Minutes
Meeting name / Performance Assurance Board
Meeting number / 177
Date of meeting / 29 October 2015
Venue / ELEXON Ltd
Classification / Public
Attendees and apologies
Attendees / Douglas AlexanderJustina Miltienyte / DA
JM / Chair (ELEXON)
Technical Secretary (ELEXON)
Elliott Harper / EH / ELEXON
Andy Colley / AC / Panel Sponsor
David Crossman
James Evans
Clare Hannah
Nigel Perdue
Colin Prestwich
Jonathan Purdy
Chris Carberry
Sasha Pearce
Nathan Cain
Bill Meredith
George Richards / DC
JE
CH
NP
CP
JP
CC
SP
NC
BM
GR / PAB member
PAB member
PAB member
PAB member
PAB member
PAB member
PAB alternate
PAB alternate
BSC Auditor
BSC Auditor (part meeting)
BSC Auditor
Apologies / Eric Graham / EG / PAB member
Paul Orr / PO / PAB member
Hazel Ward
Ben Fuller / HW
BF / PAB member
PAB alternate
1. Apologies
1.1 Apologies were received from Eric Graham, Paul Orr, Hazel Ward and Ben Fuller. Chris Carberry attended as an alternate for Paul Orr and Sasha Pearce attended as an alternate for Hazel Ward.
Open session – Decision Papers
2. Non-Confidential Settlement Risk Report – PAB177/01b
2.1 The PAB:
a) NOTED the report.
3. Within Period Revision to the RER 2015/16 – PAB177/04
3.1 The PAB was requested to endorse the Within Period Revision to the Risk Evaluation Register (RER) 2015/16. The change referred to changing the risk description of Settlement Risk (SR) 0189[1] to encompass all Advanced Meters and not just Non Half Hourly Advanced Meters in Profile Classes (PCs) 5-8.
3.2 A PAB member noted that SR0189[2] is not a top risk, with a net significance of 8. ELEXON noted that the risk was set up to monitor the migration of sites in PCs 5-8 and added that there are a smaller volume of sites that would fit into this risk category post P272[3]. ELEXON added that it will use a monitoring program and a reporting method will be implemented to look at this risk to Settlement as part of P322 requirements.
3.3 A PAB member noted that a risk associated with the Change of Measurement Class (CoMC) process already exists and suggested re-visiting this risk. A PAB member commented that the risk wording suggests the Suppliers aren’t fulfilling their obligations and this will be managed through the Supplier Migration Plans (SMPs). KPMG noted that the nature of the risk and likelihood of occurrence has changed as there will be a greater volume of CoMC events taking place. ELEXON confirmed that there is an existing risk related to CoMC events and noted that it should include the risk of under or over recording in Settlement within either the existing, or the new Settlement Risk. ELEXON added that settling in the wrong time period is also a risk to Settlement, similar to under or over recording.
3.4 A PAB member questioned the appropriateness of referencing Supply Licence obligations in a Balancing and Settlement Code (BSC) Settlement Risk. ELEXON responded that this does occur for other Settlement Risks and noted that the Supply Licence conditions are referenced in the BSC and other Code Subsidiary Documents (CSDs). ELEXON believes the reference to the Supply Licence obligations is appropriate.
3.5 ELEXON questioned whether the PAB wishes to leave the proposed SR0189 as is and review other CoMC related risks, or remove SR0189 entirely. A PAB member requested that all CoMC risks be reviewed and any gaps identified. A PAB member added that there is value in analysing the CoMC risks as the PAB doesn’t have assurance that the risk to Settlement is mitigated. The PAB agreed to re-visit the RER at a future meeting.
3.5.1 ELEXON to re-visit the Risk Evaluation Register in relation to CoMC risks and present this to the PAB at a future meeting.
ACTION PAB177/01
3.6 The PAB:
a) DID NOT APPROVE the Within Period Revision to the Risk Evaluation Register 2015/16; and
b) DECIDED not to publish the draft Within Period Revision to the 2015/16 Risk Evaluation Register for industry consultation.
4. EMR Update – Verbal
4.1 ELEXON provided the PAB with an update on Electricity Market Reform (EMR) activity.
4.2 The PAB:
a) NOTED the update.
5. PAB 2016 Meeting Dates – PAB177/09
5.1 ELEXON invited the PAB to note the PAB Meeting dates for 2016.
5.2 The PAB:
a) NOTED the dates for 2016.
6. Panel Update
6.1 The Panel Sponsor updated the PAB regarding Panel meeting 245.
6.2 The Panel Sponsor informed the PAB that Modifications P318[4] and P321[5] were both approved under self-governance.
6.3 The Panel Sponsor noted that Modification P323[6] was approved by a majority and has since been approved by the Authority.
6.4 The PAB was informed that ELEXON’s non-executive director selection process was close to completion and is expected to finish before the next ELEXON Board meeting. The Panel Sponsor noted that ELEXON were keen for the member to have had previous small Supplier experience.
6.5 The Panel Sponsor noted the tabled Annual Performance Assurance Report (APAR) was tabled at the Panel meeting. The Panel Sponsor noted that some Panel members felt the APAR should have more discussion and an action was taken to do a full presentation at the next Panel meeting (Panel 246). ELEXON noted that the APAR had been a tabled item for six years, but some members wished to receive more information. ELEXON added that the APAR will be presented in the closed session of the Panel meeting.
6.6 The Panel Sponsor noted that the Panel approved the funding shares audit.
6.7 The PAB were informed of ELEXON’s best Customer Survey results in five years.
6.8 The PAB was informed that the AS-IS+ project is complete. The Panel Sponsor noted that ELEXON were seeking to do a transformation project and it became apparent that there may be a less expensive and disruptive option in order to maximise current systems and contracts and focus on key areas of contracts that needed renewing. As a result of the AS-IS+ project, there has been large savings to BSC Parties from ELEXON’s annual budget. The Panel Sponsor noted that ELEXON could have made further savings from the deal but left some items in the contract in order to minimise risk. The Panel Sponsor gave credit to ELEXON and its service providers.
6.9 The Panel Sponsor noted a debate around the Panel strategy.
6.10 A PAB member questioned the process surrounding the self-governance Modifications (P318 and P321). The Panel Sponsor noted that the Modifications will become active after a 15 working day appeal window. A PAB member commented that ELEXON will send an update to confirm that the Modification is approved when the appeal window is over.
6.11 The PAB:
a) NOTED the update.
7. Big Ticket Items
7.1 A PAB member noted a European Union (EU) paper in relation to 15 minute Settlement Periods. The Panel Sponsor commented that this is a particular point to note for ELEXON, Suppliers and Supplier Agents, as Meters may need to be re-programmed. The Panel Sponsor questioned whether there is a SMETS2 Meter capable of complying to 15 minute Settlement Periods and noted that the current stock of Metering Equipment may become obsolete. The Panel Sponsor noted that a consultation headed by Frontier Economics will be released around 10 November 2015 across Europe. The Panel Sponsor suggested that all parties should be prepared to respond. The PAB was informed that the ‘cheap implementation’ solution of dividing current 30 minute periods by two would not give the proposed benefits of 15 minute Settlement Periods.
8. Next Meeting
The next PAB meeting (PAB178) will be held at the ELEXON offices on the 26 November 2015.
PAB177 / 1.0 /Page 2 of 4 / © ELEXON 2015
[1] The risk that a PC 5-8 Non Half Hourly Advanced Metering System is settled non half hourly instead of half hourly resulting in energy potentially being allocated to the wrong Settlement Period or collected outside required timescales.
[2] The risk that a Profile Class 5-8 Non Half Hourly Advanced Metering System is settled Non Half Hourly instead of Half Hourly resulting in energy potentially being allocated to the wrong Settlement Period or collected outside required timescales.
[3] P272 proposes to make HH Settlement mandatory for all Metering Systems within PCs 5-8 (where capable metering has been installed), as the Proposer believes that the use of Non Half Hourly (NHH) data is not as accurate and masks individual customer behaviour.
[4] P318 seeks to enable a Party to transfer its Party ID and/or change its Company Number in order to reassign its rights and obligations under the BSC without going through the full Market Exit and Market Entry procedures. The intention of this Modification is for this to apply when such a change is of an administrative nature only.
[5] P321 proposes to publish information on the direction of delivery (delivering or offtaking) of Trading Units, particularly for each Grid Supply Point (GSP) Group, in each Settlement Period. This information can currently be obtained through Balancing Services Use of System (BSUoS) bills and Transmission Loss Multiplier (TLM) values. The Proposer is seeking this information to be explicitly provided to give customers better access to this information.
[6] P323 proposes to enable the value of Supplemental Balancing Reserve (SBR) to be included in the imbalance price calculation without affecting Balancing Mechanism (BM) cash flows. The Proposer seeks to have this in place by 5 November 2015 in line with the implementation of approved Modification ProposalP305 ‘Electricity Balancing Significant Code Review Developments’. This is because it is necessary that other elements of P305 are in place (e.g. the Value of Lost Load (VoLL) price) and to avoid delays so that the market receives the appropriate signals.