Baselining Methodology Document V3.0

Lead Parties of BM Units participating in the Balancing Mechanism are required by the BSC (and Grid Code) to submit Physical Notifications to the NETSO. These provide the Lead Party’s best estimate of the MW level of demand or generation that the BM Unit will deliver (in the absence of any Bid Offer Acceptance issued by the NETSO).

The Physical Notification in force at Gate Closure becomes a Final Physical Notification (FPN). The NETSO is required to send the FPN to the Balancing Mechanism Reporting Agent (BMRA) for reporting to the market, and to the Settlement Administration Agent (SAA) for use in Settlement.

The SAA compares the FPN to the BM Unit Metered Volume, in order to verify that the BM Unit has delivered the Bid Offer Acceptance instructed by the NETSO.

The Lead Party must still submit Physical Notifications to the NETSO (who will continue to use them for purposes of despatch).

The SVAA will use historical metered data to calculate MSID Baseline Values for some or all of the MSID Pairs and/or AMSID Pairs in the BM Unit, in accordance with the Baselining Methodology specified in this document. The Lead Party may choose which of the MSID Pairs and AMSID Pairs within the BM Unit (known as “Baselined MSID Pairs” or “Baselined AMSID Pairs”) SVAA should perform this calculation for.

If there are non-Baselined MSID Pairs or AMSID Pairs in the BM Unit, the Lead Party must provide SVAA with a Submitted Expected Volume. This is equivalent to a Final Physical Notification, but only includes those MSID Pairs (and AMSID Pairs) in the BM Unit that are not Baselined MSID Pairs (or AMSID Pairs).

If an MSID Pair or AMSID Pair has been declared as Baselined, but SVAA is unable to calculate a Baseline Value (due to lack of historic metered data), the Baseline Value will default to the actual Half Hourly meter reading in that Settlement Period. The effect of this is that the MSID Pair or AMSID Pair will be assumed (for purposes of Settlement) not to have contributed to delivery of any Acceptance by the BM Unit. However, this may be corrected in a subsequent Reconciliation Run, if the metered data required to calculate a Baseline Value has become available by that point.

If a VLP knows in advance that there will be insufficient data to calculate a Baselined Value for an MSID Pair or AMSID Pair (and does not wish to include it in their Submitted Expected Volume) they may declare it as “Inactive”. An MSID Pair or AMSID Pair cannot participate in the Balancing Mechanism while it remains Inactive, but SVAA will continue trying to calculate Baseline Values for it, and inform the VLP when there is sufficient data to do so (at which point they may elect to change it from Inactive to Baselined). Note that the option of declaring MSID Pairs to be Inactive is not available for Supplier BM Units (only VLP’s Secondary BM Units).

SVAA will aggregate the Submitted Expected Volume and all of the MSID/AMSID Baseline Values to derive a Settlement Expected Volume (SEV_ij) (for each Baselined BM Unit and Settlement Period). SVAA will send the Settlement Expected Volume to SAA, who will use it (in place of the FPN) to verify that the BM Unit has delivered the Bid Offer Acceptance instructed by the NETSO.

By a centrally-appointed BSC Agent, using a Panel-approved methodology (providing assurance to all affected Parties that the calculation has been performed in an independent and unbiased way); and

Using up-to-date metered data that would not have been available to the Lead Party in advance (allowing for a more accurate estimate of the baseline).

The Lead Party (i.e. the VTP) must submit a Wholesale Market Activity Notification to the SVAA via the Energy Contract Volume Aggregation Agent (ECVAA).

The SVAA will use historical metered data to calculate MSID Baseline Values for all of the MSID Pairs and/or AMSID Pairs in the BM Unit, in accordance with the Baselining Methodology specified in this document. The Lead Party may choose which of the MSID Pairs and AMSID Pairs within the BM Unit (known as “Baselined MSID Pairs” or “Baselined AMSID Pairs”) SVAA should perform this calculation for.

If there are non-Baselined MSID Pairs or AMSID Pairs in the BM Unit, the Lead Party must provide SVAA with a Submitted Expected Volume. This only includes those MSID Pairs (and AMSID Pairs) in the BM Unit that are not Baselined MSID Pairs (or AMSID Pairs).

If an MSID Pair or AMSID Pair has been declared as Baselined, but SVAA is unable to calculate a Baseline Value (due to lack of historic metered data), the Baseline Value will default to the actual Half Hourly meter reading in that Settlement Period. The effect of this is that the MSID Pair or AMSID Pair will be assumed (for purposes of Settlement) not to have contributed to delivery of any energy in the Wholesale Market by the BM Unit. However, this may be corrected in a subsequent Reconciliation Run, if the metered data required to calculate a Baseline Value has become available by that point.

If a VTP knows in advance that there will be insufficient data to calculate a Baselined Value for an MSID Pair or AMSID Pair they may declare it as “Inactive”. An MSID Pair or AMSID Pair cannot participate in the Wholesale Market while it remains Inactive, but SVAA will continue trying to calculate Baseline Values for it, and inform the VTP when there is sufficient data to do so (at which point they may elect to change it from Inactive to Baselined). Note that the option of declaring MSID Pairs to be Inactive is only for VTP’s Trading Secondary BM Units.

SVAA will aggregate the Submitted Expected Volume and all of the MSID and AMSID Baseline Values to derive a Settlement Expected Volume (SEV_ij) (for each Baselined BM Unit and Settlement Period). SVAA will send the Settlement Expected Volume to SAA.

SVAA;

Virtual Lead Parties;

Virtual Trading Parties;

Suppliers; and

BSC Panel

Details of the Baselined Entities for which data is to be calculated (and the Baselined BM Unit to which each Baselined Entity belongs). This data is notified to SVAA by the Lead Party in accordance with BSC Procedure BSCP602.

The metered data for each Baselined Entity. Metered data is required for the Settlement Day D, and as many as possible of the previous 60 Settlement Days. If insufficient Metered Data is available, it may not be possible to calculate Baseline Values (in which case the Baseline Value will be set equal to the Metered Data for that Settlement Period, effectively deeming there to have been no volume delivered). The source of this metered data depends upon the type of Baselined Entity:

• For MSID Pairs, Metering System Metered Consumption (VMMC_HZaNLKji) values are required for each of the SVA Metering System(s) in the MSID Pair. The VMMC_HZaNLKji values are in MWh, and are calculated by SVAA from metered data provided by Half Hourly Data Aggregators (HHDAs). The process for provision of metered data to SVAA by HHDAs is described in BSC Procedure BSCP503 (‘Half Hourly Data Aggregation for SVA Metering Systems Registered in SMRS’);

• For AMSID Pairs, Asset Metering System Metered Consumption (VMMC_HNLKj) values are required for each of the Asset Metering System(s) in the AMSID Pair. The VMMC_HNLKj values are in MWh, and are calculated by SVAA from metered data provided by Half Hourly Data Collectors (HHDCs). The process for provision of metered data to SVAA by HHDCs is described in BSC Procedure BSCP603 (‘Meter Operations and Data Collection for Asset Metering Systems’); and

• For Asset Differencing, the required metered data are Net Differencing Volume (VNDK_j) values calculated by the SVAA in accordance with BSC Annex S-2 paragraph 7.1.1C.

Details of which Settlement Periods (if any) each Baselined BM Unit received an Acceptance from the NETSO. This information is sent to SVAA each day by the Settlement Administration Agent (the Daily Activations Report).

Details of which Settlement Periods (if any) each Baselined BM Unit had a Wholesale Market Activity Notification submitted by the VTP.

Details (for each MSID Pair or AMSID Pair) of Settlement Days which should be treated as Event Days. These details are notified to SVAA by the Lead Party in accordance with BSC Procedure BSCP602

A Boolean (True or False) indicator of whether there was sufficient metered data available to calculate a Baseline Value. This is required for every Baselined Entity, and is reported to the Lead Party of the BM Unit.

A Baseline Value for each Baselined Entity and Settlement Period. This is required for every Baselined Entity. The Baseline Value must be in units of MWh, and represent an estimate of what the net metered data would have been for the Metering System(s) included in the Baselined Entity, in the absence of any Acceptance from the NETSO.or Wholesale Market Activity Notifications being received. Where insufficient historic data is available to calculate a Baseline Value, the Baseline Value will default to the metered data value for the individual Settlement Period.

Are of the same time type (Working Day or non-Working Day) as day D;

Have metered data available for the Baselined Entity, as follows:

• For an MSID Pair, VMMC_HZaNLKji values must be available for the Import Metering System and (if there is one) the Export Metering System;

• For an AMSID Pair, VMMC_HNLKj values must be available for the Import Metering System and (if there is one) the Export Metering System; and

• For Asset Differencing, values of Net Differencing Volume (VNDK_j) must be available.

Have not been notified to SVAA by the Lead Party as being an Event Day for the Baselined MSID Pair or Baselined AMSID Pair (see Appendix A); and

Are not ‘clock change’ days (i.e. the calendar days at the start and end of British Summer Time, currently the last Sunday of March and October).

Settlement Periods 1-2 on Settlement Day D correspond to Settlement Periods 1-2 on the historical Settlement Day;

Settlement Periods 3-4 on Settlement Day D also correspond to Settlement Periods 1-2 on the historical Settlement Day; and

Settlement Periods 5-50 on Settlement Day D correspond to Settlement Periods 3-48 on the historical Settlement Day.

Settlement Periods 1-2 on Settlement Day D correspond to Settlement Periods 1-2 on the historical Settlement Day; and

Settlement Periods 3-46 on Settlement Day D correspond to Settlement Periods 5-48 on the historical Settlement Day.

For an Acceptance in the first three hours of the Settlement Day, the In Day Reference Window will stretch back into the previous Settlement Day (D-1). In this case the calculation of the In Day Adjustment will require Baseline Values and Baselined Entity Metered Volumes for day (D-1) as well as day D.

If the Baselined Entity Metered Volumes and/or Unadjusted Baseline Values required to calculate the In Day Adjustment are not available, SVAA shall set the In Day Adjustment to zero. This is most likely to happen if day D is the first Settlement Day for which data was available to calculate a baseline, but the In Day Reference Window falls partly or wholly into the previous Settlement Day.

If the BM Unit containing the MSID Pair and/or AMSID Pair did not receive any Acceptances from the NETSO on Settlement Day D, there is no Settlement requirement to calculate an In Day Adjustment. But for assurance purposes (to allow monitoring of how well the Baselining Methodology is functioning), SVAA will calculate a separate In Day Adjustment for each Settlement Period of the Settlement Day – see section 3.4.3.1 below.

Where an MSID Pair is dispatched multiple times on the same day, it will not be possible to calculate a second In Day Adjustment, as the data will have been contaminated by the first dispatch. Therefore the same In Day Adjustment will also be applied to the profile shape for any subsequent dispatches.

If the BM Unit had a Wholesale Market Activity Notification, no adjustment will be made i.e. the In Day Adjustment will be zero.

If the BM Unit did not have an Acceptance or a Wholesale Market Activity Notification, SVAA will calculate a separate In Day Adjustment for each Settlement Period of the Settlement Day. For the purposes of this calculation, the In Day Reference Window for each Settlement Period is defined as the period of three hours ending at Gate Closure for that Settlement Period.

It is the BSC Panel’s decision whether to review or change the Methodology, but BSCCo or any Supplier or VLP or VTP can request them to do so;

The BSC Panel may request assistance from BSCCo e.g. in analysing whether a change is needed;

Unless otherwise agreed by the BSC Panel, changes to the document will be drafted by BSCCo; and

The BSC Panel will consult with Parties in a manner appropriate to the scale and complexity of the changes before agreeing them.

Those identified in BSC Section S13.2; and

Identification of specific generation or demand side response technologies that are not accurately baselined by the existing approved Baselining Methodology (or Methodologies).