Market Entry SVA Qualification
This document provides a high level overview of the Supplier Volume Allocation (SVA) Qualification process. This is a market entry technique which forms part of the Performance Assurance Framework (PAF) and is managed by Elexon in its role as the Balancing and Settlement Code Company (BSCCo).
The Qualification procedures are followed by organisations wishing to operate in the BSC arrangements in one or more of the following capacities:
Meter Operator Agents (Central Volume Allocation (CVA) );
Supplier Meter Registration Agents;
Licensed Distribution System Operators (LDSO) when acting in their capacity as Unmetered Supplies Operators (UMSO);
Virtual Lead Parties (VLPs);
Asset Metering Virtual Lead Parties;
Asset Metering Half Hourly Data Collectors; and
Asset Metering Meter Operator Agents
Qualification under the BSC allows an organisation to provide services in its Qualified role.
The Qualification process aims to provide assurance that an organisation’s systems, which may interact with the BSC Systems and other participant’s systems, developed outside of Elexon’s control, are in line with BSC requirements and good practice.
Organisations interested in becoming Qualified should contact Elexon for information and guidance on the process. The start of the Qualification Process is triggered by the receipt of a Qualification Letter or, in the case of Suppliers, VLPs, AMVLPs and LDSOs, when they have acceded to the BSC. The Qualification Process involves the completion of the Self-Assessment Document (SAD); in some instances the performance of witness testing may require a site visit to review appropriate supporting evidence.
A risk-based approach is used when reviewing the SAD, supporting evidence and determining the amount of witness testing carried out on an applicant. Elexon assess the risk of an applicant based on the responses provided in the SAD and the supporting evidence. The risk assigned to an application will be reviewed by Elexon at various stages throughout the Qualification process (for example, as subsequent drafts of the SAD are received) and if an applicant’s circumstances change.
The Performance Assurance Board (PAB) decides on an applicant’s approval for Qualification. Reports detailing the completion of the procedure are presented to the PAB. Elexon provide a recommendation and all the information needed for the PAB to make a decision on an applicant’s Qualification.
All organisations who are Qualified, except Suppliers, LDSOs, VLPs and AMVLPs, are required to maintain this status through the re-Qualification process. One aspect of this involves maintaining compliance with their obligations under the BSC. In addition, Qualified Persons must undertake a Risk and Impact Assessment, preceding changes to their systems or processes to determine if any changes are Material Changes. Re-Qualification is triggered by a Material Change to a Qualified Person’s systems and processes and must be completed before the change is implemented.
Possible triggers for re-Qualification include (but are not limited to):
a step change in the number of Metering System Identifiers (MSIDs) for which the Qualified Person is responsible;
a significant change or upgrade to IT systems;
a significant change to procedures;
the introduction of a new software application to be used by a Qualified Person as a tool for carrying out the functions of the service.
A separate guidance note on Material Change
is available on the BSC Website
The principle of self-assessment is central to the Qualification and re-Qualification process. Applicants perform a self-assessment of their systems and procedures against BSCP requirements embodied within the SAD. The Applicant will be required to undertake the majority of the work (i.e. drafting the SAD responses, performing testing and providing evidence).
The SAD contains the following sections that also embody the minimum standards that a Qualified Person must meet:
project management and system development;
operational security and controls;
change management and risk assessment;
management, resource planning and local working procedures;
initial data population and/or data migration; and
role specific sections.
Qualified Persons, other than Suppliers, LDSOs, VLPs and AMVLPs must also submit an Annual Statement of Qualified Status to Elexon on or around 1 April each year confirming that they have implemented no Material Changes to their systems and processes or have re-Qualified for any Material Changes made.
VLPs are not required to undergo Witness Testing.
As part of the Qualification
process, applicants are expected to design and execute their own testing to satisfy the BSC obligations relating to their particular applicant role. Storyboards are guidance documents that can be used by an applicant when designing a test programme to satisfy the associated Qualification Requirements
. The SVA Qualification Storyboards and Test Guidelines
contain further guidance on this subject.
Currently there are no fees charged to Applicants for completing the Qualification Process.
s will need to ensure that their relevant details are registered within Market Domain Data
(MDD) before they intend to commence live operations. The process of registering information in MDD is detailed in BSCP509: Changes to Market Domain Data.
will not be effective in MDD until after the date that PAB approves its Qualification
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