Registration of BM Units for EMR

Guidance Note

December 2014

CFD Allocated

A small wind farm in GSP Group _N is allocated a CFD contract. It will have Metering Systems registered in SMRS and will therefore require an A.BMU for CFD Settlement.

March 2015

Expected start date changed and Settlement Services Provider notified.

The CFD Generator originally expected to finish building the wind farm and start generating around May 2015, with CFD payments starting shortly afterwards. However, as the project developed it encountered some delays and now it's expected commencement of operation is to be in July 2015, with CFD payments to start thereafter. The new expected start date is notified to the CFD Counterparty (and by them to the CFDSSP)

March 2015

Settlement Services Provider instructs BSCCo to register A.BMUs

The CFDSSP instructs BSCCo to register A.BMUs in GSP Group _N for this CFD Generator. The CFDSSP notifies BSCCo of the effective from date (EFD) for the A.BMUs (1 June 2015) and provides the unique CFD Generator ID held for that CFD Generator, say ‘CFD1234’ (CFD Generator ID convention to be defined).

The EFD is chosen to start before the CFD Generators expected commencement of operations date to ensure sufficient time to resolve any issues.

March 2015

BSCCo starts the A.BMU registration process

BSCCo initiates the CRA and MDD registration processes, registering A.BMUs for each Supplier on the list for GSP Group _N. On this occasion there are nine Suppliers on the list and therefore nine A.BMUs are registered.

April 2015

CFD generator signs a PPA with a Supplier

The CFD Generator signs a PPA with a Supplier effective from April 2015. The Supplier registers the relevant MPANs, which for the time being are assigned to the Suppliers Base BM Unit as the A.BMUs are not yet registered.

10 May 2015

A.BMUs entered into CRS

The nine A.BMUs are registered by the CRA in the CRS with an EFD of 1 June.

14 May 2015

MDD Go-live date

The nine A.BMUs go live in MDD with effective from dates of 1 June 2015.

1 June 2015

A.BMUs become effective in MDD and CRS

The nine A.BMUs are now effective in the CRS and MDD.

15 June 2015

Supplier allocates relevant MPANs to its A.BMU

The Supplier is one of the nine A.BMUs registered and can therefore assign the relevant MPANs from its Base BM Unit to the A.BMU for the CFD Generators CFD commencement of operations date.

20 July 2015

CFD Payment start date

The CFD Generators CFD payments start.

BMU Id

BMU Name

C__NAAAA015

C__NAAAA015 - CFD1234

C__NBBBB015

C__NBBBB015 - CFD1234

C__NCCCC015

C__NCCCC015 - CFD1234

C__NDDDD015

C__NDDDD015- CFD1234

C__NEEEE015

C__NEEEE015 - CFD1234

C__NFFFFA015

C__NFFFFA015 - CFD1234

C__NGGGG015

C__NGGGG015 - CFD1234

C__NHHHH015

C__NHHHH015 - CFD1234

C__NIIII015

C__NIIII015 - CFD1234

New Additional BM Unit ID Schema for CFD Assets: e.g. C__ASUPP001

Schema Element

Schema Element Description

C_

The first two characters of the BM Unit Id will identify the type of Additional BM Unit:

Supplier BM Unit for CFD Assets (C_)

_X

The next two characters will be the GSP Group Id e.g. _A for Eastern GSP Group.

XXXX

The next four characters will be the Market Participant Id of the Supplier on whose behalf the Additional BM Unit is registered. e.g. SUPP.

nnn

Used to identify the CFD. The number increments by one for each CFD.

BMU Id Prefix

BMU Name Schema

Example

Description

C_

{BMU Id} - {CFD Id}

C__ASUPP001 – CFD12345⁶

The CFD Id used in the CFDSSP system will be stored in the A.BMU name field. This will be provided by the CFDSSP to BSCCo. This allows the Additional BM Unit to be associated with a particular CFD for the lifetime of the CFD, by creating a relationship between the BMU Id and CFD Id. The maximum number of characters allowed for the BMU name is 30 characters.

1. When do I need to register my BM Unit associated with Metering Systems registered in CMRS?

The BM Units should be registered in sufficient time so that they are effective from the start of the CFD Generator’s start date (the day CFD difference payments start).

It is the responsibility of the CFD Generator to ensure its metering, including BM Units are compliant. It is the responsibility of Lead Parties to ensure that the BM Units are comprised of the correct assets. See the BSC section K 3.1.8.

2. When do I need to register my BM Unit associated with Metering Systems registered in SMRS?

BM Units should be registered in sufficient time so that they are effective from the start of the CFD Generator’s start date (the day CFD difference payments start).

It is the responsibility of Suppliers to ensure that A.BMUs are registered and that only the relevant assets are assigned. See the BSC section K 3.3.12 and 3.3.13.

3. How do I register CVA BM Units?

You need to register the BM Unit following BSCP15 section 3.1.

4. How do I register SVA BM Units?

You need to register the BM Unit following BSCP15 3.18.

Lead Parties should not need to register A.BMUs for EMR as long as:

1. The CFD Generator has informed the CFD Counterparty (who then informs the EMR Settlement Services Provider) in sufficient time; and

2. The Supplier is on the list maintained by BSCCo

5. When do I need to deregister my BM Unit associated with Metering Systems registered in SMRS?

As per registering A.BMUs you should not need to deregister the A.BMUs (unless you want to). You will only be permitted to de-register A.BMUs if the Settlement Services Provider confirms it is not needed for EMR settlement.

There are two occasions when A.BMUs will be de-registered on your behalf:

1. When the CFD Contract terminates or a Termination Event occurs; or

2. When a set of A.BMUs is being updated based on the APPL maintained by BSCCo.

6. When do I need to deregister my BM Unit associated with Metering Systems registered in CMRS?

This is up to the Lead Parties of the BM Unit. We would expect this to occur when the generating units assigned to the BM Unit are decommissioned.

7. Why is there a new process for SVA BM Units and not CVA BM Units?

A new process is needed because A.BMUs are specific to Suppliers and cannot move between Suppliers. Any EMR Assets must move between A.BMUs as the Supplier/offtaker changes.

8. Why are we still charging for CVA BM Units?

The requirement to register Metering Systems in CMRS and the setup of CVA BM Units is not changed as a result of EMR. If a generator is licensed and awarded a CFD contract it will be required to register its BM Units in the same way as if it did not hold a CFD contract.

9. Why does the £100 monthly A.BMU charge not apply for A.BMUs registered for EMR?

Unlike in CVA, EMR is mandating the use of A.BMUs for SMRS registered Metering Systems. Currently Suppliers have a choice of whether to allocate its Metering Systems to its Base BM Unit (default position) or to an A.BMU. EMR is removing this choice. Also, the £100 monthly charge is not cost reflective. Any costs (e.g. time and effort) BSCCo incurs in registering A.BMUs for EMR will be recovered from the CFD operational levy.

10. Will I have to pay for Additional Primary BM Units?

No. The normal Section D charge of £100 per month per A.BMU will not apply if it is registered for CFD purposes. Further information provided in question 9.

11. Why do we need a naming convention for SVA BM Units?

The main reason for a new A.BMU naming convention is to maintain a relationship between A.BMUs and a CFD Generator. This is most relevant when registering a set of A.BMUs for the lifetime of a CFD contract. In order to ensure A.BMUs remain available for the lifetime of the CFD contract it is important to know which A.BMUs have been registered for which CFD Generator. By including the CFD Generator unique Id in the BMU name field this can be easily achieved and visible for all relevant participants. The naming convention also helps exclude the A.BMUs from BSC Parties BSC charges.

No such naming convention is needed for CVA BM Units as the BM Unit is related directly to the generating unit and consequently the CFD Generator.

12. What GC/DC values will be entered for A.BMUs registered as part of a set? What about other CALF and Physical Notifications (PNs)?

Where A.BMUs are registered by BSCCo under instruction from the Settlement Services Provider zero GC/DC values will be entered. This means there will be no impact on a Supplier’s Credit position. Default CALF values and FPN flag of ‘N’ will also be set as default.

Where a Supplier allocates Metering Systems to an A.BMU it will be required to declare the GC/DC values in accordance with existing BSC rules. This should be the maximum expected net Generation and Demand for that BM Unit in the current BSC Season.

A corresponding CALF value will also be calculated. Should the A.BMU participate in the Balancing Mechanism, or wish to submit Physical Notifications, the Supplier will need to submit a BSCP15/4.1 form to change the FPN flag for the BM Unit in accordance with the current process. The Supplier will also need to register BM Units with National Grid.

13. What data will I receive for A.BMUs?

From a BSC perspective you will receive all the normal data flows and data you would normally receive. This includes the SAA-I014 part two flow. Where an A.BMU is inactive, because it was registered as part of a set, or is no longer needed you will still continue to receive this flow.

From an EMR perspective you will only receive data relating to BM Units where you are the EMR participant. For example, a small embedded CFD Generator with Metering Systems registered in SMRS will not receive any BSC data flows from BSCCo. However, it will receive data flows from the CFD Settlement Services Provider. These flows will provide the credit note/invoice and associated backing sheet. The backing sheet will contain the metered data used to determine the credit note/invoice and will mirror the volumes provided by BSCCo to the Supplier.

14. What Settlement timeline will CFD follow / when will I receive EMR settlement volumes?

The BSC Settlement timetable does not change for EMR and BSC Settlement continues to operate as scheduled.

The EMR Settlement timetable will follow the BSC timetable. For example, for Settlement Day (SD) 1 April 2015 we would expect the II Run to occur 5WD later on 8 April. The EMR Settlement Services Provider will receive this BSC data on SD+5WD and submit the EMR Settlement data to the EMR participant by SD+7WD on 10 April 2015.

15. Where do Energy Intensive Industries fit into this?

Customers of Suppliers that are eligible can apply to the Department of Business, Energy & Industrial Strategy (BEIS) for an EII Certificate. Each EII Certificate will exempt a proportion of up to 85% of a meter’s metered volumes from CFD charging. You do not need to register Additional BMUs to measure the EII volumes separately.

16. Do I have to use A.BMUs?

If you have agreed to be the Supplier/offtaker for a CFD generator then you are obliged by the BSC to register A.BMUs and assign the relevant CFD Assets in accordance with the CFD Generators CFD contract.

17. Why are Suppliers allowed to opt-in and out of the list?

BSCCo are required to maintain a list (the APPL) of Suppliers in each GSP Group for whom they should register Additional Primary BM Units when instructed by the CFDSSP. This is expected to occur when a generator does not know who it will sign its Power Purchasing Agreement (PPA) with and consequently which Supplier will be responsible for the Metering Systems.

Suppliers may opt-in because they wish to sign a PPA with a generator who has been awarded a CFD contract but does not currently provide any Half Hourly Export supply in the relevant GSP Group. By opting-in the Supplier ensures an A.BMU will be registered on its behalf and available to use from the start of the PPA.

Some Suppliers will be included on the APPL because they are classed as mandatory Offtakers as part of Ofgem’s OLR process.

Suppliers may opt-out because they may make a decision not to take on any CFD Generators and do not wish to have A.BMUs registered on its behalf.

18. Why allow Lead Parties to register A.BMUs at all? Why not just let the new process of registering sets of A.BMUs to unfold?

Allowing Lead Parties to register A.BMUs ensures they can meet their BSC obligations to register A.BMUs.

19. How do I know if I’m [Supplier] on the A.BMU list?

The list will be updated at least quarterly. Suppliers may request a copy of the list at any time. A Supplier will only be provided with a filtered version of the list, showing only its status to maintain confidentiality.

20. How do I deregister A.BMUs for EMR?

The process for deregistering is fundamentally the same as for registering. Either the CFD Counterparty will inform the Settlement Services Provider that the CFD contract has expired and the SSP will instruct BSCCo to deregister A.BMUs. Or BSCCo will deregister A.BMUs if that Supplier is no longer on the list at the time a set is revised each quarter.

21. How does the Offtaker of Last Resort (OLR) process impact the A.BMU registration process?

The Offtaker of Last Resort (OLR) process mandates certain Suppliers/Offtakers to sign a PPA with a CFD generator. Mandatory offtakers must ensure they are on the APPL in every GSP Group. We understand the process to be:

• Supply licence conditions will specify Mandatory Offtakers for the next (Apr-March) OLR Year as those that supplied more than 6% of GB electricity in the preceding OLR Year.

• Ofgem will identify the Mandatory Offtakers ~7 months before each OLR Year begins.

• Ofgem will publish the list of Mandatory Offtakers.

• Supplier must make sure they have A.BMUs registered by electing to be on the APPL in every GSP Group.

22. How do I allocate Metering Systems to an Additional BM Unit?

You should follow BSCP503 3.5. Further information on this can be found in the Multiple BM Unit Instruction Processing Specification.

23. Can I retrospectively allocate MPANs to an A.BMU?

No. you can only allocate MPANs to an A.BMU with an effective date in the future.

24. How does the Change of Supply process work with A.BMUs for CFD Assets?

The new Supplier must ensure it has an available A.BMU (no other Assets assigned to it). The New Supplier must also ensure it allocated the relevant MPANs to its A.BMU in line with its supply start date.

If a CFD Generator chooses to transfer to another Supplier/Offtaker, the new Supplier will need to allocate the MPANs to its A.BMU, so that the CFD generators metered volumes are captured by the new Suppliers A.BMU rather than the old Suppliers A.BMU. The old Suppliers A.BMU cannot transfer to the new Supplier, unless the old Supplier is transferring ownership of the entire MPID.

The CFD generator will also need to ensure that the CFDSSP knows about change of supply events, so that it can include the relevant A.BMU in its settlement calculations for the CFD generator. This can be done by a generator’s authorised persons.

25. I MVRN energy from my Base BM Units to another Party’s energy account, will I have to set up new MVRNs for A.BMUs?

Yes. A.BMUs for CFD Assets with Metering Systems allocated to it will by default allocate energy to the Party Energy Account associated with the A.BMUs. If you wish to move energy from the associated Energy Account you will need to setup MVRNs to the preferred Energy Account.

Unless the A.BMUs are declared exempt export status, the A.BMUs will have ‘C’ consumption status and form part of the Base Trading Unit.

A.BMU – Additional Balancing Mechanism Unit

Supplier BM Units that are not Base BM Units.

Active Export

A flow of Active Energy (means the electrical energy produced, flowing or supplied by an electric circuit during a time interval, being the integral with respect to time of instantaneous Active Power, measured in units of watt-hours or standard multiples thereof) at any instant in time from any Plant or Apparatus (not comprising part of the Total System) of that Party to the Plant or Apparatus (comprising part of the Total System) of a Party.

Active Power Purchasing Supplier

In respect of a GSP Group, means a Supplier that has recorded a Half Hourly Active Export greater than zero for that GSP Group at any point over a period of the 30 most recent Settlement Days for which data is available.

APPL – Active Power Purchasing List

A list maintained by BSCCo that identifies Active Power Purchasing Suppliers in each GSP Group, or those Half Hourly Suppliers that have requested to be added to the list.

Balancing Service Meters

National Grid Balancing Services meters for Short Term Operating Reserve (STOR), Frequency Control by Demand Management (FCDM) and Firm Frequency Response (FFR).

Base BM Unit

A Supplier’s ‘default’ Supplier BM Unit for a GSP Group. Every Supplier has one Base BM Unit for each of the 14 GSP Groups. All a Suppliers supply and SVA registered embedded generation in a particular GSP Group will be allocated to the Base BM Unit, unless the Supplier specifically allocates the Metering System to an Additional BM Unit.

BEIS- Department for Business, Energy & Industrial Strategy

A UK Government ministerial department which aims to build links between industry, energy and climate change, and enable a united focus on markets, investors and consumers.

BMU - Balancing Mechanism Unit

Units of trade in the Balancing Mechanism. Used in the BSC to account for all energy that flows on or off the Total System, which is the Transmission System and the Distribution System combined. A BM Unit is the smallest grouping of equipment that can be independently metered for Settlement. Most BM Units consist of a generating unit or a collection of consumption meters, and the energy produced or consumed by the contents of a BM Unit is accredited to that Unit

BSC Party

A person who is acceded and bound by the BSC by virtue of being a party to the Framework Agreement.

BSCCo

A non-profit organisation responsible for managing the provision of the necessary central systems and services to give effect to the BSC rules and for managing the governance processes

CFD – Feed in Tariff Contracts for Difference

A contract designed to incentivise investments in new low-carbon electricity generation in the UK by providing stability and predictability to future revenue streams.

CFD Counterparty

The role responsible for managing Contracts for Difference, and managing the collection and payment of monies under the Supplier Obligation (obligations on Suppliers) for the CFD regime. The LCCC is the CFD Counterparty.

CFD Generator

A generator who has a CFD.

CFD Generator Start Date

The CFD generators payments start date.

CFDSSP – CFD Settlement Services Provider

The role to carry out settlement of CFDs and the Supplier Obligation on behalf of the CFD Counterparty.

CM – Capacity Market

The Governments scheme designed to ensure sufficient and reliable capacity on the System, even at times of peak demand.

CMRS - Central Meter Registration Service

The service for registration of data relating to CVA Metering Systems maintained (for the purposes of the Code) by the Central Data Collection Agent.

CMSSP – Capacity Market Settlement Services Provider

The role to carry out settlement of the Capacity Market on behalf of the Settlement Body.

CoS – Change of Supply

The SVA process for a customer and its associated Metering Systems moving from the responsibility of one Supplier to another Supplier.

CRA – Central Registration Agent

BSC Party details are stored in a database managed by the CRA (a BSC Agent). The database holds information such as, Party IDDs, Party Roles, Authorised Signatories and BM Units.

CRS – Central Registration Service

A service for registration of data maintained (for the purposes of the Code) by the Central Registration Agent.

CVA – Central Volume Allocation

The process and systems to determine quantities of Active Energy to be taken into account for the purposes of Settlement in respect of Volume Allocation Units.

EMR – Electricity Market Reform

The Governments programme to ‘transform the UK’s electricity system to ensure that our future electricity supply is secure, low-carbon and affordable’. There are four schemes under EMR. Two EMR schemes, CFD and CM, will have its payments and charges calculated by the EMR Settlement Services Provider.

EMRS – Electricity Market Reform Settlement

The subsidiary company of Eleoxn Ltd established to meet the EMRSSP role.

EMRSSP – Electricity Market Reform Settlement Services Provider

Used to refer to the CFDSSP and/or the CMSSP.

ESC – Electricity Settlements Company

See Settlement Body.

GSP Group – Grid Supply Point Group

A Distribution System.

HHDA – Half Hourly Data Aggregator

A Supplier Agent responsible for aggregating metered data received from Half Hourly Data Collectors.

LCCC – Low Carbon Contracts Company

See CFD Counterparty.

Lead Party

The BSC Party to whom a BM Unit belongs.

MDD – Market Domain Data

A database to hold standing data for SVA.

Metering System

Commissioned Metering Equipment (Meters, measurement transformers, metering protection equipment including alarms, circuitry, associated Communications Equipment and Outstations and wiring).

Offtaker

A Licensed supplier party to a PPA or Backstop PPA (BPPA) with a generator.

PPA – Power Purchase Agreement

A contract between two parties, one who generates electricity (the seller) and one who is looking to purchase electricity (the buyer).

Private Network

An electricity distribution network that is not part of the Total System.

Registrant

The person responsible for the Metering System.

SAA – Settlement Administration Agent

A BSC agent that collects data, including metered data from SVA and CVA to determine the Energy Imbalance of each Trading Party, the System Prices, Trading Charges and BM Unit volumes for EMR.

Settlement Body

The role responsible for managing capacity agreements, and managing the collections and payments of monies under the Electricity Capacity (supplier Payments) Regulations. The ESC is the Settlement body.

SMRS - Supplier Meter Registration Service

The service for registration of data relating to SVA Metering Systems maintained (for the purposes of the Code) by the Licensed Distributors.

Supplier

A Party which holds a Supply Licence and is responsible for Exports and/or Imports for which such Party is required, to register one or more SVA Metering Systems.

SVA

The process and systems to determine quantities of Active Energy to be taken into account for the purposes of Settlement in respect of Supplier BM Units.

The System or Total System

The Transmission System, each Offshore Transmission System User Asset and each Distribution System.

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