Annual Review of GSP Group Caps and Supplier Charge Values
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1 Annual Review of GSP Group Caps and Supplier Charge Values Meeting Name Performance Assurance Board Meeting Date 26 May 2011 Purpose of paper For Decision Summary This paper sets out the recalculated GSP Group liability caps and Supplier Charge values for the BSC Year 2011/12. We have calculated these in accordance with Annex S-1, paragraph of the BSC. We invite the PAB to approve the revised Caps and Charges, which we will apply for the reporting periods April 2011 to March Introduction 1.1 Supplier Charges are subject to a national monthly cap. We calculate the cap across the 14 GSP Groups by their relative annual consumption compared to their total annual consumption for the previous year. 1.2 We recalculate the GSP Group liability caps annually in accordance with Annex S-1, paragraph 3.8 of the BSC. 1.3 The Retail Price Index (RPI) used to calculate the revised figures is included as Attachment 1 of this paper. The calculations made for the new GSP Group caps and Serial Supplier Charges are provided as Attachment 2 of this paper. 2. Calculations 2.1 We derived the changes to the GSP Group caps and Serial Supplier Charges using the percentage change of the RPI between January 2000 (166.6) and January 2011 (229.0) and adding 1. This provided an adjustment figure of 1.37 (to 2 decimal places), which we applied to the national monthly liability cap set out in the Annex S-1, paragraph of the BSC ( 1,275,000). This gave a national cap for the period April 2011 to March 2012 of 1,752, Note that the adjustment figure was not rounded when used for the calculations. 2.2 We determined the individual GSP Group liability caps by applying the proportion of each GSP Group s annual take against the sum of the take for all GSP Groups up to 31 March This calculation is set out in Annex S-1, paragraph of the BSC as follows: Page 1 of 4 ELEXON 2011
2 2.3 Table 1 below shows the recalculated GSP Group liability caps for the period April 2011 to March The table illustrates that caps have risen slightly due to the increase in the RPI. Five GSP Groups reduced consumption slightly but still saw an increase in their cap due to impact of RPI. Table 1 GSP Group GSP Group ID Previous Cap ( ) New Cap ( ) Eastern _A 189, , East Midlands _B 154, , London _C 170, , Merseyside & North Wales _D 81, , Midlands _E 139, , Northern _F 78, , North Western _G 131, , Southern _H 184, , South Eastern _J 117, , South Wales _K 67, , South Western _L 84, , Yorkshire _M 124, , South Scotland _N 107, , North Scotland _P 35, , We have also recalculated the individual Supplier Charges in line with RPI. We calculated these by applying the adjustment figure of 1.37 against the base sum for each Serial as defined in Annex S-1, paragraphs 3.1 to 3.6 of the BSC. Table 2 below sets out the Supplier Charges for April 2011 to March Page 2 of 4 ELEXON 2011
3 Table 2 Serial Current Supplier Serial Charge BSC Base Supplier Serial Charge Previous Supplier Serial Charge ( ) New Supplier Serial Charge ( ) SP08a (R3) SP08a (RF) SP08b (SF) SP08b (R1) SP08c (RF) Energy and Metering Systems on Annual Advances Energy and Metering Systems on Annual Advances Energy and Metering Systems Actual Readings Energy and Metering Systems Actual Readings Energy and Metering Systems Actual Readings SP04 Installation of HH Metering SP01 SP02 Provision of Routine Performance Monitoring Reports Provision of Routine Performance Monitoring Logs Next Steps 3.1 Once approved, we will publish the recalculated liability caps and Supplier Charges on the ELEXON website and circulate a notice by Newscast. 4. Recommendations 4.1 We invite you to: a) APPROVE the monthly GSP Group liability cap for each GSP Group for the period April 2011 to March 2012, as set out in paragraph 2.3; b) APPROVE the individual Supplier Charge values for each Serial for the period April 2011 to March 2012, as set out in paragraph 2.4; and Page 3 of 4 ELEXON 2011
4 c) NOTE that ELEXON will publish the approved GSP Group liability cap for each GSP Group and Supplier Charge values for each Serial on the ELEXON website. Attachments: Attachment 1 Retail Price Index Attachment 2 Calculations Spreadsheet For more information, please contact: Oliver Meggitt Settlement Analyst Oliver.Meggitt@elexon.co.uk Page 4 of 4 ELEXON 2011
5 Retail Prices Index (RPI) all items RP02 Annual average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec June 1947=100 - DODO Januar y 1952=100 - DODP Januar y 1956=100 - DODQ Januar y 1962=100 - CZVJ Januar y 1974=100 - CBAB ISSUED BY: Office for National Statistics Pr ices Division 1.227, Cardiff Road, Newpor t, South Wales NP10 8XG Tel: Fax:
6 Retail Prices Index (RPI) all items RP02 continued Annual average Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Januar y 1987=100 - CHAW ISSUED BY: Office for National Statistics Pr ices Division 1.227, Cardiff Road, Newpor t, South Wales NP10 8XG Tel: Fax:
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