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 31.0

Effective Date:

07 November 2024

Prepared by:

ELEXON Design Authority

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

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.

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

Requirement ID:

FAA-R001 as amended by MP61 and P214

Status:

M

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.

Requirement ID:

FAA-R002

Status:

M

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.

Requirement ID:

FAA-R003 as amended by

CRs 033 & 038

Status:

M

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.

Requirement ID:

FAA-R004 as amended by

CR 033

Status:

M

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.

Requirement ID:

FAA-R005

Status:

M

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.

Requirement ID:

FAA-R006 as amended by

CR 033, CP 519 and P142

Status:

M

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.

Requirement ID:

FAA-R007

Status:

M

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.

Requirement ID:

FAA-R008

Status:

M

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.

Requirement ID:

FAA-R009

Status:

M

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

• Lloyds Bank Plc

• National Westminster Bank Plc

• HSBC

• Royal Bank of Scotland

The FAA will arrange for BSC debtor payments to be paid into one of the five Collection Accounts. Once funds due have been received, the FAA will instruct the Collection Banks 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 each of the banks detailing authorised account signatories. All instructions to the banks 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.

Requirement ID:

FAA-R010

Status:

M

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. The FAA will manage the Barclays communications link and will ensure adequate contingency arrangements are in place should the link be unavailable.

Requirement ID:

FAA-R011 as amended by

CR 035, MP61 and P214

Status:

M

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 VAT amounts payable or receivable using applicable Payment Party VAT rate

• Calculating any reconciliation interest income tax liabilities

• Amalgamating initial or settlement final data with the reconciliation data as per the agreed Payment Calendar

• Calculating any VAT imbalance (surplus/deficit) incurred due to a variation in Payment Party VAT rates

• Accrue VAT imbalances (surplus/deficit) to an escrow Payment Party associated with BSCCo Ltd

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

• VAT amount

• Total including VAT

• Interest amount

• Tax 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.

Requirement ID:

FAA-R012 as amended by P214

Status:

M

Title:

Generate Advice Notes

Source:

FAA SD 10

RETA Sch 4

Mechanism:

Manual

User driven system process

Frequency:

Daily (per calendar Payment Date)

FAA Interface Ref:

FAA-I001

FAA-I022

FAA-I023

Requirement:

This requirement is retained for the purpose of generating Advice Notes for Payment Dates prior to the P214 implementation date.

Once the Create Payments process has completed successfully, Advice Notes will be generated for the relevant calendar Payment Date. A unique number will be assigned to each Advice Note. Details stored on the system relating to the Advice Notes will include the following as referenced in Section N, part 7.1.2 of the BSC.

The BSCCo will be allocated an Advice Note detailing VAT imbalances.

• Backing sheet number

• Advice Note type (Daily billing, default or dispute)

• Calendar Payment Date

• Payment Party ID

• Pay flag (credit or debit)

• Amount excluding VAT

• Amount including VAT

• Interest amount

• Default Share Amount (only applicable to BSC Parties)

• Scale down amount (only applicable to BSC Parties)

• Tax amount (only printed if non-zero)

Requirement ID:

FAA-R013

as amended by CR 044, MP61 and P214

Status:

M

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

FAA-I022

FAA-I023

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 Advice Note. 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 Advice Note.

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.

Requirement ID:

FAA-R014

Status:

M

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 each of 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 each of the Collection Banks. Details will include the following:

• BSC Party Name

• BSC Party Branch Name

• BSC Party Branch Address

• Branch Sort Code

• Account Number

• Advice Note 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

• Advice Note Number

• Net Amount receivable

Requirement ID:

FAA-R015 as amended by

CRs 037 and 070

Status:

M

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.

Requirement ID:

FAA-R016

Status:

M

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.

Requirement ID:

FAA-R017

Status:

M

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

• Advice Note Number

• Net amount due to Party

The timing of transferring the creditor amounts is dependent on receipt of funds from the Collection Banks. 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.

Requirement ID:

FAA-R018 as amended by P214

Status:

M

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:

NA

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 Advice Note Threshold Limit, or the payments are as negative or more negative than the negative Advice Note Threshold Limit (or the due date is less than the last Payment Date before the next Quarter Date) for the Advice Note 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.

Requirement ID:

FAA-R019

Status:

M

Title:

Maintain Bank Contract Standing Data

Source:

FAA SD 11.6

RETA Sch 4

Mechanism:

Manual

User entered parameters

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 Address

• Elected Method of Payment

• Elected Collection Bank (if applicable)

• Bank Name

• Bank Address

• Branch Sort Code

• Account Number

• Bank Contact Details

The details will be entered into the system when the BSC Party commences trading and will be updated upon receipt of written authorisation from the BSC Party.

Requirement ID:

FAA-R020 as amended by P214

Status:

M

Title:

Generate Confirmation Notices

Source:

FAA SD 11.7

RETA Sch 4

Mechanism:

Manual

User driven system process

Frequency:

Per calendar Payment Date

FAA Interface Ref:

FAA-I003

FAA-I022

FAA-I023

Requirement:

This requirement is retained for the purpose of generating Confirmation Notices for Payment Dates prior to the P214 implementation date.

Subsequent to the calendar Payment Date, the FAA will receive bank statements from the Collection Bank and a statement for the Clearing Account and the Borrowing Account. For calendar Payment Dates included on Advice Notes issued before the implementation of Modification Proposal P214, the FAA will reconcile the statement balances against the Expected Cash Report and the Business master reports. Any discrepancies will be detailed and handled outside of the FTS system.

Once the bank accounts have been reconciled, Confirmation Notices will be generated for the relevant calendar Payment Date. A unique number will be assigned to each Confirmation Notice.

For calendar Payment Dates included on Advice Notes issued before the implementation of Modification Proposal P214, a Confirmation Notice will be produced for the BSCCo and each BSC Party who received an Advice Note for the relevant calendar Payment Date.

The produced Confirmation Notice will represent the tax document and will detail amounts paid to or received from the BSC Party, inclusive and exclusive of VAT. The VAT rate applied and the VAT amount paid or received will also be detailed per Settlement Run.

Requirement ID:

FAA-R021 as amended by P214

Status:

M

Title:

Maintain BSC Party Standing Data

Source:

FAA SD 6

Mechanism:

Manual

User entered parameters

Frequency:

On-going as applicable

FAA Interface Ref:

FAA-I015

FAA-I025

Requirement:

The system will hold contact details for each BSC Party that is a Payment Party. These details will be provided by the BSC Parties on the form BSCP301/4 (a) the Funds Accession Form, and will be manually entered into the system. The details will be maintained by the FAA and updated on an on-going basis as applicable.

Any subsequent amendments to the BSC Parties original details will be accepted upon receipt of form BSCP301/4 (b).(where BSCP301/4(b) is being used to notify a change in VAT status which alters liability of the Party to UK VAT, BSCCo will notify the FAA within one day of receipt of the BSCP301/04(b) to confirm change in VAT status).

The FAA to manage a manual solution whereby any amendments to VAT status are post-dated.

Details stored will include the following:

• Contact Details:

• BSC Party Name

• BSC Party ID

• Contact name

• Address

• Telephone number

• Facsimile number

• Contact email address (for general queries)

• Delivery email address (for Advice Notes, Confirmation Notices and related statements)

• Registered company name

• Company number

• Registered address

• VAT code (standard / zero rated)

• VAT country code (if applicable)

• VAT registration number(if applicable)

• Other Details

• VAT code

• Dispute pro-rating inclusion/exclusion

• Scaledown inclusion/exclusion

• Network details:

1. Username

2. Password

3. Node name

4. Directory

• Threshold override flag – indicates that the BSC Party as independent of any Advice Note Threshold Limit or time threshold. (For example, the BSC Party may change VAT code, in which case all outstanding funds must be paid to and collected from the BSC Party under the original VAT code.)

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

Requirement ID:

FAA-R022

Status:

M

Title:

Maintain Base Rates

Source:

NA

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

Requirement ID:

FAA-R023

Status:

M

Title:

Maintain VAT Information

Source:

FAA SD 6.8

Mechanism:

Manual

User entered variables

Frequency:

On-going as applicable

FAA Interface Ref:

FAA I029

Requirement:

The system will store historic and current VAT rates for a number of VAT codes (e.g. standard rate and zero rate). Information stored will include the following:

• VAT Code

• VAT Rate

• Effective Date

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 Code

• VAT Country Code

• VAT Registration Number

Requirement ID:

FAA-R024

Status:

M

Title:

Maintain Income Tax Rates

Source:

NA

Mechanism:

Manual

User entered variables

Frequency:

On-going as applicable

FAA Interface Ref:

FAA I030

Requirement:

The system will store historic and current Income Tax Rate information.

Information stored will include the following:

• Income Tax Rate

• Effective Date

Requirement ID:

FAA-R033 as amended by P214

Status:

M

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

• Backing sheet number

• Combined Advice Note number

• Combined Confirmation Notice number

• Amount excluding VAT

• VAT amount

• Interest amount

• Income tax amount (only printed if non-zero)

• 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.

Requirement ID:

FAA-CP1078 Variation 068

Status:

M

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

Requirement ID:

CR 039

Status:

M

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.

Requirement ID:

CR 034

Status:

M

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.

Requirement ID:

FAA-R077

Status:

M

Title: Establish Outstanding Liabilities

Source:

FAA SD 5.3

Mechanism:

Email

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.

Requirement ID:

FAA-R078

Status:

M

Title:

Maintain Tax Quarters

Source:

NA

Mechanism:

Manual

User entered variables

Frequency:

On-going as applicable

FAA Interface Ref:

NA

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

Requirement ID:

FAA-R079

Status:

M

Title:

Generate Combined Advice Notes

Source:

NA

Mechanism:

Manual

User driven system process

Frequency:

Following threshold breach, or as manually triggered

FAA Interface Ref:

FAA-I038

Requirement:

Advice Note data will remain within the system until an Advice Note 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 a combined Advice Note detailing multiple Advice Notes and VAT imbalances. A combined Advice Note is a combination of Trading Charges, Default charges and Ad-Hoc Charges, produced separately prior to the implementation of Modification Proposal P214.

• Combined Advice Note number

• Reason for threshold breach

• Advice Note Threshold Limit

• Backing sheet number that breached Advice Note Threshold Limit (if applicable)

• Advice Note Date

• Payment Date

• Total amount payable/receivable net of tax liabilities, aggregate of Trading Charges, Default charges and Ad-Hoc Charges

For each Trading Charges Advice Note detail item:

• Backing sheet number

• Calendar Payment Date

• Settlement Date

• Description

• Net amount excluding VAT per Settlement Run

• Total including VAT per Settlement Run

• Trading Charge subtotal including VAT

For each Default Advice Note detail item:

• Backing sheet number

• Calendar Payment Date

• Affected Date

• Defaulting Party

• Amount in Default

• Description

• Net amount excluding VAT per Default Share Amount

• Total including VAT per Default Share Amount

• Default charge subtotal including VAT

For each Ad-Hoc Charge Advice Note detail item:

• Backing sheet number

• Calendar Payment Date

• Dispute Run number

• Description

• Net Amount excluding VAT per dispute run

• Total including VAT per dispute run

• Ad-Hoc Charge subtotal including VAT

Requirement ID:

FAA-R080

Status:

M

Title:

Produce Default Statements

Source:

NA

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 combined Advice Note. A breakdown by Default will be provided.

Default statements will be available in Portable Document Format.

Requirement ID:

FAA-R081

Status:

M

Title:

Generate Combined Confirmation Notices

Source:

FAA SD 11.7

RETA Sch 4

Mechanism:

Manual

User driven system process

Frequency:

Per Payment Date

FAA Interface Ref:

FAA-I040

FAA-I022

FAA-I023

Requirement:

Subsequent to the Payment Date, the FAA will receive bank statements from the Collection Account and a statement for the Clearing Account and the Borrowing Account. The FAA will reconcile the statement balances against the ‘Expected Cash Report’ and the Businessmaster reports. Any discrepancies will be detailed and handled outside of the FTS system.

Once the bank accounts have been reconciled, combined Confirmation Notices will be generated for the relevant Payment Date. A combined Confirmation Notice will be produced for the BSCCo, and for each BSC Party who received a combined Advice Note for the relevant Payment Date. Combined Confirmation Notices will be uniquely numbered, and will reference the relevant combined Advice Note.

Each produced combined Confirmation Notice will only include Advice Notes from the combined Advice Note that have been reconciled against the ‘Expected Cash Report’ and the Businessmaster reports. Any Advice Notes not reconciled against the ‘Expected Cash Report’ and the Businessmaster reports will be treated as non-payments, and handled outside of the FTS system. If non-payments are paid before becoming an Amount in Default, the relevant Advice Note will be included in a new combined Confirmation Notice, referencing the same combined Advice Note, and bearing the same issue date as the original combined Confirmation Notice for that combined Advice Note.

The combined Confirmation Notice will represent the tax document and will detail amounts paid to or received from the BSC Party, inclusive and exclusive of VAT. The VAT rate applied and the VAT amount paid or received will also be detailed per Settlement Run.

Requirement ID:

FAA-R082

Status:

M

Title:

Monitor Thresholds

Source:

N/A

Mechanism:

Manual

User driven system process

Frequency:

Daily (per Payment Date)

FAA Interface Ref:

N/A

Requirement:

Once the ‘Generate Advice Notes’ process has completed successfully for a calendar Payment Date, the combined Advice Notes may be generated for the Payment Date, for all Payment Parties, without the restriction of an Advice Note Threshold Limit or time threshold. Combined Advice Notes will be generated for the Payment Date, for all Payment Parties that have an Advice Note not already included on a combined Advice Note.

If immediate combined Advice Notes are not required as above, the following tests are applied to each Payment Party that has an Advice Note not already included on a combined Advice Note:

• The combined value of the Advice Notes not already included on a combined Advice Note for the Payment Party, exclusive of VAT and inclusive of interest, is greater than or equal to a configurable positive Advice Note Threshold Limit;

• The combined value of the Advice Notes not already included on a combined Advice Note for the Payment Party, exclusive of VAT and inclusive of interest, is as negative or more negative than the configurable negative Advice Note Threshold Limit;

• The Payment Date is greater than or equal to the last Payment Date associated with a Quarter Date;

• The Advice Notes not already included on a combined Advice Note include Ad-Hoc Trading Charges, which are specifically marked as independent of any Advice Note Threshold Limit or time threshold;

• The Payment Party is specifically marked as independent of any Advice Note Threshold Limit or time threshold. (For example, the Payment Party may change VAT code, in which case all outstanding funds must be paid to and collected from the Payment Party under the original VAT code.)

If any test is passed, a combined Advice Note is generated for the Payment Party and Payment Date, including all Advice Notes not already included on a combined Advice Note.

Requirement ID:

FAA-R083

Status:

M

Title:

Produce Ad-Hoc Statements

Source:

NA

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 combined Advice Note. A breakdown by Ad-Hoc Charge will be provided.

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

Requirement ID:

FAA-R034 as amended by P214

Status:

M

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.

Requirement ID:

FAA-R064

Status:

M

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

Requirement ID:

FAA-R035 as amended by P214

Status:

M

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

Requirement ID:

FAA-R070 as amended by

CR 038

Status:

M

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.

Requirement ID:

FAA-R066

Status:

M

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.

Requirement ID:

FAA-R036 as amended by

CR 033

Status:

M

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

Requirement ID:

FAA-R072

Status:

M

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

Requirement ID:

FAA-R037

as amended by

CR 033 & CR 067

Status:

M

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

Requirement ID:

FAA-R038

as amended by CR 033

Status:

M

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

Requirement ID:

FAA-R039 as amended by

CR 033

Status:

M

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

Requirement ID:

FAA- R067

Status:

M

Title:

Obtain Base Rate Details

Source:

NA

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

Requirement ID:

FAA-R068

Status:

M

Title:

Obtain VAT Rates

Source:

NA

Mechanism:

Manual

Media

Frequency:

Ongoing as applicable

FAA Interface Ref:

FAA-I029

Requirement:

The FAA shall obtain the details of current rates for VAT Codes and will update the NETA Funds Transfer System accordingly.

Notification of changes to the VAT Rates will be obtained from media notification.

The information entered into the system is as follows:

• VAT Code

• VAT Rate

• Effective Date

Requirement ID:

FAA-R069

Status:

M

Title:

Obtain Income Tax Rates

Source:

NA

Mechanism:

Manual

Media

Frequency:

Ongoing as applicable

FAA Interface Ref:

FAA-I030

Requirement:

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

Notification of changes to the Income Tax Rates will be obtained from media notification.

The information entered into the system is as follows:

• Income Tax Rate

• Effective Date

Requirement ID:

FAA-R040 as amended by

CR 033

Status:

M

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

Requirement ID:

FAA-R041

Status:

M

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

Requirement ID:

FAA-R042

Status:

M

Title:

Obtain BSC Party Bank Details and VAT Details

Source:

FAA SD 8.2

RETA Sch 4

Mechanism:

Manual

Letter or completed Funds Accession Agreement

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.

Any changes to BSC party VAT status will be confirmed by BSCCo before VAT information is updated on the FAA.

• BSC Party Name

• BSC Party Address

• BSC Party Contact details

• Elected Method of Payment

• Selected Collection bank

• Bank Name

• Bank Address

• Branch Sort Code

• Account Number

• Bank Contact Details

• Authorised Signatory

• VAT Registration Number (if applicable)

• VAT Country Code (if applicable)

• Confirmation of whether liable to UK VAT

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

Requirement ID:

FAA-R043

Status:

M

Title:

Issue Advice Notes

Source:

FAA SD 10

RETA Sch 4

Mechanism:

Manual

Dispatch of hard copy in post

Frequency:

Daily (per calendar Payment Date)

FAA Interface Ref:

FAA-I001

Requirement:

This requirement is retained for the purpose of issuing Advice Notes for Payment Dates prior to the P214 implementation date.

For calendar Payment Dates included on Advice Notes issued before the implementation of Modification Proposal P214, Advice Notes are issued to all relevant Payment Parties each Notification Date. The Advice Notes are sent by post.

The Advice Note will include the following detail lines:

• Payment Party name

• Payment Party address

• Payment Party facsimile number

• Advice Note number

• Payment Date

1. Settlement Date

2. Settlement code

3. Description

4. Net amount per Settlement Run

5. Total including VAT per Settlement Run

6. Total amount payable/receivable net of tax liabilities

One Advice Note will be produced per Payment Party per Payment Date.

One ‘Notice of VAT Imbalance’ will also be produced per Payment Date for BSCCo to inform of the expected VAT imbalance payable/receivable, which will be paid/received to/from BSC Clearer.

Requirement ID:

FAA-R044

As amended by CR 026, MP61 and P214

Status:

M

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 Advice Note lines, in particular details of previous Settlement code amounts to enable verification of reconciliation calculations and interest calculations for each interest line detailed on the Advice Note.

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

Requirement ID:

FAA-R045 as amended by P214

Status:

M

Title:

Issue Bank Reports

Source:

FAA SD 11.1

RETA SCH 4

Mechanism:

Manual

Fax with security passwords

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

• Combined Advice Note number

• Backing sheet number

• Backing sheet type

• 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

• Advice Note number

• Backing sheet number

• Backing sheet type

• Net amount receivable

Requirement ID:

FAA-R071

Status:

M

Title:

Receive Payment Confirmations

Source:

FAA SD 11.7

RETA SCH 4

Mechanism:

Manual

Telephone to authorised FAA personnel or fax – dependent on individual Collection Bank procedures

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.

Requirement ID:

FAA- R072

Status:

M

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

Requirement ID:

FAA-R073 as amended by P214

Status:

M

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 Advice Note contained within a combined Advice Note.

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

• Combined Advice Note number

• Advice Note Date

• Backing sheet number(s)

• Action taken

• Interest

Requirement ID:

FAA-R046

Status:

M

Title:

Issue Confirmation Notices

Source:

FAA SD 11.7

RETA SCH 4

Mechanism:

Manual

Hard copy dispatched by post

Frequency:

Daily (Per calendar Payment Date)

FAA Interface Ref:

FAA-I003

Requirement:

This requirement is retained for the purpose of issuing Confirmation Notices for Payment Dates prior to the P214 implementation date.

For calendar Payment Dates included on Advice Notes issued before the implementation of Modification Proposal P214, the system will produce tax documents in the form of Confirmation Notices. A Confirmation Notice will be issued to every BSC Party and the BSCCo for each calendar Payment Date. The Confirmation Notice will detail amounts paid to or received from the BSC Party, inclusive and exclusive of VAT. The VAT rate applied and the VAT amount paid or received will also be detailed per Settlement Run.

Hard copy Confirmation Notices are dispatched by post within 2 Business Days of the calendar Payment Date subject to the receipt of Collection bank statements.

Specific details will include:

• Date of Issue

• BSC Party name

• BSC Party address

• BSC Party facsimile number

• BSC Party VAT country code (if applicable)

• VAT registration number (if applicable)

• Confirmation Notice number

• Backing sheet umber

• Calendar Payment Date

• Tax Point

1. Settlement Date

2. Settlement code

3. Description

4. Amount excluding VAT

5. VAT rate

6. VAT amount

7. Total including VAT

8. Total amount net of tax liabilities

9. VAT statement (dependant on whether BSC Party is UK or non UK registered and whether paid or received).

Requirement ID:

FAA-R052 as amended by P214

Status:

M

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

• Combined Advice Note number

• Combined Confirmation Notice number

• Amount excluding VAT

• VAT amount

• Interest amount

• Income tax amount (only printed if non-zero)

• 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.

Requirement ID:

FAA-R052

(CP1078

Variation 068), as amended by P214

Status:

M

Title:

Issue VAT Quarterly Statements

Source:

NA

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

Requirement ID:

FAA-R053 as amended by

CR 036

Status:

M

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.

Requirement ID:

FAA-R054 as amended by MP61

Status:

M

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 (£)

Requirement ID:

MP61

Status:

M

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.

Requirement ID:

FAA-R055

Status:

M

Title:

Issue Payment Date Exception Report

Source:

NA

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

Requirement ID:

CR 034

Status:

M

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. Advice Notes will also be produced and dispatched to the BSC Parties.

Requirement ID:

FAA-R084

Status:

M

Title:

Obtain Tax Quarters

Source:

NA

Mechanism:

Manual

Media

Frequency:

Ongoing as applicable

FAA Interface Ref:

NA

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

Requirement ID:

FAA-R085

Status:

M

Title:

Issue Combined Advice Notes

Source:

NA

Mechanism:

Email

Frequency:

Following threshold breach, or as manually triggered

FAA Interface Ref:

FAA-I038

Requirement:

Combined Advice Notes are issued to relevant Payment Parties following an Advice Note Threshold Limit or time threshold breach. Combined Advice Notes are emailed to the Payment Party in Portable Document Format.

The combined Advice Note will include the following detail lines:

• Payment Party name

• Payment Party address

• Payment Party facsimile number

• Payment Party email address

• Combined Advice Note number

• Reason for threshold breach

• Advice Note Threshold Limit

• Backing sheet number that breached Advice Note Threshold Limit (if applicable)

• Advice Note Date

• Payment Date

• Total amount payable/receivable net of tax liabilities, aggregate of Trading Charges, Default charges and Ad-Hoc Charges

For each Trading Charges Advice Note detail item:

1. Backing sheet number

2. Calendar Payment Date

3. Settlement Date

4. Settlement code

5. Description

6. Net amount excluding VAT per Settlement Run

7. Total including VAT per Settlement Run

• Trading Charge subtotal including VAT

For each Default Advice Note detail item:

1. Backing sheet number

2. Calendar Payment Date

3. Affected Date

4. Defaulting Party

5. Amount in Default

6. Description

7. Net amount excluding VAT per Default Share Amount

8. Total including VAT per Default Share Amount

• Default Charge Subtotal Including VAT

For each Ad-Hoc Charge Advice Note detail item:

1. Backing sheet number

2. Calendar Payment Date

3. Dispute Run Number

4. Description

5. Net amount Excluding VAT per dispute run

6. Total including VAT per dispute run

• Ad-Hoc Charge subtotal including VAT

The combined Advice Note will also include a separate section, detailing the following VAT information:

• For each Trading Charges Advice Note detail item

1. VAT amount payable details:

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

2. VAT amount receivable details:

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

• Trading Charge VAT amount payable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• Trading Charge VAT amount receivable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• For each Default charges Advice Note detail item

1. VAT amount payable details:

• Affected Date

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

2. VAT amount receivable details:

• Affected Date

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

• Default charge VAT amount payable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• Default charge VAT amount receivable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• For each Ad-Hoc Charge Advice Note detail item

1. VAT amount payable details:

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

2. VAT amount receivable details:

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

• Ad-Hoc Charge VAT amount payable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• Ad-Hoc Charge VAT amount receivable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• Trading Charge, Default charge and Ad-Hoc Charge grand totals for

1. VAT amounts payable:

• Trade value

• VAT amount

• Total including VAT

2. VAT amounts receivable:

• Trade value

• VAT amount

• Total including VAT

Requirement ID:

FAA-R086

Status:

M

Title:

Issue Default Statements

Source:

NA

Mechanism:

Email

Frequency:

Following threshold breach, or as manually triggered

FAA Interface Ref:

FAA-I039

Requirement:

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

The statements are emailed in Portable Document Format.

The details included on the statements will include the following:

• Combined Advice Note 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

Requirement ID:

FAA-R087

Status:

M

Title:

Issue Combined Confirmation Notices

Source:

NA

Mechanism:

Email

Frequency:

Per Payment Date

FAA Interface Ref:

FAA-I040

Requirement:

The system will produce tax documents in the form of combined Confirmation Notices. A combined Confirmation Notice will be required for BSC Parties that have breached threshold, and the BSCCo, per Payment Date. The Combined Confirmation Notice will detail amounts paid to or received from the BSC Party, inclusive and exclusive of VAT. The VAT rate applied and the VAT amount paid or received will also be detailed per Settlement Run.

Combined Confirmation Notices are emailed in Portable Document Format to the BSC Party, within 2 Business Days of the Payment Date, subject to the receipt of Collection bank statements.

Specific details will include:

• Date of Issue

• BSC Party name

• BSC Party address

• BSC Party facsimile number

• BSC Party email address

• BSC Party VAT non-liability statement (if applicable) – “The BSC Party is not liable to VAT and must account for VAT”

• BSC Party VAT registration number and two digit country code

• Combined Confirmation Notice number

• Combined Advice Note number

• Payment Date

• Total amount payable/receivable net of tax liabilities

1. For each Trading Charges Advice Note detail item:

• Backing sheet number

• Calendar Payment Date

• Settlement Date

• Settlement code

• Description

• Net amount excluding VAT per Settlement Run

• VAT amount

• Total including VAT per Settlement Run

2. Trading Charges subtotal including VAT

3. For each Default charges Advice Note detail item:

• Backing sheet number

• Calendar Payment Date

• Affected Date

• Defaulting Party

• Amount in Default

• Description

• Net amount excluding VAT per Default Share Amount

• VAT Amount

• Total including VAT per Default Share Amount

4. Default Charges Subtotal Including VAT

5. For each Ad-Hoc Charges Advice Note detail item:

• Backing sheet number

• Calendar Payment Date

• Dispute run number

• Description

• Net amount excluding VAT per dispute run

• VAT amount

• Total including VAT per dispute run

6. Ad-Hoc Charges subtotal including VAT

The combined Confirmation Notice will also include a separate section, detailing the following VAT information:

• For each Trading Charges Advice Note detail item

1. VAT amount payable details:

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

2. VAT amount receivable details:

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

• Trading Charge VAT amount payable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• Trading Charge VAT amount receivable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• For each Default charges Advice Note detail item

1. VAT amount payable details:

• Affected Date

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

2. VAT amount receivable details:

• Affected Date

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

• Default charge VAT amount payable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• Default charge VAT amount receivable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• For each Ad-Hoc Charge Advice Note detail item

1. VAT amount payable details:

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

2. VAT amount receivable details:

• Backing sheet number

• VAT code

• Description

• Trade value

• VAT rate

• VAT amount

• Total including VAT

• Ad-Hoc Charge VAT amount payable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• Ad-Hoc Charge VAT amount receivable subtotals of

1. Trade value

2. VAT amount

3. Total including VAT

• Trading Charge, Default charge and Ad-Hoc Charge grand totals for

1. VAT amounts payable:

• Trade value

• VAT amount

• Total including VAT

2. VAT amounts receivable:

• Trade value

• VAT amount

• Total including VAT

Requirement ID:

FAA-R088

Status:

M

Title:

Issue Default Statements

Source:

NA

Mechanism:

Email

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 provide supporting documentation relating to the combined Advice Note, in particular details of Ad-Hoc charges.

The statements are emailed in Portable Document Format.

The details included on the statements will include the following:

• Payment Party name

• Payment Party address

• Dispute reference

• Dispute amount

• Calendar Payment Date

• Payment Party/Charge Type total

• Payment Party’s percentage take

• Interest amount

• Settlement Run details:

1. Settlement period

2. Run type

Requirement ID:

FAA-R056

Status:

M

Title:

Audit Requirements

Source:

NA

Mechanism:

Automatic

Frequency:

All business transactions

FAA Interface Ref:

NA

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.

Requirement ID:

FAA-R057

Status:

M

Title:

Security Requirements

Source:

NA

Mechanism:

Manual and Automatic

Frequency:

As required

FAA Interface Ref:

NA

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.

Requirement ID:

FAA-R058

Status:

M

Title:

Operational Control

Source:

NA

Mechanism:

Manual and Automatic

Frequency:

As required

FAA Interface Ref:

NA

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.

Requirement ID:

FAA-R059

Status:

M

Title:

Euro Compliance

Source:

NA

Mechanism:

Manual and Automatic

Frequency:

As required

FAA Interface Ref

NA

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.

Requirement ID:

FAA-R060

Status:

M

Title:

Backup and Recovery Requirements

Source:

NA

Mechanism:

Manual and Automatic

Frequency:

On-going as detailed below

FAA Interface Ref:

NA

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.

Requirement ID:

FAA-R061

Status:

M

Title:

Archiving Requirements

Source:

NA

Mechanism:

Manual

Frequency:

As required

FAA Interface Ref:

NA

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.

Requirement ID:

FAA-R062 as amended by P214

Status:

M

Title:

Resilience Requirements

Source:

NA

Mechanism:

Manual and Automatic

Frequency:

NA

FAA Interface Ref:

NA

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.

Requirement ID:

FAA-R063

Status:

M

Title:

Volumetric Requirements

Source:

NA

Mechanism:

Manual and Automatic

Frequency:

As required

Volumes:

As below

FAA Interface Ref:

NA

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

500

1500

1000

3000

1500

4500

Advice Notes produced per day

One Advice Note per Payment Party per calendar Payment Date

100

200

300

Statements produced per day

One statement per Payment Party per Payment Date

100

200

300

Confirmation Notices per day

One confirmation notice per BSC Party per payment date

100

200

300

Combined Advice Notes 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

Combined Confirmation Notices 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 Advice Note Threshold Limit of £500)

10

75

150

Requirement ID:

FAA-R074

Status:

M

Title:

Reports on FAA Performance

Source:

Schedule 3

Mechanism:

Manual.

E-mail

Frequency:

Monthly

FAA Interface Ref:

NA

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:

Requirement ID:

FAA-R075

Status:

M

Title:

Problem Management

Source:

Schedule 3

Mechanism:

Manual

Help Desk Facility

Frequency:

On-going as applicable

FAA Interface Ref:

NA

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:

Requirement ID:

FAA-R076

Status:

M

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: