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CONTENTS

Performance Assurance: Risk Mapping

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Performance Assurance: Risk Mapping

Guidance Note

Summary

This document illustrates the mapping of the Top Settlement Risks from the 2018/19 Performance assurance Operating Period (PAOP), and the Focus Risks in the 2019/20 PAOP. The document identifies the cross over and differences between the PAOPs, and informs Parties of the rationale behind the judgment Elexon has made.

Top Settlement Risks – 2018/19 PAOP

In the 2018/19 Performance Assurance Operating Period (PAOP), Elexon assessed the Settlement Risks resulting in ‘Net Significance’ values between 1 and 25. We calculated the net significance in line with the approved Risk Evaluation Methodology. The Performance Assurance Board (PAB) treated any Settlement Risk with a net significance of 12 or above as a ‘Top Settlement Risk’ in line with Section Z5.1.3. In the previous approach to Risk Management, we evaluated all CVA risks as significant for both their Probability and their Impact

Top Settlement Risk

New Risk Category

New Risk Title

SR0024 - The risk that NHHMOAs do not provide Meter Technical Details to the correct NHHDCs resulting in Meter readings not being collected.

SR0025 - The risk that HHMOAs do not provide Meter Technical Details to the correct HHDCs resulting in Meter readings not being collected.

SR3019 - The risk that Half Hourly Meter Operator Agents (HHMOAs) do not provide correct Meter Technical Details (MTDs), including when HHMOAs make changes to MTDs, to the Half Hourly Data Collector, resulting in Meter readings not being collected or misinterpreted.

→

Metering

R006 - On a change of agent, Meter Technical Details are not transferred or processed correctly or at all, such that parties do not use the latest Meter Technical Details

SR0116 - The risk that Import/Export Metering Systems are incorrectly installed/configured resulting in inaccurate data entering Settlement.

SR2828 - The risk that non Half Hourly Import/Export Metering Systems are incorrectly installed/configured resulting in inaccurate data entering Settlement.

→

Metering

R003 - SVA Metering Equipment is installed, programmed or maintained incorrectly including where Commissioning is performed incorrectly or not at all

SR0112 - The risk that HHDCs use data from faulty Metering Systems resulting in incorrect data being entered into Settlement.

→

Metering

R005 - A fault with SVA Metering Equipment is not resolved, such that metered data is recorded incorrectly or cannot be retrieved

SR0074 - The risk that NHHDCs do not collect and / or enter valid Meter readings resulting in old/default data entering Settlement.

SR0081 - The risk that HHDCs do not process valid HH readings resulting in estimated data being entered into Settlement.

→

Data Retrieval and Processing

R007 - SVA Metered data is not retrieved, such that the proportion of estimated data being used in Settlement contributes to performance standards not being met

SR0072 - The risk that NHHDCs process incorrect Meter readings, resulting in erroneous data being entered into Settlement.

→

Data Retrieval and Processing

R008 -SVA metered data is not processed or transferred correctly, or at all

SR0073 - The risk that stolen energy notified by Revenue Protection units is not used in calculations by Suppliers and NHHDCs resulting in inaccurate data being entered into Settlement.

SR0111 - The risk that NHH Metering Systems are tampered with resulting in under-accounting of energy in Settlement.

→

Data Retrieval and Processing

R018 - Revenue protection processes are not managed sufficiently, such that unrecorded energy volumes are excluded from Settlement

Focus Risks – 2019/20 PAOP

In the 2019/20 PAOP, Elexon Assessed Settlement Risks and calculated an Impact Value, in £GBP. This approach was set out in the Risk Evaluation Methodology (REM).

Elexon will propose Settlement Risks to prioritise for each PAOP, to select these risks Elexon considered the following criteria:

        • The steer received directly from the Performance Assurance Board, including via the PAB Strategy.

        • The innate characteristics, the assessed impact and volatility; Elexon has prioritised those with a large impact and high volatilities.

        • The effectiveness of previous Performance Assurance Technique deployment against the risk, and the forecast effect of applying new approaches and undertaking additional analysis to the risk.

The PAB has approved eight Focus Risks for the 2019/20 PAOP; these risks fall into the Metering, Data Retrieval and Processing, and Registration and Appointments risk categories:

Risk Category

Risk Title

Selection Rationale

Data Retrieval and Processing

R007 - SVA Metered data is not retrieved, such that the proportion of estimated data being used in Settlement contributes to performance standards not being met

To provide further understanding around the poor performance that persists in these markets

R021 - CVA Metered Data is not retrieved, or processed correctly, or at all, by the CDCA

Data Retrieval and Processing

R011 - Unmetered Supplies SVA volumes are calculated incorrectly or not at all

The Performance Assurance Framework currently does not have access to a detailed view of the risk in the Market

Data Retrieval and Processing

R018 - Revenue protection processes are not managed sufficiently, such that unrecorded SVA energy volumes are excluded from Settlement

Elexon does not yet have access to valuable data sources, such as RP data flows, and Theft Risk Assessment Service reporting which will improve Elexon’s Risk Assessment and mitigation efforts

Metering

R003 - SVA Metering Equipment is installed, programmed or maintained incorrectly including where Commissioning is performed incorrectly or not at all

Elexon note significant changes to the management of the process have been implemented as part of the November 2018 Release. Elexon will apply investigative techniques to monitor and quantify the impact of the changes on the Risk

Metering

R005 - A fault with SVA Metering Equipment is not resolved, such that metered data is recorded incorrectly or cannot be retrieved

Elexon will carry out root cause analysis on the faults, and any delays in fault resolution

R023 - A fault with CVA Metering Equipment is not resolved, such that Metered Data is recorded incorrectly or cannot be retrieved

Registration and Appointments

R016 - The energisation status held in SMRS or by any party in the Supplier Hub does not match the physical energisation status of the SVA Metering System

Elexon are seeking to better mitigate the risk thorough a re-assessment of the performance against this risk, ensuring the applied PATs identify and quantify the materiality of mismatches

Top Settlement Risks represented in the Focus Risks

The Retrieval of Metered Data risks, Risk 007 for the SVA Market, and Risk 021 for the CVA Market, encompass SR0072, SR0074, SR0081 from the Top Settlement Risks from the 2018/19 PAOP.

The Revenue Protection risk, Risk 018 encompasses SR0073 and SR0111 from the Top Settlement Risks from the 2018/19 PAOP.

The Fault Resolution risks, Risk 005 for the SVA Market and Risk 023 for the CVA Market, encompass SR0112 and its corresponding CVA equivalent from the Top Settlement Risks from the 2018/19 PAOP.

The Metering Equipment installation, programming, maintenance and Commissioning risk encompasses SR0116 and SR2868 from the Top Settlement Risks from the 2018/19 PAOP.

complex image of process

Top Settlement Risks not represented in the Focus Risks

The Top Settlement Risks from 2018/19 that are not represented in the Focus Risks for 2019/20 PAOP are SR0024, SR0025, SR0072, and SR3019.

The risks SR0024, SR0025, and SR3019 are associated with the provision of correct MTDs, in the non-Half Hourly, Half Hourly, and SMART Markets respectively. Elexon has not included these risks in its Focus Risks for 2019/20, in recognition of the work completed in 2018/19 PAOP. Elexon presented the findings of the Missing MTDs TAPAP at PAB208. From the conclusions of the TAPAP findings report, Elexon proposed a rescoring of SR0024 and SR0025, which PAB accepted as a Within Period Revision to the RER in PAB213.

The risk SR0072 is associated with the correct processing of Meter readings. Whilst the risk is not a Focus Risk, in recognition of its importance Elexon are maintaining the established PATs associated with mitigating the risk. Elexon aim to improve market performance against this risk over the 2019/20 PAOP.

Elexon remind parties that Performance Assurance Techniques (PAT) are applied to maintain and improve all the Settlement Risks as outlined in the Risk Operating Plan. The ROP details the PATs applicable to each Settlement Risk can be found within; Elexon will provide regular reporting to the Performance Assurance Board across all Risks. The PAB can, through a Risk Management Determination, apply a PAT, request the attendance of, and escalate any party, for any Settlement Risk, as has been the case through previous PAOPs.

Further Information

For more information please contact the BSC Service Desk or call 0370 010 6950.

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.