Wider Access Guidance For Virtual Lead Parties (VLPs), Asset Metering VLPs and Suppliers |
Guidance Note |
Wider Access is the term used for changes to the Balancing and Settlement Code (BSC) and to the National Electricity Transmission System Operator (NETSO) processes to enable customers and independent aggregators – known in the BSC as Virtual Lead Parties (VLPs) or Asset Metering VLPs (AMVLPs) to participate in the Balancing Mechanism (BM). BSC arrangements have always allowed customers to participate in the BM through their electricity supplier, but Wider Access allows them to do so through an independent aggregator, or directly themselves (if they accede to the BSC). Opening up the BM to Wider Access is important for helping the development of a smarter, more flexible electricity system in which independent aggregators can play a role.
Independent aggregators are parties who bundle changes in consumer’s loads or distributed generation output for sale in organised markets and who do not simultaneously supply the customer with energy.
Wider Access changes to the BSC were first implemented under Modification P344 (in the February 2019 and November 2019 BSC Releases) to provide a means for the registration and qualification of VLPs. These changes were updated in the June 2022 BSC Release under Modification P375 which introduced AMVLPs, Asset Meters, Asset Meter Operator Agents (AMMOAs) and Asset Meter Half Hourly Data Collectors (AMHHDCs). Further updates were made in the February 2023 Release under Modification P376 to allow VLPs whose assets shares a network connection with other assets to be more accurately recompensed for their actual change from normal usage. This will be done by introducing Settlement Expected Volumes which will be calculated for assets separately from the Physical Notifications used by the NETSO for dispatch.
A VLP is a distinct type of Party to the BSC that only participates in Settlement by offering balancing energy services. An AMVLP is a VLP that uses Asset Metering (also known as behind the boundary Metering) instead of or as well as Boundary Metering. The BSC does not currently provide a mechanism for VLPs and AMVLPs to trade in wholesale markets. In recognition of this, a BSC Party who qualifies only in the role of VLP or AMVLP (and not in any of the Trading Party roles that permit access to wholesale markets, such as Generator or Non-Physical Trader) is not subject to the same level of charges and obligations as existing Parties. A BSC Party who qualifies both as a VLP or AMVLP and as a Trading Party will be subject to the same charges and obligations as other Trading Parties.
Market Entry and Party Registration Process
Virtual Lead Party (VLP) and Asset Metering Virtual Lead Party (AMVLP) – Entering the Market
Under the BSC framework, independent aggregators are known as VLPs. This is an overview of the end to end process for entering the market as a VLP and an AMVLP.
This note includes information on the CVA and SVA entry processes; the two entry processes can run in parallel. If you are considering entering the market as a VLP and/or an AMVLP, Elexon recommends that you contact its Market Entry team (
market.entry@elexon.co.uk) to arrange a meeting with them to discuss your intentions and they can provide further support and guidance. Market Entry meetings are free of charge to potential Parties, and can be held either at Elexon office or via teleconference.
The full business process for becoming a VLP or an AMVLP can also be found in the guidance flow chart on the
Market Entry page of the Elexon website.
These diagrams also contain all the necessary forms for Parties to complete as part of the Market Entry process. To access the forms, please click on the relevant step, for a pop up to appear.
It is a requirement for all BSC Parties to complete CVA Market Entry. This section provides an overview of the steps involved and offers on advice on how to complete each step.
The Market Entry process is initiated by acceding to the BSC. At this point you will be considered a BSC Party, and will be subject to Elexon’s VLP/AMVLP Base Monthly Charge of £125 (+VAT) per calendar month or part thereof.
When you are ready to accede, please submit:
One accession form. This can be scanned and sent via email to market.entry@elexon.co.uk or uploaded online via the Self-Service Gateway (Elexon Kinnect Customer Solution);
Two signed and undated physical copies of the Accession Agreement. These will be countersigned and dated by Elexon on your chosen accession date. Elexon require paper copies, but you can send a scanned copy for the Participant Management team to check before posting if you wish. Please send the Accession Agreements to:
Participant Management team
Account Name: Elexon Limited
Once Elexon has received the forms and Accession Fee, they will arrange an Accession Date of your preference. Please contact the Participant Management team for templates of these documents.
Appoint Authorised Signatories
Authorised Signatories are the people appointed to carry out activities under the BSC. Your Authorised Signatory will also need to sign off documentation and forms relating to the market entry process. To appoint your first set of Authorised Signatories Elexon requires:
BSCP38/5.1 with the first signatories details in both part A and C of the form. Additional signatories only need to complete part C; and
A Director’s letter on company headed letter paper nominating the first signatory. The Participant Management team can provide a template for this.
The Party to add an Authorised Signatory via the Self-Service Gateway (Elexon Kinnect Customer Solution); and
A Director’s letter on company headed letter paper nominating the first signatory. The Participant Management team can provide a template for this.
Order Communications Line
BSC Parties are required to acquire a communications method for Elexon’s systems to communicate with their own. There are two options for this:
The Low Grade Service. This is a download from the public internet, takes five Working Days to set up and is free to BSC Parties; and
The High Grade Service. This involves the installation of a direct connection to your office, through which data will be pushed in real time. There are costs associated with the High Grade Service.
CVA Qualification testing
BSC Parties are required to complete CVA
Qualification to certify that the
Party’s CVA system can correctly interact with Elexon’s systems and validate the format of any data that they receive. Parties are required to build or procure their own system. If you did want to go down the route of building your own CVA software please refer to the
NETA Interface Definition Documents (IDDs) and further
related documents.
CRA-I014 - Registration Report
SAA-I014 - Settlement Reports
For more information regarding the data flows required for the AMVLP role, please click here.
To complete CVA Qualification, there are three routes:
Full testing of all relevant flows. The testing is free to entering Parties and can be repeated multiple times if the first test is not successful. The testing takes approximately half a day and can be booked using the BSCP70/01(a) booking form;
Waiver testing against an already Qualified Parties system. If you have agreed with a Party that has already Qualified in the role to make use of their system, then you can waiver the testing. To do so complete the BSCP70/02 waiver application listing the flows which you wish to waiver. This should be accompanied by supporting evidence in the form of a letter from the supporting Party;
Opt out of testing. This is not a method that Elexon recommends as it provides no assurance to the Party that they are able to correctly receive any data that they receive. To opt out, submit the BSCP70/01(a) form and acknowledge in the email that not testing is done so at the Parties own risk.
All BSC Parties are required to register with the Funds Accession Agent (FAA). This is done using the
BSCP301/04(a) form. Please note that the FAA requires you to have a UK bank account, that is an account with a bank that has a branch based in the UK and used GBP is its principal currency.
Nominate operational contracts
Elexon requires Parties to nominate contacts for who should be contacted in relation to different activities under the BSC. The nominated persons should be authorised to undertake activities relating to the area for which they have been nominated. Operational contacts are declared using the contacts spreadsheet, the template for which can be provided by the Market Entry team.
When you have completed CVA
Qualification we will register you as a VLP or AMVLP in our Central
Systems. The registration requires form
BSCP65/01 or this can be completed online using the
Self-Service Gateway (Elexon Kinnect Customer Solution). If completing the
BSCP65/01 form please put the
Party Name in line one of the address followed by the address beginning in line two.
SVA Qualification Process
SVA Qualification is a risk-based Performance Assurance Technique (PAT) designed to offer confidence to the PAB and the market as a whole, that you are capable of operating in your chosen role without posing a risk to Settlement.
The SVA
Qualification process is based around the
Self-Assessment Document (SAD): BSCP537 Appendix 1, which asks about the organisation’s systems, staff and processes and takes a risk-based approach. The risk assigned to an application will be reviewed by Elexon and the
Qualification Service Provider (QSP) at various stages throughout the
Qualification process (for example, as subsequent drafts of the SAD are received) and if an applicant’s circumstances change. It is advisable to take a look at the SAD before initiating the
Qualification process to get a feeling for the types of questions and identify any areas you may have insufficient evidence for.
The Qualification process is initiated by your accession to the BSC. Once you accede, you can contact the Qualification Team to arrange a meeting with Elexon and the QSP to understand your business plans, explain the BSC Qualification processes and agree indicative timescales.
Completion/submission of the SAD
The SAD is broken down into numerous sections, some generic and some role specific. As a VLP you will need to complete sections 1-6 (generic) and 19 (VLP) and as an AMVLP you will need to complete sections 1-7 (generic) and 19A (AMVLP). Each section has an introduction to provide guidance and each question provides more detailed advice of what the QSP is looking for. There is space to answer each question and attach any supporting evidence you wish to provide.
The SAD can be submitted all at once or section by section. It will be reviewed by the QSP who will provide feedback and request additional detail or evidence where an answer is insufficient. This forms an iterative process that can be repeated many times until the QSP is happy with the submission. 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. There is more information in the
QSPS’s Approach to Qualification.
Following completion of the SAD, the QSP will write a report detailing its findings and provide a recommendation for your Qualification application. Elexon and QSP 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. The PAB decides on an applicant’s approval for Qualification.
Please note that since the PAB meet once a month (their meeting dates are listed on the
Elexon website) and Elexon and the QSP will need to write their reports, it can be six to eight weeks between finalising the SAD and the PAB presentation.
Secondary BM Units, Meters and Asset Meters
Secondary BM Units record the amount of Balancing Energy provided by VLPs or AMVLPs to the NETSO.
Registration of Secondary BM Units
Before starting your Secondary BM Unit registration, you must contact the NETSO, to discuss your obligations and sign the necessary contractual agreements. The NETSO will give you NGC BM Unit Id(s) which you need to be able to register your Secondary BM Unit.
To register a
Secondary BM Unit complete the online registration form via the
Self-Service Gateway (Elexon Kinnect Customer Solution) at least 15
Working Days before the proposed Effective From Date of your
BM Unit. Alternatively you can complete form
BSCP15/4.14 and sent it to the CRA at least 15
Working Days before the proposed Effective From Date of your
BM Unit.
The Secondary BM Unit ID will be V__XPPPPNNN where:
V_ is the prefix to denote that this is a Secondary BM Unit
_X, where X is the relevant GSP Group letter, e.g. _A,
PPPP is your four-letter Identifier (this may be the same as your Market Participant Identifier (MPID) if you are also a Supplier),
NNN where NNN are numbered sequentially, i.e. 001, 002 etc., within each GSP Group for each VLP’s or AMVLP’s BM Units
You will be asked to enter a Production/Consumption (P/C) Flag of either P or C. This is only relevant for Parties who also have other Party roles under the BSC. If you are a VLP only, you must enter a C.
You need to state the date on which the Secondary BM Unit will be effective from. This must be on or later than the date that you become a VLP or AMVLP.
MSID Pair Allocation – P0278
The process for allocating your
MSID Pairs to the
Secondary BM Unit is contained in
BSCP602, section 2.1.
You must submit your MSID Pair Allocation (s) at least 5 Working Days in advance of their effective from date. If it is your initial registration, then your MSID Pair should go live on the same date as your Secondary BM Unit.
Once you have access to the
Self-Service Gateway (Elexon Kinnect Customer Solution) you will be able to allocate your
MSID Pairs. Until then, VLPs will need to submit their
MSID Pair Allocation (s) (using
Elexon’s standard template) to the
Supplier Volume Allocation Agent (
SVAA) at neta@imserv.com. The
SVAA will then validate those
MSID Pairs Allocation (s) and provide a response, in the form of either a Confirmation or a Rejection.
Completing the MSID Pair Allocation template
Column Title | Input |
MSID Pair ID | This Id should be left blank. On acceptance, the SVAA will provide the unique MSID Pair Id |
BM Unit ID | You should input the Secondary BM Unit ID stated on the BSCP15/4.14 Form. Alternatively, this information can be completed online via the Self-Service Gateway (Elexon Kinnect Customer Solution). |
GSP Group ID | The GSP group that the BM Unit is located, e.g. _A |
Effective from Settlement Date {MSIDP} | Applicable date (For the initial set of MSID Pairs, this should be the same as the Effective From Date of the Secondary BM Unit) |
Effective To Settlement Date {MSIDP} | End date of the contract (use high date value if the contract is open-ended e.g. 31/12/2049) |
Import MSID | MSID Pair represents the SVA Metering System (s) at a single customer site and must include an Import |
MSID Import Customer Consent Flag | This is to indicate whether the customer has consented for BSC central systems to share the settlement derived individual MSID ‘Delivered Volumes’ with their Supplier for the Import MSID |
Effective From Settlement Date {ICCF} | Applicable date (The initial date should be the same as the Effective From Settlement Date of the MSID Pair, but could have a later date in the event that the customer gives or withdraws consent) |
Effective To Settlement Date {ICCF} | End date of the contract (use high date value if the contract is open-ended e.g. 31/12/2049) |
Export MSID | MSID Pair represents the SVA Metering System (s) at a single customer site and may include an Export |
MSID Export Customer Consent Flag | This is to indicate whether the customer has consented for BSC central systems to share the settlement derived individual MSID ‘Delivered Volumes’ with their Supplier for the Export MSID |
Effective From Settlement Date {ECCF} | Applicable date (The initial date should be the same as the Effective From Settlement Date of the MSID Pair, but could have a later date in the event that the customer gives or withdraws consent) |
Effective To Settlement Date {ECCF} | End date of the contract (use high date value if the contract is open-ended e.g. 31/12/2049) |
Rejection Reason | This should be left blank |
Delete? | This should be set to False |
Asset Meter Registration and AMSID Pair Allocation
Before you can allocate your AMSID Pairs to a Secondary BM Unit, you need to register the Assets to obtain the AMSIDs. If you are registering individual Assets then you can use the screens in Self-Service Gateway (Elexon Kinnect Customer Solution) to populate the required information. Alternatively you can complete the registration flows detailed below and load these into the Self-Service Gateway (Elexon Kinnect Customer Solution) or send them directly to the SVAA to be loaded.
The AMSID Pairs process has three stages:
Stage 1: Asset Registration
The AMVLP provides the Asset registration details. This must include all the relevant Boundary Point MSID Pairs for the site (the Boundary Point MSID Pairs are also called “Associated MSID Pairs”), and these Associated MSID Pairs must be registered. The AMVLP can choose whether to have both an import and export AMSID or just an Import AMSID (hereafter called an AMSID Pair). If all the details are valid, the SVAA generates the AMSID(s). The AMSID is a 13 digit number, starting 77.
Note that if the Boundary Point SVA MSID is registered as a Non-Final Demand Facility under the BSC or is used for Applicable Balancing Services Volume Data (ABSVD), the Effective To Date of the SVA MSID needs to be entered. This will be the Effective To Date for the SVA MSID for registration as a Non-Final Demand Facility or for ABSVD.
Stage 2: AMVLP Agent Registration
The AMVLP must appoint a Meter Operator Agent (MOA) or Asset Meter MOA (AMMOA), a Half Hour Data Collector (HHDC) and may also appoint an Asset Meter HHDC (AMHHDC) to the AMSID Pair. The AMVLP must appoint the same AMVLP Agents to both AMSIDs import and (where applicable) export in an AMSID Pair. An AMHHDC is only required where the HHDC does not collect the Metered Data directly. In this case an AMHHDC is appointed to collect the Metered Data and pass it onto the HHDC and both the HHDC and the AMHHDC need to be appointed.
Stage 3: Asset Meter Registration
The MOA / AMMOA installs the
Asset Meter(s) and informs the AMVLP of the
Asset Meter details (e.g.
Meter Make, Model,
Serial Number) which the AMVLP registers. The
Asset Meters need to comply with the relevant
Metering
Code of Practice. See the
Asset Metering Guidance for more information.
Allocation of Asset Meters to a Secondary BM Unit
Following Stage 3, when the AMVLP has successfully completed all three Registration Stages, the AMSID Pairs can be allocated to a Secondary BM Unit.
An AMVLP may allocate an AMSID Pair(s) to its Secondary BM Unit(s), in addition to the Boundary Point MSID Pair(s). Where an AMVLP has allocated an AMSID Pair to a Secondary BM Unit for the purposes of Asset Metering, a second AMVLP may allocate that AMSID Pair to a different Secondary BM Unit for the purposes of Asset Differencing, without any impact on the first AMVLP. Similarly where an AMVLP has allocated an AMSID Pair to a Secondary BM Unit for the purposes of Asset Differencing, a second AMVLP may allocate that AMSID Pair to a different Secondary BM Unit for the purposes of Asset Metering, without any impact on the first AMVLP.
The flows that can be used are as follows:
Stage | Upload | Confirmation | Rejection |
Asset registration | P0297 | P0299 | P0298 |
AMVLP agent registration | P0300 | P0302 | P0301 |
Asset Meter registration | P0303 | P0305 | P0304 |
Allocation to Secondary BM Unit | P0306 | P0307 | P0308 |
There could be more than one Asset behind a Boundary Point Meter. In this scenario, Asset Metering can be fitted to all but one Asset and the Metered Volume for the last Asset will be calculated from the Boundary Point Meter minus the Metered data from the other Assets behind the Boundary Point. For this reason, all SVA MSIDs used in Secondary BM Units need to have an Associated MSID Pair Indicator. This will be:
‘T’ - No AMSID Pairs associated with the MSID Pair. There is no Asset Metering behind the Boundary Point Metering.
‘A’ – The AMSID Pair(s) that the MSID Pair is associated with are used for Asset Metering. The Metered Data for the AMSID Pair comes directly from Metering System installed for the Asset.
‘D’ – The AMSID Pair(s) that the MSID Pair is associated with are used for Asset Differencing. The Metered Data for the AMSID Pair is calculated from the Boundary point SVA MSID Pair minus the other Assets behind the same SVA MSID Pair.
The AMSID Pair has a Differencing Indicator:
‘F’ - False, differencing is not applied to calculate the Metered Data for that AMSID Pair, i.e. the Associated MSID Pair Indicator is set to “A”.
‘T’ – True, differencing is being applied to calculate the Metered Data for that AMSID Pair, i.e. the Associated MSID Pair Indicator is set to “D”
| MSID Pair Indicator |
“A” (AMSID Pairs s in Secondary BM Unit used for Asset Metering) | “D” (AMSID Pairs s in Secondary BM Unit used for Differencing) |
AMSID Pair Asset Differencing Indicator | “T” (Apply Differencing) | Not allowed | AMSID Pair Delivered Volume(s) subtracted from MSID Pair Delivered Volume |
“F” (Do not apply Differencing) | AMSID Pair Delivered Volume(s) used instead of MSID Pair Delivered Volume | Not allowed |
Asset | Metered Volume | Associated MSID Pair Indicator | AMSID Pair Differencing Indicator |
A | Meter 1 | T | N/A |
B | Meter 3 | A | F |
C | Not used for Wider Access | N/A | N/A |
D | Not used for Wider Access | N/A | N/A |
E | Meter 4 minus Meter 5 | D | T |
Settlement Expected Volumes and Baselining Methodologies
Assets providing Balancing Services to the NETSO must submit Physical Notifications (PNs) relating to the deviations that NETSO would expect to see at the Boundary Point if it called on that asset. If a controllable asset (one active in the Balancing Mechanism) shares a network connection with other uncontrollable assets (not active in the Balancing Mechanism), then actions taken by uncontrollable assets could also affect the deviations that the NETSO sees at the Boundary Point if the controllable asset is dispatched, which may imply that the controllable asset over or under delivered.
Instead of using the Final Physical Notification (FPN) data in the Settlement calculations, these controllable assets can opt to use Settlement Expected Volumes (SEV) to show how much energy was produced or consumed. SEVs are calculated in accordance with Baseline Methodologies. Note all Parties that wish to provide balancing services must provide Physical Notifications to the NETSO in accordance with the Grid Code.
Registering an Additional or Secondary BM Unit and associated Metering Systems to use Settlement Expected Volumes
If an asset wishes to use SEV in Settlement calculations, this will need to be indicated at BM Unit level first and then MSID Pair and / or AMSID Pair level.
Following the implementation of P376, all Additional and
Secondary BM Units will have a Baselining Status of ‘Yes’ or ‘No’. The Baselining Status will be set to No by default but can be selected to ‘Yes’ during the registration of the
BM Unit. Existing Additional and
Secondary BM Units will initially be flagged with Baselining Status ‘No’. The Baselining Status can be changed at any time in the
Self-Service Gateway (Elexon Kinnect Customer Solution) or through the submission of form
BSCP15/4.1 for Additional BM Units or BSCP15/4.14 for
Secondary BM Units.
If the Baselining Status is set to ‘Yes’, any MSID Pairs allocated to a Baselined BM Unit will have to be flagged with one of the following:
means that the Lead Party is responsible for forecasting the metered volume and calculating the DeliveredVolumes. This is the default value.
means that the
SVAA uses a baselining algorithm as set out in the
Baselining Methodology Document to forecast the metered volume and calculate the Delivered Volumes. You need to choose the
Baselining Methodology. Currently, there is only one approved Methodology, this is BL01.
means that the MSID Pair and / or AMSID Pair cannot participate in the Balancing Mechanism (and would typically be used if neither the Party or the SVAA can forecast what the site is doing, because it’s behaving unusually, or there’s a lack of data) and means that the MSID Pair and / or AMSID Pair will be excluded by the calculation.
If the BM Unit’s Baselining Status is ‘No’, the MSID Pairs and / or AMSID Pairs will still need to be flagged as ‘S’, ‘B’ or ‘I’ but the BM Unit and MSID Pairs will not be included in the SEV calculations. They will be flagged as ‘S’ by default unless a different flag is chosen by the VLP / Supplier. Note that:
If the BM Unit only contains MSID Pair(s), i.e. no AMSID Pairs, then the MSID Pairs will need to be flagged as ‘S’, ‘B’ or ‘I’.
If there is Asset Metering in the BM Unit where the data collected by the Asset Meter is used, then the AMSID Pair(s) will need to be flagged as ‘S’, ‘B’ or ‘I’. There is no need to flag the MSID Pairs.
If the Asset Meter is used for differencing, then the associated MSID Pair will need to be flagged as ‘S’, ‘B’ or ‘I’. There is no need to flag the AMSID Pairs.
There is currently one methodology that has been agreed by the BSC
Panel but other Baselining methodologies can be proposed. The process for proposing other methodologies is set out in the
Baselining Methodology Document.
The SVAA will use historical metered data to calculate MSID Baseline Values for those MSID Pairs and/or AMSID Pairs in a Baselined BM Unit that are flagged as Baselined.
The current Baselining Methodology is summarised as follows:
The calculation will use the most recent five to ten Eligible Days (as many days as are available up to ten) to calculate Working Day Baselined values and the most recent four Eligible Days to calculate Non-Working Day Baselined values.
Eligible Days are Working or Non-Working Days that have data and are not clock change days or Event Days.
An average value is calculated for each Settlement Period using all the five to ten Eligible Days for Working Days and the middle two Eligible Days of the four for Non-Working Days (by ranking them in order of the total Baselined Entity Metered Volume, summed over the Settlement Day).
An adjustment is made for factors such as weather and temperature, ensuring the values used in Settlement calculations are better representative of conditions on the day.
Parties can exclude days from being Eligible Days by declaring them as Event Days. A Party may treat a Settlement Day as an Event Day if the metered volumes for that MSID Pair and/or AMSID Pair on that Settlement Day are affected by:
Event Days can be recorded against any baselined MSID Pair and / or AMSID Pair. These can be registered through Self-Service Gateway (Elexon Kinnect Customer Solution) or submitting flow P0323 to the SVAA.
Data flows for Baselining Statuses and Event Days
The flows that can be used are as follows:
Stage | Upload | Confirmation | Rejection |
BM Unit Allocation Event Day | P0323 | P0325 | P0324 |
BM Unit Allocation Baselining Detail | P0326 | P0334 | P0327 |
BM Unit Baselining Status | P0335 | P0337 | P0336 |
If there are non-Baselined MSID Pairs or AMSID Pairs in a Baselined BM Unit, the Lead Party must provide the SVAA with a SEV. This is equivalent to a FPN, but only includes those MSID Pair and / or AMSID Pair in the BM Unit that are not Baselined MSID Pair and / or AMSID Pair.
If an MSID Pair or AMSID Pair has been declared as Baselined, but the 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.
Lifecycle of the trading day and how we calculate Settlement for VLPs and AMVLPs
Imbalance Settlements for VLPs and AMVLPs
Independent aggregators – known as Virtual Lead Parties – participating directly in the BM will pay or be paid Trading Charges according to their participation.
After the end of a Settlement Day D, VLPs and AMVLPs must send Delivered Volumes in the form of P0282 MSID Pair Delivered Volume Notification to SVAA by D+1.
They can receive either a confirmation (P0284 Confirmation of MSID Pair Delivered Volume) or a rejection (P0283 Rejection of MSID Pair Delivered Volume) of their P0282.
On D+1, VLPs and AMVLPs will receive ECVAA-I014 Notification Report that provides period and cumulative indebtedness data and identifies Parties in Credit Default.
By D+4 they can potentially receive a P0285 MSID Pair Delivered Volume Exception Report in case the Delivered Volume cannot be allocated in full in either the Import or the Export MSID of one MSID pair. In addition, a P0288 Secondary Half Hourly Consumption Volumes will also be issued to them.
By D+5, after Information Interim Run takes place, they will receive the SAA-I014 Settlement Report sub-flow 4 from the SAA that contains full results for Settlement Day D.
Charges are summed to a daily total and payment is required/made ~29 calendar days after the Settlement Date for which the BM action took place. The Trading Charge Advice Notes are released on this timescale where the total exceeds +/-£500, if not released they roll over until the total over a number of days reaches this amount or the end of a year quarter is reached.
There are four Trading Charges that relate to VLPs and AMVLPs. The payments and charges are as follows:
The Imbalance Cashflows (System Buy Price (SBPj) and System Sell Price (SSPj)): payments by Imbalance Parties at SBPj for negative energy imbalance volumes, i.e. top-up, and payments to Imbalance Parties at SPj for positive energy imbalance volumes, i.e. spill;
The BM Unit Cashflow, calculated for every Settlement Period and represents payments to BSC Parties at Offer Price for accepted Offers, and payments by BSC Parties at Bid Price for accepted Bids;
The Non Delivery Charge, payments by Trading Parties either: for non-delivered Offers, in the event that a payment at an Offer Price to a Trading Party exceeds the imbalance price paid on the shortfall resulting from any non-delivery; or for non-delivered Bids in the event that the imbalance price paid to a Trading Party for the spill caused by any non-delivery exceeds the price paid by the Trading Party for the Bid.
It is important to note that appropriate
Credit Cover must be in place before starting to trade. A VLP that holds a
Virtual Balancing Account will have zero
Credit Assessment Energy Indebtedness (CEI) and zero
Metered Energy Indebtedness (MEI). Only the
Actual Energy Indebtedness (AEI) calculation of its
Trading Charges will be non-zeroin the
Credit Cover Percentage calculation. Please refer to
Credit Cover guidance note for more information.
Can other BSC parties have aggregated Secondary BM Units?
Only a VLP or AMVLP is able to register Secondary BM Units (i.e. aggregate Half Hourly Metering Systems (HH MS) in order to provide balancing services to the BM whilst not being responsible for settling the volumes from those meters in regards to contracted versus metered volumes).
A Supplier can register an additional BM where they can aggregate HH MS in order to provide balancing services to the BM, but remains responsible for settling the volumes from those meters in regards to contracted and metered volumes).
Can you register in multiple roles?
A BSC Party can have multiple roles under the BSC. For example, a Supplier can qualify as a VLP (and vice versa) and under, the VLP role, register Secondary BM Units
Where can you find a list of all the charges VLPs and AMVLPs face?
The Schedule of Main and
SVA Specified Charges guidance note detail the costs and charges for each financial year. You can find the guidance on the following webpage:
BSC Costs & Charges
Can VLPs and AMLVPs register assets on behalf of a third party (i.e. a client’s assets)?
A VLP or AMVLP can allocate a client’s metering systems (SVA MSID or AMSID) to a Secondary BM Unit where they can aggregate the changes in those client’s sites loads or distributed generation output for sale in the BM. A VLP or AMVLP does not need to be the asset owner.
Can VLPs AMVLPs use a trading agent to participate in BM?
The obligations under the BSC (and CUSC) remain with the registered Party. How Parties choose to ensure compliance is a business decision. To clarify as a VLP or AMVLP you will not be able to ‘trade’ on the wholesale market. Through the BSC, a VLP or AMVLP can offer balancing services to the NETSO for the BM.
What are the penalties for over and under delivery?
For over delivery, there is no financial penalty in the trading charges (though you will have expended resources at site that you are not being paid for).
For non-delivered volume, a party will be exposed to the imbalance price. An additional non-delivery charge may be levied if the party is benefitting from non-delivery (e.g. the party paid £50, but the imbalance price is £40, which results in a £10 gain. In this case, the party will be levied an additional charge of £10).
Is there a limit to the size in MW of secondary BM Units?
In the case the BM Unit is larger than 50MW or 100MW, are there any additional requirements on the BM Unit (metering etc.)?
What data does a VLP or AMVLP need to send to Elexon for a Secondary BM Unit on a daily basis?
For their Secondary BM Units, VLPs and AMVLPs do not need to send Final Physical Notification (FPN) nor live generation data to Elexon. The BSC requires that a VLP and AMVLPs is compliant with the Grid Code (administered by the NETSO) which has a number of data requirements that a VLP and AMVLP needs to send to NGESO.
Please refer to
Section Q for BSC requirements.
For NGESO requirements please refer to Grid Code.
BSC does require that a VLP or AMVLP informs Elexon of the MSID (via MSID Pairs) or AMSID (via AMSID Pairs) that they wish to allocate to a Secondary BM Unit prior to offering Balancing Services. After delivery of balancing Service the BSC requires a VLP or AMVLP to send ‘Delivered Volumes’ (i.e. the physically delivered balancing volumes) per site.
Can a VLP or AMVLP setup MVRN Authorisations for a Secondary BM Unit?
MVRN Authorisations are setup from Primary BM Units to Energy Accounts. VLPs and AMVLPs can only register Secondary BM Units and they hold Virtual Balancing Accounts instead of Energy Accounts and therefore MVRNs cannot be authorised.
What if an overlap occurs when submitting MSID / AMSID Pairs?
An overlap occurs when a Pair of MSID’s are assigned to a Secondary BM Unit and a different VLP submits the same Pair of MSID’s against a different Secondary BM Unit for the same or overlapping date range.
If the new EFD for the MSID Pair is after the ETD for the previous Secondary BM Unit, there is no overlap and no further action need be taken.
If the EFD for the MSID Pair overlaps with previous entries, the new submitting VLP’s Secondary BM Unit will acquire ownership of the MSIDs.
Similarly, where an AMVLP has allocated an AMSID Pair to a Secondary BM Unit for the purposes of Asset Metering and a second AMVLP allocates that AMSID Pair to a different Secondary BM Unit also for the purposes of Asset Metering and the dates overlap, the first AMVLP will lose the AMSID Pair allocation.
An MSID Pair used for the purposes of ABSVD may be associated concurrently (i.e. with overlapping effective dates) with a VLP’S, AMVLP’S or Supplier's association of the same MSID Pair to their Secondary BM Unit. And vice versa.
An MSID associated with a Non-Final Demand Facility may be associated concurrently (i.e. with overlapping effective dates) with an MSID Pair associated with Secondary BM Unit, Additional Supplier BM Unit or used for ABSVD. And vice versa.
In addition to the BSC, there are a number of other industry codes which you may need to become a
Party to. The list of codes can be found on the
Ofgem Website with contact details of the relevant
Code Administrator. Your licence conditions will specify what codes you are required to sign up to. If you require further assistance on your obligations please contact Ofgem.
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