC

Connection and Use of System Code

ECVAA

Energy Contract Volume Aggregation Agent

FAA

Funds Administration Agent

FSC

Fuel Security Code

MIDP

Market Index Data Provider

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.

OC

Operating Code (part of the Grid Code)

SAA

Settlement Administration Agent

SVAA

Supplier Volume Allocation Agent

TNUoS

Transmission Network Use of System

TERRE

Trans-European Replacement Reserves Exchange

WD

Working Day

1.6.2 Definitions

Avoidable Costs

Has the meaning given to that term in BSC Section G2.1;

Balancing Mechanism

Has the meaning given to that term in the Transmission Licence;

Black Start

Has the meaning given to that term in the Grid Code;

Black Start Capability

Has the meaning given to that term in the Grid Code;

Black Start Station

Has the meaning given to that term in the Grid Code;

“black start compensation”

The Lead Party compensation described in BSC Section G3.3;

“black start compensation amount”

Has the meaning given to that term in BSC Section G3.3.2;

“black start compensation volume”

Has the meaning given to that term in BSC Section G3.3.2;

“black start instruction”

Has the meaning given to that term in BSC Section G3.3.1C;

Black Start Period

Means the period described in BSC Section G3.1.2(d);

Claims Committee

Has the meaning given to that term in BSC Section B3.5.1;

Contingency Imbalance Price

Means any imbalance price(s) determined in accordance with BSC Section T1.7 for the purpose of BSC Section G;

Demand

Has the meaning given to that term in the Grid Code;

De-Synchronised Island(s)

Has the meaning given to that term in the Grid Code;

Emergency Instruction

Has the meaning given to that term in the Grid Code;

Energy Indebtedness

Has the meaning given to that term in BSC Section M1.2.1;

Exceptional Cost

Has the meaning given to that term in the Fuel Security Code;

Genset

Has the meaning given to that term in the Grid Code;

Grid Code User

Has the meaning given to the term User in the Grid Code;

Local Joint Restoration Plan

Has the meaning given to that term in the Grid Code;

Market Suspension Period

Means the period determined in accordance with BSC Section G3.1.3(a) or G3.1.7(b), as applicable;

Market Suspension Threshold

Has the meaning given to that term in BSC Section G3.1.5;

Network Operator

Has the meaning given to that term in the Grid Code;

Partial Shutdown

Has the meaning given to that term in the Grid Code;

Power Island

Has the meaning given to that term in the Grid Code;

Power Station

Has the meaning given to that term in the Grid Code;

Re-Synchronisation

Has the meaning given to the term in the Grid Code, and the term “Re-Synchronised” shall be construed accordingly;

Total Shutdown

Has the meaning given to that term in the Grid Code;

Total System

Has the meaning given to that term in the Grid Code;

User System

Has the meaning given to that term in the Grid Code;

Volume Notification

Has the meaning given to that term in BSC Section P5.1.1(a).

All other defined terms used throughout this document have the meaning given to those terms in BSC Section X.

2 Black Start Recovery Processes

2.1 Total Shutdown Recovery Process

The following diagrams and guidance explain the process to recover from a Total Shutdown. They cover both the process to restore the Total System under the Grid Code and the process to resume normal BSC market operations under the BSC.

A Total Shutdown will always result in a Market Suspension Period under the BSC, the start and end points of which will be the same as the Black Start Period. Where there is a Partial Shutdown, the Grid Code process to restore the Total System will be the same as for a Total Shutdown. However, in a Partial Shutdown there will only be a Market Suspension Period if the BSC’s Market Suspension Threshold is met – and so there may be a Market Suspension Period for some, all or none of the Black Start Period.

Where there is a Market Suspension Period as a result of a Partial Shutdown, the process for resuming normal BSC market operations (and for determining the end of the Market Suspension Period and Black Start Period) will be the same as for a Total Shutdown. However, the timing of the steps for resuming normal BSC market operations may differ depending on the point in time at which the market is suspended. Where there is no Market Suspension Period during a Partial Shutdown, the Black Start Period will conclude at the end of the Settlement Period in which the Total System returned to normal operation.

complex image of process

Total Shutdown Recovery Diagram Notes

This note should be used alongside the Total Shutdown Recovery Diagram. A simplified Total Shutdown Recovery Diagram has been included below:

complex image of process

Simplified Total Shutdown diagram Points A – F

POINT A1 – Existence of a Black Start situation

    • The NETSO will contact relevant Grid Code Users to invoke Local Joint Restoration Plans and begin the restoration of the Total System.

    • The NETSO will work towards restoring the Total System (period from ‘Point A1’ to ‘Point B’).

    • The NETSO will inform BSCCo that a Total Shutdown exists and that it intends to implement a Black Start (the NETSO will subsequently inform BSCCo, in its reasonable opinion, of the time and date of the shutdown, known as ‘Point A2’).

    • After receipt of the NETSO’s notification, BSCCo will communicate the existence of a Black Start Period and Market Suspension Period to all BSC Parties, BSC Agents, and any CM Settlement Services Provider as soon as normal communication channels2 become available.

    • Where data is not available, the relevant Settlement Runs will be delayed in accordance with Sections T1.4.2 and T1.4.5 of the BSC. The FAA shall then take appropriate action with regard to the Payment Date in accordance with Section N6.6 of the BSC.

POINT A2 – NETSO declaration of time and date

    • Based on its investigations, the NETSO will determine in its reasonable opinion the start time and date of the Total Shutdown and will notify BSCCo.

    • After receipt of the NETSO’s notification, BSCCo will establish the corresponding Settlement Period/Day and will communicate this as the start of the Black Start Period and Market Suspension Period to all BSC Parties, BSC Agents, and any CM Settlement Services Provider.

POINT B – Energisation of the Transmission System

    • When the Transmission System is energised, the NETSO will inform BSCCo.

    • BSCCo will pass this information on to BSC Parties, via normal communication channels, with the caveat that the market is still suspended and individuals may not have power, hampering their ability to receive those communications.

POINT C (B to C) – Restoration of the NETSO’s BM system

    • The NETSO will work to restore its BM systems, which are capable of communications with Grid Code Users. Grid Code Users and BSCCo will be informed when the systems have been restored and are therefore available and capable of operation.

    • BSCCo will pass this information onto BSC Parties.

POINT D (B to D) – Restoration of BSC Systems

    • BSCCo will work with BSC Agents to restore the BSC Systems. When the BSC Systems are restored, BSCCo will inform the BSC Panel and BSC Parties that the BSC Systems are available and capable of operating. Refer to Section 2.2 of this BSCP for more detail on the Black Start requirements of the BSC Systems.

POINT E – Restoration of the Total System

    • At this point, the Transmission System has been re-energised in accordance with OC9.4.7.9; generators are able to generate sufficient electricity to meet Demand and are under instructions of the NETSO through the NETSO’s BM system; and the BSC Systems are available and capable of operating.

    • The NETSO will inform BSCCo and Grid Code Users of the time and date that the Total System could return to normal operation under the Grid Code. BSCCo will convey the information contained in these updates to the BSC Panel and BSC Parties via normal communication channels.

    • The NETSO will inform BSCCo of any circumstances which are likely to affect the calculation of a Contingency Imbalance Price (see Section 3.4 of this BSCP for further details).

POINT F –Panel determination of the return to normal BSC market operations

    • At the start of ‘Point F’, the BSC Panel will determine a proposed Settlement Period/Day from which normal BSC market operations shall resume. This is ‘Point K’ on the diagram.

    • The BSC Panel will consult with the NETSO (and may consult with BSC Parties, Party Agents, Market Index Data Providers and the Authority) on the proposed timetable for the resumption of normal BSC market operations.

    • Following feedback received during the consultation, the BSC Panel will determine the point at which normal BSC market operations should resume (‘Point K’).

    • BSCCo will promptly inform all BSC Parties and any CM Settlement Services Provider of the Settlement Period/Day from which normal BSC market operations shall resume (‘Point K’). The NETSO will notify Grid Code Users of this ‘Point K’.

    • The Panel will determine / confirm the methodology to be used in the calculation of the Contingency Imbalance Price(s) (see Section 3.4 of this BSCP for further details).

Simplified Total Shutdown diagram Points F – K

complex image of process

POINT G: ECVAA returns to normal operations

    • The ECVAA will return to normal operations. Therefore Volume Notifications submitted by BSC Parties will be processed and reports will be issued to BSC Parties. These will include the forward contract report (ECVAA-I022) which is issued daily to each Contract Trading Party summarising notifications received relating to that Contract Trading Party for the next seven days. This will therefore show BSC Parties their contract position at ‘Point G’ + 7 days, with the caveat that their contract position is ‘zero’ up until ‘Point K’. A warning will be placed on the BMRS to remind BSC Parties that all contract positions are zero until normal BSC market operations resume (at ‘Point K’).

POINTS H – J: Submission of Party Data to the NETSO and BSC Systems (Bids and Offers, Volume Notifications and Physical Notifications)

    • BSC Parties are to agree their despatch with the NETSO through this period.

    • It is expected that BSC Parties will begin negotiating bilateral contracts.

    • Between ‘Point H’ and ‘Point J’ (‘Point K’ minus 1 hour) BSC Parties can submit Volume Notifications, Bid-Offer Data and TERRE bids in relation to the first and subsequent Settlement Periods after ‘Point K’.

    • Between ‘Point H’ and ‘Point I’ (‘Point K’ minus 10 hours) BSC Parties should use reasonable endeavours to submit Physical Notifications to reflect their required physical position at ‘Point K’.

POINT I: 10 hours to Point K

    • This point is 10 hours before normal BSC market operations are planned to resume. BSC Parties should use reasonable endeavours to submit all Physical Notifications possible for ‘Point K’ by now. The NETSO will then despatch plant to enable BSC Parties to meet their required physical position at ‘Point K’. If a BSC Party submits a revised Physical Notification after ‘Point I’, it may not be possible for the NETSO to despatch the plant in order for the BSC Party to meet this revised position.

    • For Settlement Periods which are to follow the start of normal BSC market operations, BSC Parties should submit BM Unit data in accordance with BC1 of the Grid Code.

POINT J: Gate Closure for Point K and Final Decision

    • At any time up to one hour before the start of the Settlement Period from which normal BSC market operations are planned to resume, the NETSO shall notify any reason why the Total System could not return to normal operation by that time. If needed, the Panel will make a revised determination as to the Settlement Period/Day from which normal BSC market operations shall resume (a new ‘Point K’). BSCCo shall promptly notify all BSC Parties and any CM Settlement Services Provider of any revised Panel determination regarding ‘Point K’, and the NETSO shall subsequently notify Grid Code Users.

    • If the Panel determines that ‘Point K’ should occur at a later time than originally planned, the Total Shutdown process moves back to ‘Point F’. The NETSO will continue to despatch generators up to the revised ‘Point K’.

POINT K: End of the Black Start Period and Market Suspension Period

    • ‘Point K’ is the Settlement Period/Day from which normal BSC market operations resume.

    • The end of the Settlement Period immediately before this represents the end of both the Black Start Period and the Market Suspension Period.

    • At this point, Black Start provisions no longer apply. The Total System, Balancing Mechanism and all BSC Systems are operating normally.

    • No specific rules are required for any subsequent Settlement Periods after ‘Point K’, e.g. Parties can submit revised Physical Notifications up to Gate Closure.

2.2 Restoration of BSC Systems following a Market Suspension Period

The BSC Systems will be operated in the following manner during a Market Suspension Period:

    1. Continue normal operation of the BMRS as far as is possible in the following manner:

    • The BMRS would be used to provide industry with updates regarding the status of the Transmission System and other relevant systems;

    • Tibco messages would continue to be issued where possible;

    • A notice would be placed on the BMRS stating that the indicative prices are not accurate, and that contract positions are ‘zero’, for Settlement Periods during a Market Suspension Period;

    • When the market returns to normal operation (i.e. point K) the BMRS would continue calculating indicative prices for subsequent Settlement Periods based on actual data received from the NETSO

    • The BMRS will publish the Contingency Imbalance Price information for all Settlement Periods during the Market Suspension Period, once the Panel has agreed the methodology and the price(s) has been calculated by BSCCo; and

    • BMRS will not receive any TERRE Market related data relating to Settlement Periods within the Market Suspension Period.

    1. ECVAA should continue operating throughout the Market Suspension Period, where possible, as follows:

    • Where notifications are submitted, these will be processed and reports sent back;

    • ‘Zero’ data is sent to the SAA for all Settlement Periods within the Market Suspension Period;

    • Credit Default process switched off and Energy Indebtedness for all Parties set to Zero for all Settlement Periods within the Market Suspension Period; and

    • Submitted Volume Notifications would be processed in relation to Settlement Periods following point K.

    1. CDCA to continue normal operations. This would include:

    • Collecting data throughout the Market Suspension Period where possible; and

    • Aggregation runs carried out normally as far as possible.

    1. SVAA to continue normal operations as far as possible including:

    • Calculation of Daily Profile Coefficients; and

    • Volume Allocation Runs carried out normally as far as possible in accordance with Section R of the BSC.

    1. SAA runs would not be carried out until the Contingency Imbalance Price methodology has been determined by the BSC Panel and the price(s) has been calculated by BSCCo – see section 3.4.

    2. FAA Payment Runs may be postponed in accordance with Section N6.6 of the BSC.

3 Interface and Timetable Information

This section contains:

    • A summary (3.1) of the Grid Code procedure for restoring the Total System following a Black Start event;

    • The BSC procedure (3.2) for determining and communicating:

      • The existence of a Total Shutdown or a Partial Shutdown, and the start of a Black Start Period;

      • The start of any Market Suspension Period where the Market Suspension Threshold is met; and

      • The end of a Black Start Period where there is no Market Suspension Period,

    • The procedure (3.3) for:

      • Suspending, and preparing to resume, normal BSC market operations during any Market Suspension Period; and

      • Determining and communicating the end of the Market Suspension Period and Black Start Period after which normal BSC market operations will resume,

    • The procedure (3.4) for calculating and applying the Contingency Imbalance Price(s) during a Market Suspension Period;

    • The procedure (3.5) for applying for a time-extension to submit claims for black start compensation amounts following a Black Start event, or for Exceptional Costs following a FSC event;

    • The procedure (3.6) for submitting claims for black start compensation amounts or Exceptional Costs; and

    • The procedure (3.7) for withdrawing claims for black start compensation amounts or Exceptional Costs.

Sections of these procedures can run concurrently, and are not necessarily dependent upon the completion of the previous procedure.

3.1 Total System Recovery Process – Initial Shutdown to System Capability Restored

The following procedure is a summary of the Black Start recovery process under Grid Code OC9. It applies to both Total Shutdowns and Partial Shutdowns, begins from when the Total Shutdown or Partial Shutdown occurs and completes when the Total System is re-energised and operating normally.

The Grid Code’s OC9 contingency provisions will cease to apply after the end of the BSC’s Black Start Period. For details on how the end of the Black Start Period is determined, see procedures 3.2 and 3.3.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

3.1.1

In accordance with Grid Code OC9

Determine that a Total Shutdown or a Partial Shutdown exists

NETSO

Grid Code OC9 provisions

Internal process

3.1.2

As soon as possible after 3.1.1

Contact relevant Grid Code Users with the ability to ‘Black Start’ to begin the process of restoring power to the Total System

NETSO

Relevant Grid Code Users

Instructions to Black Start Stations and other Grid Code Users with Local Joint Restoration Plans

Local Joint Restoration Plans

Grid Code OC9 provisions

(dependent upon which methods are available at the time)

3.1.3

As appropriate and practicable

Provide information on the operation of the Transmission System

NETSO

BSCCo

Energisation status of the Transmission System

(dependent upon which methods are available at the time)

3.1.4

As soon and so far as is practicable after 3.1.3

Communicate information on the operation of the Transmission System

BSCCo

BSC Parties

BSC Agents

The Panel

NETSO’s notification under 3.1.3

(dependent upon which methods are available at the time)

3.1.5

In parallel with 3.1.3

Communicate the availability and capability of the BSC Systems

BSC Agents

BSCCo

Status of the BSC Systems

(dependent upon which methods are available at the time)

3.1.6

As soon as and so far as is practicable after 3.1.5

Communicate the availability and capability of the BSC Systems

BSCCo

BSC Parties

BSC Agents

The Panel

NETSO

Status of the BSC Systems

(dependent upon which methods are available at the time)

3.1.7

In accordance with Grid Code OC9

Determine and notify the time and date that the Total System could return to normal operation

NETSO

BSCCo

Grid Code OC9 provisions

3.1.8

As soon and so far as is practicable after 3.1.7

Communicate the time and date that the Total System could return to normal operation

BSCCo

BSC Parties

BSC Agents

The Panel

NETSO’s notification under 3.1.7

(dependent upon which methods are available at the time)

3.1.9

Following 3.1.7 and in accordance with Grid Code OC9

Determine that the Total System has returned to normal operation

NETSO

BSCCo

Status of the Total System

Provisions of Grid Code OC9

Internal process

3.2 Black Start Notification Process – Initial Shutdown to Either Market Suspension or System Capability Restored

This procedure details the BSC process for communicating the existence of a Black Start event and the start of a Black Start Period. It covers the notification process up to the start of a Market Suspension Period or the restoration of the Total System, whichever occurs first.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

3.2.1

As soon as possible after 3.1.1

(for both Total and Partial Shutdowns)

Notify existence of a Total Shutdown or a Partial Shutdown and the intention to implement a Black Start

NETSO

Relevant Grid Code Users

BSCCo

Existence of Total or Partial Shutdown

Grid Code OC9 provisions

(dependent upon which methods are available at the time)

3.2.2

As soon as possible after 3.1.1

(for Partial Shutdowns only)

Begin monitoring the Market Suspension Threshold

NETSO

Existence of Partial Shutdown

Information specified in BSC Section G3

Internal process

3.2.3

As soon as practicable after 3.2.1

(for both Total and Partial Shutdowns)

Notify existence of a Total Shutdown or a Partial Shutdown and that the NETSO intends to implement a Black Start

BSCCo

BSC Parties

BSC Agents

The Panel

CM Settlement Services Provider

NETSO’s notification under 3.2.1

(dependent upon which methods are available at the time)

3.2.4

As soon as practicable after 3.2.1

(for both Total and Partial Shutdowns)

Determine and notify the time and date from which the Total Shutdown or Partial Shutdown began

NETSO

BSCCo

Time and date of the Total Shutdown or Partial Shutdown

(dependent upon which methods are available at the time)

3.2.5

As soon as and so far as is practicable after 3.2.4

(for both Total and Partial Shutdowns)

Determine the corresponding Settlement Period and Settlement Day and notify that the start of this Settlement Period represents the start of a Black Start Period

BSCCo

BSC Parties

BSC Agents

The Panel

CM Settlement Services Provider

NETSO’s notification under 3.2.4

(dependent upon which methods are available at the time)

3.2.6

In parallel with 3.2.5

(for Total Shutdowns only)

Notify that the start of the Black Start Period is also the start of a Market Suspension Period

Go to 3.3.1

BSCCo

BSC Parties

BSC Agents

The Panel

CM Settlement Services Provider

Existence of Total Shutdown

NETSO’s notification under 3.2.4

(dependent upon which methods are available at the time)

3.2.7

At any time after 3.2.2 if Market Suspension Threshold met

(for Partial Shutdowns only)

Notify (as soon as is practicable) the time and date on which the Market Suspension Threshold was met

NETSO

BSCCo

Information specified in BSC Section G3

(dependent upon which methods are available at the time)

3.2.8

As soon as and so far as is practicable after 3.2.7

(for Partial Shutdowns only)

Determine the corresponding Settlement Period and Settlement Day and notify that the start of this Settlement Period represents the start of a Market Suspension Period

Go to 3.3.1

BSCCo

BSC Parties

BSC Agents

The Panel

CM Settlement Services Provider

NETSO’s notification under 3.2.7

(dependent upon which methods are available at the time)

3.2.9

As soon as possible after 3.1.9 if Market Suspension Threshold not met

(for Partial Shutdowns only)

Notify the time and date from which the Total System returned to normal operation

NETSO

BSCCo

Time and date that the Total System returned to normal operation

Electronic or other method as agreed

3.2.10

Promptly after 3.2.9, if Market Suspension Threshold not met

(for Partial Shutdowns only)

Determine the corresponding Settlement Period and Settlement Day and notify that the end of this Settlement Period represents the end of the Black Start Period

BSCCo

BSC Parties

BSC Agents

The Panel

CM Settlement Services Provider

NETSO’s notification under 3.2.9

Circular via e-mail, BSC Website, BMRA website and other methods as agreed

3.3 Market Recovery Process – Market Suspension to Normal Market Operations

The following is the procedure for:

    • Suspending, and preparing to resume, normal BSC market operations during any Market Suspension Period; and

    • Determining and communicating the end of the Market Suspension Period and Black Start Period after which normal BSC market operations will resume.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

3.3.1

As soon as possible/ practicable after 3.2.6 (for Total Shutdowns) or 3.2.8 (for Partial Shutdowns), and on-going until 3.3.18

Communicate in detail with relevant BSC Agents to confirm what actions are required and when for all affected BSC Systems

BSCCo

SAA

BMRA

ECVAA

FAA

Existence of Market Suspension Period

Status of BSC Systems

Provisions of BSC Section G3.2

(dependent upon which methods are available at the time)

3.3.2

As soon as possible/ practicable after 3.3.1

Delay Settlement Runs for Settlement Periods/Days where data is not available or is no longer applicable

SAA

Settlement Calendar

Status of BSC Systems

Settlement Periods/Days falling within the Market Suspension Period

Availability of Settlement data for Settlement Periods / Days preceding the Market Suspension Period

Internal process

3.3.3

As soon as possible/ practicable after 3.3.2

Revise and/or delay the Payment Date for any affected Settlement Days, if required, in accordance with BSC Section N6.6

FAA

Payment Calendar

Status of BSC Systems

Settlement Periods/Days falling within the Market Suspension Period

Availability of Settlement Run data for Settlement Periods/Days preceding the Market Suspension Period

Internal process

3.3.4

As soon as possible/ practicable after 3.3.1

Suspend the normal imbalance pricing calculations on the BMRS

BMRA

Settlement Periods/Days falling within the Market Suspension Period

Internal process

3.3.5

As soon as possible/ practicable after 3.3.1

Set the Credit Assessment Energy Indebtedness (CEI) and Metered Energy Indebtedness (MEI) to zero for all Settlement Periods within the Market Suspension Period

Set the Actual Energy Indebtedness (AEI) to zero for all Settlement Days that fall wholly or partially within the Market Suspension Period

ECVAA

Settlement Periods/Days falling within the Market Suspension Period

Internal process

3.3.6

After 3.1.7

Having regard to the matters set out in BSC Section G3.1.3, determine the Settlement Day and Settlement Period from which normal BSC market operations should resume

The Panel

Time and date (as determined and notified by the NETSO under 3.1.7) that the Total System could return to normal operation

Proposed Settlement Day and Settlement Period of return to normal BSC market operations

Provisions of BSC Section G3.1.3

Panel Meeting

3.3.7

After 3.3.6

Consult the NETSO, and (if the Panel deems appropriate/necessary) the industry, on the suitability of the Settlement Day and Settlement Period from which normal BSC market operations are proposed to resume

The Panel (via BSCCo)

NETSO

Proposed Settlement Day and Settlement Period of return to normal BSC market operations

Electronic or other method as agreed

BSC Parties

Party Agents

MIDP(s)

The Authority

Circular via e-mail and BSC Website plus other methods as agreed

3.3.8

After 3.3.7

Make final determination on the Settlement Day and Settlement Period from which normal BSC market operations should resume (repeating steps 3.3.6 and 3.3.7 if necessary)

Agree any instructions on the requirements and timing of relevant BSC System reports, including the 7-day forward contract report

The Panel

BSCCo

Proposed Settlement Day and Settlement Period of return to normal BSC market operations

Views of NETSO received under 3.3.7

Any industry responses received under 3.3.7

Panel Meeting

3.3.9

Promptly after 3.3.8

Communicate the Settlement Day and Settlement Period from which normal BSC market operations shall resume, and that the end of the Settlement Period immediately before this shall represent the end of both the Market Suspension Period and the Black Start Period

BSCCo

BSC Parties

BSC Agents

Party Agents

CM Settlement Services Provider

NETSO

MIDP(s)

The Authority

Settlement Day and Settlement Period of return to normal BSC market operations

Circular via e-mail, BSC Website, BMRS website and other methods as agreed

3.3.10

After 3.3.9

Notify the Settlement Day and Settlement Period from which the Panel has determined that normal BSC market operations shall resume

NETSO

Grid Code Users

BSCCo’s notification under 3.3.9

Electronic, or other method as agreed

3.3.11

After 3.3.9

If required, communicate any instructions on the requirements and timing of relevant BSC System reports, including the 7-day forward contract report

BSCCo

Relevant BSC Agents

Any instructions provided by the Panel under 3.3.8

Electronic, or other method as agreed

3.3.12

After 3.3.11

Forward contract report is sent, and if specified, sent in accordance with instructions as per 3.3.11

ECVAA

BSC Parties

ECVAA-I022 ‘Issue Forward Contract Report’

Electronic, or other method as agreed

3.3.13

After 3.3.11

Update BMRS with a caveat that all contracts are ‘zero’ until the start of the Settlement Period from which normal BSC market operations shall resume

BMRA

Settlement Periods that fall within the Market Suspension Period

BMRS website

3.3.14

After 3.3.9 and by 10 hours before the start of the Settlement Period from which normal BSC market operations are to resume

Use reasonable endeavours to submit Physical Notifications and Bid-Offer Data to apply from the Settlement Period at which normal BSC market operations resume

BSC Parties

NETSO

Provisions of Grid Code OC9

Contractual information

Electronic, or other method as agreed

3.3.15

After 3.3.9 and by 1 hour before the start of the Settlement Period from which normal BSC market operations are to resume

Submit Volume Notifications to apply from the Settlement Period at which normal BSC market operations resume

BSC Parties

ECVAA

ECVAA-I004 ‘Receive ECVN’

ECVAA-I005 ‘Receive MVRN’

Electronic, or other method as agreed

3.3.16

After 3.3.14, 10 hours before the start of the Settlement Period from which normal BSC market operations are to resume

Co-ordinate plant despatch, allowing BSC Parties to meet their position at return to normal BSC market operations

NETSO

Relevant Grid Code Users

Despatch instructions

Electronic, or other method as agreed

3.3.17

After 3.3.9 and at any time up to 1 hour before the start of the Settlement Period from which normal BSC market operations are to resume

Notify any reason why the Total System could not return to normal operation by the Settlement Period from which normal BSC market operations are to resume

Repeat steps 3.3.1 to 3.3.17 if and as required

NETSO

The Panel (via BSCCo)

Provisions of Grid Code OC9.4.7.9

Electronic, or other method as agreed

3.3.18

Following the start of the Settlement Period from which normal BSC market operations are to resume

Confirm resumption of normal BSC market operations and the end of the Market Suspension Period and Black Start Period

BSCCo

BSC Parties

BSC Agents

Party Agents

CM Settlement Services Provider

NETSO

MIDP(s)

The Authority

Settlement Period from which normal BSC market operations resumed

The end of the Settlement Period immediately before this represents the end of both the Market Suspension Period and the Black Start Period

Circular via e-mail, BSC Website, BMRS website plus other methods as agreed

3.4 Contingency Imbalance Price Calculation and Application During a Market Suspension Period

This procedure shall be completed as efficiently as is practical at the time to allow Parties visibility of their positions.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

3.4.1

To allow this process to be completed in time for the Initial Settlement Runs for the relevant Settlement Periods, wherever possible

Determine the proposed methodology to calculate the Contingency Imbalance Price(s) in accordance with BSC Section T1.7.1A

The Panel

Proposed Contingency Imbalance Price methodology

Internal process

3.4.2

After 3.4.1

Where necessary, seek the opinion of the industry on the proposed methodology to calculate the Contingency Imbalance Price(s)

The Panel

BSC Parties

The Authority

NETSO

Proposed Contingency Imbalance Price methodology

Electronic, or other method as agreed

3.4.3

In response to the consultation in 3.4.2 or otherwise

Provide information relevant to the calculation of the Contingency Imbalance Price(s)

NETSO

The Panel

Provisions of BSC Section T1.7.1A

Electronic, or other method as agreed

3.4.4

After 3.4.3

Request approval of the Contingency Imbalance Price methodology

The Panel3

The Authority

Final proposed Contingency Imbalance Price methodology

Electronic, or other method as agreed

3.4.5

After 3.4.4

Approve the Contingency Imbalance Price methodology

The Authority

The Panel

Final proposed Contingency Imbalance Price methodology

Electronic, or other method as agreed

3.4.6

After 3.4.5

Communicate Contingency Imbalance Price methodology

BSCCo

BSC Parties

BSC Agents

NETSO

The Authority

Approved Contingency Imbalance Price methodology

Electronic, or other method as agreed

3.4.7

After 3.4.6

Apply methodology to calculate Contingency Imbalance Price(s)4

BSCCo

SAA

Approved Contingency Imbalance Price methodology

3.4.8

After 3.4.7

Circulate and publish5 the Contingency Imbalance Price(s) and, if required, an interim Settlement Calendar timetable6

BSCCo

SAA

BSC Parties

BSC Panel

BSC Agents

NETSO

Contingency Imbalance Price(s)

Interim Settlement Calendar

Electronic, or other method as agreed

3.4.9

After 3.4.8

Update BMRS with Contingency Imbalance Price(s)

BMRA

Contingency Imbalance Price(s)

BMRS

3.4.10

A minimum of 24 hours after 3.4.9

Begin SAA Settlement Runs including the Contingency Imbalance Price(s) for Settlement Periods affected by the Market Suspension Period

SAA

Contingency Imbalance Price(s)

Interim Settlement Calendar

3.4.11

If 3.4.10 means FAA Payment Runs affected

Complete FAA Payment Runs until timetable is back to ‘normal operation’

FAA

Contingency Imbalance Price(s)

Interim Settlement Calendar

3.5 Application for Time-Extension to Submit Claim

This procedure should be read in conjunction with Attachment A 1. ‘Claims Submission’.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

3.5.1

Where there is a Black Start event or a FSC event

A ‘Claims Committee’ is established in accordance with the BSC Section B3.5, including the membership and Terms of Reference

BSC Panel

BSCCo

Members of the Claims Committee

Terms of Reference for the Claims Committee

Post, fax or electronic

3.5.2

Upon completion of 3.5.1

Communicates details of the Claims Committee with the members of the newly established Claims Committee

BSCCo

Claims Committee

Members of the Claims Committee

Terms of Reference for the Claims Committee

Post, fax or electronic

3.5.3

Upon completion of 3.5.1

Communicates details of the Claims Committee

BSCCo

BSC Parties

Members of the Claims Committee

Post, fax or electronic

3.5.4

Within 20WD of the end of a Black Start Period or within 60D7 of the end of a FSC event, or in anticipation of an FSC Event8, or through a lengthened FSC Event

Submit form BSCP201/03 ‘Request for Black Start Claim or Fuel Security Event Claim Time Extension’

BSC Party

BSCCo

BSCP201/03 ‘Request for Black Start or Fuel Security Event Claim Time Extension’

Post, fax or electronic

3.5.5

Upon receipt of 3.5.4

Validate form and additional information before Panel decision

BSCCo

The Panel

BSCP201/03 ‘Request for Black Start or Fuel Security Event Claim Time Extension’

Post, fax or electronic

3.5.6

Upon receipt of 3.5.5

Determine timeframe for relevant claim submission.

The Panel9

BSCCo

Time-frame required to submit the Claim

Post, fax or electronic

3.5.7

Upon completion of 3.5.6

Communicate decision made in 3.5.6

BSCCo

BSC Party

Time-frame required to submit the Claim

Post, fax or electronic

3.6 Claim for Compensation Application Process

This procedure should be read in conjunction with Attachment A 1. ‘Claims Submission’.

References to ‘BSC Party’ in this procedure refer to the claimant. Steps 3.6.9 to 3.6.11 in this procedure are for Black Start claims only and steps 3.6.12 to 3.6.16 in this procedure are for Fuel Security Event claims only.

The Authority may provide guidance or directions in the Claim for Compensation Application Process in accordance with BSC Section G2.2.2.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

3.6.1

Within 20WD of the end of a Black Start Period; within 60D of the end of a FSC event; within an ongoing FSC event; or after the time determined by the Panel in 3.5.6

Submit BSCP201/01 ‘Black Start Claims Form’ and/or BSCP201/02 ‘Fuel Security Event Claims Form’

BSC Party

BSCCo

BSCP201/01 ‘Black Start Claims Form’

BSCP201/02 ‘Fuel Security Event Claims Form’

Statement of claim

Supporting evidence

Post, fax or electronic

3.6.2

Upon receipt of 3.6.1

Validate and analyse BSCP201/01 ‘Black Start Claims Form’ and/or BSCP201/02 ‘Fuel Security Event Claims Form’, the statement of claim and supporting evidence as is possible.

Request further information, if required

BSCCo

BSC Party

BSCP201/01 ‘Black Start Claims Form’

BSCP201/02 ‘Fuel Security Event Claims Form’

Statement of claim

Supporting evidence

Post, fax or electronic

3.6.3

After 3.6.2, if required

Provide further information, if required

BSC Party

BSCCo

Any relevant information

Post, fax or electronic

3.6.4

Upon completion of 3.6.2 and, if required, 3.6.3

Present the claims data and analysis (where possible) to the Claims Committee

BSCCo

Claims Committee

BSCP201/01 ‘Black Start Claims Form’

BSCP201/02 ‘Fuel Security Event Claims Form’

Statement of claim

Supporting evidence

Post, fax or electronic

3.6.5

Upon completion of 3.6.4

Determine process for assessing the claim10

Claims Committee

BSCP201/01 ‘Black Start Claims Form’

BSCP201/02 ‘Fuel Security Event Claims Form’

Statement of claim

Supporting evidence

3.6.6

At any time after 3.6.5, if required

Request further information, if required

Claims Committee

BSC Party

Any relevant information

Post, fax or electronic

3.6.7

At any time after 3.6.6, if required

Provide further information, if required

BSC Party

Claims Committee

Any relevant information

Post, fax or electronic

3.6.8

In accordance with the timetable set in 3.6.5

Assess the claim and determine the amount (£) of compensation to be paid to the BSC Party

Claims Committee

BSCCo

BSCP201/01 ‘Black Start Claims Form’

BSCP201/02 ‘Fuel Security Event Claims Form’

Statement of claim

Supporting evidence

Post, fax or electronic

3.6.9

Upon completion of 3.6.8, for Black Start claims only

Inform the BSC Party of the decision made by the Claims Committee in 3.6.8

BSCCo

BSC Party

SAA

Details of Claims Committee decision

Post, fax or electronic

3.6.10

Upon completion of 3.6.8, for Black Start claims only

Pay the BSC Party the amount determined in 3.6.8 in accordance with BSC Section G3.3.6

BSCCo

BSC Party

Details of Claims Committee decision

Electronic

3.6.11

Upon completion of 3.6.9, for Black Start claims only

Recover the amount determined in 3.6.8 in accordance with BSC Section G3.3.7

SAA

Details of Claims Committee decision

Electronic

3.6.12

Upon Completion of 3.6.8, for Fuel Security Claims only

Inform the BSC Party, the NETSO and the Authority of the decision made by the Claims Committee in 3.6.8

BSCCo

BSC Party

NETSO

The Authority

Details of Claims Committee decision

Post, fax or electronic

3.6.13

Upon completion of 3.6.8, for Fuel Security Claims only

Determine method and timeframe of payment to BSC Party

The Authority

NETSO

BSCCo

Amount, Method and Timeframe of payment to BSC Party

Post, fax or electronic

3.6.14

Upon completion of 3.6.13, for Fuel Security Claims only

Communicate method and timeframe of payment to BSC Party

BSCCo

The Panel

FAA

Amount, Method and Timeframe of payment to BSC Party

Post, fax or electronic

3.6.15

Upon completion of 3.6.8, for Fuel Security Claims only

Determine the method of cost recovery for the claim11

The Authority

NETSO

BSCCo

Amount approved by Claims Committee

Circular, or other method as agreed

3.6.16

Within 2WD of 3.6.15, for Fuel Security Claims only

Inform parties of the method and timeframe of cost recovery

BSCCo

BSC Parties

Method and timeframe of cost recovery

Circular, or other method as agreed

3.6.17

Within 5WD of when final claim pertaining to the relevant period is determined in 3.6.8

Publish the total amount (£) claimed for and the amount (£) approved by the Claims Committee (a total for all Claims)

BSCCo

Amount claimed for

Amount approved by Claims Committee

Publish on BSC Website

3.7 Application to Withdraw Claim for Compensation

This procedure can be used by the BSC Party claiming any time between submitting their claim and the decision made by the Claims Committee.

REF

WHEN

ACTION

FROM

TO

INFORMATION REQUIRED

METHOD

3.7.1

Any time after 3.6.1 and before 3.6.8

Fill in form BSCP201/04 ‘Application to Withdraw a Black Start Claim or a Fuel Security Event Claim’

BSC Party

BSCCo

BSCP201/04 ‘Application to Withdraw a Black Start Claim or a Fuel Security Event Claim’

Post, fax or electronic

3.7.2

Upon receipt of 3.7.1

Validate form and additional information then communicate the claim is being withdrawn

BSCCo

Claims Committee

BSCP201/04 ‘Application to Withdraw a Black Start Claim or a Fuel Security Event Claim’

Post, fax or electronic

4. Appendices

The following forms are in this BSCP:

    • BSCP201/01 ‘Black Start Claim Form’

      • This form must be signed by a Company Director or a Category A Authorised Person.

      • A claim can only be made by the Lead Party of a BM Unit who has received a black start instruction from the NETSO (as defined in BSC Section G3).

      • The form BSCP201/01 must be accompanied with a statement of claim and any supporting evidence in accordance with Section G3.3.1B of the BSC.

      • The claim must be submitted in accordance with Section 3 of this BSCP.

    • BSCP201/02 ‘Fuel Security Event Claim Form’

      • This form must be signed by a Company Director or a Category A Authorised Person.

      • A claim can only be made by the Lead Party of a BM Unit who has received an instruction from the Secretary of State (or the NETSO on behalf of the Secretary of State) in accordance with the Fuel Security Code.

      • The claim must be submitted in accordance with Section 3 of this BSCP.

      • There is further information in Attachment One regarding the submission of a Fuel Security Event Claim Form.

    • BSCP201/03 ‘Application for Black Start or Fuel Security Event Claim Time Extension’

      • This form must be signed by a Company Director or a Category A Authorised Person.

      • This form can only be completed by the Lead Party of a BM Unit who has received either:

        • A black start instruction from the NETSO (as defined in BSC Section G3); or

        • An instruction from the Secretary of State (or the NETSO on behalf of the Secretary of State) in accordance with the Fuel Security Code.

    • BSCP201/04 ‘Application for Black Start or Fuel Security Event Claim Withdraw’

      • This form must be signed by a Company Director or a Category A Authorised Person.

      • This form can only be submitted if BSCP201/01 or BSCP201/02 had previously been submitted.

Black Start Claim Form

Black Start Claim Number:

BSCCo Use only

BSCP201/01

(Form completed by Claimant)

Claimant (name): _______________________________________ Date Raised: ______/______/________

Company Name / Lead Party BM Unit ID / Role:_______________________________________________

Address: _______________________________________________________________________________

Telephone: __________________ Fax: ____________________ Email: ____________________________

Director’s / Category A Authorised Person’s Certification of Claim

Authorised By: _______________________ Signature: _____________________ Date: ____________

Please complete the following section as appropriate and attach additional evidence:

Black Start Period being claimed for:

From_____/_____/_____ Settlement Period: _____ To_____/_____/_____ Settlement Period: _____

BM Unit ID(s): ________________ Lead Party Name: ________________________________________

Total Amount Claimed for: £__________________

Description of NETSO black start instruction received in relation to the BM Unit ID(s): _____________________________________________________________________________________

_____________________________________________________________________________________

Summary of Attached Evidence: __________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

Number of Attachments: _________ Number of Pages with submission (incl this page): __________

Does this Claim require an Interim Payment12? (Yes/No) ______

Details of Cost (supporting evidence must be provided for each Settlement Period)13:

Total Normal Exports: __________ Exports During Period: __________ Change (in MWh): ___________

Total Normal Imports: __________ Imports During Period: __________ Change (in MWh): ___________

Avoidable Costs incurred during the Black Start Period (evidence must be produced):

Cost Category

Fuel

Plant & Apparatus

Other Operational Costs

Amount (£)

Evidence (Y/N)

Fuel Security Event Claim Form

Fuel Security Claim Number:

BSCCo use only

BSCP202/02

(Form completed by Claimant)

Claimant (name): _______________________________________ Date Raised: ______/______/________

Company Name / Lead Party BMU ID / Role: __________________________________________________

Address: _______________________________________________________________________________

Telephone: __________________ Fax: ____________________ Email: ____________________________

Director’s / Category A Authorised Person’s Certification of Claim

Authorised By: _______________________ Signature: _____________________ Date: ____________

Please complete the following section as appropriate and attach additional evidence:

Fuel Security Event Period:

From_____/_____/_____ Settlement Period: _____ To_____/_____/_____ Settlement Period: _____

BM Unit ID(s): ____________________ Site Name: ____________________________________________

Total Amount Claimed for: £__________________

Description of Secretary of State (or NETSO) direction received in relation to the BM Unit ID(s): _____________________________________________________________________________________

_____________________________________________________________________________________

Summary of Attached Evidence: __________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

Number of Attachments: _________ Number of Pages with submission (incl this page): __________

Does this Claim require an Interim Payment14? (Yes/No) ______

Details of Exceptional Costs15 incurred during the Fuel Security Code period (evidence must be produced):

Cost Category

Fuel

Insurance

Financing

Overhead

Emission

Amount (£)

Evidence (Y/N)

Cost Category

Damages

Industry Charges

Other Costs

Total Claimed

Amount (£)

Evidence (Y/N)

Application for Time Extension to Submit Claim

BSCP201/03

(Form completed by Claiming Party)

Claimant (name): _______________________________________________ Date: ______/_____/_____

Company Name: ________________________________________________________________________

Address: ______________________________________________________________________________

Telephone: ___________________________________ Fax: _____________________________________

Email: ________________________________________________________________________________

Director’s / Category A Authorised Person’s Certification of Claim

Authorised By: _______________________ Signature: _____________________ Date: ____________

Black Start / Fuel Security Period Details:

Period: From____/____/____ Settlement Period ____ To____/____/____ Settlement Period ____

BM Unit ID(s): ______________ Site Name: _________________________________________________

Description of the black start instruction or FSC direction received in relation to this BM Unit ID(s): ____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

Response: ____________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

The additional time (beyond the time already allowed) required to submit a completed claim: ______________________________

Therefore by close of business on which date will you be submitting your completed claim: ___________

What is the justification/evidence as to why you require this additional time to complete the submission of your claim Reason: _________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

(Completed by BSCCo after recommendation by Panel)

Deadline for completed claim: ______________

Claim to be Received By Date: _____/_____/_____ BSCCo representative: ______________________

Panel Decision Date: _____/_____/_____ BSCCo signature: _________________________

Application to Withdraw a Black Start Period Claim or a Fuel Security Code event Claim

BSCP201/04

(Form completed by Claiming Party)

Claimant (name): _______________________________________________ Date: ______/_____/_____

Company Name: ________________________________________________________________________

Address: ______________________________________________________________________________

Telephone: ___________________________________ Fax: _____________________________________

Email: ________________________________________________________________________________

Director’s / Category A Authorised Person’s approval for withdrawal:

Authorised By: _______________________ Signature: _____________________ Date: ____________

Claim Number (if known): _______________ (the Details section is not necessary if Claim Number is known)

Black Start Period / Fuel Security Details:

Period: From____/____/____ Settlement Period ____ To____/____/____ Settlement Period ____

BM Unit ID: ______________ Site Name: _________________________________________________

Description of NETSO black start instruction or Fuel Security Code Direction received in relation to this BM Unit ID:________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

Response: _____________________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

Reason for Withdrawal: ____________________________________________________________________

______________________________________________________________________________________

______________________________________________________________________________________

(Completed by BSCCo after recommendation by Panel)

Claim Withdrawal approved? (Yes/No): ________

Date of Withdrawal: _____/_____/_____ BSCCo representative: _________________________

Panel Decision Date: _____/_____/_____ BSCCo signature: __________________________

Attachment One: Guidance

This section of the BSCP is for guidance only. It provides some interpretation of the legislation and is available to help BSC Parties and the Claims Committee determine their best course of action in what is likely to be an unusual situation.

4.1 Claim Submission

A FSC Costs

The following Cost Headings are to be used for FSC claims: Fuel Costs, Insurance Costs, Financing Costs, Overhead Costs, Maintenance Costs, Emission Costs, Damages, Industry charges and Other Costs.

The cost headings below are a list of areas which can comprise ‘Exceptional Costs’ required for Generator operation in accordance with an FSC period, and therefore appropriate for inclusion in a FSC Exceptional Cost claim.

These areas can be used to facilitate the handling of claims by the Claims Committee, and might also be the areas for which specialist sub-committee(s) may be formed and employed to advise the Claims Committee in validating claims.

This list is not exhaustive (the ‘Other Costs’ section can be used when uncertain). There is no ability for a claimant to ‘double recover’ any of these costs; if they are able to trade commercially and do so, any income received should be used to offset the claimant’s costs prior to making any claim under the provisions of the FSC. Claim items may include:

    • Fuel costs (including purchase, freight/transportation, storage, handling and use e.g. any changes to fuel efficiency arising from operating in accordance with the FSC);

    • Insurance costs (including proportion of current insurance costs applied to the period in question as well as any increase in those costs arising due to the FSC period being invoked and/or resultant claim submissions, as appropriate);

    • Financing costs (costs associated with funding the power station(s), via banking loan and/or via shareholder funds, using a reasonable rate of return/risk assessment);

    • Overhead costs (cost of running the power station(s), including those associated with staffing e.g. overtime payments, and ancillary supplies, rent,);

    • Maintenance costs (costs associated with day-to-day operation, ongoing maintenance and wear & tear of plant/specific apparatus);

    • Damages (losses in respect of damage to property e.g. plant/apparatus or death/injury to persons);

    • Emissions costs (cost of purchasing various emissions allowances, e.g. CO2, NOx and SOx, needed to operate the power station(s));

    • Industry charges (including proportion of current TNUoS and BSUoS charges applied to the claim period, and any additional charges arising from the FSC period being invoked and/or resultant claim submissions, as appropriate); and

    • Other costs (any additional costs necessarily and properly incurred in good faith and on a basis consistent with commercial practices and procedures that were normal and prudent, after all reasonable efforts had been made to establish that no practicable alternative action (or inaction) was available at lower cost).

To assist the Claims Committee (and any sub-committee(s) established) with the handling of Black Start Period claims, claimants should also breakdown their claim costs into their constituent parts using the following headings: “Fuel”, “Plant & Apparatus”, “Emissions”, “Industry Charges” and “Others”.

B Interim Payments

Interim payment sums (£) can be agreed by the Claims Committee only for Exceptional Costs (arising from complying with an FSC Direction received by the Claimant)which have been incurred (up to the date of the interim claim submission) throughout a FSC anticipation period or during a FSC period. The Claims Committee do not manage payment of that claim. BSC Parties are advised to ensure submitted claims are easy to validate if they require swift determination by the Claims Committee.

Payment received as an interim payment cannot be claimed for again as part of the final claim; i.e. double recovery is not permitted.

The interim (claims) payment process for claims arising from costs incurred (up to the date of the interim claim submission) during a Black Start Period, during a FSC event or in an anticipation of a FSC event is to be exactly the same process as for the ‘final’ claims process for similar claims for these three examples. The purpose is so claims for interim payment can be assessed and approved for BSC Parties to make claims where cash-flow might be an issue, but any BSC Party can claim if they so desire. However the process of assessing the claim as determined by the Claims Committee will not change.

Claimants are reminded that claims, for interim (or indeed final) payment, can only be for those costs:

    • defined in the BSC as “Avoidable Costs” for a Black Start Period; or

    • defined in the FSC as “Exceptional Costs” for FSC events

where:

    • the Lead Party of the BM Unit concerned has received a black start instruction or FSC direction (as the case may be) which gave rise to those costs being incurred; and

    • those costs have actually been incurred by that Lead Party of the BM Unit up to the date of the interim claims submission.

Claimants are to submit details of any interim payment made as support to their final claim.

BSC Parties who wish to receive prompt determination by the Claims Committee of their interim claims (which could facilitate them receiving prompt payment) are advised to send in these claims with evidence which is easily assessable and understood, and attach a note requesting a quick resolution. For example, during a FSC event a BSC Party could submit multiple claims for fuel costs as interim payments, then claim for insurance and financing costs for the entire event once it has ended.

Notes:

i) The 20 day claim submission time-frame for Black Start Periods and the 60 day claim submission time-frame for FSC events do not apply for claims submitted for interim payments during an on-going Black Start Period, FSC event or anticipation period for a FSC event. Only when these periods/events end do the claims time-frames apply (for making the final claims application).

ii) The Claims Committee is not responsible for ensuring any Payment is made. The Claims Committee can only determine that a claim is valid for payment.

iii) No costs claim for interim payment can be made for costs which may (or will) be incurred at a future date.

4.2 Procedures for the Claims Committee

A Role of the Claims Committee and Experts

The membership of any Claims Committee will be appointed by the BSC Panel and may contain members of the BSC Panel but does not have to (i.e. the Claims Committee could be the BSC Panel, a sub-set of the BSC Panel, or have no direct BSC Panel Members’ involvement).

The BSC Panel or a Claims Committee may employ expert / technical / specialist sub-committees to advise or to assist it in determining a claim.

The Claims Committee discharges the responsibilities ascribed to the BSC Panel in section G of the Code, the FSC and FSC Guidance (the last two documents being those published on behalf of the Secretary of State, as amended from time to time).

The Claims Committee can establish (a) one, or a number of, expert/technical/specialist sub-committee(s) to which the Claims Committee can delegate consideration of claims to and / or (b) advisory groups/individuals to assist the Claims Committee in determining the validity of claims. Specifically in relation to FSC claims only, establishment of any sub-committee(s) are subject to the Authority not disapproving (i.e. sub-committee(s) will be established unless the Authority notifies the Claims Committee of its specific disapproval); note this applies to establishment only, sub-committee (or indeed the Claims Committee) membership is not subject to Authority approval.

Note that an expert or number of experts can be co-opted directly onto the Claims Committee. In such a case they become Claim Committee members rather than advisory experts.

Sub-committee(s) can potentially perform the bulk of claim validation work, particularly if the volume and complexity of claims was significant (e.g. due to a lengthy FSC period affecting all / many BSC Parties). Thus sub-committee(s) might be established, depending on the volume of claims etc, to look at the main (technical/specialist) aspects of all the claims received. These might be, for example, ‘Fuel Costs’, ‘Insurance’, ‘Financing’, ‘Overheads’, ‘Emissions’, ‘Damages’, ‘Industry Charges’ and ‘Other Costs’. In other words, under this example, all the ‘Fuel Costs’ aspects of all the individual claims received would go to the ‘Fuel Costs’ sub-committee for validation, with this sub-committee membership being drawn from those persons whom the Claims Committee believed to be competent in the field of ‘Fuel Costs’.

The role of sub-committee(s) can be to validate aspects of claims that fall under their specialist area of knowledge/expertise and advise the Claims Committee accordingly of their conclusions. The onus is on the claimant to supply sufficient evidence to the Claims Committee to enable it (or any sub-committee etc., that they establish to assist them) to carry out their duties. The role of the Claims Committee (and any sub-committee(s) supporting it) is to verify (and adjust as necessary) claims and determine the amount (£) of compensation to be paid to the BSC Party making the claim in question. In accordance with this sub-committee(s) would not actively gather evidence but would engage only in verification of evidence submitted. However, if the evidence submitted by the claimant is, in the opinion of the sub-committee(s) (or the Claims Committee itself) insufficient to carry out its duties it may, if it wishes, ask the Claims Committee to seek such additional information from the claimant as, in the reasonable opinion of the sub-committee(s) (or the Claims Committee itself), it believes would be sufficient to complete its duties.

The Claims Committee is to make a judgement of the need to employ expert sub-committee(s) based on the need for specialist expertise and knowledge in relation to particular claim(s) and the need to delegate due to the volume of claims. The Claims Committee is to be mindful of the need to maintain the efficiency of the process by minimising the number of sub-committee(s) involved

B Role of BSCCo and the Claims Committee

BSCCo are to provide the Claims Committee with any administrative support and are to provide any requested information.

BSCCo are to provide to the Claims Committee:

    • Any administrative and secretarial support necessary to assist the Claims Committee; and

    • Any supporting information it requests which is available to BSCCo (e.g. Metered Volume data).

C Confidentiality

Meetings of the Claims Committee are to be held in closed session to ensure confidentiality.

As well as the Claims Committee and (if invited) any sub-committee(s) members or experts, the Authority and a representative of the Secretary of State are free to attend meetings in an observational capacity. Relevant persons (e.g. representatives of claimants) can be invited to attend only for the consideration of particular claims, as deemed necessary by the Claims Committee.

Information submitted by claimant as part of a claim (or in response to a request from the Claims Committee) is to be treated as confidential by the Claims Committee.

Following the claims validation process, information held by the Claims Committee shall be destroyed after a period of time previously determined by the Claims Committee (and that date would be published to industry). For example, this time period may align with a time period permitted for appeal of the Credit Committee’s determination.

4.3 Draft Terms of Reference for the Claims Committee

This document is a draft set of terms of reference for a Claims Committee established for the purpose of determining claims for compensation for certain losses incurred in relation to a Black Start Period or Fuel Security Code direction under the BSC. This document is provided for guidance only. It was developed in consultation with the modification groups for Modifications P231 and P232, which looked at the BSC procedures surrounding such events. The Panel retains the discretion whether or not to establish any such Claims Committee 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 (BSC). References to Sections are to Sections of the BSC.

1. ESTABLISHMENT AND PURPOSE

1.1 Establishment

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 Claims Committee.

1.1.3 The Claims Committee has been established in order to discharge the Panel's functions under Sections G3 and G5 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 G3 and G5 to the Claims Committee, as further described in these Terms of Reference, and accordingly, for the purposes of the Code:

(a) decisions of the Claims Committee 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 Claims Committee] - to be determined by the Panel at the time; and

(c) the Panel is not responsible for overseeing or reviewing any decision of the Claims Committee.

1.1.5 The Claims Committee 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 Role and Objectives

1.2.1 The Claims Committee is established in order to consider and determine black start compensation amounts pursuant to Section G3 and Exceptional Costs pursuant to Section G5.

1.2.2 The Claims Committee shall discharge all the functions of the Panel as set out in Sections G3 and G5 save that powers in relation to the establishment of the Claims Committee, the appointment, dismissal and replacement of Claims Committee members, the designation of the Claims Committee Chair, the determination of the Claims Committee's Terms of Reference and any subsequent changes to the same shall remain powers of the Panel.

1.2.3 The Claims Committee 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. COMPOSITION

2.1 Membership

2.1.1 The Claims Committee is to comprise [X] members.

2.1.2 The Panel may replace any member of the Claims Committee at any time if, in the Panel's opinion, such member is unwilling or unable to carry out their duties in accordance with these Terms of Reference.

2.2 Chair

2.2.1 The Panel has appointed [X] to be the chair of the Claims Committee (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 Claims Committee for whatever reason, such person shall cease to be a member of the Claims Committee 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 their responsibilities as a member of the Claims Committee, 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 Secretary

2.3.1 There shall be a secretary to the Claims Committee (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 Claims Committee and the Chair as the Claims Committee and the Chair may require.

3. DUTIES

3.1 Claims Committee

3.1.1 The Claims Committee 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 Claims Committee in the conduct of its business as it applies in relation to the Panel and to the extent applicable to functions of the Claims Committee.

3.1.3 The Claims Committee shall not act as an expert or an arbitrator and the Arbitration Act 1996 shall not apply to the determination of any claims pursuant to Sections G3 and G5.

3.2 Members

3.2.1 Each member of the Claims Committee 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 their employer).

3.2.2 Each member of the Claims Committee 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 Claims Committee, 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 Claims Committee and/or their 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 Claims Committee shall not be entitled to appoint an alternate or otherwise delegate any of its responsibilities as a member of the Claims Committee to any other person.

3.3 Chair

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 Claims Committee were references to the Chair.

4. REMUNERATION AND LIABILITIES

4.1 Remuneration

4.1.1 Each member of the Claims Committee 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 Claims Committee 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 Claims Committee and the Secretary (as an 'indemnity beneficiary').

5. POWERS AND FUNCTIONS

5.1 Claims Committee

5.1.1 The Claims Committee shall discharge the claims functions assigned to the Panel under Sections G3 and G5 save for:

(a) those matters which are reserved to the Panel as set out in paragraph 1.2.2(a) and (b) above; and

(b) 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 Claims Committee shall include the following:

(a) considering and determining such claims for black start compensation amounts and Exceptional Costs as have been validly made in accordance with Sections G3 and G5 and the relevant BSCP;

(b) determining what are Avoidable Costs in accordance with Section G2;

(c) determining what are Exceptional Costs in accordance with the meaning ascribed to that term in the Fuel Security Code for the purposes of Section G5;

(d) implementing the procedures ascribed in Section G3 and G5 and the relevant BSCP for compensation claims for black start compensation amounts and Exceptional Costs; and determining and implementing such further detailed procedures, guidance and indicative timetables, consistent with such procedures, for the conduct of such claims as it sees fit; and

(e) providing reasons in writing for the determination of each claim.

5.1.3 The Claims Committee may do anything necessary for or reasonably incidental to the discharge of the functions assigned to it under these Terms of Reference.

5.1.4 Without prejudice to the generality of the foregoing, for the purposes of discharging its functions hereunder (and not for any other purpose):

(a) the Claims Committee 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 Claims Committee and further delegated to the Chairman as set out in paragraph 5.2 below; and

(b) the Claims Committee may request BSCCo to procure such expert or external advice and assistance as it considers appropriate.

5.1.5 Subject to the delegation of certain functions to the Chair as set out in paragraph 5.2 below, the Claims Committee 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).

5.1.6 The Claims Committee shall endeavour to determine all claims in a timely fashion.

5.2 Chair

5.2.1 In addition to their duties as a member of the Claims Committee, the Chair shall be responsible for the following functions:

(a) scheduling meetings of the Claims Committee (as they see fit or as requested by any other member of the Claims Committee);

(b) setting the agenda for and chairing meetings of the Claims Committee;

(c) deciding the application of procedural rules to individual claimants and claims and determining any procedural issues relating to individual claims (within the parameters of the BSC and relevant BSCP, and within the parameters of any more detailed procedures established by the Claims Committee) including any variation or extension of time;

(d) determining the grouping of claims and the order in which they should be considered by the Claims Committee;

(e) determining whether other persons should attend meetings of the Claims Committee 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 claims.

5.2.2 Where the Chair is to discharge any function assigned to them as Chair pursuant to paragraph 5.2.1, it shall not be necessary to hold a meeting of the Claims Committee for that purpose (except in the case of chairing meetings of the Claims Committee).

5.2.3 Where a function of the Chair is the determination of a matter, the Chair shall record any decision made by them in the exercise of such functions and shall report such decisions to the next meeting of the Claims Committee.

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 Claims Committee and the Panel.

5.3 BSCCo

5.3.1 In addition to any functions assigned to BSCCo under Sections G3 and G5, BSCCo shall:

(a) provide or arrange for the provision of such facilities, resources and other support as may be required by the Claims Committee 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 Claims Committee;

(c) at the request of the Claims Committee 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 Claims Committee, including the publication of data on the determinations of the Claims Committee, as it sees fit to disclose in accordance with Section B3.3.

6. PROCEEDINGS

6.1 General

6.1.1 Subject to the matters prescribed in paragraph 6.2 below, the Claims Committee shall determine the manner in which the proceedings and business of the Claims Committee shall be conducted (including the frequency and convening of meetings, the circulation of Claims Committee 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 Claims Committee.

6.1.2 Any decision as to application of Section B4.5.1 to Claims Committee meetings shall be made by the Chair in accordance with Section B4.5.2.

6.2 Prescribed matters

6.2.1 Any matter of the Claims Committee to be decided shall:

(a) be put to the vote at the request of any member of the Claims Committee; 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 Claims Committee members in respect of any business of the Claims Committee shall be valid and effectual as if it had been agreed to at a duly convened meeting of the Claims Committee.

6.3 Attendance

6.3.1 Subject to paragraphs 6.3.2 and 5.2.1(e), all meetings of the Claims Committee shall be held in closed session.

6.3.2 The Authority shall be entitled to receive notice of, and to appoint one or more representatives to attend and speak, but not vote, at any meeting of the Claims Committee.

1 The need to invoke the Black Start process or the Re-Synchronisation of De-Synchronised Island process in accordance with Grid Code OC9.

2 This is likely to be by email, Circular or the posting of information on the BMRS website. Normal communication between BSCCo and the industry might be difficult at the start of the shutdown as the Total System will begin to be re-energised and any available communication channels could suffer from congestion/unavailability. Therefore BSCCo may only be able to communicate the commencement of the Black Start Period and the Market Suspension Period once the Total System is totally / almost totally re-energised.

3 Communication between the Authority and the Panel is to be done via BSCCo.

4 The Panel is to provide instruction on how the Contingency Imbalance Price(s) shall be applied.

5 BSCCo shall publish the Contingency Imbalance Price(s) on the BSC Website as soon as is possible as well as circulate the prices to BSC Parties.

6 Potentially CDCA runs could be affected as well as SAA runs and their timing will also be in the Settlement Calendar. The BSC Agents shall ensure all systems will operate to achieve Settlement Runs.

7 Note FSC Claims are to be submitted 60 Days (as opposed to 60 Working Days) after the end of a FSC event.

8 Claims can only be made by the Lead Party of a BM Unit who has received (i) a black start instruction from the NETSO during a Black Start Period or (ii) a Direction from the Secretary of State during a FSC event or in anticipation of a FSC event.

9 This process step is to be completed by the Panel in accordance with BSC Section G3.3.1A; however this could be delegated to the Claims Committee in accordance with BSC Sections B3.5 and B5.1.1.

10 As the scope of each claim could be different, the Claims Committee is to determine the most relevant process for assessing the claims on an individual basis.

11 The Authority may choose the NETSO (under the Grid Code), the BSC or any other method it determines appropriate for cost recovery. If the BSC is chosen to recover costs, refer to BSC Section G3.3.7 for Black Start Period claims.

12 If this claim is for an interim amount as part of an on-going Black Start Period, any amount approved cannot be claimed for as part of the final claim.

13 The calculation for the “black start compensation amount” is as per Section G3.3.2 of the BSC. Supporting evidence is required.

14 If this claim is for an interim amount, for costs incurred to date, any amount approved cannot be claimed for as part of the final claim.

15 Details of what constitutes each Cost Category for a Fuel Security event can be found in Attachment A of this BSCP.