1 Introduction

1.1 Purpose and Scope of the Procedure

1.1.1 System Restoration Event

• A Total Shutdown of the Total System; or

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

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

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

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

• A System Restoration Period (during which the BSC’s System Restoration 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).

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

• If there is a Partial Shutdown, then a System Restoration 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 System Restoration Period. If the Market Suspension Threshold is met, then the Market Suspension Period will last for the remaining duration of the System Restoration Period.

• 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.

• Avoidable Costs; minus

• The imbalance charges received, or reduction in imbalance charges paid, for the system restoration compensation volume.

1.1.2 Fuel Security Code Event

1.2 Main Users of this Procedure and their Responsibilities

• BSCCo;

• The NETSO;

• BSC Parties;

• BSC Agents;

• The BSC Panel;

• The Claims Committee; and

• The Authority.

1.2.1 BSCCo

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

• Determine and communicate the Settlement Period and Settlement Day representing the start of the Total Shutdown or Partial Shutdown, and therefore of the System Restoration 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 System Restoration Period);

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

• Communicate the status of the Transmission System during a System Restoration Period;

• Communicate the status of the BSC Systems during a System Restoration 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

• Determine and notify BSCCo that a Total Shutdown or a Partial Shutdown exists and that it intends to implement a System Restoration 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 System Restoration 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

• 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 system restoration compensation amounts incurred due to a system restoration 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

• 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

• 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 System Restoration 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 System Restoration 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

• 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

• 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

• 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 System Restoration 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 “system restoration instruction” or a Fuel Security direction.

1.4 Balancing and Settlement Code Provision

1.5 Related BSC Procedures

1.6 Acronyms and Definitions

1.6.1 Acronyms

1.6.2 Definitions

2 System Restoration Recovery Processes

2.1 Total Shutdown Recovery Process

• The NETSO will contact relevant Grid Code Users to invoke Local Joint Restoration Plans and Network Operators invoke Distribution Restoration Zone 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 System Restoration (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 System Restoration 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.

• 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 System Restoration Period and Market Suspension Period to all BSC Parties, BSC Agents, and any CM Settlement Services Provider.

• 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.

• 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.

• 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 System Restoration requirements of the BSC Systems.

• 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).

• 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).

• 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’).

• 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’.

• 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.

• 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’ 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 System Restoration Period and the Market Suspension Period.

• At this point, System Restoration 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

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.

2. 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.

3. 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.

4. 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.

5. 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.

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

3 Interface and Timetable Information

• A summary (3.1) of the Grid Code procedure for restoring the Total System following a System Restoration 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 System Restoration Period;

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

  • The end of a System Restoration 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 System Restoration 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 system restoration compensation amounts following a System Restoration event, or for Exceptional Costs following a FSC event;

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

• The procedure (3.7) for withdrawing claims for system restoration compensation amounts or Exceptional Costs.

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

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

3.3 Market Recovery Process – Market Suspension to Normal Market Operations

• 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 System Restoration Period after which normal BSC market operations will resume.

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

3.5 Application for Time-Extension to Submit Claim

3.6 Claim for Compensation Application Process

3.7 Application to Withdraw Claim for Compensation

4. Appendices

• BSCP201/01 ‘System Restoration Claim Form’

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

  • A claim can only be made by or via the Lead Party of a BM Unit which has received a system restoration instruction from the NETSO and/or a Network Operator (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 System Restoration 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 [via] the Lead Party of a BM Unit who has received either:

    • A system restoration instruction from the NETSO and/or a Network Operator (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 System Restoration 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.

4.1 Claim Submission

• 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).

• defined in the BSC as “Avoidable Costs” for a System Restoration Period; or

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

• the BM Unit concerned has been the subject of system restoration instruction or FSC direction (as the case may be) which gave rise to those costs being incurred; and

• those costs have actually been incurred up to the date of the interim claims submission.

4.2 Procedures for 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).

4.3 Draft Terms of Reference for the Claims Committee

AMENDMENT RECORD – BSCP201