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Funds Administration Agent V32.0

Effective From Date:08/04/2025

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Funds Administration Agent User Requirements Specification

Synopsis:	The Funds Administration Agent is responsible for effecting the transfer of funds between Payment Parties for trades made in the Balancing Mechanism and for imbalance settlement. This document describes the detailed requirements of this service.
Version:	Version 32.0
Effective Date:	08 April 2025
Prepared by:	ELEXON Design Authority

Amendment record

Effective Date	Version	Details of Change	Approval Reference
03/06/2010	24.0	Document modified and rebadged for implementation of P249
23/02/2012	25.0	February 2012 Release, CP1352	ISG129/02
25/06/2015	26.0	June 2015 Release, Modification P307	ISG169/05
29/03/2019	27.0	P369 – 29 March 2019 Standalone Release	P285/12
11/12/2019	28.0	11 December 2019 Standalone Release – CP1517	ISG220/01 ISG222/03
27/02/2020	29.0	February 2020 Release, P385 Self-Governance	P296/06
01/10/24	30.0	01 October 2024 Non-Standard Release, ORD009	Directed by Secretary of State
07/11/24	31.0	November 2024 Release	Panel 339/03
08/04/2025	32.0	April 2025 Release, P466

Intellectual Property Rights and Copyright

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. Introduction

1.1 Management Summary

The Funds Administration Agent (FAA) is one of the suite of services provided to support the operation of the Balancing and Settlement Code (BSC).

The FAA role is critical to the successful operation of the BSC, effecting the transfer of funds between Payment Parties, for trades made in the Balancing Mechanism (BM) and for imbalances between contracted and actual production or consumption.

The principal business processes involved can be summarised as follows:

Invoices (combining all Trading Charges, Default charges and Ad-Hoc Charges in a given Invoice Period),and supporting documentation detailing the results of each day’s settlement calculations;
Production and maintenance of the Payment Calendar;
Transfer of funds between Payment Parties as per the agreed Payment Calendar, subject to the application of the Invoice Threshold Limit or time threshold; and
Implementation and management of the credit cover policy of the BSCCo as applied to Trading Parties.

1.2 Purpose

The purpose of this document is to provide a complete specification of the set of business requirements that the FAA service must satisfy for all of its user types. These include the BSC Parties, the BSCCo and its various agents.

The requirements that have been identified have been divided into four categories:

Functional Requirements

Requirements relating to a specific business activity.

Interface Requirements

Requirements for the exchange of data between the FAA, the BSC Services and the external participants.

Non-Functional Requirements

Requirements relating to activities such as security, audit and system housekeeping.

Service Requirements

Service delivery requirements of the FAA service, including performance and volumetric issues.

These requirements are detailed in Section 2.

1.3 Status

This document replaces all previous drafts and takes into account comments received on previous drafts of this document.

This document is produced in conjunction with the FAA Interface Definition and Design document. To aid the readers of both documents all requirements within the requirements catalogue have been referenced identifying both the source of the requirements within the FAA Service Description and the interface identification numbers stated within the FAA Interface Definition and Design document.

1.4 Related Documents

Name	Description
Service Description	Service Description for the Funds Administration Agent
BSC Business Model	BSC Business Model

Name	Description
FAA Interface Definition & Design Part 1	Interface Definition for the FAA Service
FAA Interface Definition & Design Part 2	Interface Definition for the FAA Service
NETA Interface Definition & Design Part 1	Interface Definition and Design, Part 1 – Interfaces with BSC Parties and their Agents
NETA Interface Definition & Design Part 2	Interface Definition and Design, Part 2 – Interfaces to other Service Providers
SAA URS	Settlement Administration Agent User Requirement Specification

2 Requirements Catalogue

2.1 Functional Requirements

2.1.1 Produce Draft Payment Calendar

Requirement ID:

FAA-R001 as amended by MP61 and P214

Status:

Title:

Produce Draft Payment Calendar

Source:

FAA SD 4.3.2

RETA Sch 4

SAA SD 2.8, AI

SAA BPM 3.2, 4.27

Mechanism:

Manual

User driven process

Frequency:

Annually

FAA Interface Ref:

FAA-I018

Requirement:

A draft Payment Calendar will be produced in December each year which details the Settlement Runs to be processed during the payment period 1^st April to 31^st March (inclusive)

Calendar parameters will be entered into the system including the following:

Average credit period for initial settlement dates
Reconciliation periods i.e. the number of working days between the Initial Settlement Run and each of the four scheduled Reconciliation Settlement Runs
Number of working days between Notification Date and calendar Payment Date
Maximum number of runs per calendar Payment Date
Minimum notification period
Maximum notification period

The system will produce a draft payment calendar based on the entered parameters.

A Settlement Calendar will be produced as required in consultation with BSCCo for Post-Final Settlement Runs.

2.1.2 Manage Credit Cover

Requirement ID:

FAA-R002

Status:

Title:

Manage Credit Cover

Source:

FAA SD 5.1

RETA Sch 4

Mechanism:

Manual

User entered standing data

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I027

FAA-I031

Requirement:

The system will store credit cover provision details for each BSC Party. Credit cover provision will be permissible by either, or both, of the following means:

Cash Deposit
Letter of Credit

Full details of allowable means of provision will be provided in the Credit Policy.

The FAA will monitor the credit ratings for each Bank issuing a Letter of Credit on behalf of a BSC Party. This exercise will be carried out off-line utilising the FAA’s Bloomberg software.

The FAA will monitor the expiry dates of the Letters of Credit and not later than 10 working days before any outstanding Letter of Credit is due to expire, procure from the BSC Trader appropriate credit cover for a further period of not less than 12 months.

The FAA will, on receipt of notification from BSCCo that a BSC Party’s credit cover has been reduced, amend that Party’s credit cover provision details accordingly.

2.1.3 Calculate Energy Credit Cover

Requirement ID:

FAA-R003 as amended by

CRs 033 & 038

Status:

Title:

Calculate Energy Credit Cover

Source:

FAA SD 5.2

RETA Sch 4

Mechanism:

Manual

User entered parameters

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I012

FAA-I027

FAA-I031

Requirement:

The system will calculate the energy credit cover (ECC) for each BSC Party utilising the following variables:

The BSC Party’s Credit Cover (CC), i.e. the total credit cover principal (£) held in the Reserve Account plus the outstanding value (£) of any Letters of Credit.
Credit Assessment value received from the BSCCo i.e. Credit Assessment Price (CAP).
Energy Credit Cover Formula defined in the BSCCo Credit Policy.

2.1.4 Establish Credit Cover Provided

Requirement ID:

FAA-R004 as amended by

CR 033

Status:

Title:

Establish Credit Cover Provided

Source:

FAA SD 5.3

RETA Sch 4

Mechanism:

Manual

‘off-line’ user process

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I004

FAA-I013 FAA-I027

FAA-I019 FAA-I031

Requirement:

The FAA will check that the Bank’s credit rating is acceptable, that the Letter of Credit details are correct or that the cash deposit provided is as requested.

2.1.5 Monitor Credit Cover Provided

Requirement ID:

FAA-R005

Status:

Title:

Monitor Credit Cover Provided

Source:

FAA SD 5.5

RETA Sch 4

Mechanism:

Manual

Telephone and confirmatory letter

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I013

FAA-I031

Requirement:

The FAA will notify the BSCCo and the BSC Party if the credit cover provided ceases to comply with the BSCCo credit policy.

2.1.6 Recalculate ECC

Requirement ID:

FAA-R006 as amended by

CR 033, CP 519 and P142

Status:

Title:

Recalculate ECC

Source:

FAA SD 5.6

FAA SD 5.3.1

RETA Sch 4

Mechanism:

Manual

User entered variables

User driven calculation process

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I012

FAA-I013

FAA-I027

FAA-I031

FAA-I035

FAA-I036

Requirement:

If any of the values utilised to calculate a BSC Party’s Energy Credit Cover (ECC) alter, the revised values are used to recalculate the ECC. Information required to recalculate Energy Credit Cover is as follows:

The BSC Party’s Credit Cover (CC), i.e. the total credit cover principal (£) held in the Reserve Account plus the outstanding value (£) of any Letters of Credit.
Credit Assessment value received from the BSCCo i.e. Credit Assessment Price (CAP).
Energy Credit Cover Formula defined in the BSCCo Credit Policy

If the credit cover in place covers the new value of ECC, the values are accepted and no further action is required. If the credit cover in place is not sufficient, a Credit Call request is made to the BSC Party requesting the provision of additional credit cover or the resubmission of Credit Limit values.

If a Minimum Eligible Amount Notification for a Trading Party is received from the ECVAA the Minimum Eligible Amount Data will be stored. In the event of a request being received from the Party within 2 business days to reduce Credit Cover, the ECC will be recalculated as either the Minimum Eligible Amount or a higher amount as advised by the Trading Party.

2.1.7 Declare Defaults

Requirement ID:

FAA-R007

Status:

Title:

Declare Defaults

Source:

FAA SD 6.1

RETA Sch 4

Mechanism:

Manual

Telephone and confirmatory letter

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I007

FAA-I013

FAA-I019

FAA-I027

FAA-I031

Requirement:

If the credit cover in place does not meet the Required Credit Cover, the FAA will inform the BSCCo that the BSC Party is in Credit Default. If the BSC Party has failed to make a payment that has been notified in accordance with the Balancing and Settlement Code, the FAA will inform the BSCCo that the BSC Party is in Payment Default.

Information provided to the BSCCo will include:

BSC Party Name
BSC Party Identifier
Nature of Default (Credit Default or Payment Default)
Action Taken

The FAA will take the appropriate action, which may involve demanding payment of any credit or payment default amounts by drawing on a cash deposit or a Letter of Credit.

With specific regard to payment defaults, the FAA will make a judgmental decision as to whether the non-payment is accidental or wilful. A wilful non-payment will be deemed a payment default and the appropriate action taken.

Utilising the Borrowing Account will cover the shortfall resulting from an accidental non-payment. If an accidental default is outstanding for more than three business days, it will be deemed a payment default.

2.1.8 Utilise Credit Cover

Requirement ID:

FAA-R008

Status:

Title:

Utilise Credit Cover

Source:

FAA SD 6.1

RETA Sch 4

Mechanism:

Manual

User driven process

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I007

FAA-I013

FAA-I031

FAA-R014

FAA-R015

FAA-R016

FAA-R017

FAA-R045

Requirement:

If the BSC Party is in Credit or Payment Default, the FAA will draw on the credit cover provided, in line with the BSCCo Credit Policy.

This will include taking one or more of the following actions:

Transferring the BSC Party’s cash deposit from the deposit account to the BSC Clearing Account to make good the deficit
Drawing on the BSC Party’s Letter of Credit requesting that funds are transferred to the BSC Clearing Account to make good the deficit
Initiating the Scaledown process. This involves reducing the BSC Party creditors’ payments on a pro-rating percentage basis on the Scaledown payment date.

The FAA will notify the BSCCo of any actions taken.

The rules regarding the use of credit cover will be defined in the Credit Policy.

2.1.9 Maintain BSCCo Bank Accounts

Requirement ID:

FAA-R009

Status:

Title:

Maintain BSCCo Bank Accounts

Source:

FAA SD 6.1

RETA Sch 4

P249

Mechanism:

Manual

User entered parameters

Frequency:

On-going

FAA Interface Ref:

FAA-I008

FAA-I009

FAA-R014

FAA-R015

FAA-R016

FAA-R017

FAA-R045

FAA-F076

Requirement:

The current Clearing account, Reserve account and Collection accounts arrangements will remain in place.

Barclays will act as the BSCCo Clearing Banker and as such will manage the clearing and reserve accounts on behalf of the FAA.

Collection Accounts will be held at the following banks:

Barclays Bank Plc

The FAA will arrange for BSC debtor payments to be paid into the Collection Account. Once funds due have been received, the FAA will instruct the Collection Bank to transfer the monies to the BSC Clearing Account. BSC creditor payments will then be made to the creditor BSC Parties from the Clearing Account.

Mandates will be signed with the bank detailing authorised account signatories. All instructions to the bank will be made in accordance with the mandate.

The FAA shall also establish on behalf of the BSC Clearer the means by which to facilitate and manage the transfer of Reserve Account monies between the Reserve Account and Investment Accounts.

2.1.10 Manage Banking Communication

Requirement ID:

FAA-R010

Status:

Title:

Manage Banking Communication Links

Source:

FAA SD 8.3

RETA Sch 4

Mechanism:

Manual

User driven process

Frequency:

On-going

FAA Interface Ref:

FAA-I008

FAA-I009

FAA-I016

FAA-I017

Requirement:

The Barclays CHAPS and businessmaster software will be utilised to monitor incoming payments, collect direct debits and make payments to BSC Parties.

2.1.11 Calculate Payments

Requirement ID:

FAA-R011 as amended by

CR 035, MP61 and P214

Status:

Title:

Calculate Payments

Source:

FAA SD 9

RETA Sch 4

Mechanism:

Manual

User driven system process

Frequency:

Daily (Per calendar Payment Date)

FAA Interface Ref:

FAA-I022

FAA-I023

Requirement:

Data will be sent to the FAA by the SAA as per the approved Payment Calendar. The Initial Settlement Run details for each Settlement Date will be provided in the form of a ‘debits and credits’ data file from the SAA.

The details included in this report will be an amount per charge type per Payment Party identifier.

The reconciliation data will be provided to the FAA as ‘revised debits and credits’. This data file will contain revised amounts per charge type per Payment Party identifier.

The Post Final Data will be provided to the FAA as a debits and credits report from the SAA.

The Calculate Payments process will include the following:

Calculate reconciliation adjustment amounts payable or receivable by comparing the current reconciliation figures with those advised in the previous Reconciliation Settlement Run or Initial Settlement Run
Calculating reconciliation interest as applicable
Calculating any reconciliation interest income tax liabilities
Amalgamating initial or settlement final data with the reconciliation data as per the agreed Payment Calendar

Details stored on the system relating to the creation of payments will include the following:

Settlement Date
Settlement Code
Calendar Payment Date
Payment Party ID
VAT code
Amount
Interest amount

When applicable Extra-Settlement Determination (‘ESD’) data will be provided by the BSCCo in the form of a list, the BSCCo will provide the FAA with a further instruction to recover the ESD amount and calculate interest payable. If, for any reason, the billing data is unavailable, the BSCCo may instruct the FAA to postpone the billing run until the information is available. Once the data is provided to the FAA the billing amounts will be calculated and advised to the BSC traders for payment/receipt. Interest at the BSC Banker’s Base Rate will be levied on the payments and receipts from the date on which payment was originally scheduled up to (but not including) the new calendar Payment Date.

2.1.12 Not Used

2.1.13 Produce Statements

Requirement ID:

FAA-R013

as amended by CR 044, MP61 and P214

Status:

Title:

Produce Statements

Source:

FAA SD 10

RETA Sch 4

Mechanism:

Manual

User driven system process

Frequency:

Daily (per calendar Payment Date)

FAA Interface Ref:

FAA-I002

Requirement:

The statements will contain the breakdown of the Trading Charges for Initial Settlement Runs, Reconciliation Settlement Runs and Post-Final Settlement Runs detailed on the Invoice. A breakdown by charge type will be provided for both the current Reconciliation Settlement Run and the immediately preceding Settlement Run. Detailed interest calculations will be required to support the summary interest lines on the Invoice.

Statements will be available in both Portable Document Format and ASCII pipe delimited format.

BSCCo costs are not included as a charge on these statements but are invoiced separately.

2.1.14 Produce Bank Reports

Requirement ID:

FAA-R014

Status:

Title:

Produce Bank Reports

Source:

FAA SD 11.1

RETA Sch 4

Mechanism:

Manual

User driven system process

Frequency:

Daily (per payment date)

FAA Interface Ref:

FAA-I008

FAA-I009

Requirement:

The system will produce, for a specified payment date, a report detailing all payments due from BSC Parties for the Collection Banks and all amounts payable to the BSC Parties from the Clearing Bank.

The Collection Bank report will contain a separate section for the Collection Bank. Details will include the following:

BSC Party Name
BSC Party Branch Name
BSC Party Branch Address
Branch Sort Code
Account Number
Invoice Number
Net Amount payable

The Clearing Account report will include the following details:

BSC Party Name
BSC Party Branch Name
BSC Party Branch Address
Branch Sort Code
Account Number
Invoice Number
Net Amount receivable

2.1.15 Manage Non-Payments

Requirement ID:

FAA-R015 as amended by

CRs 037 and 070

Status:

Title:

Manage Non-Payments

Source:

FAA SD 11.2

RETA Sch 4

Mechanism:

Manual

User driven process

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I008

FAA-I009

FAA-I017

FAA-I035

Requirement:

Non-payments and any resulting action taken by the FAA will be detailed off-line, unless the action taken is to Scaledown the shortfall, when a system process to calculate the Scaledown amounts will be initiated.

If a payment is not received on the payment date, the FAA will take the relevant action as per the BSCCo Credit Policy and will inform BSCCo of the action taken. This may include one or more of the following:

Utilise short term borrowing facility i.e. arrange transfer of funds from the Borrowing Account to the BSC Clearing Account to make good the shortfall of funds.
Draw on defaulting BSC Party’s credit cover. The FAA will notify the Non-paying BSC Debtor of this action and will inform BSCCo if after taking this action any part of the Amount in Default remains outstanding.
Scaledown. This involves pro-rating the shortfall across all BSC Party creditors for the Scaledown payment date and reducing their payments accordingly. The system will need to store details of BSC parties to be included/excluded in the Scaledown exercise. The FAA will inform Shortfall Creditors and BSCCo when Shortfall Creditors are to be repaid in full or in proportion to their respective Shortfall Amounts.
Set-Off. Where any Trading Party is in default for any sum due, any payments due to that Party shall be set-off (reduced) by the amount of the default sum until such time as the amount in default is paid or recovered from the Party’s credit cover.
For bad debts, determine for each BSC Party an amount (the ‘default share amount’), based on each BSC Party’s Monthly Funding Share, to cover the amount in default. The FAA will notify BSCCo, the Panel and each Payment Party when this action is taken.
Record Payment Default events that persist at 09:00 on payment date plus 2 business days as a relevant credit default. Identify a relevant credit default series as 3 relevant credit defaults in 30 calendar days. Report data and events to BSCCo.

The FAA will consult with the BSCCo re utilising credit cover or scaling down the creditor payments.

Where appropriate and as instructed by BSCCo the FAA will go straight to scaledown. The detail of this will be included in the BSCP301.

The FAA shall inform BSCCo if a Non-Paying Debtor has failed to pay the Amount in Default on the second Business Day after the Affected Date or an amount in respect of interest and banking charges notified on or before the time of payment.

2.1.16 Manage Excess Payments

Requirement ID:

FAA-R016

Status:

Title:

Manage Excess Payments

Source:

FAA SD 11.3

RETA Sch 4

Mechanism:

Manual

‘Off-line’ process

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I008

FAA-I009

FAA-I016

Requirement:

Reasonable endeavours will be used to ascertain the nature of the excess payment, to calculate the entitlement to such payment and to instruct the BSC banker by 16.00 hours on the Payment Date to credit the reserve account (or any such account as authorised by BSCCo and agreed by the Payment Party) with the excess amount.

2.1.17 Initiate Payments to Creditors

Requirement ID:

FAA-R017

Status:

Title:

Initiate Payments to Creditors

Source:

FAA SD 11.4

RETA Sch 4

Mechanism:

Manual

User driven process

Frequency:

Daily (per payment date)

FAA Interface Ref:

FAA-I008

FAA-I009

FAA-I016

Requirement:

The system will produce a report detailing all amounts payable to BSC creditors for a specified payment date. The report details will be manually input into the FAA banking software as a CHAPS (Clearing House Automated Payment System) payment if the amount due is greater than £1000 or as a BACS (Bankers Automated Clearing System) payment if the amount due is less than £1000. The BSC Party creditor payments will be transferred utilising the Barclays software.

Details included in this report will include:

BSC Party Name
BSC Party Branch Name
BSC Party Branch Address
Branch Sort Code
Account Number
Invoice Number
Net amount due to Party

The timing of transferring the creditor amounts is dependent on receipt of funds from the Collection Bank. However, the FAA will endeavour to ensure that payments to BSC creditors are made as soon as possible, and in any event, no later than 13:00.

2.1.18 Manage Short-Term Borrowing Arrangements

Requirement ID:

FAA-R018 as amended by P214

Status:

Title:

Manage Short-Term Borrowing Arrangements

Source:

FAA SD 11.5

RETA Sch 4

Mechanism:

Manual

‘Off-line’ process

Frequency:

On-going as applicable

FAA Interface Ref:

Requirement:

The FAA will manage the short term borrowing facility. It is envisaged that this will take the form of a Borrowing Account facility from the BSC Clearing Banker, Barclays Bank Plc.

If a Payment Party fails to make a payment on the due date, or does not make a payment on the due date because the payments are greater than or equal to the positive Invoice Threshold Limit, or the payments are as negative or more negative than the negative Invoice Threshold Limit (or the due date is less than the last Payment Date before the next Quarter Date) for the Invoice Period, the FAA will arrange to transfer the Shortfall Amount from the Borrowing Account to the Clearing Account in accordance with the BSCCo credit policy. Once funds have been received from the Payment Party, the amount will be transferred from the Clearing Account to the Borrowing Account.

Interest on the ‘loan’ will be calculated in accordance with the BSCCo credit policy and billed to the Payment Party.

Any draw downs on or repayments to this facility will be recorded off line. The calculation and recharging of the interest accrued on the Borrowing Account will be recorded outside of the FTS system. Any excess/shortfall resulting from interest payments/charges will be settled using a separate process outside of the FTS system.

If necessary and if the FAA is satisfied that any Cash Cover provided by the Non-paying BSC Debtor will be paid into the Clearing Account in time to ensure that Cash Cover will be applied to the Amount in Default by close of business on the due date, the FAA will debit the Reserve Account and credit the Clearing Account with a sum being the lesser of the Amount in Default and that Cash Cover.

2.1.19 Maintain Bank Contact Standing Data

Requirement ID:

FAA-R019

Status:

Title:

Maintain Bank Contract Standing Data

Source:

FAA SD 11.6

RETA Sch 4

Mechanism:

System via API

Frequency: BSC Party Registration and on-going as applicable

FAA Interface Ref:

FAA-I014

FAA-I015

Requirement:

The system will store details of BSC Party bank details as follows:

BSC Party Name
BSC Party Trading Charges Address
Bank Name
Bank Address
Branch Sort Code
Account Number

The details will be received via an API into the system when the BSC Party provides trading charges details.

2.1.20 Not Used

2.1.21 Maintain BSC Party Standing Data

Requirement ID:

FAA-R021 as amended by P214

Status:

Title:

Maintain BSC Party Standing Data

Source:

FAA SD 6

Mechanism:

Manual

User entered parameters

System via API

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I015

FAA-I025

Requirement:

The system will hold details for each BSC Party that is a Payment Party. These details will be provided/updated by the BSC Parties on the form BSCP301/4 Funds Accession Form, and will be received into the system via an API from PMP.

Details stored in the system received via an API will include the following:

Contact Details:
BSC Party Name
BSC Party ID
Contact name
Address
Telephone number
Contact email address (for general queries)
Delivery email address (for Invoices,)
VAT country code (if applicable)
VAT registration number(if applicable)

Other Details stored and manually entered
Dispute pro-rating inclusion/exclusion
Scaledown inclusion/exclusion

Threshold override flag – indicates that the BSC Party as independent of any Invoice Threshold Limit or time threshold.

The system will also store the Credit Cover formula variables for each BSC Party

2.1.22 Maintain Base Rates

Requirement ID:

FAA-R022

Status:

Title:

Maintain Base Rates

Source:

Mechanism:

Manual

User entered variables

Frequency:

On-going as applicable

FAA Interface Ref:

FAA I028

Requirement:

The system will store historic and current Clearing Bank Base Rate information.

Information stored will include the following:

Base Rate
Effective Date

2.1.23 Maintain VAT Information

Requirement ID:

FAA-R023

Status:

Title:

Maintain VAT Information

Source:

FAA SD 6.8

Mechanism:

System via API

Frequency:

On-going as applicable

FAA Interface Ref:

FAA I029

Requirement:

The system will maintain only the VAT codes currently assigned to BSC parties (historic VAT codes will not be maintained). Information stored will include the following;

BSC Party ID
VAT Country Code and VAT Registration Number

2.1.24 Not Used

2.1.25 Produce Quarterly Statements

Requirement ID:

FAA-R033 as amended by P214

Status:

Title:

Produce Quarterly Statements

Source:

FAA SD14

Mechanism:

Manual

User driven system process

Frequency:

Quarterly and ad-hoc as requested

FAA Interface Ref:

FAA-I010

Requirement:

Quarterly Statements will be provided to H.M. Customs & Excise, detailing the following for each BSC Party:

Settlement period
BSC Party ID
BSC Party name
Settlement Date
Settlement code
Calendar Payment Date
Payment Date
Description
Invoice number
Amount excluding VAT
VAT amount
Interest amount
Total paid or received

The report can be produced in hard or soft copy format and the following variables can be entered:

Report Type

1. BSC billing

2. All

Start Payment Date
End Payment Date
All BSC Parties/Selected BSC Party(ies)

The Quarterly Statements will also be provided to the BSC Parties and confirmation requested as to the accuracy of the details provided.

2.1.26 Produce BSCCo Quarterly VAT Statements

Requirement ID:

FAA-CP1078 Variation 068

Status:

Title:

Produce BSCCo Quarterly VAT Statements

Source:

FAA SD 6.7

Mechanism:

Manual

User driven system process

Frequency:

Quarterly and ad-hoc as requested

FAA Interface Ref:

FAA – I034

Requirement:

Quarterly VAT Statements will be provided to BSCCo detailing the following for each VAT code:

Payment Date
Net Inflow
Net Outflow
Net Flow
Output VAT
Input VAT
Net VAT

The report can be run as:

Report Type

1. BSC Billing

2. Disputes

3. Defaults

4. All

Start Payment Date
End Payment Date
All BSC Parties/Selected BSC Party(ies)

The report can be produced in hard copy. A soft copy will also be made available in the form of a ‘tab delimited data file’ suitable for loading to MS-Excel

2.1.27 Monitor Bank Credit Ratings

Requirement ID:

CR 039

Status:

Title:

Monitor Bank Credit Ratings

Source:

BSC Section M 2.2.1 (b)

Mechanism:

Manual

FAA Bloomberg

Software

Frequency:

Daily

FAA Interface Ref:

FAA-I013

FAA-I027

FAA-I031

Requirement:

In order to determine the continued validity of Letters of Credit lodged by BSC Parties, the FAA will monitor the credit ratings of the issuing banks daily.

2.1.28 Calculate Reserve Account Interest

Requirement ID:

CR 034

Status:

Title:

Calculate Reserve Account Interest

Source:

BSC Section N 4.6.4

Mechanism:

Manual

Excel Spreadsheet

Frequency:

Ad-hoc

FAA Interface Ref:

FAA-I028

Requirement:

The FAA will calculate interest on amounts held in the Reserve Account. This includes the input and verification of interest rates and the calculation of each BSC Party’s proportion.

2.1.29 Establish Outstanding Liabilities and Credit Cover

Requirement ID:

FAA-R077

Status:

Title: Establish Outstanding Liabilities

Source:

FAA SD 5.3

Mechanism:

Frequency:

As requested

FAA Interface Ref:

FAA-I0xx

Requirement:

On receipt of notification from the BSCCo that a BSC Party has either:

requested to withdraw from the BSC; or
applied for a reduction in credit cover as a Non-Supplier Trading Party in Default which has ceased trading.

The FAA will establish whether a BSC Party has paid all Trading Charges due on the Payment Date for the last Settlement Day on which it traded as well as all previously accrued Trading Charges.

The FAA will issue a report to the BSCCo by 17:00 on the 2^nd full Business Day following receipt containing:

The total of all outstanding liabilities for that BSC Party; and
A statement of the value of the Credit Cover lodged for that BSC Party.

In the case of a withdrawing BSC Party, the FAA shall re-establish the above information as at 17:00 hours on 2 Business Days before the Withdrawal Date specified in the original notification and issue a report to BSCCo as soon as possible thereafter.

2.1.30 Maintain Tax Quarter

Requirement ID:

FAA-R078

Status:

Title:

Maintain Tax Quarters

Source:

Mechanism:

Manual

User entered variables

Frequency:

On-going as applicable

FAA Interface Ref:

Requirement:

The system will store the last Payment Date before each Quarter Date.

Information stored will include the following:

Last Payment Date associated with Quarter Date

2.1.31 Generate Invoices

Requirement ID:

FAA-R079

Status:

Title:

Generate Invoices

Source:

Mechanism:

Manual

User driven system process

Frequency:

Following threshold breach, or as manually triggered

FAA Interface Ref:

FAA-I038

Requirement:

Backing Sheet data will remain within the system until an Invoice Threshold Limit is breached, or the system date is greater than or equal to the most recent working date associated with a Quarter Date.

The BSCCo and Payment Parties will receive an Invoice. An Invoice is a combination of Trading Charges, Default charges and Ad-Hoc Charges.

Payment Party Name
Payment Party Address
Invoice number
Invoice Date
Payment Date
Party ID
Customer VAT Registration No

For each type of Charge, details for that charge will include the following:

Type
Description
Tax Code
Quantity
Net Charge (£)

The Invoice will also show

Total Net Charges ( £)
VAT (£)
Total Charges including VAT (£)
VAT breakdown

2.1.32 Produce Default Statements

Requirement ID:

FAA-R080

Status:

Title:

Produce Default Statements

Source:

Mechanism:

Manual

User driven system process

Frequency:

Following threshold breach, or as manually triggered

FAA Interface Ref:

FAA-I039

Requirement:

The statements will contain the breakdown of Default charges detailed on the Invoice. A breakdown by Default will be provided.

Default statements will be available in Portable Document Format.

2.1.33 Not Used

2.1.34 Monitor Thresholds

Requirement ID:

FAA-R082

Status:

Title:

Monitor Thresholds

Source:

N/A

Mechanism:

Manual

User driven system process

Frequency:

Daily (per Payment Date)

FAA Interface Ref:

N/A

Requirement:

If immediate Invoices are not required, the following tests are applied to each Payment Party that has backing sheets not already included on a Invoice:

The combined value of the backing sheets not already included on a Invoice for the Payment Party, exclusive of VAT and inclusive of interest, is greater than or equal to a configurable positive Invoice Threshold Limit;
The combined value of the backing sheets not already included on a combined Invoice for the Payment Party, exclusive of VAT and inclusive of interest, is as negative or more negative than the configurable negative Invoice Threshold Limit;
The Payment Date is greater than or equal to the last Payment Date associated with a Quarter Date;
The backing sheets not already included on a Invoice include Ad-Hoc Trading Charges, which are specifically marked as independent of any Invoice Threshold Limit or time threshold;
The Payment Party is specifically marked as independent of any Invoice Threshold Limit or time threshold.

If any test is passed, an Invoice is generated for the Payment Party and Payment Date.

2.1.35 Produce Ad-Hoc Statements

Requirement ID:

FAA-R083

Status:

Title:

Produce Ad-Hoc Statements

Source:

Mechanism:

Manual

User driven system process

Frequency:

When an Ad-Hoc Charge occurs, or following threshold breach, or as manually triggered

FAA Interface Ref:

N/A

Requirement:

The Ad-Hoc statements will contain the breakdown of Ad-Hoc Charges detailed on the Invoice. A breakdown by Ad-Hoc Charge will be provided.

Ad-Hoc statements will be available in Portable Document Format.

2.2 Interface Requirements

2.2.1 Issue Draft Payment Calendar

Requirement ID:

FAA-R034 as amended by P214

Status:

Title:

Issue Draft Payment Calendar

Source:

FAA SD 4.3.2

RETA Sch 4

SAA SD 2.8, AI

SAA BPM 3.2, 4.27

Mechanism:

Manual

Data File (csv)

Frequency:

Annually

FAA Interface Ref:

FAA-I018

Requirement:

The draft Payment Calendar will be issued to the BSCCo. A CSV data file will be sent in December of each year, and accompanied with details of the Payment Dates associated with the next four Quarter Dates.

The draft Payment Calendar will include the following information:

Settlement Date
Settlement code
Notification Date, the earliest date on which Payment Parties’ will receive the combined Advice Note and the date by which the SAA must provide the settlement data to the FAA.
Calendar Payment Date, the date on which the funds for the various Settlement Runs will be calculated.
Notification Period
Payment period

The BSCCo will liaise with the SAA, CDCA etc and provide authorisation that the Payment Calendar is acceptable.

2.2.2 Obtain Approval of Payment Calendar

Requirement ID:

FAA-R064

Status:

Title:

Obtain Approval of Payment Calendar

Source:

FAA SD 4.3.2

Reta Sch 4

SAA SD 2.8, A1 SAA BPM: 3.2,4.27

Mechanism:

Manual-

Fax/Letter/E-mail

Frequency:

Annually

FAA Interface Ref:

FAA-I021

Requirement:

Approval of the draft payment calendar issued by the FAA (interface requirement ‘Issue Draft Payment Calendar’, FAA-R034) by an Authorised signatory from BSCCo

Information will include:

Source (BSCCo)
Authorised Signature

2.2.3 Issue Agreed Payment Calendar

Requirement ID:

FAA-R035 as amended by P214

Status:

Title:

Issue Agreed Payment Calendar

Source:

FAA SD 4.3.2

RETA Sch 4

SAA SD 2.8, AI

SAA BPM 3.2, 4.27

Mechanism:

Manual

Data File (csv) and hard copy post

Frequency:

Annually

FAA Interface Ref:

FAA-I006

Requirement:

Once the BSCCo has approved the draft calendar, an approved Payment Calendar data file will be produced from the system and dispatched to all Payment Parties and the BSCCo, and accompanied with details of the Payment Dates associated with the next four Quarter Dates.

The agreed Payment Calendar will detail the following:

Settlement Date
Settlement code
Notification Date
Calendar Payment Date
Notification period
Payment period

2.2.4 Receive Credit Policy

Requirement ID:

FAA-R070 as amended by

CR 038

Status:

Title:

Receive Credit Policy

Source:

FAA SD 5.1

FAA SD A1

RETA SCH 4

Mechanism:

Manual

Post

Frequency:

Annually and ad hoc as appropriate

FAA Interface Ref:

FAA-I031

Requirement:

The BSCCo will issue the Credit Policy to the FAA. This document will define rules for Credit Cover requirements and on-going credit monitoring, credit calls and default proceedings.

The document will also contain parameters utilised by the FAA to calculate ECC.

Parameters received will include:

Credit Assessment Price (CAP)

The BSCCo may also, from time to time, issue notification to the FAA of the certain circumstances that require special treatment from the FAA. Such notification may include any BSC Party that has:

Qualified for a reduction in Credit Cover; or
Requested to withdraw from the BSC¹.

2.2.5 Obtain Credit Ratings

Requirement ID:

FAA-R066

Status:

Title:

Obtain Credit Ratings

Source:

FAA SD 5.1.2

RETA SCH 4

Mechanism:

Manual

FAA Bloomberg Software

Frequency:

Ongoing as applicable

FAA Interface Ref:

FAA-I027

Requirement:

The FAA shall utilise the Bloomberg Software in order to check appropriate credit ratings for BSC Parties Banks issuing Letters of Credit. The information entered into the NETA Funds Transfer System will include the following:

Bank Name
Long Term Credit Rating

The FAA will monitor the Bank credit ratings on an ongoing basis. The information required is:

Bank Name
Long Term Credit Rating

As defined by Standard & Poors or Moodys Corporation.

2.2.6 Request Credit Cover

Requirement ID:

FAA-R036 as amended by

CR 033

Status:

Title:

Request Credit Cover

Source:

FAA SD 5.2

RETA Sch 4

Mechanism:

Manual – Letter

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I004

Requirement:

The FAA accept Credit Cover (Cash and/or by Letter(s) of Credit) from BSC Parties. Credit cover may be provided by one or more of the following means:

Letter of Credit for a specified period
Cash Deposit

2.2.7 Issue Credit Call Request

Requirement ID:

FAA-R072

Status:

Title:

Issue Credit Call Request

Source:

ECVAA SD 5

ECVAA BPM 3.3, 4.17

RETA SCH 4, B, 3.3,

FAA 5.3.3

Mechanism:

Manual - Letter

Frequency:

Ongoing as applicable

FAA Interface Ref:

FAA-I005

Requirement:

Upon the instruction of BSCCo, the FAA will issue a request for additional collateral from a BSC Party who wishes to continue trading past the agreed credit limit as applicable.

The information sent will include:

BSC Party Name
BSC Party Identifier
Collateral required
Date required by

2.2.8 Issue Acceptance of Credit Limit

Requirement ID:

FAA-R037

as amended by

CR 033 & CR 067

Status:

Title:

Issue Acceptance of Credit Limit

Source:

FAA SD 5.3

RETA Sch 4

Mechanism:

BSC Party-

Manual

Telephone and confirmatory letter

ECVAA-Electronic

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I019

Requirement:

Once credit cover has been provided, the FAA will calculate the Energy Credit Cover (ECC) value. The FAA will inform the ECVAA, BSCCo and the BSC Party that the values of ECC (MWh) have been accepted.

Information sent will include:

BSC Party Identifier
BSC Party Name (Not sent to the ECVAA)
ECC (MWh)
Effective Date

2.2.9 Issue Confirmation of ECC

Requirement ID:

FAA-R038

as amended by CR 033

Status:

Title:

Issue Confirmation of ECC

Source:

FAA SD 5.3

RETA Sch 4

Mechanism:

Manual

Telephone and confirmatory letter

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I019

Requirement:

Once credit cover has been provided, the FAA will calculate value for ECC. The FAA will confirm the value of ECC with the ECVAA and the BSC Party.

Information sent will include:

BSC Party Name
BSC Party Identifier
Energy Credit Cover (ECC)
Effective Date

2.2.10 Obtain Credit Cover

Requirement ID:

FAA-R039 as amended by

CR 033

Status:

Title:

Obtain Credit Cover

Source:

FAA SD 5.4

RETA Sch 4

Mechanism:

Manual

Letter of Credit sent by registered post or courier

Cash deposits received by electronic bank transfer

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I013

Requirement:

The FAA will obtain credit cover. The credit cover may be provided in the form of one or more of the following:

Letter of Credit
Cash Deposit

2.2.11 Obtain Base Rate Details

Requirement ID:

FAA- R067

Status:

Title:

Obtain Base Rate Details

Source:

Mechanism:

Manual

Media

Frequency:

Ongoing as applicable

FAA Interface Ref:

FAA-I028

Requirement:

The FAA shall obtain details of current and historic Base Rates and will update the NETA Funds Transfer System accordingly.

Notification of changes to the Base Rate will be obtained from media notification.

The information entered into the system is as follows:

Base Rate
Effective Date

2.2.12 Not Used

2.2.13 Not Used

2.2.14 Issue Credit Cover Default Notice

Requirement ID:

FAA-R040 as amended by

CR 033

Status:

Title:

Issue Credit Cover Default Notice

Source:

FAA SD 6.1

RETA Sch 4

Mechanism:

Manual

Telephone call by authorised FAA personnel and confirmatory letter

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I007

Requirement:

The FAA will notify the BSCCo if Credit Cover is utilised to cover non-payment, a BSC Party thereby in Credit Default.

Information provided to the BSCCo will include the following:

BSC Party Name
BSC Party Identifier
Nature of Default (Credit)
Shortfall Exposure
Effective Date
Action Taken

2.2.15 Receive ECVAA Exception Report

Requirement ID:

FAA-R041

Status:

Title:

Receive ECVAA Exception Report

Source:

FAA SD 5.6

RETA Sch 4

Mechanism:

Automatic

Electronic Network

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I024

Requirement:

The ECVAA will notify the FAA if there has been a problem with any of the information provided by the FAA e.g. if ECVAA has a problem processing the Credit Limit data.

The report will be provided on an ad-hoc exception basis.

Details provided will include:

Exception Type
Exception Description

2.2.16 Obtain BSC Party Bank Details

Requirement ID:

FAA-R042

Status:

Title:

Obtain BSC Party Bank Details and VAT Details

Source:

FAA SD 8.2

RETA Sch 4

Mechanism:

Completed Funds Accession Form

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I011

FAA-I014

FAA-I015

Requirement:

The FAA will request that the BSC Party complete a Funds Accession Form (BSCP301/4 (a). This will provide the FAA with the following information.

BSC Party Name
BSC Party ID
BSC Party Address
BSC Party Contact details
Elected Method of Payment
Bank Name
Bank Address
Branch Sort Code
Account Number
IBAN ( if applicable)
Swift Code ( if applicable
Bank Contact Details
Authorised Signatory
VAT Country Code and VAT Number (if applicable)

Any subsequent amendments must be communicated to the FAA on form BSCP301/4(b).

2.2.17 Not Used

2.2.18 Issue Statements

Requirement ID:

FAA-R044

As amended by CR 026, MP61 and P214

Status:

Title:

Issue Statements

Source:

FAA SD 10

RETA Sch 4

Mechanism:

Manual

Electronic Network

Frequency:

Daily (per calendar Payment Date)

FAA Interface Ref:

FAA-I002

Requirement:

The statements provide supporting documentation relating to the Invoice, in particular details of previous Settlement code amounts to enable verification of reconciliation calculations and interest calculations for each interest line detailed on the Trading Charges backing sheet.

The statements will contain the breakdown of the Initial Settlement Run and Reconciliation Settlement Run amounts detailed on the Advice Note, and where applicable the Post Final Settlement Run amount. A breakdown by charge type will be provided for both the current Reconciliation Settlement Run and the immediately preceding run. Detailed interest calculations will be required to support the summary interest lines on the Advice Note.

The statements will be emailed in both Portable Document Format and ASCII pipe delimited format to all Payment Parties.

The details included on the statements will include the following:

Backing sheet number
Calendar Payment Date
BSC Party name
Settlement Run details

1. Settlement Date

2. Settlement code (SF, R1, R2, R3, RF)

3. Calendar Payment Date

4. Charge type

5. Amount (£)

6. Total

7. VAT

8. Total including VAT

2.2.19 Issue Bank Reports

Requirement ID:

FAA-R045 as amended by P214

Status:

Title:

Issue Bank Reports

Source:

FAA SD 11.1

RETA SCH 4

Mechanism:

Manual

Frequency:

Daily (per Payment Date)

FAA Interface Ref:

FAA-I008

FAA-I009

Requirement:

The system will produce, for a specified Payment Date, a report detailing all payments due from Payment Parties into the Collection Account, and all amounts payable to the Payment Parties from the Clearing Bank.

The Collection Account reports will include the following:

Payment Date
Collection Account name
Payment Party name
Payment Party branch name
Payment Party branch address
Branch sort code
Account number
Invoice number
Net amount payable

Passwords provided by the Collection Account are written on the Collection Account reports prior to faxing.

The details included in the Clearing Bank report are as follows:

Payment Date
Payment Party name
Payment Party branch name
Payment Party branch address
Branch sort code
Account number
Invoice number
Backing sheet number
Backing sheet type
Net amount receivable

2.2.20 Receive Payment Confirmations

Requirement ID:

FAA-R071

Status:

Title:

Receive Payment Confirmations

Source:

FAA SD 11.7

RETA SCH 4

Mechanism:

Manual

Telephone to authorised FAA personnel

Confirmatory reports produced from CHAPS terminal

Frequency:

Daily

FAA Interface Ref:

FAA-I016

Requirement:

The FAA will receive confirmation from the Collection banks that all funds due for the payment date (as advised by the FAA in the requirement ‘Issue Bank Reports’, FAA-R045) have been received and are available to be transferred to the Clearing account for distribution to creditors.

Information received will include:

Collection Bank Name
Payment Date
Total amount received
Confirmation that transfer to Clearing Account has been initiated

Not later than 16:00 hours on the Payment Date the FAA will take such action as is required to determine that all amounts have been credited to each Collection Account on behalf of each BSC Payment Party.

Not later than 16.00 hours the FAA will take such action as required to determine all amounts credited to each Collection Account on such Payment Date have been remitted to the Clearing Account.

2.2.21 Receive Non-receipt Notifications

Requirement ID:

FAA- R072

Status:

Title:

Receive Non-receipt Notifications

Source:

FAA SD 7

FAA SD 11.2

RETA SCH 4

Mechanism:

Manual

Telephone to authorised FAA personnel

Frequency:

As applicable

FAA Interface Ref:

FAA-I017

Requirement:

The FAA will receive details of any non-payments or any variance in the payments received from the Bank Advice Report, (Requirement ‘Issue Bank Reports’ FAA-R045).

The information received will include:

Collection Bank Name
Payment Date
BSC Party
Shortfall in funds received
Deadline for resolution

2.2.22 Issue Payment Default Notice

Requirement ID:

FAA-R073 as amended by P214

Status:

Title:

Issue Payment Default Notice

Source:

FAA SD 6.1

RETA SCH 4

Mechanism:

Manual

Telephone call by authorised FAA personnel and confirmatory letter

Frequency:

Ongoing as applicable

FAA Interface Ref:

FAA-I007

Requirement:

The FAA will notify the BSCCo of any payment defaults. A payment default is deemed to have occurred if the Credit Cover provided by the defaulting Payment Party cannot cover any outstanding debt resulting from the non-payment of an Invoice.

The information will include:

Payment Party name
Payment Party ID
Nature of default (payment)
Shortfall exposure
Calendar Payment Date of non-payment
Payment Date of combined Advice Note
Invoice number
Advice Note Date
Action taken
Interest

2.2.23 Not Used

2.2.24 Issue Quarterly Statements

Requirement ID:

FAA-R052 as amended by P214

Status:

Title:

Issue Quarterly Statements

Source:

FAA SD 6.0

Mechanism:

Manual

csv data file and hard copy post

Frequency:

Quarterly and ad-hoc as requested

FAA Interface Ref:

FAA-I010

Requirement:

Quarterly Statements will be provided to H.M. Customs & Excise detailing the following for each BSC Party:

Settlement period
BSC Party ID
BSC Party name
Settlement Date
Settlement code
Calendar Payment Date
Payment Date
Description
Backing sheet number
Invoice number
Amount excluding VAT
VAT amount
Interest amount
Total paid or received

The report will be sent to H.M. Customs & Excise in hard and soft copy format.

The report variables are as follows:

Report type

1. BSC billing

2. All

Start Payment Date
End Payment Date
All BSC Parties/Selected BSC Party(ies)

The Quarterly Statements will also be dispatched to the BSC Parties and confirmation requested as to the accuracy of the details provided.

2.2.25 Issue VAT Quarterly Statements to BSCCo

Requirement ID:

FAA-R052

(CP1078

Variation 068), as amended by P214

Status:

Title:

Issue VAT Quarterly Statements

Source:

Mechanism:

Manual, tab delimited data file and hard copy by post

Frequency:

Quarterly and ad-hoc as requested

FAA Interface Ref:

FAA-I034

Requirement:

Quarterly VAT Statements will be provided to BSCCo detailing the following for each VAT code:

Payment Date
Net inflow
Net outflow
Net flow
Output VAT
Input VAT
Net VAT

The report can be run as;

Report type

1. BSC billing

2. Disputes

3. Defaults

4. All

Start Payment Date
End Payment Date
All BSC Parties/Selected BSC Party(ies)

The report can be produced in hard copy. A soft copy will also be made available in the form of a ‘tab delimited data file’ suitable for loading to MS-Excel

2.2.26 Receive Credits & Debits

Requirement ID:

FAA-R053 as amended by

CR 036

Status:

Title:

Receive Credits & Debits

Source:

FAASD9

RETA SCH 4

Mechanism:

Automatic

Electronic Transfer

Frequency:

Daily as per payment calendar

FAA Interface Ref:

FAA-I022

Requirement:

The initial settlement run information is provided to the FAA in the form of a Credits and Debits report.

The system will load the data provided in the Credits and Debits report in order to create payments.

Data received will include:

BSC Party Identifier
Settlement Date
Settlement Code
Charge Type

1. Administration Charge

2. Energy Imbalance Cashflows

3. Information Imbalance Charge

4. Non Delivery Charge

5. Residual Cashflow Reallocations

6. BM Payments

7. System Operator (NETSO) Charges

8. Daily Party RR Cashflow

9. Daily Party RR Instruction Deviation Cashflow

10. Daily Compensation Cashflow

11. Daily Supplier Compensation Cashflow

Amount (£)

The main validation check performed on the data is that the net total of each file is zero, i.e. credit total = debit total. The BSC defines a maximum allowable tolerance on any difference between debits and credits.

If there are any problems with the data, the FAA will liaise with the SAA and inform the BSCCo of any actions taken.

2.2.27 Receive Revised Credits & Debits

Requirement ID:

FAA-R054 as amended by MP61

Status:

Title:

Receive Revised Credits & Debits

Source:

FAASD9

RETA SCH 4

Mechanism:

Automatic

Electronic Network

Frequency:

Daily as per Payment Calendar

FAA Interface Ref:

FAA-I023

Requirement:

The reconciliation settlement run information and where applicable the Post Final Settlement Run information is provided to the FAA in the form of a Revised Credits and Debits report.

The system will load the data provided in the Revised Credits and Debits report in order to create payments.

Data received will include:

BSC Party Identifier
Settlement Date
Settlement Code
Charge Type

1. Administration Charge

2. Energy Imbalance Cashflows

3. Information Imbalance Charge

4. Non Delivery Charge

5. Residual Cashflow Reallocations

6. BM Payments

7. System Operator (NETSO) Charges

8. Daily Party RR Cashflow

9. Daily Party RR Instruction Deviation Cashflow

10. Daily Compensation Cashflow

11. Daily Supplier Compensation Cashflow

Revised Amount (£)

2.2.28 Receive Extra Settlement Determination Data

Requirement ID:

MP61

Status:

Title:

Extra Settlement Determination Data

Source:

BSCCo

Mechanism:

Manual

E-mail

Frequency:

As applicable

FAA Interface Ref:

FAA-I037

Requirement:

The Extra Settlement Determination Data is provided to the FAA in the form of a list of BSC Parties (Affected Parties) that the ESD amounts are to be recovered from and the BSC Party (Receiving Party) to whom the ESD will be paid. The list will include Party IDs and amounts involved.

Further instruction will be provided by BSCCo to recover the ESD amount from the Receiving Party and pay that amount to the Affected Parties. BSCCo will provide instructions to calculate an interest payment payable by the Receiving Party to the Affected Parties based on the BSC Banker Rate.

2.2.29 Issue Payment Date Exception Report

Requirement ID:

FAA-R055

Status:

Title:

Issue Payment Date Exception Report

Source:

Mechanism:

Manual

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I032

Requirement:

The FAA will notify the BSCCo if the funds transfer process for a payment date has been unsuccessful. The funds transfer process would be deemed unsuccessful if the funds have not been transferred to the BSC creditors for same day value or if any of the Collection Accounts have not transmitted the incoming funds to the Clearing Account.

Information provided will include the following:

Payment Date
Exception Details

2.2.30 Pay Reserve Account Interest

Requirement ID:

CR 034

Status:

Title:

Pay Reserve Account Interest

Source:

BSC Section N 4.6.3 (a)

Mechanism:

Manual

Frequency:

Quarterly

FAA Interface Ref:

FAA-

Requirement:

The FAA will pay quarterly from the Reserve Account interest to each BSC Party attributable to their cash share credited to the account. Invoices will also be produced and dispatched to the BSC Parties.

2.2.31 Obtain Tax Quarters

Requirement ID:

FAA-R084

Status:

Title:

Obtain Tax Quarters

Source:

Mechanism:

Manual

Media

Frequency:

Ongoing as applicable

FAA Interface Ref:

Requirement:

The FAA shall obtain details of the last Payment Dates associated with Quarter Dates and will update the NETA Funds Transfer System accordingly.

Notification of changes to the Quarter Dates will be obtained from media notification.

The information entered into the system is as follows:

Last Payment Date associated with Quarter Date

2.2.32 Issue Invoices

Requirement ID:

FAA-R085

Status:

Title:

Issue Invoices

Source:

Mechanism:

Frequency:

Following threshold breach, or as manually triggered

FAA Interface Ref:

FAA-I038

Requirement:

Invoices are issued to relevant Payment Parties following an Invoice Threshold Limit or time threshold breach. Invoices are emailed to the Payment Party in Portable Document Format or can be downloaded via Self-serve from the Elexon Portal.

Header details will include the following:

Payment Party name
Payment Party address
Invoice number
Invoice Date
Payment Date
Party ID
Customer VAT Registration No

For each type of Charge, details for that charge will include the following:

Type
Description
Tax Code
Quantity
Net Charge (£)

The Invoice will also show

Total Net Charges (£)
VAT (£)
Total Charges including VAT (£)
VAT Breakdown

2.2.33 Issue Default Statements

Requirement ID:

FAA-R086

Status:

Title:

Issue Default Statements

Source:

Mechanism:

Frequency:

Following threshold breach, or as manually triggered

FAA Interface Ref:

FAA-I039

Requirement:

The Default Statements provide supporting documentation relating to the Invoice, in particular details of Default charges.

The statements are emailed in Portable Document Format.

The details included on the statements will include the following:

Related Invoice number
Payment Date (for Default charges only)
Payment Party name
Default charge details
Details of Default:

1. Affected Date

2. Defaulting Party

3. Amount in Default

Details of Default Share Amount:

1. Amount excluding VAT

2. VAT

3. Amount including VAT

4. Non-VATable share

5. Interest

6. Total amount payable/receivable net of tax liabilities

2.2.34 Not Used

2.2.35 Issue Ad-Hoc Statements

Requirement ID:

FAA-R088

Status:

Title:

Issue Default Statements

Source:

Mechanism:

Manual download via Elexon Portal

Frequency:

Following threshold breach.

FAA Interface Ref:

FAA-I041

Requirement:

The Ad-Hoc Statements provide supporting documentation relating to the Invoice, in particular details of Ad-Hoc charges.

The statements will be available to be manually downloaded via the Elexon Portal.

Header details will include the following:

Payment Party ID
Related Invoice
Payment Date
Ad-Hoc Charges Receivable (£)
Ad-Hoc Charges Payable (£)
Total Ad-Hoc Charges (£)

Report body details will include the following:

Details of Ad-Hoc Charges
1. Dispute Reference
2. Counter Party
3. Settlement Period
4. Dispute Amount (£)
5. Your Total (£)

2.3 Non-functional Requirements

2.3.1 Audit Requirements

Requirement ID:

FAA-R056

Status:

Title:

Audit Requirements

Source:

Mechanism:

Automatic

Frequency:

All business transactions

FAA Interface Ref:

Requirement:

All trading data received by the FAA from the SAA shall be retained and not physically deleted. Multiple versions of the data will be supported so that both the original information and any subsequent corrections are stored separately.

The FAA will maintain an audit trail of when information from the SAA was received and when the information was processed. It shall be possible to identify what combination of data has been received and loaded into the system as the input to each individual billing run.

All business data transmitted to external parties by the FAA will be retained and not deleted. Multiple versions of the data shall be supported, for instance so that the results of billing calculations in successive settlement runs for the same settlement date are available individually.

Any billing data that is manually entered, modified or deleted by operators of the system will be time stamped to record the time the transaction occurred and the identity of the operator who performed the transaction shall be recorded. This audit information will be available for inspection by a suitably authorised party.

The FAA shall ensure that all output reports will be time stamped and will display the identity of the system operator by whom the report was produced.

The FAA shall ensure that all other reports required for audit purposes will be retained. This includes bank statements, Businessmaster reports, reconciliation control sheets and BSC Party requests to change standing data.

The FAA will ensure that all printed reports that are no longer required for billing or audit purposes are securely destroyed.

2.3.2 Security Requirements

Requirement ID:

FAA-R057

Status:

Title:

Security Requirements

Source:

Mechanism:

Manual and Automatic

Frequency:

As required

FAA Interface Ref:

Requirement:

All premises used by the FAA in connection with provision of the service shall be made secure in that only suitably authorised persons may obtain entry. The entry of visitors to the premises will be suitably authorised and their access to parts of the site controlled thereafter. Both the normal and disaster recovery sites shall have sufficient provision to ensure that the security of the buildings is not compromised outside standard working hours.

Key elements of the infrastructure used to support the service such as computer server hardware, power supplies and other essential physical equipment will be subject to further physical restrictions such that they are only accessible to suitable authorised personnel. Such hardware shall be further protected by specialist mechanisms.

The bespoke computer applications used to support the service shall be subject to entry of a secure username and non-displayed password before access to any data or function relevant to the service is possible by an operator. Passwords will be updated through procedural means on a regular basis.

The banking software utilised to transfer BACS and CHAPS payments to the BSC creditors and collect direct debit payments from the BSC debtors will be subject to the Barclays Bank inherent security measures. These include the following:

1. Entry of 6-character user PIN. The user is prompted to change the PIN on a regular basis every 28 days.

2. Entry of user ID and non-displayed alphanumeric password. The password must be a minimum of 8 characters in length. The user is requested to change the password on a regular basis every 28 days

3. In order to transmit a CHAPS payment, three suitably authorised persons are required. To transmit a BACS payment or collect a direct debit, two suitably authorised persons are required. Two separate individuals are required to make any CHAPS, BACS or Direct Debit standing data changes. These two individuals can play no part in the collection or transmission of funds.

The bespoke system supporting the service shall be configurable such that individual functions are available only to authorised categories of user. It shall be possible furthermore to configure the systems such that a user with restricted security privileges can access the data on a read-only basis.

The FAA shall monitor any attempts to breach the physical and logical security of the system and report any such occurrences to the BSCCo When any such attempt is discovered, the FAA shall endeavour to identify the nature of the breach and to ascertain whether the existing controls are adequate.

The FAA shall use a secure communications infrastructure for transfer of data to the BSC parties and for receipt of data from the SAA. The infrastructure must support the following:

1. Authentication: a mechanism to verify that the parties on either side of the data link are who they claim to be.

2. Privacy: a mechanism to ensure that transmitted content is not read or intercepted by unauthorised recipients.

3. Integrity: a mechanism to verify that transmitted data is received in an unchanged state.

2.3.3 Operational Control

Requirement ID:

FAA-R058

Status:

Title:

Operational Control

Source:

Mechanism:

Manual and Automatic

Frequency:

As required

FAA Interface Ref:

Requirement:

Operation control procedures are likely to include the following:

It shall be possible for suitably authorised users of the system to have control over the loading of data files from external parties. This will include the functionality to move and copy data files between directories.

The contents of an inbound data file shall be viewable by an operator both before and after the file has been loaded into the system.

In the event of data loading errors caused by problems with standing data (e.g. BSC Party registration data) it will be possible to re-load the information once these errors have been corrected (e.g. after consultation with the CRA service provider).

It will be possible to configure the system such that reports are either automatically scheduled for release to their recipient destinations, or released only by specific intervention of an operator.

Any report file shall be inspectable by a suitably privileged operator either before or after it has been made available to its recipient.

It shall be possible to cause individual batch and report processes to be initiated either on demand, at a pre-scheduled date and time, or to repeat automatically at a periodic interval.

It shall be possible for an operator to monitor the progress of any individual batch or report process, for instance to review any informational or warning logs generated by the process.

It shall be possible for operators to cancel any scheduled batch or report process, or kill any individual process while it is running, such that updates to the data are rolled back and not committed.

The initiation of a batch or report process shall not prevent operators from performing other tasks within the system using the same workstation, i.e. they are not required to wait for the batch or report process to complete before they can proceed to use other system functions.

It shall be possible to configure the system such that individual batch or report processed run automatically as a result of successful completion of other automated tasks. For instance, if appropriate, the successful completion of one batch process could automatically trigger a report based on data created by that batch process.

Reports containing data will be made available in a machine-readable format. A definition of a standard physical file convention shall be established as part of the Interface Definition and Design Specification.

Suitably authorised operators of the system shall be able to obtain printed copies of any report.

Operators of the system shall be able to obtain printed copies of any data that they are able to display via the user interface, given their security privileges. This includes snapshots of any screens to which they have access and a print of data which they may have selected via a query on a data maintenance screen.

Operators of the system shall be able to save to a text file copies of any data which they may have selected utilising a query tool. The text file will include the data in a simple comma separated format compatible with standard desktop tools such as spreadsheets.

The FAA shall ensure that any manually entered data is duly checked and authorised. As detailed in the audit requirements, information relating to the manual input of data is stored within the system. Where data is input manually, the FAA shall use reasonable endeavours to ensure that the quality of the data is not compromised in any way. The exact mechanism to ensure this is conducted will be developed in detail in the Design Specification.

The FAA shall carry out validation of all data input so as to ensure that the data is, as far as practicable, complete and consistent.

Operational controls surrounding the transfer and management of funds are detailed in the FAA’s Financial Procedures Manual, and include segregation and separation of duty and stringent procedures surrounding authorised signatories.

2.3.4 Euro Compliance

Requirement ID:

FAA-R059

Status:

Title:

Euro Compliance

Source:

Mechanism:

Manual and Automatic

Frequency:

As required

FAA Interface Ref

Requirement:

The FAA system and services shall be Euro Compliant in accordance with legal requirements applicable in England.

Euro-compliance functionality shall not be used prior to the Go-live date.

Issues:

The complete definition of Euro compliance requirements relating to NETA is not yet specified.

2.4 Service Requirements

2.4.1 Backup and Recovery Requirements

Requirement ID:

FAA-R060

Status:

Title:

Backup and Recovery Requirements

Source:

Mechanism:

Manual and Automatic

Frequency:

On-going as detailed below

FAA Interface Ref:

Requirement:

The FAA shall run and record successful completion of daily backup procedures for all on-line databases and maintain a backup log.
The FAA will ensure that each backup is identified and held on appropriate media, labelled accurately and clearly.
The FAA will ensure that all backups are secured in two locations (one off-site) in fire proof and flood proof safe environments, appropriate to the type of backup.
The FAA shall ensure that backup and recovery procedures do not prejudice scheduled operations and are timed to minimise the risks of data loss.
The FAA shall ensure that backup recovery times are compatible with service availability requirements.
The FAA shall ensure that all data and software (e.g. Barclay software and standing data) necessary to support the Services are backed up at regular intervals.
The FAA will, at regular intervals, not exceeding three months, ensure that the backup files could be restored if required.

2.4.2 Archiving Requirements

Requirement ID:

FAA-R061

Status:

Title:

Archiving Requirements

Source:

Mechanism:

Manual

Frequency:

As required

FAA Interface Ref:

Requirement:

The FAA shall identify each archive and ensure that all archives are held on appropriate media, labelled accurately and clearly. All items should contain their original creation date and the date of archive.

The FAA shall ensure that all archives are secured in an off-site location in fireproof and flood proof safe environments, appropriate to the type of archive media.

The FAA will ensure that all archived material is retained and retrievable, in accordance with the following:

1. On-line access must be available within 5 minutes for data up to one month old;

2. On-line access must be available within 24 hours for data up to one year old;

3. On-line access must be available within one week for data up to seven years old.

Database archive strategy will be documented once the physical design document has been produced.

2.4.3 Resilience Requirements

Requirement ID:

FAA-R062 as amended by P214

Status:

Title:

Resilience Requirements

Source:

Mechanism:

Manual and Automatic

Frequency:

FAA Interface Ref:

Requirement:

The FAA shall ensure that systems and services are sufficiently resilient such that they support the agreed service levels required to deliver payment runs as specified in the Payment Calendar.

The FAA will ensure that contingency arrangements are in place to support the above statement. These will include the following:

1. Manual data entry facility.

If the data files cannot be loaded into the system, trading details for each of the BSC Parties can be manually input.

2. Back-up system on site.

If the main system is unavailable, the back-up system, which is restored with the main system backup every night (and is therefore only ‘one day behind’) could be utilised.

3. Offsite system access.

If access to the business premises is denied, the FAA have a comprehensive Disaster Recovery plan in place which involves relocating to the Disaster Recovery site where all the required hardware and software will be available.

4. Manual faxing facilities.

The BSC Party reports can be manually faxed when the email of electronic Advice Notes facility is unavailable.

5. Alternate funds transfer arrangements.

If the Barclays Bank software is not available, the FAA has an agreement in place whereby the Bank will arrange to make the payments to the BSC Parties upon receipt of duly authorised instructions from the FAA.

2.4.4 Volumetric Requirements

Requirement ID:

FAA-R063

Status:

Title:

Volumetric Requirements

Source:

Mechanism:

Manual and Automatic

Frequency:

As required

Volumes:

As below

FAA Interface Ref:

Requirements:

The following tables provide indicative volumetric details and are for information only:

Assumption

Volumes

BSC Parties

Low

Average

High

100

200

300

Transaction	Explanation	Volumes
Aggregated Debits/Credits per day	5 Settlement Runs 1 Initial Settlement Run 4 Reconciliation Settlement Runs (3 after Bank Holidays etc)	Low	Average	High
Aggregated Debits/Credits per day		500 1500	1000 3000	1500 4500
Statements produced per day	One statement per Payment Party per Payment Date	100	200	300
Invoices produced	Following threshold breaches	1 per tax quarter	Unknown	300 per day
Threshold Default Statements produced	Following threshold breaches	1 per tax quarter	Unknown	300 per day
Payment to BSC Creditors per day	50% net debtors 50% net creditors One payment per creditor per Payment Date (assuming an Invoice Threshold Limit of £500)	10	75	150

2.4.5 Reports on FAA Performance

Requirement ID:

FAA-R074

Status:

Title:

Reports on FAA Performance

Source:

Schedule 3

Mechanism:

Manual.

E-mail

Frequency:

Monthly

FAA Interface Ref:

Requirement:

The FAA shall provide a report on the FAA performance to the BSCCo on a monthly basis.

The report will include the following information:

Daily Activities

1. Incidents of late/non billing

2. Incidents of late/non payment of sums due to BSC creditors

3. Details of credit cover issues and concerns

4. Details of banking issues and concerns

Help Desk Facility

1. Problems logged and severity levels allocated

2. Total number of calls received

3. Confirmations of calls resolved within agreed response time

4. Details of calls escalated

5. Call sign-off dates

6. Summary of outstanding problems

The FAA shall provide a report on the FAA performance to the BSCCo on an annual basis.

The report will include the following information:

Payment Calendar

1. Successful production of the Payment Calendar by 15 January each year

2. Successful publication of the Payment Calendar by 31 January each year

Issues:

2.4.6 Problem Management

Requirement ID:

FAA-R075

Status:

Title:

Problem Management

Source:

Schedule 3

Mechanism:

Manual

Help Desk Facility

Frequency:

On-going as applicable

FAA Interface Ref:

Requirement:

The FAA shall establish and operate a Help Desk to receive notification of, investigate, manage and resolve any Incidents. The FAA Help Desk facility must be available on working days between the hours of 9:00 a.m. and 5:00 p.m.

The Help Desk will include:

Logging of Incidents within appropriate agreed timescales
Allocating appropriate severity levels to each Incident
Maintaining an audit trail of each Incident detailing actions taken and resolution times
Operating a call back and progress reporting mechanism
Operating a mechanism to advise affected users of any break in service and the likely duration

Issues:

2.4.7 Invest Credit Cover

Requirement ID:

FAA-R076

Status:

Title:

Invest Credit Cover

Source:

FAA SD 6.2

Mechanism:

Manual

Frequency:

Ad-hoc

FAA Interface Ref:

FAA-I038

Requirement:

1. The FAA will seek to maximise return on the cash deposits held in the Reserve Account by the following means:

(a) At its own discretion, the FAA may instruct the BSC Banker to place amounts as it may determine from the Reserve Account into an Overnight Deposit with the BSC Banker for the purposes of earning interest.

(b) Upon instruction from BSCCo, the FAA shall, by 14:00 on the same Working Day as receiving the instruction, instruct the BSC Banker to place such amounts as determined by BSCCo into an Investment Account.

2. The FAA will consider any return as being part of the overall interest determined for the Reserve Account.

Issues:

3 Process Overview

3.1 Project Context

The diagram below is an indicative representation of the FAA process overview. It is not intended to be exhaustive.

Figure 1- Context Diagram

The concept of the diagram has not changed but please note that reference to Advice Notes is replaced with Invoices

3.2 High Level Dataflows and Events

This section describes the main flows of data that cross into or out of the FAA system.

3.2.1 Not Used

3.2.2 Invoices & Supporting Documentation

From: FAA

To: BSC Parties

Frequency: Invoices covering Initial Settlement and all reconciliations, Default charges and Ad-Hoc Charges, per Payment Party

Event: Produced by FAA following a threshold breach by a Payment Party. The threshold may be manually overridden.

Notification advising a Payment Party of the amount they are due to pay to the FAA or receive from the FAA on a specific Payment Date, for specified Settlement Days, Defaults and Ad-Hoc Charges.

Supporting documentation is provided in the form of “statements”, containing a breakdown of the Trading Charges by Settlement Run and by charge type, a breakdown of the Default details, or a breakdown of the Ad-Hoc Charge details.

3.2.3 Initial Debits/Credits

From: SAA

To: FAA

Frequency: Per Settlement Run

Event: Sent by SAA according to Payment Calendar

Data files containing monetary trade details for each BSC party for a Settlement Date. Each file will contain BSC Party information for a single settlement day / settlement code combination. The overall sum of all debit and credit trades will net to zero.

3.2.4 Revised Debits/Credits

From: SAA

To: FAA

Frequency: Per Reconciliation Settlement Run

Event: Sent by SAA according to Payment Calendar

Data files containing revised monetary trade details for each BSC Party. Each file will contain revised BSC Party information for a single settlement day / reconciliation settlement code combination. The overall sum of all debit and credit adjustments trades will net to zero.

3.2.5 Payment Instructions

From: FAA

To: Funds Transfer Process (via FAA staff)

Frequency: Per Payment

Event: BSCCo Billing Run

The FAA System produces a report used by FAA to manually enter payment instruction details into a separate system for Funds Transfers; Barclays CHAPS and Businessmaster.

3.2.6 Payment Calendar Interface

From: FAA

To: Payment Parties, SAA and BSCCo

Frequency: Per financial year

Event: Financial year.

Provides calendar Payment and Notification Dates for each Initial Settlement Run for the forthcoming financial year. Includes calendar Payment and Notification Dates for each Reconciliation Settlement Run whose calendar Payment Date falls within the generated payment period.

3.2.7 Credit Limit

From: BSC Parties

To: FAA

Frequency: Ad Hoc

Event: Calculation of Energy Credit Cover (ECC)

Details of the Credit Limit are supplied to enable (re) calculation of the Energy Credit Cover.

3.2.8 Energy Credit Cover

From: FAA

To: ECVAA, BSC Party

Frequency: Ad Hoc

Event: On (re) calculation of the Energy Credit Cover (ECC)

The Energy Credit Cover is determined using the data supplied by the BSCCo and the BSC Party. Once the credit cover (£) provided by the BSC Party is sufficient for the ECC (MWh), the ECVAA is notified of the ECC.

3.2.9 BM Unit Details

From: CRA

To: FAA

Frequency: Ad Hoc

Event: Sent by the Central Registration Agent as required

Provides BM Unit Credit Assessment Import Capability (BMCAIC) and BM Unit Credit Assessment Export Capability (BMCAEC) values per BSC Party.

3.2.10 Credit Policy

From: BSCCo

To: FAA

Frequency: Ad Hoc

Event: Market Start-up or when the Credit Policy is amended

Principally provides the values for Credit Cover Contract Duration (CCCD), Credit Cover Contract Physical Duration (CCPD), Credit Assessment Purchase Price (CAPP) and Credit Assessment Sale Price (CASP). The Credit Policy also provides instructions for securitising trades and the calculation and usage of Credit Cover.

4 User Roles & Activities

The following table describes the user roles, which will support the day to day operation of the FAA service.

Role	Activities
System Administrator	Database management Specific aspects of system configuration User account and security management
Billing Operations Manager	Management of operators Management of standing data updates Co-ordination of creation of the payment calendar Management of planned operational activities to meet Payment Calendar timescales and service level requirements Creation of management information reports Support for communication with external parties
Billing Operator	Performance of procedures to monitor receipt and processing of debit and credit amounts from SAA. Performance of procedures to initiate and monitor billing runs and reports. Effect the transfer of funds. Second level support for ad hoc queries raised by external parties
Help Desk Operator	First level support for ad hoc queries raised by external parties. Note that the Help Desk facility shall be shared by more than one service provision.
Auditor	There shall be a specific user security configuration, which allows an external auditor to review data within the system, but prevents the initiation of batch processes or logical edits to business data.

These roles and activities will be refined and developed in more detail during detailed business process definition.

The following parties are associated with the FAA business processes in the wider context, and may thus be considered as “users” of the service. The detailed functional requirements and data interfaces necessary to support these parties are described earlier in this document.

Role	Summary of Activities related to FAA
BSCCo	Receives summary financial reports from FAA at periodic intervals (daily, weekly, monthly) and notified of expected and unexpected VAT Imbalances, to be paid / received to / from BSC Clearer.
BSC Party	Establishes Credit Cover with the FAA. Receives detailed Invoices and Statements (Backing documentation)..
CRA	Provides authentication and registration details for BSC Parties data to the FAA.
ECVA	Receives credit limit data and contract notifications for each BSC Party. Provides total energy contract volume associated with each energy account and settlement period.
Customs and Excise	Receives Quarterly reports from FAA detailing VAT information for each BSC Party
Inland Revenue	Provides details of current and historic income tax rates to the FAA
Credit Rating Agencies	Provides initial credit rating information for each BSC Party to the FAA
Collection Bank	Provides confirmation that all funds due for the payment date have been received and are available for clearing.
BSC Banks	Provides details of current and historic Base Rates to the FAA
Settlement Administration Agent (SAA)	Provides debit/credit instructions in order to perform funds clearance. Provides payment calendar annually.

Appendix I Assumptions

The URS is based upon a number of assumptions. These assumptions relate to the main areas of the service identified within the FAA service description. These areas are:

Daily Settlement processing;
Funds Transfer;
Payment Calendar; and
Non process specific

Daily Settlement Processing

1. Settlement data files will be received from one source; the SAA.

2. All trading values received will be financial.

3. One data file will be received per Settlement Run as per the FAA Payment Calendar. For example, if the FAA were processing the Settlement Runs detailed below, a total of seven files would be received from the SAA:

Settlement Date	Settlement Code	Notification Date	Calendar Payment Date
7^th April 2000	SF	4^th May 2000	9^th May 2000
8^th April 2000	SF	4^th May 2000	9^th May 2000
9^th April 2000	SF	4^th May 2000	9^th May 2000
13^th March 2000	R1	4^th May 2000	9^th May 2000
10^th January 2000	R2	4^th May 2000	9^th May 2000
28^th September 1999	R3	4^th May 2000	9^th May 2000
11^th March 1999	RF	4^th May 2000	9^th May 2000

4. Information will be supplied for each charge type for each Payment Party in the data file from the SAA, even if the value for the charge type is zero.

5. For Payment Calendar processing purposes, there will be an Initial Settlement Run and four subsequent scheduled Reconciliation Settlement Runs per Settlement Day.

6. Each Initial Settlement Run and Reconciliation Settlement Run will net to zero; i.e. the sum of the reconciliation debtors will equal the sum of the reconciliation creditors.

7. The facility to perform non-scheduled (ad-hoc) reconciliations will be required.

8. FAA will not receive GSP Group information, the subsequent split between ‘corrected’ and ‘non-corrected’ data or separate 100kW information from the SAA and therefore will not process or report information at these levels.

9. Within the FAA system, Payment Parties will have one unique identifier and will not be classed by trading type i.e. Generator or Supplier.

10. BSC Parties can change between net debtors and net creditors across Settlement Runs.

11. The number of charge types may increase up to a maximum of 20 charge type categories.

12. The functionality to calculate reconciliation adjustments for each of the charge types is required.

13. Codes will be allocated to each of the charge types.

14. One Invoice will be produced per Payment Party per calendar Payment Date.

15. Interest will be applied to the reconciliation adjustment amounts payable or receivable, and this interest will be calculated on a compound daily basis in respect of the period from (and including) the initial calendar Payment Date up to (but not including) the current reconciliation calendar Payment Date by applying the BSC Banker’s Base Rate:

(a) As prevailing at 00.00 hours on the relevant day on a daily basis up to (but not including) the Advice Note Date; and

(b) As prevailing at 00.00 hours on the Advice Note Date on a daily basis up to (but not including) the current reconciliation calendar Payment Date.

16. The FAA will be requested to process, on average, an additional four Reconciliation Settlement Runs (ad-hoc reconciliation runs) per Settlement Date.

17. If the Initial (SF) data is unavailable, the FAA will manually input alternate data provided by the BSCCo or postpone the run until the data is available. Scheduled Reconciliation Settlement Runs for which data is not available will be postponed.

18. As per the Inland Revenue ruling on ‘long’ interest, all interest levied on scheduled and ad-hoc reconciliation adjustments will be subject to the deduction of income tax.

Funds Transfer

19. BSC Parties will elect to pay by Direct Debit or into the Collection Account

20. Payments will be made to BSC creditors from a BSC Clearing Account.

21. The Collection bank will be Barclays Bank PLC.

22. The Clearing Bank will be Barclays Bank PLC.

23. Scaledown calculations will be performed on the scaledown Payment Date creditors, not those who traded on the ‘defaulted’ Payment Date.

24. The current Borrowing Account facility level of £20 million will still be required.

25. The current level of daylight exposure will still be required; enabling Payment Party creditors to be paid prior to receipt of all amounts due from the Payment Party debtors.

Credit Cover

26. Values of BM Unit Credit Assessment Export and Import Capabilities (BMCAEC and BMCAIC) will change on an infrequent basis

27. The FAA will actively seek to maximise returns on the cash deposits held as Credit Cover.

Payment Calendar

28. Approval of the draft Payment Calendar will be assigned to the SAA and the BSCCo, as opposed to the various Payment Parties. This represents a more practicable approval process.

Change Requests

29. The requirement to pro-rate multilateral dispute amounts across one particular charge type is being assessed as a potential change request.

30. The potential requirement to levy differential VAT rates to the various charge types is being assessed as a potential change request.

Appendix II logical data structure

Purpose and Scope

The FAA system Logical Data Model describes the data within the required FAA system from a logical viewpoint. It should be noted that, as a physical data model already exists, this diagram is included for information only and not as a basis on which to construct a new physical model. The model comprises:

A Logical Data Structure (diagram);
Entity descriptions;
List of the main attributes for each entity. ‘p’ = primary key attribute, ‘*’ = foreign key attribute, ‘o’ = optional key attribute.

Figure 2 – Logical Data Structure

Entity Descriptions

Invoice

Description: The combined Invoice created for each Payment Party following a threshold breach, which will include one or more backing sheets.

Contains attributes:

p Invoice number

p Payment Date

* Payment Party Id

Total amount

Bank Account

Description: The Bank Account from which each debtor BSC Party pays or, creditors receive payment.

p * BSC Party Id

Sort Code

Account Number

Address

Billing Run

Description: A particular BSCCo Billing Run for a Settlement Day.

p * Settlement Day

p * Settlement Code

p Settlement Run No

BSC Market Trade

Description: A financial value for a trade of electricity by a BSC Party on a particular Settlement Day.

p * Settlement Day

p * BSC Party Id

p * Run Type

p * Run No

Version No of data file

Trade Value

Charge Type

Calendar Payment Day

Description: A working day on which financial settlement for one or more Settlement Days is calculated.

p Calendar Payment Day

Base Rate

BSC Party

Description: An identity allocated to a Member of the BSCCo

p * BSC Party Id

Name

* VAT Code

Contact Details

Run Type

Description: A type of BSCCo billing run, e.g., Settlement Final, or initial Reconciliation (R1, R2, R3) and Reconciliation Final (RF).

p Run Type

Settlement Day

Description: A unique day, identified by the date, for which energy is consumed or produced.

p Settlement Date

VAT Code

Description: An identifier for linking a BSC Party to a VAT rate

p VAT Code

VAT Rate

Appendix III Glossary of terms

A

Accidental Default

The accidental non-payment of a BSC Invoice by a Payment Party.

Ad-hoc Reconciliation Settlement Run

A Reconciliation Settlement Run not scheduled in the Payment Calendar.

Approved Credit Rating

An investment grade credit rating of at least that specified as approved in the BSCCo Credit Policy.

Approved Payment Calendar

Payment Calendar detailing scheduled payment runs which has been approved by the BSCCo and the SAA.

Average Credit Period

The average credit period over the financial year of the Settlement Final (Initial) runs.

B

Backing Sheet

The same meaning as Statements.

Backing Sheet Type

A Trading Charges backing sheet, Default charges backing sheet, or Ad-Hoc Charges backing sheet.

Balancing and Settlement Code (BSC)

The rules, systems and processes underpinning the new balancing and settlement arrangements.

Balancing Mechanism (BM)

Definition required.

Bankers Automated Clearing System (BACS)

A three-day value Barclays’ payment system used to make payments to BSC creditors for amounts less than £1000.

Base Rate

Clearing Banker’s (Barclays Bank Plc) base interest rate.

BM Unit

A BM Unit is a point of entry, or exit, to the transmission system where a Final Physical Notification will be required from a Party. For Demand this will normally be a Grid Supply Point Group except where there is a Trading Unit directly connected to the Transmission System. For generation it will normally be a Meter Point for a single genset.

BM Unit Credit Assessment Export Capability (BMCAEC_i) MW

A value maintained for credit assessment purposes reflecting the transmission access export rights of the BM Unit, GC_i, corrected by the Credit Assessment Load Factor.

BM Unit Credit Assessment Import Capability (BMCAIC_i) MW

A value maintained for credit assessment purposes reflecting the transmission access import rights of the BM Unit, DC_i, corrected by the Credit Assessment Load Factor.

Borrowing Account

Short term borrowing facility on which the FAA can draw to make good any non-payment shortfalls, or to cover payments due from Payment Parties that are below the Invoice Threshold Limit (or time threshold) during an Invoice Period.

Borrowing Account Draw Down

A transfer of funds from the Borrowing Account to the Clearing Account to make good a non-payment shortfall, or to cover payments due from Payment Parties that are below the Invoice Threshold Limit (or time threshold) during an Invoice Period.

Borrowing Account Repayment

A transfer of funds from the Clearing Account to the Borrowing Account to repay a previous Borrowing Account draw down.

BSC Clearing Account

The bank account into which the Collection Banks transfer the funds paid by the BSC debtors, and from which payments are made to the BSC creditors.

BSC Clearing Bank Report

A report produced by the FAA system detailing amounts due to the BSC creditors for a specified Payment Date. The report also details Payment Party bank account details and combined Invoices to which the credits relate.

BSC Panel Ruling

A ruling made by the Balancing and Settlement Code Panel in respect of a BSC Trader in a Credit Default position.

BSC Party Bank

A bank at which a Payment Party holds an account into which payments are made by the FAA or from which payments are made to the FAA.

BSC Party Creditors

Payment Parties to whom net amount receivable Invoices have been sent and who are subsequently due to receive funds from the FAA for a specified calendar Payment Date.

BSC Party Debtors

Payment Parties to whom net amount payable Invoices have been issued and who are subsequently due to pay funds to the FAA for a specified calendar Payment Date.

BSC Party Identifier p

Each Balancing and Settlement Code Party will be given a unique Balancing and Settlement Code Party Identifier as part of the registration process. The Balancing and Settlement Code Party Identifier is generally denoted p.

Businessmaster

Clearing Bank software that enables BACS payments to be made to the BSC creditors, direct debits to be taken from BSC debtors and account transfers to be effected. Account balance information is also available via Businessmaster.

C

Calendar Parameters

Variables which are entered into the system in order to produce the Payment Calendar. These include average credit period, reconciliation periods, and minimum and maximum notification periods.

Calendar Payment Date

The date on which Invoices are calculated, according to the Payment Calendar, and the earliest date on which an Invoice may be paid, pending an Invoice Threshold Limit (or other threshold) breach.

Cash Deposit

A cash amount provided to the FAA by a Payment Party in order to discharge their credit cover liability.

Central Data Collection Agent

A Balancing and Settlement Code Service Agent responsible for the collection of metered data from Meter Points that are registered under the Central Registration Agent.

Central Registration Agent

The Central Registration Agent will register Balancing and Settlement Code Parties, BM Units, Trading Units, and Meter Points other than meters registered in Supplier Meter Registration systems.

Charge Type

A charge category included in the Settlement Run, e.g. Balancing Mechanism Charges, System Operator Charges, Administrative Charges etc.

Charge Type Codes

Codes relating to the various charge types.

Clearing House Automated Payment System (CHAPS)

A same-day value Barclays’ payment system used to make payments to BSC creditors for amounts greater than £1000.

Collection Account

The BSC bank account into which BSC Party debtors elect to pay the amount payable advised on the Invoice for a specific Payment Date. There is one Collection Account, held at Barclays.

Collection Bank Report

A report produced by the FAA funds transfer system for the Collection Bank detailing amounts due from the BSC debtors for a specified calendar Payment Date. The report also details BSC Party bank account details and the Invoices to which the debits relate.

Compound Interest

Interest applied to reconciliation adjustment and dispute adjustment amounts. The interest is calculated utilising the daily compound interest formula.

Corrected Data

Sub GSP Group data which has been subjected to the GSP Group correction factor

Credit Assessment Purchase Price CAPP (£/MWh)

An administered Price used to value the liabilities of a BSC Trader in respect of a shortfall of energy or purchase from the system, for the purposes of calculating credit cover requirements. CAPP will be positive.

Credit Assessment Sale Price CASP (£/MWh)

An administered Price used to value the liabilities of a BSC Trader in respect of an excess of energy or sale from the system, for the purposes of calculating credit cover requirements. CASP will be zero or negative.

Credit Cover

Credit Cover is required from all BSC Traders to a level consistent with an assessment of their possible liabilities to Balancing and Settlement Code Settlement.

This may take the form of one or more of the following:

Cash deposit;

Letter of Credit;

Credit Cover Contract Duration (CCCD)

The number of days of potential exposure for which credit cover must be provided. CCCD will be set to 28 reflecting the lag between the Settlement Day and the Initial Payment Date.

Credit Cover Physical Duration (CCPD)

The number of days of potential exposure for which credit cover must be provided. CCCP will be set to 28 plus the number of days required disconnecting or transferring customers following a party’s default.

Credit Default

A position of Credit Default is declared when the credit cover held for a BSC Party is insufficient for the Energy Credit Cover in MWh (ECC).

Credit Limit

For each BSC Trader p, the amount of Energy Contract Volumes and relevant Credited Energy Percentages that can be accepted in respect of its Energy Accounts is limited by the Credit Limit.

Credit Policy

The Credit Policy determined by the Customer that is required from all BSC Traders to a level that is consistent with an assessment of their possible liabilities.

Credit Rating Agency

A body who assesses the credit worthiness of a trader and agrees on a standard rating based on their short or long-term risk.

D

Defaulting BSC Party

The Payment Party declared to be in Credit or Payment default.

Distribution

The distribution of electricity over the system of a Public Electricity Supplier.

Distribution Networks

The system consisting (wholly or mainly) of electric lines owned or operated by a Public Electricity Supplier (PES) and used for the distribution of electricity from Grid Supply Points or Generating Units or other entry points to the point of delivery to users, and operated by such Public Electricity Supplier excluding any part of the National Electricity Transmission System.

Distribution System Operator

The Public Electricity Suppliers, as operators of a distribution network.

Draft Payment Calendar

Payment Calendar produced by the FAA funds transfer system utilising the calendar parameters specified by the BSCCo detailing scheduled payment runs. The draft Payment Calendar is sent to the BSCCo and the SAA for approval.

E

Energy Account

BSC Traders will in general have two Energy Accounts, one for their Production Activity and one for their Consumption Activity. Each Energy Account will belong to a single BSC Trader.

Energy Contract Volume

Energy Contract Volumes are data submitted to settlement to allow BSC Traders to offset imbalances and reflect bilateral trading of energy.

Energy Contract Volume Aggregation Agent

The Energy Contract Volume Aggregation Agent will receive, validate and aggregate notifications of Energy Contract Volumes, and provide the Settlement Administration Agent with the net aggregate position of each BSC Trader for each Settlement Period.

Energy Credit Cover (ECC)

The amount (in MWh) at any time for a Payment Party determined as CC/CAP where CC is the amount of the Trading Party's Credit Cover at that time and CAP is the Credit Assessment Price prevailing at such time.

Energy Imbalance Prices

The System Sell Price and the System Buy Price.

Excess Payment

Funds received from a Payment Party in excess of the amount due on a calendar Payment Date

F

Funds Administration Agent (FAA)

The Funds Administration Agent will effect the payments resulting from Settlement, maintain financial and tax documentation, and manage credit and default arrangements.

Funds Accession Agreement

FAA schedule in which Payment Party standing data is provided to the FAA. This includes Invoice contact details and bank account details from which payments will be made to the FAA or into which the FAA should make payment. The Funds Accession Agreement is signed by the FAA, the BSCCo Banker (Barclays Bank Plc) and the relevant Payment Party

G

Generation

The production of electricity.

Generator

A person who generates electricity under licence or exemption under the Electricity Act 1989.

Grid Operator

Operates the transmission system with the objective of providing a reliable supply and maintaining voltage and frequency within the standards laid down in the ESO Licence. Using the generator’s offer data the GO schedules and despatches generating sets (gensets) to meet demand whilst attempting to ensure the security and integrity of the transmission system.

Grid Supply Point (GSP)

Any point where electricity is delivered from the transmission system to a distribution system.

Grid Supply Point Group

Several Grid Supply Points, usually within the geographical area of a Public Electricity Supplier, which are grouped together for Settlement purposes.

GSP Group

A distinct electrical system, consisting of all or part of a distribution system (owned and operated by a Distributor) that is supplied by one or more GSPs for which total supply into the GSP Group can be determined for each half hour.

GSP Group Take

The total demand metered at Grid Supply Points net of 100k W supplies handled by the SMRA, Station Demand, Interconnector Demand and inter GSP Group metering.

I

Information Imbalance Charge (CII_ij) £

The Information Imbalance Charge (CII_ij) is the charge applicable to the associated Lead Energy Account as a result of the Information Imbalance from BM Unit i in Settlement Periodj.

Initial Payment Date

The date at which the payments in respect of Initial Settlement for a Settlement Day are made, on average 28 days after the Settlement Day.

Initial Settlement

The Initial Settlement Run will take place about 24 days after the Settlement Day, for payments to be effected about 28 days after the Settlement Day.

Initial Settlement Report

A report of data used in and created by Initial Settlement.

Initial Settlement Run

Details are provided to the FAA in a ‘Debits/Credits’ data file.

Interim Initial Settlement

The Interim Initial Settlement Run will take place at about 4 days after the Settlement Day.

Invoice

A uniquely referenced document sent to Payment Parties following an Invoice Threshold Limit (or time threshold) breach, detailing the total amount payable or receivable for a Payment Date, combining Trading Charges, Default Charges and Ad-hoc Charges, and including all amounts from backing sheets since the previous Invoice Threshold Limit (or time threshold) breach.

Invoice Period

(i) the Notification Date on which an Invoice is despatched; or

(ii) the period (of consecutive Notification Dates) between (but excluding) the last preceding Invoice Date and ending on (and including) the latest Invoice Date;

Invoice Threshold Limit

A positive monetary value, below which backing sheets are not included on a Invoice, or a negative monetary value, above which backing sheets are not included on an Invoice. Defined by the BSCCo as £500 or such other amount as the Panel may determine from time to time.

K

Kilowatt Hour (kWh)

The energy delivered by 1kW over 1 hour.

L

Letter of Credit

A financial instrument acceptable to the FAA as credit cover. The Letter of Credit must be for a minimum period specified in the BSCCo Credit Policy

M

Manual Trigger

A manual trigger to release the Invoice to date where the Invoice Threshold Limit (or time threshold) may not have been breached.

Market Domain Data

Data provided to all persons involved in settlements in accordance with the Balancing and Settlement Code.

Maximum Notification Period

The maximum number of working days between the settlement date and the notification date.

Minimum Notification Period

The minimum number of working days between the settlement date and the notification date.

Missing Data

Data that is scheduled to be provide to the FAA in the Payment Calendar but is unavailable.

Monetary Threshold

Has the same meaning as Invoice Threshold Limit.

N

NETSO

National Electricity Transmission System Operator means registered number 11014226, in its role as the designated ISOP and holder of the ESO Licence and GSP Licence, and any reference to “NESO” or “NGC” shall have the same meaning.

Non-Corrected Data

Sub GSP Group data which has not been subjected to the GSP Group correction factor.

Non-Payment

A payment which has been notified to a Payment Party which has not been paid on the Payment Date.

Notification Date

The dates by which the SAA shall deliver the Initial Debits/Credits for each of the Initial Settlement Runs to the FAA.

Notification Period

The number of working days between the settlement date and the notification date.

P

Payment Calendar

A calendar maintained by the Funds Administration Agent, listing all Initial and Reconciliation Payment Dates for each Settlement Day.

Payment Date

The date on which funds transfers are to be effected.

Payment Default

The position declared when a Payment Party has failed to make a payment as advised in the Invoice, for a specified number of days after the calendar Payment Date.

Payment Period

The number of working days between the Settlement Date and the Payment Date.

Q

Quarter Date

31st March, 30th June, 30th September and 31st December.

Quarterly Statement

A report produced for H.M. Customs & Excise on a quarterly basis detailing all amounts paid to or received from a BSC Party for the specified period. The report specifically provides details of all input and output VAT.

R

Reconciliation Adjustment Amount

The difference between the current reconciliation run amount and the immediately preceding reconciliation run or initial run amount for a specific charge type for a particular Payment Party.

Reconciliation Payment Date

The day at which payments in respect of a Reconciliation Settlement Run are made.

Reconciliation Period

The number of working days between the settlement date and the reconciliation.

Reconciliation Settlement

A settlement run to account for data that has become available after Initial Settlement. Reconciliation Run details are provided to the FAA in a ‘ Revised Debits/Credits’ data file.

Reconciliation Settlement Report

Report of a Reconciliation Settlement Run, produced by the Settlement Administration Agent.

Related Invoice Number

Provided on the backing sheet to identify the associated Invoice.

S

Scaledown

An exercise whereby a defaulted amount is pro-rated across the creditor Payment Parties and the creditor payments reduced accordingly to make good the defaulted amount and balance the BSC Clearing Account.

Scaledown BSC Parties

The creditor Payment Parties eligible to be scaled down in the event of a payment default.

Scheduled Settlement Run

A Settlement Run scheduled to be processed in the Agreed Payment Calendar.

Set-off

A process whereby any payments due to a Trading Party in default are set-off (reduced) by the amount of the default sum until such time as the amount in default is paid or recovered from the Party’s credit cover.

Settlement

The word Settlement encompasses all aspects of transactions from meter to bank, for all types of imbalances and Balancing Mechanism trades.

Settlement Administration Agent (SAA)

A BSC Service Agent contracted to the BSCCo to operate the Settlement system.

Settlement Codes

Codes which relate to Settlement Run types e.g. SF (Settlement Final), R1 (First Reconciliation, R2 (Second Reconciliation), R3 (Third Reconciliation) and RF (Final Reconciliation).

Settlement Day

The Settlement Day runs from midnight to midnight (BST during the summer and GMT during the winter).

Settlement Report

The report issued to Payment Parties by the Settlement Administration Agent which relates to a particular Settlement Run.

Settlement Run

Initial and Reconciliation Settlement Runs are performed by the Settlement Administration Agent prior to each Initial or Reconciliation Payment Date, for each Settlement Day.

Statement

Backing Documentation which provides details relating to the Invoice.

System Operator (NETSO)

The entity that fulfils the role of operating the transmission system, including issuing instructions to generators or demand to change its level of output or take, and instructing the provision of Ancillary Services and other measures necessary to maintain a stable and secure system. This role in Great Britain is carried out by the NETSO

T

Tax Liabilities

Any amounts due from the Payment Party in relation to H.M. Customs & Excise and Inland Revenue rulings re VAT and Income Tax.

Time Threshold

A date when backing sheets are included on an Invoice. Time thresholds are aligned to Quarter Dates.

Trigger

A breach in the time or monetary threshold limit which triggers the release of the Invoice.

V

VAT Rate

The rate of VAT applicable to the Payment Party’s VAT code for the specified calendar Payment Date.

W

Work Day

In relation to the availability of the FAA, a working day is defined as between the hours of 9.00 a.m. and 5.00 p.m.

Wilful Default

The wilful non-payment of a BSC Invoice by a Payment Party.

1 The proposed withdrawal date will also be included.

CONTENTS

Funds Administration Agent V32.0

1. Introduction

1.1 Management Summary

1.2 Purpose

1.3 Status

1.4 Related Documents

2 Requirements Catalogue

2.1 Functional Requirements

2.1.1 Produce Draft Payment Calendar

2.1.2 Manage Credit Cover

2.1.3 Calculate Energy Credit Cover

2.1.4 Establish Credit Cover Provided

2.1.5 Monitor Credit Cover Provided

2.1.6 Recalculate ECC

2.1.7 Declare Defaults

2.1.8 Utilise Credit Cover

2.1.9 Maintain BSCCo Bank Accounts

2.1.10 Manage Banking Communication

2.1.11 Calculate Payments

2.1.12 Not Used

2.1.13 Produce Statements

2.1.14 Produce Bank Reports

2.1.15 Manage Non-Payments

2.1.16 Manage Excess Payments

2.1.17 Initiate Payments to Creditors

2.1.18 Manage Short-Term Borrowing Arrangements

2.1.19 Maintain Bank Contact Standing Data

2.1.20 Not Used

2.1.21 Maintain BSC Party Standing Data

2.1.22 Maintain Base Rates

2.1.23 Maintain VAT Information

2.1.24 Not Used

2.1.25 Produce Quarterly Statements

2.1.26 Produce BSCCo Quarterly VAT Statements

2.1.27 Monitor Bank Credit Ratings

2.1.28 Calculate Reserve Account Interest

2.1.29 Establish Outstanding Liabilities and Credit Cover

2.1.30 Maintain Tax Quarter

2.1.31 Generate Invoices

2.1.32 Produce Default Statements

2.1.33 Not Used

2.1.34 Monitor Thresholds

2.1.35 Produce Ad-Hoc Statements

2.2 Interface Requirements

2.2.1 Issue Draft Payment Calendar

2.2.2 Obtain Approval of Payment Calendar

2.2.3 Issue Agreed Payment Calendar

2.2.4 Receive Credit Policy

2.2.5 Obtain Credit Ratings

2.2.6 Request Credit Cover

2.2.7 Issue Credit Call Request

2.2.8 Issue Acceptance of Credit Limit

2.2.9 Issue Confirmation of ECC

2.2.10 Obtain Credit Cover

2.2.11 Obtain Base Rate Details

2.2.12 Not Used

2.2.13 Not Used

2.2.14 Issue Credit Cover Default Notice

2.2.15 Receive ECVAA Exception Report

2.2.16 Obtain BSC Party Bank Details

2.2.17 Not Used

2.2.18 Issue Statements

2.2.19 Issue Bank Reports

2.2.20 Receive Payment Confirmations

2.2.21 Receive Non-receipt Notifications

2.2.22 Issue Payment Default Notice

2.2.23 Not Used

2.2.24 Issue Quarterly Statements

2.2.25 Issue VAT Quarterly Statements to BSCCo

2.2.26 Receive Credits & Debits

2.2.27 Receive Revised Credits & Debits

2.2.28 Receive Extra Settlement Determination Data

2.2.29 Issue Payment Date Exception Report

2.2.30 Pay Reserve Account Interest

2.2.31 Obtain Tax Quarters

2.2.32 Issue Invoices

2.2.33 Issue Default Statements

2.2.34 Not Used

2.2.35 Issue Ad-Hoc Statements