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 process of Qualification is defined in Section J of the Balancing and Settlement Code (BSC), and in Balancing and Settlement Code Procedure BSCP537: Qualification Process for SVA Parties, SVA Party Agents and CVA MOAs.

Qualification

The Qualification procedures are followed by organisations wishing to operate in the BSC arrangements in one or more of the following capacities:

Suppliers
Meter Operator Agents (Central Volume Allocation¹ (CVA) );
Data Collectors;
Data Aggregators;
Supplier Meter Registration Agents;
Meter Administrators;
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. Elexon² 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.

Re-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 Changes³. 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 and re-Qualification is available on the BSC Website.

Self-Assessment

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:

introduction;
project management and system development;
testing;
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.

Witness Testing

The SVA Qualification Approach to Witnessing provides details of the approach to witnessing taken by Elexon and the witnessing that may be performed by Elexon as part of the Qualification process.

VLPs are not required to undergo Witness Testing.

Storyboards

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.

Fees

Currently there are no fees charged to Applicants for completing the Qualification Process.

Market Domain Data

All Applicants 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. An Applicant will not be effective in MDD until after the date that PAB approves its Qualification Application.

Contact

For further information relating to Qualification please email qualification@elexon.co.uk.

Need more information?

For more information please contact the BSC Service Desk or call 0370 0106950.

Intellectual Property Rights, Copyright and Disclaimer

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.

1 CVA Meter Operator Agents must also go through the CVA Qualification process detailed in BSCP70: Qualification Testing for Parties and Party Agents

2 Elexon may choose to use a Qualification Service Provider to progress Qualification Applications on its behalf. For the purposes of this guidance, reference is made to Elexon

3 Material Change is defined in Section X-1 of the BSC as being a proposed change to the Qualified Person’s systems and processes that has the potential to impact that person’s ability to meet its obligations under the BSC.

CONTENTS

Market Entry: SVA Qualification

Introduction