BSC Panel 202

13 September 2012

Report on Progress of Modification

Proposals

Dean Riddell

13 September 2012

National Grid Update on Energisation

Issues

Duncan Burt

13 September 2012

Transmission Company Update Update on the rectification plan - January and June ’12

No further failures Oversight team embedded Process aligned with generation connections Improved liaison between Transmission Company /

Elexon Workshop Planned on 26th October 2012

Transmission Company Update Established ‘Tracker’ of Registrations

Principle of “No surprises” Annual Review in Jan/Feb when plan handed over Regular updates from construction / operational teams Weekly teleconferences to review and coordinate actions Improved data submission - e.g. draft submissions, forms

with accompanying Single Line Diagrams

Transmission Company Update Improved awareness and training

Engineering bulletin issued on 19th June to raise awareness and proposed changes to working practices

Two Transmission Procedures affected TP131 (Settlement Metering) revised and updated TP106 (Equipment Commissioning) consequential updates Both updates to the TPs are currently in draft form for final

review meeting on 18th September If no significant issues raised both will be issued formally

within weeks

Transmission Company Update Working Better

Oversight team is key Single point of contact and escalation route

Improved awareness across the Transmission Company Senior Management committed to review for continuous

improvement Further improvements

Change in policy to simplify installations Propose to introduce unique code into ‘TOGA’ to simplify

automated monitoring of outages

Minutes of Meeting 201 & Actions Arising

Adam Richardson

13 September 2012

Chairman’s ReportBSC Panel

Andrew Pinder

13 September 2012

202/01ELEXON Report

Peter Haigh

13 September 2012

202/01ELEXON Report

Smart Update

Chris Rowell13 September 2012

12

Expected in the Autumn

• Smart Energy Code (initial sections legally drafted)

• DCC Licence (final version)

Smart Metering: Consultations

Smart Metering Equipment Technical Specifications (SMETS) v2• Home Area Networking (HAN) solution• the communications hub requirements • responsibilities• equipment assurance

8 Oc

t

Consequential Changes (SVG Paper)

13

Smart Metering: DCC Licence Award

Draft PQQ issued on 31 Aug• Information regarding the DCC, the

licence application process & evaluation process for the stage.

• Draft Qualification Questionnaire

Draft PQQ issued on 31 Aug• Information regarding the DCC, the

licence application process, & evaluation process for the stage.

• Draft Qualification Questionnaire

Expected Timetable (dependent on Prohibition Order & Licence Application Regulations) ~ 3 month deferral of

startshort formal PQQ processBUT early sight of draft~ 3 month deferral in grantD+1 SP signingno change to start of roll out

14

Smarter Markets: The Policy Reviews

2011-12

Q. When we have smart metering,

how do we improve the consumer

experience?

Change Programme

4 Policy

Reviews8

Propositions2012-13 2014 +

Scoping ReportApproach & Plan

Review of Policy not Process

Impact on 2013/14 Business Plan?

Senior Advisory Group

P202/06:Scope for review of settlement

15

Smart Grids: LCNF Projects

LCNF: Low Carbon Network Fund

Running from 2010 to 2015 - up to £500m - support to DNO sponsored projects - addressing new technology, operating & commercial arrangements – sharing findings

First Tier

Small projects - partial recovery of funding – up to £16m per year

Second TierFlagship projects - annual competition - up to £64m per year

Discretionary Award

successful completion & exceptional projects - up to £100m over the 5 years

Technologies & equipmentSystems operationConsumer behaviourData monitoring & analysisMarket models

16

Smart Budget

M J J A S OA N D J F MO

Backfill MembershipsConferences(Analysis)

£ 300K £ 131K

£ 1,200 K

Distribution Report

David Lane

13 September 2012

Transmission Report

Ian Pashley

13 September 2012

Ofgem Report

Dora Ianora

13 September 2012

Report from the PAB(Quarterly Update)

Andrew Colley

13 September 2012

202/04Proposal to hold the

2013 ISG & SVG meetings on the

same day

Kathryn Coffin

13 September 2012

22

• Hold 2013 ISG and SVG meetings on same dates

• Start with ISG, then shared business, then SVG

• Use indicative timed agendas to help members plan travel

• Provide room for SVG Members to work, in case ISG overruns

• If bumper agenda, start with shared business and then split into different rooms

• Will still be separate Committees – existing Terms of Reference continue to apply

Suggestion

23

Why?

ISG 13121/12

13224/01

13321/02

13427/03

-24/04

13529/05

13626/06

-24/07

13728/08

Decision papers

6 (+ 1)

2 4 2 0 2 (+ 3)

3 0 6 (+ 1)

Shared business

14% Zero 25% 50% - 40% 33% - 57%

SVG 13103/01

13231/01

13328/02

13403/04

13501/05

13606/06

13703/07

13831/07

13904/09

Decision papers

3 8 6 4 4 6 (+ 1)

2 2 12

Shared business

33% Zero 17% 25% Zero 43% Zero 50% 50%

Papers in brackets were ex-committeeExamples of shared business: CPs or Metering Dispensations with both CVA/SVA impacts

24

Committee views

ISG – Against (unanimous) SVG – For (unanimous)

• Some confidential Committee items

• Volume of business is variable• Future workload could increase• No clear start time for SVG• Difficult to manage meeting• Potential late finish and travel

issues for SVG (more time away from office)

• Already use teleconferencing if low volume of business

• Little apparent benefit for Parties• Parties who monitor/support both

Committees prefer spacing out papers

• No issue with joint business – defer to SVG if SVA; few disagreements

• Could constrain ability to discuss wider industry matters

• Supportive of suggestion in principle, subject to practicalities

• Enthusiastic about bringing Committees together – encourage Panel to explore all options

• Unless causes excessively late finish, would be more efficient

• Benefits in discussing joint business together

• Reduces uncertainty for Parties on whether a joint Change Proposal or Metering Dispensation approved

25

The BSC Panel is invited to:

• NOTE ELEXON’s paper on the suggested benefits and practicalities;

• NOTE the views expressed by Committee Members for and against;

• AGREE whether the 2013 ISG meetings should be held a week later than currently, on the same dates as SVG; and

• NOTE that, if the Panel adopts this approach, the ISG and SVG can review in 12 months (or sooner if needed)

Recommendations

202/05Panel and Panel

Committee Dates for 2013

Nicola Dempsey

13 September 2012

27

The BSC Panel is invited to:

• APPROVE the proposed dates; and

• APPROVE their publication on the ELEXON website.

Recommendations

202/06 Scope for Review of

Settlement

David Jones / Justin Andrews

13 September 2012

Smarter Markets – review of Settlement Reform

»Panel agreed to provide a report to Ofgem – how it would undertake a review of Settlement in a smart world

»Establish an advisory group:»Settlement Reform Scoping Group (SRSG)»Membership drawn from existing committees

with varied industry backgrounds»Terms of Reference (includes outline of report

content)

30

Timetable

31

The BSC Panel is invited to:

• AGREE to the creation of the Settlement Reform Scoping Group (SRSG) and the group Terms of Reference (Attachment 1);

• AGREE to the chairmanship and membership of SRSG (Appendix A); and

• AGREE the plan for delivering the scoping report (Appendix B).

Recommendations

Summary of Consultation on BSC

Service Manager Contract Principles

Adam Richardson

13 September 2012

33

Appointing a BSC Service Manager

Work Stream Responsibility

1. Modification P284: Enables BSCCo to outsource work to a BSC Service Manager.

The Authority makes a determination following a BSC Panel recommendation.

2. BSC Service Description: Defines the services capable of being outsourced.

The BSC Panel is responsible for approving the BSC Service Description for use.

3. Contract: Negotiating and agreeing appropriate Contractual Provisions required for outsourced arrangement with a BSC Service Manager.

The BSCCo Board is responsible for putting in place appropriate commercial and contractual provisions.

34

• Should a case be made for outsourcing and appropriate commercial and contractual terms developed, the BSC Service Manager Contract will be provided to the BSCCo Board for review and approval prior to being agreed.

Or

• If a case is not made for outsourcing or if commercial and contractual terms cannot be agreed which satisfy the principles established by the BSCCo Board the BSC services will not be outsourced and will continue to be provided by BSCCo.

Ultimately

35

Consultation Respondents

• National Grid• Electricity North West Ltd• Scottish Power Group• Drax Power Ltd• EDF Energy• Centrica• E.ON• SmartestEnergy Ltd• RWE npower• Eggborough Power Ltd• TMA Data Management Ltd• EnAppSys Ltd

1 Aug 3 Sep

Consultation

6 SepWorkshop

• Peter Bolitho – E.ON • Andy Colley – SSE • David Lane – Clear

Energy• Ian Pashley – National

Grid• Colette Baldwin – E.ON • Tim Collins – Centrica • Gemma Hunt –

Smartest • Cem Sueyman – Drax • Mari Toda – EDF • Lisa Waters –

WatersWye

12 Responses49 Parties, 9 Non-Parties

36

Summary of Consultation Responses (1)

Question Yes No Other

1: Are there any specific discretions, judgements or services currently provided by ELEXON Ltd that you feel it would be inappropriate for BSCCo to subcontract to a service management company?

7 5 -

2: Are the principles set out in Section 4 appropriate for use in underpinning a decision whether to appointment a BSC Service Manager?

7 2 3

3: Do you believe the principles set out in section 4 are consistent with Ofgem’s conclusions and prerequisite conditions published in its letter of 30 April 2012? 8 2 2

4: Are there any additional principles which you believe the BSCCo Board should use to underpin any outsourcing decision?

7 5 -

5: Do you have any other comments? 7 5 -

37

• 3 New bullet points within Principles• Confidentiality and Data Protection• Conflict of Interest• Transition Arrangements

 • Additional exclusions under paragraph 3.4 (related to

areas of potential conflict of interest)

• A number of clarifications to Contract Principles

Summary of Consultation Responses (2)

38

• Many responses identify elements that will flow through into:• BSC Service Manager Service Description• BSC Service Manager Contract• Some comments aimed at operating model and

resourcing • Comments on “zero Risk” & “all IPR irrespective of

commercial viability”• Desire for more information on KPIs and Service Levels (to

be detailed in contract) • Pension liability - avoid crystallising for as long as

possible• Contract term - preference for 5 years (recognising

incentive value in possible extenion options).

Summary of Consultation Responses (3)

Amendment Details

39

Subject to Approval of P284…

• Panel Invited to Appoint Panel Observer to: • review documentation; advise BSCCo team; and ensure

process followed

• Update the Contract Framework (Contract Principles)

• Develop Term Sheet

• Review Business Case against Contract Principles

Next Steps

Any Other Business

13 September 2012

Confidential Business Closed Session

13 September 2012

202/07ISG & SVG Membership

Changes

Adam Richardson

13 September 2012

43

The BSC Panel is invited to:

• NOTE the resignations of Bob Brown as ISG/SVG Industry Member and Mark Field as SVG Industry Alternate

• APPOINT Edward Hunter as SVG Industry Alternate

• APPOINT Colette Baldwin as SVG Industry Alternate

• NOTE that ELEXON has advertised the ISG/SVG Industry Member vacancy and will bring all applications to the October Panel

Recommendations

202/08Appointment of PAB

Industry Alternate

Adam Richardson

13 September 2012

45

The BSC Panel is invited to:

• APPROVE Hazel Ward as a Member of the PAB

Recommendations

Any Other Business

13 September 2012

Next Panel Meeting:11 October 2012

13 September 2012