BSC Audit Scope 2017/18

Transcription

1 PUBLIC BSC Audit Scpe 2017/18 Published March 2017 Jasn Jacksn Versin February 2017

2 CONTENTS DIRECTION FOR THE BALANCING AND SETTLEMENT CODE (BSC )AUDIT... 3 SCOPE OF THE BSC AUDIT Central Registratin Aggregate and Check Cntract Vlume Credit Cver Management Balancing Mechanism Reprting Calculatin f Market Index Data Calculatin and Aggregatin f Metered Data Calculate Settlement Debits and Credits Funds Transfer Market Dmain Data Supplier Meter Registratin Data Data Retrieval & Data Prcessing (Data Cllectin) Data Aggregatin Meter Operatin Licensed Distributin System Operatin Unmetered Supplies Meter Administratin Supplier Vlume Allcatin & Recnciliatin Disputes Data Transfer Supplier Systems and Assciated Internal Prcedures Balancing Mechanism Change Management AREAS OUT OF SCOPE MATERIALITY THRESHOLD REPORTING Page 2 f 11 V 0.1 ELEXON 2018

3 DIRECTION FOR THE BALANCING AND SETTLEMENT CODE (BSC) AUDIT Fr the year 2017/18 ELEXON identified three high-risk prcesses that the BSC Audit shuld particularly cncentrate n: Change f Measurement Class Change f Supply Prcess Cmmissining The prcesses were picked based n previus year s BSC Auditr s recmmendatin, the areas f cncern identified during the year 2016/17, input frm the Risk Evaluatin Wrkgrup (REWG) and frm Perfrmance Assurance Technique (PAT) prcess wners. The Change f Measurement Class prcess will still be included in the BSC Audit 2017/18 but at a significantly reduced intensity. ELEXON will determine (based n Metering System Identifier (MSID) cunt, grwth and ther perfrmance measures) where an entity shuld underg audit f bth Half Hurly (HH) and Nn Half Hurly (NHH) systems/prcesses despite having breached nly the HH r NHH MSID threshld. This allwing fr an intelligent apprach t determining where auditing an entity fr bth HH and NHH might add value where the BSC Auditr is already n site fr either a HH r NHH audit. The areas shaded in light grey in the scpe will be reduced in audit intensity fr the year 2017/18 due t lwer risk t the market. They will be n rtatinal apprach fr the scpe and will be reviewed ahead f the 2018/19 BSC Audit t re-evaluate whether they shuld be in scpe. SCOPE OF THE BSC AUDIT This dcument details the scpe f the BSC Audit and terms f reference fr the BSC Auditr fr 1 April 2017 t 31 March The scpe f the BSC Audit fr 2017/18 will include the functins and prcesses described belw. 1. Central Registratin The Central Registratin Agent (CRA) cllects, validates, stres and distributes shared reference data used by ther related business prcesses. This includes the registering f all Meter Pints, Metering Systems, Balancing Mechanism (BM) Units, Trading Units, and sets f Aggregatin Rules fr each BSC Party. Maintenance f the BM Credit Assessment Exprt Capability (BMCAEC) Maintenance f the BM Credit Assessment Imprt Capability (BMCAIC) Page 3 f 11 V 0.1 ELEXON 2018

4 2. Aggregate and Check Cntract Vlume The Energy Cntract Vlume Aggregatin Agent (ECVAA) accepts r rejects Energy Cntract Vlume Ntificatins (ECVNs) and Metered Vlume Reallcatin Ntificatins (MVRNs). The ECVAA aggregates valid ECVNs and MVRNs t determine the Accunt Bilateral Cntract Vlume fr each Party s Energy Accunt. The ECVAA reprts the Accunt Bilateral Cntract Vlume fr each Party and Settlement Perid fr that Settlement Day t the Settlement Administratin Agent (SAA) n a daily basis. Acceptance f ECVN and MVRN Aggregatin f valid Energy Cntract Vlume Reallcatin Ntificatins and Metered Vlume Reallcatin Ntificatins Submissin f data t the Settlement Administratin Agent 3. Credit Cver Management Credit mnitring f BSC Parties is the respnsibility f the Funds Administratin Agent (FAA), ECVAA and BSCC. Letters f credit/cash are ldged with the FAA. The ECVAA calculates the Credit Cver Percentage and ntifies BSCC if the agreed Default limits are exceeded. Applicatin f Credit Cver rules as defined within the BSC 4. Balancing Mechanism Reprting The Balancing Mechanism Reprting Agent (BMRA) publishes a range f public market infrmatin fr users f the service and calculates data fr submissin t Settlement. The cnsistency f the data that is included within the reprts that are published by the BMRA 5. Calculatin f Market Index Data The Market Index Data Prviders (MIDPs) calculate and prvide t the BMRA and SAA a market price in respect f each Settlement Perid n a half hurly and daily basis. The market price reflects the price f whlesale electricity in the shrt term market. The cntrls surrunding the calculatin and transfer f the Market Index Data t the BMRA and SAA Determinatin and calculatin f the Market Index Data (in accrdance with the Market Index Definitin Statement) 6. Calculatin and Aggregatin f Metered Data The Central Data Cllectin Agent (CDCA) cllects and aggregates the metered data frm Metering Systems registered in CRA. The vlumes fr missing r disputed data are estimated in accrdance with the BSC and reprted t the Central Vlume Allcatin Meter Operatr Agent (CVA MOA) and BSCC; the Grid Supply Pint (GSP) Grup Take is calculated in accrdance with the Settlement timetable (published n the BSC Website). This infrmatin is passed t the Supplier Vlume Allcatin Agent (SVAA) and is used as the basis fr calculating the Supplier Vlume Allcatin (SVA). Page 4 f 11 V 0.1 ELEXON 2018

5 Cmpleteness f Cmmissining and Prving Test recrds Aggregatin f metered data registered in CDCA Calculatin f GSP Grup Take 7. Calculate Settlement Debits and Credits The SAA receives SVAs, Cntract Vlume and reallcatin data, GSP Grup Take and Infrmatin Imbalance Price. The SAA perfrms the Interim, Initial Settlement and Recnciliatin runs accrding t the Settlement timetable and calculates the Credits and Debits resulting frm the Settlement f Balancing Mechanism actins and Imbalance cashut. Settlement reprts are sent t BSC Parties t validate, and t the FAA. Calculatin f Credits and Debits t BSC Parties via Balancing Mechanism and the imbalance settlement arrangements Calculatin f Main and Market Prices as used in imbalance settlement arrangements 8. Funds Transfer The FAA manages the funds transfer prcess. Calculatins f the charges fr each BSC Party fr each Settlement Run Aggregatin f instructins fr Initial Settlement related transfers f mney int ne charge/payment per BSC Party per day Prductin f Advice Ntes/Statements t be sent t BSC Parties n the basis f the required charge payments 9. Market Dmain Data Market Dmain Data (MDD) is standing data required fr the peratin f SVA. The data falls int tw categries - Organisatin Data and Classificatin Data. Organisatin Data includes cmpany name and identifiers fr Distributr, Supplier and relevant Supplier Agents. Classificatin Data includes Valid Measurement Requirement Prfile Classes, Time Pattern Regimes and Standard Settlement Cnfiguratins. Cmpleteness and cnsistency f data items entered int MDD Input f key data items received frm MDD by Data Aggregatrs (DAs) including Line Lss Factrs (LLFs) 10. Supplier Meter Registratin Data Each Supplier Meter Registratin Agent (SMRA) identifies all Metering Systems attached t a Distributin Netwrk. SMRAs will hld the histry f Supplier registratins fr each Metering System. They prvide infrmatin n unmetered exit pints with the histry f their Supplier registratins. In additin SMRAs will prvide Line Lss Factr Classes. The cntractual relatinship between Suppliers and SMRAs is encapsulated in the Master Registratin Agreement (MRA). Cnsistency f relevant data held by SMRAs Page 5 f 11 V 0.1 ELEXON 2018

6 Cmparisn f Metering System Identifiers (MSIDs) registered n the Supplier Meter Registratin Service (SMRS) against Supplier/Data Cllectr (DC)/DA/Standard Settlement Cnfiguratin etc Cmparisn f Supplier IDs/MSIDs registered n SMRS based against recrds held by the SMRA (nte: excludes checking accuracy f recrds held by SMRA) Cnsistency f standing data between SMRS and the Suppliers databases Cnsistency f relevant data held in SMRS & CRA 11. Data Retrieval & Data Prcessing (Data Cllectin) Retrieval encmpasses Meter reading and detectin f ptential Meter reading faults (n behalf f the MOA). Data Prcessing is the validatin and cnversin f Meter readings int energy cnsumptin, the estimatin f missing data using an apprved methd and the transmissin f this data t the DA. Retrieval f data used in Data Prcessing frm Suppliers / MOAs including: Half Hurly (HH) Meter readings Nn Half Hurly (NHH) Meter readings Allcatin f cnsumptin data t the crrect Settlement Perid Calculatin f KWh cnsumptin data Applicatin f prfile infrmatin used in Data prcessing Calculatin and applicatin f Estimated Annual Cnsumptin (EACs)/ Annualised Advance (AAs) and HH cnsumptin data Transmissin f data t crrect DA Applicatin f instructins frm Trading Disputes Estimatin f missing data/deemed Advance Prcessing/applicatin f instructins t increase Meter readings (frm the Revenue Prtectin Bard) Operatinal cntrls relating t the cllectin, recrding and validatin f (HH and NHH) Meter readings entered int Settlement Imbalance vlume crrectin prcesses in case f a Demand Cntrl actin, as intrduced by Mdificatin P Data Aggregatin Data Aggregatin is the aggregatin f Supplier r BM Unit specific energy cnsumptin data, after the applicatin f LLF fr half hurly metered data, t prduce the aggregated data. Aggregatin f EACs/AAs prduced by the Data Cllectr fr Metering System Identifier (MSID)/Supplier fr use in Supplier Purchase Matrices Aggregatin t BM Unit level fr HH energy where agreed with the Supplier Applicatin f NHH/HH registratin data and LLF (fr HH) by the DA Trading Dispute Dispute Final (DF) Run checks Page 6 f 11 V 0.1 ELEXON 2018

7 Imbalance vlume crrectin prcesses in case f a Demand Cntrl actin, as intrduced by Mdificatin P Meter Operatin MOAs hld key infrmatin n all Metering Systems attached t the Distributin System including Meter histry and technical details. MOAs are als respnsible fr the installatin and remval f Meters and their general maintenance in cmpliance with the relevant Cdes f Practice. MOAs frm part f the Supplier hub and as such perate several key interfaces with ther Supplier Agents (particularly Data Cllectrs). The BSC Audit will nt directly cver accuracy f metering r standards f metering installatin, hwever the findings f the Technical Assurance Agent (TAA) under the Technical Assurance f Metering (TAM) technique will be sent t the BSC Auditr fr cnsideratin in its reprting. Audit intensity t be reduced fr CVA MOAs in rder t allw time fr issues identified thrugh the 2015/16 BSC Audit t be addressed in advance f full audit intensity being resumed. Ref: Market Issues Issue Number: 5176 Based n infrmatin prvided by Central Systems tw CVA MOAs t be remved frm scpe fr 2017/18 (n activity t date in 2016/17); Bth f these are currently L intensity audits. Fault reslutin Checks n the Meter registratin prcess Interfaces with ther agents in the Supplier hub Perfrmance relating t requests fr prving tests, sample f ne (Reductin in intensity t reflect the reduced number f prving tests required as a result f CP1472) Operatinal cntrls in relatin t Meter Technical Details changes and the validatin f changed Meter Technical Details prvided t Suppliers and Data Cllectrs Cmmissining prcess (pre and pst Mdificatin P283 implementatin and pst CP1458 Cmmissining timescales implementatin) Fr Measurement Classes E and F Fr Measurement Class C 14. Licensed Distributin System Operatin and Independent Distributin Netwrk Operatin Licensed Distributin System Operatrs (LDSOs) are respnsible fr the verall management and maintenance f Distributin Systems in additin t the registratin f Metering Systems in SMRS. Independent Distributin Netwrk Operatrs (IDNOs) develp, perate and maintain lcal electricity distributin netwrks. Prvisin f site technical details Preparatin and ntificatin f GSP Grup Aggregatin Rules t CDCA Ntificatin f LLFs t BSCC Interfaces with Suppliers and Supplier Agents Discnnectin f Metering Systems Changes t energisatin status Page 7 f 11 V 0.1 ELEXON 2018

8 Prvisin f apprpriate Current Transfrmer (CT)/Vltage Transfrmer (VT) infrmatin as required by the BSC Ntificatin f new Small Scale Generatin Plants t Suppliers Cmmissining prcess (pre and pst P283 implementatin) Fr Measurement Classes E and F (sub 100 kw) Fr Measurement Class C (ver 100 kw) Imbalance vlume crrectin prcesses in case f a Demand Cntrl actin, as intrduced by Mdificatin P Unmetered Supplies LDSOs are respnsible fr the Unmetered Supplies Operatr (UMSO) functin. UMSOs are respnsible fr managing any Unmetered Supplies (UMS) attached t a Distributin Netwrk, and are required t prvide specific details t Suppliers and Supplier Agents in rder that they can meet their Settlement bligatins. Maintenance and prvisin f UMS inventries and summary inventries Calculatin and prvisin f NHH Estimated Annual Cnsumptin Prvisin f Standard Settlement Cnfiguratin and Prfile Class details including discnnectins and energisatin status Creatin and prvisin f UMS Certificates Interfaces with Suppliers and Supplier Agents Maintenance and prvisin f cnnectin agreements 16. Meter Administratin Meter Administratrs are respnsible fr calculating the half hurly allcatin fr HH SVA UMS and prviding this infrmatin t the DC. Calculatin f deemed metered vlumes (estimated energy cnsumptin) fr Equivalent UMS relating t SVA Custmers Prvisin f data t the HH DC, SVAA, LDSO and Supplier Fault Reprting 17. Supplier Vlume Allcatin & Recnciliatin Supplier Vlume Allcatin & Recnciliatin is the aggregatin f Supplier/BM Unit Purchase Matrices t a GSP Grup and calculatin/recalculatin f the Deemed Take fr each GSP Grup. The Temperature Prvider is sub-cntracted by the SVAA t prvide Nn Temperature Data. The Time f Sunset Prvider is sub-cntracted by the SVAA t prvide Time f Sunset Data. The Teleswitch Agent prvides the Teleswitch Data. The Prfile Administratr is the agent cntracted by BSCC t derive sets f regressin cefficients fr each Prfile Class. The Prfile Administratr will mnitr the accuracy f prfiles delivered frm the Prfile cefficients. Page 8 f 11 V 0.1 ELEXON 2018

9 The BSC Audit will include applicatin f key standing and dynamic data items used by the SVAA including: NHH data (frm Supplier Purchase Matrix) HH data Daily Prfile variables (Nn Temperature Data, Time f Sunset Data, Teleswitch Data) GSP Grup Take (frm CDCA) LLFs Applicatin f regressin cefficients Applicatin f time f sunset/teleswitch data Applicatin f Default data (including BM Units) Prductin f daily Prfiles Calculatin f Deemed Take Calculatin f vlumes by BM Unit 18. Trading Disputes The Trading Disputes prcess is used t crrect errrs in Settlement. Prcedures and dcumentatin fr registratin and lgging f Trading Disputes in respect f Recnciliatin Settlement Runs Prcedures and dcumentatin in peratin fr the registratin/lgging f queries and requests fr assistance Reslutin f Trading Disputes and applicatin f dispute payments 19. Data Transfer The Data Transfer Service and NETA netwrk service are utside the scpe f the BSC Audit but the audit will include reviews at market participants premises t check despatch and receipt f data messages. Reviews at selected market participants premises t check despatch and receipt f data messages 20. Supplier Systems and Assciated Internal Prcedures Suppliers are respnsible fr managing their Supplier Agents and fr prviding key data t their Supplier Agents as set ut in the BSC and BSC Prcedures. Infrmatin prvided by Suppliers n Change f Supplier, new cnnectins and changes f Meter technical infrmatin including energisatin status Suppliers managing their Supplier hub respnsibilities Review and fllw up f validatin exceptins as reprted by Supplier Agents Treatment f Lng Term Vacant sites 21. Balancing Mechanism Page 9 f 11 V 0.1 ELEXON 2018

10 The System Operatr shall be audited by the BM Auditr against the requirements f Sectin H f the BSC which relates t the cmpilatin and submissin f data t the SAA. 22. Implementatin f Specific BSC Changes Change Management All BSC Parties and Central Systems have t implement changes apprved by the BSC Panel. The releases are issued three times a year (February, June and Nvember) and have t be fully implemented in the affected systems t ensure cmpliance with the BSC. Checks t ensure 0 t 3 BSC Mdificatins r Change Prpsals selected by ELEXON have been successfully implemented by Suppliers, Supplier Agents and Licensed Distributin System Operatrs. (Changes will be selected n the basis f ptential material impact.) Prcesses and cntrls used t implement BSC change releases by Suppliers, Supplier Agents, Licensed Distributin System Operatrs 23. Off The Shelf Suppliers The majrity f the newer ff the shelf Suppliers d nt breach the MSID threshld t fall in scpe fr the BSC Audit; this is perceived as a gap between the Qualificatin prcess and the BSC Audit prcess. While the size f these smaller Suppliers limits their ptential impact n Settlement, there are cncerns in sme cases that sme ff the shelf Suppliers may nt have sufficient experience and prcesses in place in rder t perate effectively in terms f Settlement. ELEXON will be adpting the fllwing apprach in respnse t the changing market where lking exclusively at MSID threshlds may n lnger be apprpriate in all instances. 1 t 4 ff the shelf Suppliers targeted fr full intensity audit irrespective f whether r nt they fall in scpe thrugh MSID threshld. ELEXON will aim t target managed services grups and Suppliers it has pr levels f cmmunicatin with. (A prprtinal number f smaller Suppliers which d meet the MSID threshld and have perfrmed well in previus audits will be remved frm scpe t cmpensate.) Page 10 f 11 V 0.1 ELEXON 2018

11 AREAS OUT OF SCOPE Belw details the activities/data which fall utside the scpe f the BSC Audit. Activity/ Data Reasn Fr Exclusin Custmer billing. Prductin f Transmissin Netwrk Use f System (TNUS)/ Distributin Use f System (DUS) reprts. MRA disputes prcedures. Cntractual relatinship between Parties and their Party Agents and between BSCC and BSC Agent. Electricity Market Refrm (EMR) Outside scpe f BSC. Outside scpe f BSC - des nt frm part f calculatin and allcatin f funds under the BSC. Outside scpe f BSC included within the Master Registratin Agreement. Des nt frm part f calculatin and allcatin f Trading Charges under the BSC. Outside scpe f BSC. MATERIALITY THRESHOLD The BSC Auditr will Qualify its audit pinin if it cannt prvide reasnable assurance that the ttal level f errr in Settlement is less than the materiality threshld. The materiality threshld fr the BSC Audit fr 2017/18 is 1.3TWh, which represents apprximately 0.5% f the ttal annual electricity supplied acrss Great Britain in REPORTING Unless therwise agreed with the BSC Panel, the BSC Audit Reprt fr 2017/18 will be presented t the Panel in June Page 11 f 11 V 0.1 ELEXON 2018