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Commissioning plan

Business process: Nordic Imbalance Settlement Version: 3.01 Status: For implementation Date: 1st of November, 2016

2

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

Foreword

The purpose of this commissioning plan is to provide a plan for all market participants (including eSett and TSOs) for the handover of settlement operations to eSett. This is to support and enable a smooth transition from current market model, in each country, to the new common NBS market model. The commissioning plan includes contingency plans, description of fallback options, communication plans and much more. The commission plan does not cover activities that can be seen as part of the daily business (these will be covered by the NBS Handbook) but focus rather on one-time events or extraordinary situations where specific clarity is needed during the commissioning phase. The commissioning plan will be updated as often as needed until the go-live. All changes will be summarized in the change log at the end of this document. eSett encourages the market participants to review the change log. In addition to the commissioning plan the following sources include information, which is to be taken into account by market participants and TSOs during preparation.

The NBS handbook provides an overview of the Nordic Imbalance Settlement Model from the market participant’s perspective. The handbook collects information of rules, regulation and standards which act as requirements for all market participants operating in different roles in the countries involved in the Nordic Imbalance Settlement. The handbook is available at www.esett.com (also in local languages)

BRS (Business Requirement Specification for Data Exchange in Nordic Balance Settlement); a technical specification for the ENTSO-E and ebIX® XML documents used in the Nordic Balancing System, available at www.ediel.org

The User Guide for XML documents for NBS; a detailed user guide for the ENTSO-E and ebIX® XML documents used in the NBS model, available at www.ediel.org

XML example schemes have been made available as an easy access to the right format for specific messages, available at www.ediel.org

The Communication Guideline provides information about practicalities to establish a connection between eSett and market participants. The Communication Guideline is available at www.esett.com.

3

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

Terminology

Terminology

Term Abbreviation Explanation

Balance

Responsible

Party

BRP

A company that has a valid Imbalance Settlement Agreement with eSett and a valid

Balance Agreement with a TSO and manages a Balance Obligation on its own

behalf as a producer, consumer or trader of electricity or on the behalf of other

producers, consumers or traders of electricity

Distribution

System

Operator

DSO

An owner of a distribution grid that has the responsibility to distribute electricity from

producers to customers. The DSOs have the responsibility to meter production,

consumption and exchange and report the metered data to the involved

stakeholders. This term refers also to the operators of closed distribution networks.

Information

Service INFS

Machine to machine connection for data access between eSett and market

participants. The IS gives market participants the possibility to request settlement

data (time series data) from the ISR’s imbalance settlement IT system to their own IT

systems through an Information Service. The Information Service is established as a

system-to-system connection between market participants and ISR.

Market

Balance Area MBA

An area within the power system that provides (exchange) schedules that represent

basis for monitoring of imbalances. The Elspot price is always the same within a

MBA.

Market Entity ME A collective term for MBA, MGA, PU and RO.

Market Entity

Connection MEC

Market Entity Connection is a collective term for different kinds of connections

either between different MPs (e.g. bilateral trades between parties) or MPs and

MEs (e.g. MP’s metered consumption in MGA or MP’s production plan per RO).

The MEC’s time series data is the core of the imbalance settlement.

Market

Participants MP

Market Participants are the main stakeholders in the settlement: the TSOs,

DSOs, BRPs and REs. These enter into transactions in one or more wholesale

energy market.

Metered data -

Metered (metering) data is used as a general term for all the data that the

market participants meter, collect and report to ISR for imbalance settlement

purpose.

Metering Grid

Area MGA

A Metering Grid Area is a physical area where consumption and / or production

and exchange can be metered. A MGA can include both production and

consumption but also only one of these. It is delimited by the placement of

meters for period measurement for input to, and withdrawal from the area. It

can be used to establish the sum of consumption and production with no period

measurement and network losses. MGAs are decided on national level. One

company is responsible for all metering points within one MGA.

4

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

Terminology

Term Abbreviation Explanation

Messaging

Service MS Message exchange between eSett and market participants

Online

Service ONLS

A web-based communication platform, which is eSett's primary means of

communicating information to Balance Responsible Parties and other parties

of the Nordic Imbalance Settlement.

Operational

Test Run OTR

The Operational Test Run (OTR) is a pre-defined testing period before the

commissioning of the Nordic Balance Settlement. It serves the purpose of

being the testing period for all market participants in the Nordic electricity

market affected by Nordic Balance Settlement.

Nord Pool

Spot NPS

The Nordic energy exchange and the company that organizes the physical

electricity market in the Nordic countries. Operates in Norway, Denmark,

Sweden, Finland, Estonia, and Lithuania.

Parallel

Reporting PR

Parallel reporting is defined as a period when market participants will report

both to the national TSO and to eSett. National practices are applied.

Production

Unit PU

A Production Unit is a generator or a set of generators within the same power

plant in one MGA.

Regulation

Object RO

A Regulation Object is a set of one or more generators and stations within a

MBA decided by the respective Transmission System Operator (TSO) and the

BRP. One RO can only include production of a certain technology (wind, hydro,

nuclear, etc.). There can only be one BRP per RO.

Retailer RE

A Retailer sells electricity to an end user. It sells and buys electricity directly

from a producer, another retailer or via NordPoolSpot. A RE has an agreement

with a BRP. In Finland a RE may have an agreement with a BRP, or with

another RE who has an agreement with a BRP (chain of open supplier).

Service

Provider SP

A Service Provider is a party that provides operational balance management

and settlement services for the market participants e.g. BRPs, REs and DSOs.

According to what services the SP provides to the market participant, the SP

performs the corresponding tasks towards eSett and the imbalance settlement

system.

Settlement

Bank SB

To participate in the imbalance settlement, the BRP needs to hold a bank

account (also referred to as "settlement account") in an approved settlement

bank, i.e. a bank which has been approved by eSett to be used in the

imbalance settlement. eSett defines the criteria for approval of banks as

settlement banks.

Transmissio

n System

Operator

TSO

A Transmission System Operator has the responsibility for both the security of

supply and the high-voltage grid. They also carry the ultimate responsibility on

the imbalance settlement according to the national laws. In this document TSO

refers to following Nordic TSOs: Fingrid, Statnett and Svenska kraftnät.

5

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

Table of contents Foreword 2

Terminology 3

1 Introduction 7

1.1 Scope of the commissioning plan 7

1.2 Purpose 7

1.3 Goal 7

1.4 Delimitations 7

1.5 Updates 7

2 Commissioning 8

2.1 The commissioning phase 9

2.2 The transition phase 9

3 Organization and resources 10

3.1 Customer service 10

3.2 eSett company webpage 10

3.3 Service requests 10

4 Information to all parties 11

4.1 Market participants 11

4.2 Online Service 11

4.2.1 User accounts 11

4.2.2 Information security 12

5 Market preparations 12

5.1 Establishment of MGAs in Finland 12

5.2 Establishment of MGAs in Norway 12

5.3 Handling of settlement corrections 13

5.4 Reporting 13

5.4.1 Retailer level in Sweden 13

5.5 Authorization for service providers 13

6 Quality assurance 14

6.1 Submitting structural data 14

6.1.1 Initial submittance of structural data 14

6.1.2 Structure data responsibilities 14

6.2 Calendar and Time Zones 16

6.2.1 Time zone adjustments in Finland 16

6.2.2 Time zone remarks in Sweden 16

6.3 Regulatory changes 16

7 IT preparations and initial testing 17

7.1 Early test phases 17

7.2 System vendor testing 17

8 Operational Test Run (external tests) 19

8.1 Structure data verification 21

8.2 Establishing connectivity 22

8.3 Maintenance breaks 22

8.4 Execution of OTR 22

8.4.1 OTR in practice 22

6

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

9 Parallel activities 24

9.1 Parallel settlement 24

9.2 Parallel reporting 24

9.2.1 Finland 24

9.2.2 Norway 24

9.2.3 Sweden 24

9.3 Holidays during transition period 24

10 Invoicing, payments and collateral 25

10.1 Establishment of contractual framework 25

10.2 Establishment of settlement bank network 25

10.3 Required preparation by BRPs 26

10.4 Required testing of invoicing, funds transfers and balance reporting 26

10.5 Collateral requirements 27

11 Contingency plan 28

11.1 eSett 28

11.1.1 Minor disturbances 28

11.1.2 Major disturbances 28

11.2 DSO 28

11.3 BRP 28

12 Communication plan 29

12.1 Communication Objectives and Guiding Principles 29

12.2 Communication Scope 29

12.3 Communication Channels 29

13 Risks 30

13.1 Main commissioning risks 30

13.2 Mitigation actions 31

14 Documentation 32

14.1 NBS Handbook 32

14.2 Business Requirement Specification 32

14.3 XML User guide 32

14.4 XML example files 32

14.5 Guidelines 32

14.5.1 Online Service - User guideline 32

14.5.2 Communication guidelines 32

14.5.3 Guide to System vendor testing and test cases 33

14.5.4 Guide to OTR and test cases 33

15 Change log 34

16 Appendix 35

7

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

1 Introduction

For more information about the NBS project please see chapter 1 in the NBS Handbook.

1.1 Scope of the commissioning plan

The main intention of this commissioning plan is to act as the formal instruction for all market participants during the commissioning of NBS. The scope of the commissioning plan is to describe all those extra ordinary situations that occurs and potentially could occur at the commissioning but also to act as a tool and checklist to enable go-live readiness for all market participants.

1.2 Purpose

The purpose of establishing this commissioning plan for the handover of settlement service from TSOs to eSett is to enable a smooth transition to the new market model and also to provide market participants a guideline for how to proceed.

1.3 Goal

The goal of the commissioning plan is to act as a guideline for all market participants including plans for contingency and communication but also including checklists prior to go-live. During the commissioning and transition period the commissioning plan should act as the document guiding all market participants.

1.4 Delimitations

Descriptions of daily operations” will not be covered by the commissioning plan but be described in the NBS Handbook. (Only transition and “one-time” events will be covered by the commissioning plan.)

1.5 Updates

eSett reserves the right to update the commissioning plan on a regular basis (need based). Updated versions of the commissioning plan will be communicated via www.eSett.com and the eSett newsletter. eSett encourages market participants to send their feedback on the commissioning plan to eSett. Early phases of the commissioning plan (no longer valid) have been removed to facilitate an easy reading for market participants.

8

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

2 Commissioning

The NBS project has since 2012 been in the implementation phase and focus forward is the go-live in May 2017. The overall implementation time plan (see figure 1 below) describes the plan for implementation from latter part of 2016 to Q2 2017.

Figure 1. Overall implementation time plan

Commissioning time plan

# Activity Time Involved parties Environment More information

1 TSO Test 2016-10-10 2016-10-21 TSOs Production n.a.

2a-c System vendor testing

2016-09-19 2016-11-25

2016-12-05 2017-01-10

2017-02-06 2017-04-30

System vendors Test 2 Section 7.2 System vendor testing

3 External tests 2016-11-04 2016-12-09 All market

participants Production

Chapter 8 – Operational Test Run

4a Verification of structures (‘read only’)

2016-10-10 2016-10-21 All market

participants Production

Section 8.1 - Structure data verification

4b

Finalization of structure verification

2016-11-04 2016-12-02 All market

participants Production

Notify eSett that structure data is correctly established

4c Continuous update of real structure data

2017-02-06 2017-04-30 All market

participants Production

5

Parallel settlement

(strongly recommended) 2017-02-06 2017-03-19

All market participants

Production Section 9.1 Parallel settlement

Parallel settlement (mandatory)

2017-03-20 2017-04-30

5a Parallel reporting (NO) 2017-05-01 2017-05-28 All market

participants Production

Section 9.2.2 Norway

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

5b Parallel reporting (SE) 2017-05-01 2017-07-31 All market

participants Production

Section 9.2.3 Sweden

6

Maintenance breaks

2016-11-25 2016-11-03

2016-12-10 2017-02-05 eSett Production

8.3 Maintenance breaks

2016-11-26 2016-12-04

2017-01-21 2017-02-14 eSett Test 2

Re-occurring maintenance breaks

Every Friday – Sunday All market

participants Production

Test 2

7 Go-live 2017-05-01 (CET) All market

participants Production NBS handbook

Table 1 Overall implementation time plan

2.1 The commissioning phase

As part of the implementation the commissioning phase has been defined as the time period up to 12 months prior to go-live. The commissioning phase is followed by a transition period. The transition period starts from the go-live date.

2.2 The transition phase

The commissioning phase will end by the go-live and will be succeeded by the transition phase. The transition phase has been defined as the phase from go-live until all processes related to eSett and the NBS model (reporting, settlement, invoicing, etc.) have been stabilized. eSett will when all criteria’s (see table 2 below) have been fulfilled communicate that the commissioning & transition phase is over via the company homepage www.eSett.com

Table 2. Criteria for finalization of the transition phase

Criteria’s for finalization of the transition phase

BASSE system fully functioning according to specification

All market participants have adopted to the new market model and preconditions

Settlement and billing is performed with the right quality on data reported to eSett by market participants

10

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

3 Organization and resources

eSett will consist of a lean and specialized organization fit for its purpose. eSett has been staffed with necessary competencies and will also have access to resources provided by each TSO. eSett will operate during an interim period with a combination of own and contracted resources from local TSOs to secure country specific market knowledge. All material concerning NBS model and eSett operations are in English (except for NBS handbook), but eSett will provide assistance with local Nordic languages through eSett communication channels. During the commissioning eSett will also have access to IT system specialists (both balance settlement and messaging) as well as NBS project members (who have been involved in the implementation process).

3.1 Customer service

During the commissioning and transition phases it is of most importance to secure that eSett has a customer service organization that is ready and able to answer questions from the market participants. During the commissioning phase all customer service related matters will be handled by eSett as well as the NBS project team and questions answered via forms like testing partner groups, information days, mail, etc.

Customer service – Operating hours

Day Time (CET) Possible contact ways1 Available languages

Monday – Friday 9:00 – 15:00 (CET)2

https://esett.service-now.com/public/ English (#3) Finnish (Suomi, #3)

Norwegian (norsk, #2) Swedish (svenska, #1) +358 10 501 8500

Saturday Closed https://esett.service-now.com/public/ -

Sunday (and holidays) Closed https://esett.service-now.com/public/ -

Table 3. Customer service operating hours

Frequently asked questions will be summarized by the eSett customer service organization and presented on the Online Service news feed, or sent to the market participants via newsletters.

3.2 eSett company webpage

The www.esett.com page facilitates part of the customer dialogue and is the portal for finding the latest information updates and written material.

3.3 Service requests

A ticketing system for service requests has been made available at https://esett.service-now.com/public/ since it has several benefits both for eSett and the market participants. This since enquiries can be processed more efficient and the progress can be monitored, measured and reported. Market participants can approach eSett either by phone or electronically (https://esett.service-now.com/public/) and each query will generate a service request that enables eSett to monitor the progress and also to add information related to the open request(s).

1 The official opening hours of the customer service organization at eSett. Although these are the official opening hours the eSett staff

will at a majority of the working days be available between 8:00 – 16:00 CET

11

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

4 Information to all parties

4.1 Market participants

Information to market participants is of utmost importance since understanding of the new market model is key to a successful implementation and operation. Information to market participants will be distributed centrally via local NBS information arrangements. Information regarding the change and required changes will be summarized and documented into the below documents:

NBS handbook (www.esett.com/handbook)

Business Requirement Specification (www.ediel.org)

XML User Guide (www.ediel.org)

XML schemes and XML example files (www.ediel.org)

Communication Guideline (http://www.esett.com/materials/communication-guidelines)

Online Service – User guide (available inside Online Service)

4.2 Online Service

In the development of the web interface “Online Service” one key aspect has been to establish a portal that is user friendly and self-instructive. No formal training will be offered by eSett but each market participant is recommended to get familiar with the new interface during the external test phase. A user guide has been made available when “logged in” to the portal (see illustration below) but support in local language can also be obtained via the eSett customer service.

Figure 2. Help section in Online Service

For an overall description of Online Service please see section 10.3 Online Services in the NBS Handbook.

4.2.1 User accounts

Each Online Service user must have a personal user account with login and password information to access the company specific parts of the service. For an overall picture on how to establish a user account, please view section 10.3.3 “Online Service User Account” in the NBS Handbook. A two phased authentication (mobile authentication, SMS based) will be utilized to log-in to the Online Service and therefore a mobile phone number has to be provided by the market participant for each account. Each market participant shall make sure that they have access to an administrator account in sufficient time before go-live. User accounts were distributed in early April 2016 to those market participants who had submitted correct and complete information to eSett. One administrator account per market participant has been created by eSett in accordance with provided information in the structure data templates. The administrator of each market participant is able to create user accounts for all co-workers who require access to the Online Service.

12

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

4.2.2 Information security

Due to information security reasons, all of eSetts services will be behind firewalls before go-live. This means

that all market participants who want to access the eSett services need to submit their IP addresses and

ranges to eSett to enable the connection.

5 Market preparations

5.1 Establishment of MGAs in Finland

Fingrid as a TSO is the responsible body for establishing the metering grid areas (MGAs) in Finland, in cooperation with the Finnish market participants. The current imbalance settlement network areas in Finland will form the metering grid areas also in the Nordic Imbalance Settlement. The precondition for this is that there must be one responsible party (called metering responsible) for metering and reporting settlement data of the metering grid area to eSett. This responsibility can be fulfilled based on legislation in Finland (e.g. the DSO network license or closed network license) or shall be agreed with Fingrid as a TSO. These market participants shall have a role as a DSO in the Nordic Imbalance Settlement. DSOs are responsible to register to Fingrid the MGAs they’re responsible for. A one DSO can be responsible for more than a one metering grid area. In the existing Finnish imbalance settlement model the individual exchange metering points have been used between the adjacent MGAs. In the NBS model exchange metering sums will be used instead of individual exchange metering points. The two DSOs need to agree who is the responsible for calculating and reporting the exchange sums between the MGAs they are responsible for. It’s also possible that both DSOs will calculate and reporting exchange sums to eSett and if there will be differences with those values then correction rules shall be used for matching the values. The notice of planning the metering grid areas in the market balance area Finland was published 2014-08-12 and the template for the metering grid areas was published 2015-02-15 on Fingrid’s webpages www.fingrid.fi The market participants were asked to define their metering grid areas and inform Fingrid about these no later than 2015-05-31. The metering grid areas will be defined in the eSett imbalance settlement system before the operational test run period of the Nordic Imbalance Settlement model starts.

5.2 Establishment of MGAs in Norway

The process of establishing MGAs (Metering Grid Area) in Norway was finalized in 2015, after incorporating a final round of input from the DSOs. The DSOs have received information about their MGAs, and market participants can access up to date information about MGAs and MGA borders in Online Service. Statnett will publish files showing MGAs borders and respective MBA (Market Balance Area) for each MGA. The file that links all MGAs to the respective MBA will replace the current one published by Nord Pool Spot after go-live of NBS. With the existing Norwegian imbalance settlement model, it is possible for the DSO to create as many time series (komponentkoder) as they wish for one RE (Retailer). In the NBS model, they will be restricted to one time series of the same type per retailer in one MGA. It will thus not be one to one between time series for settlement data in the current solution and in eSetts settlement system. It is also important to recognize that a metering point according to the MGA model may belong to a different MBA than with the existing model based on substations (“knutepunkt”). The imbalance settlement result could therefore differ between the two models.

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

Efficient testing of systems and verification of imbalance settlement results will therefore require that all involved parties are able to run two separate processes in parallel, supporting both the new and old regime. It is the responsibility of the market participant to ensure that their system is able to handle this, and to determine for how long period of time it is necessary to support both models in parallel in order to ensure a correct transition to the new imbalance settlement model.

5.3 Handling of settlement corrections

Settlement corrections, in the NBS model, will not be handled by eSett but by the market participants themselves bilaterally. A common procedure for how to handle corrections is not within the scope of eSetts responsibilities. In Finland and Norway the procedure for handling of corrections has existed and been developed for several years. There will be no changes to the existing procedure when implementing NBS. In Sweden the energy industry has agreed on a joint process for handling of corrections via Energiföretagen Sverige.

5.4 Reporting

See section 2.3 Calendar and Time Zones in the NBS Handbook and section 6.3 in the commissioning plan.

5.4.1 Retailer level in Sweden

Reporting towards eSett will be done on retailer level instead of BRP level (which is the reporting level to Svenska kraftnät today). This change is valid from the go-live date in each country. Profiled consumption shall still be reported to Svenska Kraftnät on BRP-level.

5.5 Authorization for service providers

A written authorization, power of attorney, is required for service providers to be able to act on behalf of their clients. This will be valid from the start of the Operational Test Run when real structure data is applied (see chapter 8).

14

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

6 Quality assurance

6.1 Submitting structural data

The settlement structure is one of the key elements in the NBS Model. Each market participant will in the NBS model be responsible for updating its structural information in Online Service. Structural information is information about market participants and their relations to each other, e.g. the relationship between a BRP and a RE, and to the Market Entities (ME) and Market Entity Connections (MEC) (e.g. the relationship between a BRP and a MGA). Every market participant has to register for acceptance to operate in the market. The participants themselves are responsible for registering and keeping their own structure information up to date. eSett will control and approve the structural information, based on the information provided by BRPs, DSOs REs and SPs. For an overview of structure data reporting responsibilities please see the NBS Handbook.

6.1.1 Initial submittance of structural data

Due to harmonization within the NBS project it has not been possible for the TSOs to submit all of the necessary structural data to eSett, this since the TSOs lack information on i.e. retailer level which then must be submitted by each market participant. In addition, there are national differences between the NBS countries. eSett and the TSOs will take responsibility for updating the basic information regarding each market participant (such as company name, profile, contact details etc.) as well as the basic settlement structure (MBA, MGA, RO, etc.). Market participants are responsible for providing correct structure information according to templates provided by eSett and for verifying the results after baseline structure has been established. Inconsistencies in provided structure data could potentially cause issues with the structure import, it is therefore of high importance that submitted structure data has been validated by each market participant. The structure data must at the latest be established before the parallel settlement period begins eg. during external tests and it is the responsibility of each market participant to ensure a correct set of structure data. Market participants will be able to review and update the structure data on a continuous basis (with the exception for maintenance breaks and other unplanned outages.

6.1.2 Structure data responsibilities

Structure data responsibilities – TSO

Category Subcategory

TSO master data related to the market participants

Name

ID

Communication ID

Role Contact details, etc.

Market Balance Area (MBA) MBA master data

MBA-MBA relations

External borders

Regulation objects (RO)

RO master data

RO-BRP relations

Reserves

Imbalance adjustment MECs

Production plan MECs

Reserves Types

Sub-types

Metering Grid Area (MGA) MGAs

MGA exchange trade MECs

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

MGA-MGA relations

MGA-DSO relations

Production unit (PU)

PU-RO relations Norway and Finland

PU master data Sweden

Bilateral trade (only valid for Svk)

Profiled consumption (only valid for Svk)

Table 4. TSO structure data responsibilities

Structure data responsibilities – eSett

Category Subcategory

Settlement accounts Signed pledged account agreements

Settlement account numbers

Balance settlement agreements Signed agreements

Settlement banks Selected settlement bank

Table 5. eSett structure data responsibilities

Structure data responsibilities – DSO

Category Subcategory

Master data

Main contacts; Online Service, contracts and settlement issues

ID, name

Online Service administrator users, phone nr.

Communication information

PU-RE, Production MECs Retailer - Production unit relation per MGA

Consumption MECs Retailer - Consumption relation per MGA

MGA imbalance MECs Retailer responsible for imbalances in the MGA

Table 6. DSO structure data responsibilities

Structure data responsibilities – BRP

Category Subcategory

Master data

Main contacts; Online Service, contracts and settlement issues

ID, name

Online Service administrator users, phone nr.

Communication information

Settlement Account Signed Pledged account agreement

Settlement account number

BRP-RE relations Balance Responsible Party – Retailer relations

PU-RO relations Production unit – Regulation object relation

Bilateral trade MECs Balance Responsible Party / Retailer bilateral trade relation

Table 7. BRP structure data responsibilities

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

Structure data responsibilities – RE

Category Subcategory

Basic company details ID, name

Online Service administrator users, phone nr.

Table 8. RE structure data responsibilities

More information on structural verification can be found in eSett webpages (www.esett.com/structures)

6.2 Calendar and Time Zones

The Nordic Imbalance Settlement Model will be operated in Central European Time (CET))/Central European Summer Time (CEST). A 24-hour clock (10 o´clock in the evening will be written as 22:00) will be applied in operation (for example in invoicing, imbalance settlement) and support is required from all market participants interacting with eSett. The NBS Model will also use daylight saving time (change between standard and summer time). The last Sunday in March will have 23 hours and last Sunday in October will have 25 hours.

6.2.1 Time zone adjustments in Finland

Finland is today operating in Eastern European Time (EET). Since the NBS model will operate in Central European Time (CET) there will by the time of go-live in Finland be 1-hour that needs clarification. For example 1st May 2017 00:00 – 01:00 CET is 1st May 2017 01:00 – 02:00 EET. Hence the first day in operation with the NBS model will for Finnish market participants only have 23 hours. This means that Fingrid will be responsible for settlement and invoicing of imbalance until the end of April and the first hour of 1st May 2017 (EET). The settlement structure management (e.g. retailer balance responsibility) will be complied with national legislations. In Finland the settlement structures will be managed in Eastern European Time (EET)/Eastern European Summer Time (EEST). Based on the Finnish legislation the DSOs in Finland are able to report delivery day settlement data in EET/EEST until the 12 day at 00:00 EE(S)T after the delivery day.

6.2.2 Time zone remarks in Sweden

Swedish market participants shall be aware that settlement at eSett will take place in actual time. This will not affect the reporting but will have effect on i.e. structuring. Please see section 5.3 in the NBS Handbook for more information.

6.3 Regulatory changes

In all three NBS countries the harmonization, as an effect of the implementation of NBS, has led to a need to change the regulations in each country. Before go-live in each country these changes must have been approved according to the set procedure in each country. Regulatory and authority dialogues are ongoing in each country to secure the necessary regulatory changes. For the latest information on the regulatory changes please contact eSett, the NBS project or the regulator in each country.

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

7 IT preparations and initial testing

This chapter describes the IT preparations needed before the new market model can be implemented. The testing section describes four distinct test phases that have been and are to be conducted by eSett and/or market participants.

All testing activities described in this chapter will be performed via fabricated structures. In general each market participant should start their testing with XML messages towards the national testing portals and thereafter proceed with testing towards eSett during the Operational Test Run and parallel settlement period. Testing portals for the new XML format, as described in the NBS Handbook, have been provided by each TSO. Statnett and Svenska Kraftnät will use an updated version of the Ediel portal (www.ediel.no / www.ediel.se) and Fingrid will use a third party testing portal (https://eneasehub.fi). Separate instructions will be given by each TSO (or the testing portal vendor) to local market participants. If a BRP is active in more than one country testing with respective national testing portal might be required. This depends of the IT-system setup on the BRP side. In case of such requirements, separate instructions will be provided by eSett.

7.1 Early test phases

eSett has on a continuous basis tested the new settlement system and assessed the system status. This has furthermost been done via extensive User Acceptance Tests (UATs) and testing together with involved TSOs. User Acceptance Tests will be performed until the final delivery of the full settlement system. In addition, tests have been performed together with system vendors (system vendor testing) and selected market parties (partner testing) who volunteered to participate. The testing has consisted of the following steps:

Connectivity testing – to verify connection capabilities towards Basse

Functional testing – to verify individual functional compliance with Basse

End to End process testing – to verify the full imbalance settlement process compliance with Basse Focus of the testing has been to simulate real conditions as far as possible (based on available functionality).

7.2 System vendor testing

The eSett settlement system will be made available in several sequences for System vendor testing (similar testing as was performed during the early Partner Testing). eSett strongly encourages system vendors and service providers active in the Nordic market to notify eSett as soon as possible about their interest in participation. Upon enrollment, eSett will request the necessary technical details to establish connectivity between the test environments. Market participants shall prepare to provide necessary connections details, in order for eSett to enable required connectivity in time System vendors and service providers participating in the “System vendor testing” shall be aware that both connection details and structures will differ from the testing in the Operational Test Run (see below). System vendor testing in practice In System vendor testing fabricated structures will be utilized – no real market structures – to enable complete testing of system functionalities, especially data flows via different channels and protocols. This means that each system vendor participating in the testing will also have to prepare its testing environment to utilize instructed identifiers in communication. The described approach will enable all essential system

18

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

related activities for all market roles. eSett will deliver the essential documentation (including test cases) and instructions upon enrolling. Log-in credentials will be sent to the main contact person respectively and in Online Service the granted test structures per party can be viewed. More detailed information can be found in the document mentioned below). For outbound data flows; prefilled time series data is going to be used and the test cases will indicate the time period where this is available (and with which parameters, in information service case) the data can be requested. An illustration of the fabricated structures used in the test cases is available in the “Guide to vendor testing and test cases” Test environment will be fully available (with limitations for maintenance breaks (Friday – Sunday each week), etc. If extra maintenance breaks would be needed these will be informed about separately. Testing will be done on a stand-alone basis and support is provided by eSett based on request (further details below). The goal of the system vendor testing is to ensure fluent messaging between system vendors and eSett. The stage should be seen as the overall preparations prior to Operational Test Run. Limitations during the system vendor testing * Testing will be done towards the eSett test environment * Only fabricated structures will be used * Some limitations in functionalities (see separate list in “Guide to System vendor testing and test cases”, which is made available for enrolled vendors. Support during the system vendor testing During the system vendor testing eSett will provide local support for the participants, focused on the go-live preparations as well as on testing activities and related troubleshooting. eSett will support the participants in possible issues that have been identified and which relate to the services provided (including Online Service, Messaging Service and Information Service). For identified issues and potential defects, eSett provides assistance in troubleshooting and resolution assurance in the areas where source of defect is unclear and in those cases where the defects appear on eSett´s side (e.g. in case when market messages cannot be submitted). The preferred way of communication during the IT Vendor testing is to contact the eSett customer service either by sending a service request to eSett from eSett website (www.eSett.com/contact) or by phone. There will be support available within the service hours and channels listed in section 3.1. Possible extensions of the service hours and alternative communication channels shall be agreed separately. Remote meetings (Skype / Video) can be utilized for interactive troubleshooting purposes. Separate sessions with dedicated eSett specialists will be arranged on case-by-case basis, where these are required.

19

eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

8 Operational Test Run (external tests)

Testing related to the imbalance settlement system of eSett (Basse) will be conducted in predefined steps. The purpose of the testing activities is to find and correct possible defects, in order to mitigate software and process related issues when going live. Testing activities act also as quality assurance to verify and validate that eSett’s settlement system will fulfill the defined business and technical specifications and requirements to operate the Nordic imbalance settlement. The Operational Test Run (OTR) is a pre-defined testing period before the commissioning of the Nordic Balance Settlement. It serves the purpose of being the testing period for all market participants in the Nordic electricity market affected by Nordic Balance Settlement. This means that eSett will make the new settlement system available to all parties and enable both access to the web interface Online Service as well as the receiving of settlement data files (via Messaging Service) and updates of structural data (via Online Service). Operational Test Run will be performed towards the “production environment” of the settlement system and it is strongly recommended that all market participants cease the opportunity to participate in the OTR for final verification of the correctness of their messages and systems). Connection details to the production environment have been distributed to market participants per request via the eSett ticketing service (https://esett.service-now.com/public/)

All testing activities described in this chapter will be performed with real structures updated and maintained by each market participant. Market participants who haven´t submitted any structure data to eSett will have to enter data manually via Online Service.

Why have Operational Test Run been implemented Operational Test Run have been implemented to give market participants (BRP, DSO, SP) the opportunity to verify the correctness of their messages and systems but also to scale up the testing from a limited number of simultaneous users to several. It has also been implemented to prepare the eSett customer service and essential communication channels between market participants and eSett, this to give market participants the opportunity to define, test and adjust their structure information. Phases of the Operational Test Run Operational Test Run (OTR) consists of go-live preparations and testing activities that are carried out with market participants from November until December 2016.

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

OTR preparations: 1. Collection of the required structure information from the market participants (see section 6.1.1) 2. eSett creates the baseline structure information in the new settlement system 3. eSett enables the connectivity towards the new settlement system for market participants (based on

connection details provided by each market participant) 4. Confirmation of connectivity to national communication platforms (see section 7.1)

The OTR itself will be performed in three different sequences:

Sequence Time period Available services

Structure data verification3

Weeks 41-42 (2016-10-10 2016-10-21) * Online Service (read mode only, eSett customer service is available to answer questions and give guidance)

Weeks 44-49 (2016-11-04 2016-12-02) Weeks 6-17 (2017-02-06 2017-04-30)

* Online Service

External tests Weeks 44-49 (2016-11-04 2016-12-09) * Online Service * Messaging Service * Information service

Maintenance breaks Maintenance breaks will be applied Friday to Sunday every week during the OTR.

n.a.

Table 9. OTR sequences

During the OTR period eSett will provide local support for the market participants, focused on the go-live preparations as well as on testing activities and related troubleshooting. Please note, that during the maintenance breaks all technical services provided by eSett (Messaging Service, Information Service and Online Service) are unavailable and cannot be accessed. Preconditions for participating in OTR There are some preconditions that need to be fulfilled in order to be able to participate in the OTR. These are stated below:

1. IT-system ready Have an IT-system ready to send XML data flows with settlement data to eSett

2. Testing towards testing portals Testing towards national testing portals have been done successfully

3. Access to Online Service Having submitted structure data to eSett through provided “Structure data” templates and received an administrator account to Online Service (only one account will be generated by eSett).

4. Company, structures and connection details have been submitted to eSett and are correct The market participant must have submitted information about company, structures and connection details to eSett according to requests and verified these structures in Online Service.

5. Manual import of XML-file with settlement data If, the 1

st prerequisite is not fulfilled but the market participant still has the possibility to generate an

XML-file with settlement data the XML-file can be manually uploaded via Online Service (via the drag & drop function)

Expected result of the OTR The expected result from the OTR is to enhance the go-live readiness among market participants and to render an understanding of the new interfaces available.

3 Instructions for how to verify structure data are available at www.eSett.com, N.B. for a successful testing structures

must be updated in some cases at least 2 weeks before the start of the testing when production like gate closures are followed.

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

Limitations during OTR

No invoices will be sent during the OTR (invoices will be generated and visible in Online Service but not actually distributed)

No calculations of collaterals will be performed during the OTR Support during the OTR During the OTR period eSett will provide local support for the market participants, focused on the go-live preparations as well as on testing activities and related troubleshooting. eSett will support market participants in possible issues that have been identified and which relate to the services provided (including Online Service, Messaging Service and if applicable Information Service) and in settlement related issues (including for example structure information, imbalance settlement and collateral management). For identified issues and potential defects, eSett provides assistance in troubleshooting and resolution assurance in the areas where source of error is unclear and in those cases where the defects appear on eSett´s side (e.g. in case where imbalances have been calculated incorrectly or market messages cannot be submitted). There will be local support available within the service hours and channels listed in section 3.1. Possible extensions of the service hours and alternative communication channels shall be separately agreed. Remote meetings (Skype / Video) can be utilized for interactive troubleshooting purposes. Separate sessions with dedicated eSett specialists will be arranged on case-by-case basis, where these are required.

8.1 Structure data verification

The settlement system will by the start of the OTR be populated with the structure data that market participants have submitted to eSett by the end of January 2016 and updated during the first half of 2016 (Q1-Q2). The participants must verify the imported data upon access to Online Service. Structure data registered to eSett and visible in Online Service shall be corresponding to the settlement information being sent, if this is not the case messages will not be processed by eSett (negative acknowledgement will be sent to the sender). Each market participant must verify its own structure before submitting any settlement data. During the whole OTR period gate closures will be applied for the structure changes. Hence it will not be possible to perform structure data changes to the past but only to the future according to regular gate closures. Activities for market participants:

1. Control and verify the available structure data in Online Service4

2. Analyze potential gaps in data conformity (-any missing data?, -any faulty data?, -any needed updates since the submitted structure data (31

st of January)?

3. Perform necessary structure data updates via Online Service (guidance is available in the Online Service User Guide and via eSett customer service)

4. Notify eSett via the ticketing system when all structures have been updated (see section 3.3 Service requests)

More detailed instructions on how verify and update structures are available at www.eSett.com/structures The goal of the structure data verification is to have the structures of each market party updated in accordance with the actual situation.

4 Guidelines for how to check and verify the structure data are available at www.eSett.com/structures

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

8.2 Establishing connectivity

Establishing connections means securing the function of the technical interconnections between market participants’ and eSett’s IT systems. This will focus on securing that the role-specific market messages (i.e. “settlement data”) can be transferred between participants via utilized communication channels (FTP, SMTP, Web services) and Online Service can be accessed. Information Service connectivity testing will not be performed during this phase. The goal of the establishing connectivity sequence is to have market participants successfully connecting to Messaging Service (BRPs, DSOs, NPS and SPs) and to be able to send and receive a message, including associated acknowledgements (BRPs, DSOs, NPS and SPs). Steps for each market participant for:

One inbound data flow (sent by market participant) and a related acknowledgement (sent by eSett’s settlement system). For inbound data flow, content of message should be one pre-defined day.

One outbound data flow (sent by eSett) and a related acknowledgement (sent by market participant). For outbound data flows; prefilled time series data is going to be used, test cases will indicate the time period where this is available

Log in to the Online Service / check message monitor for data flows (inbound / outbound)

Confirm to eSett that you can connect successfully to eSett services (those that are applicable; Online service, Messaging service, Information service)

Connectivity has been “established” when the market participant is able to communicate with the Balance Settlement Solution in both ways (send and receive a market message via preferred communication channel / protocol) and user is able to log in to Online Service with provided credentials. Support document is the Communication Guidelines, which is available at www.esett.com/materials

8.3 Maintenance breaks

The production system will during the Operational Test Run be available from Monday to Thursday. Friday to Sunday are reserved for system maintenance breaks meaning that no actions are required from market participants and the eSett services should not be “seen” as available.

8.4 Execution of OTR

During the execution of the OTR, testing will be done in a “production-like” state with “real” structures and gate closures. Market participants will report to eSett as if it was done under normal operations (on a “rolling basis”). This means that “shadow settlement” will be performed during the whole testing period. The key objective of the shadow settlement is to perform “production like” imbalance settlement well before go-live and to be able to generate calculated results in the eSett settlement system to be able to achieve a similar outcome of the imbalance settlement results calculated by each participating TSO (most likely with some hands-on work). It is likely that there will be missing counter party values etc. which will result in non-realistic imbalances. OTR is performed in order to verify quality and correct operation of the eSett settlement system, the market participant’s systems and processes. This is considered to be one of the most important quality assurance methods and therefore the market participants are encouraged to prepare themselves for the shadow settlement on time and with most care. eSett will distribute relevant information (e.g. connection details and credentials) to the contact person of each enrolled participant.

8.4.1 OTR in practice

Each market participant will during the OTR sequence report necessary settlement data according to NBS handbook and prevailing gate closures stipulated in the NBS handbook and each country’s regulation. eSett

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

will follow-up the reporting and perform the settlement calculations and related reporting during OTR for all participants. eSett will present the results of the calculations to each market participant respectively (via Online Service). Each market participant will be given the opportunity to review the settlement results in Online Service (n.b. the calculated results will most likely not be comparable to the real situation, since some market structures might be missing and all market participants are not participating in the testing, i.e. counterparty data could be missing). Regular gate closures will be applied for structure management and data reporting. Hence it will not be possible to update/modify structures and submit settlement data even to the past (beyond gate closures). eSett will perform settlement calculations on a daily basis. If a market party for some reason has limited capabilities to continuously send settlement data to eSett, eSett encourages the market party to at least send data for week 48 (either by Messaging Service or by “drag and drop” of XML-message files in Online Service (“Insert message file”).

Figure 3 Shadow settlement activities

Weekly plan for weeks 45-49

Week 45-49

Day(s) Activities Service availability

Monday – Thursday

- Structure data updates (according to gate closures) - Reporting of settlement data for the actual day via Messaging and Online Service. - Confirmation reports are not sent - Settlement results are sent

* Online Service (read & write) * Messaging Service (full) * Information Service

Friday – Sunday - System is to be seen as non-available but if no maintenance break is needed the system will be kept open

* n.a.

Table 10. Weekly plan for weeks 45-49

The objective is that each market participant will be able to report the role specific information as well as to have confirmation that imbalance settlement is properly carried out, taking into account that results can’t in every case be considered as realistic.

Sh

ad

ow

sett

lem

en

t

2016

November December

W.44 W.45 W.X+1 W.49

Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su

Calculation of settlement results

System available: Market participants submit settlement data

System available: Market participants to update structure data

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

9 Parallel activities

In this chapter activities to facilitate and secure a smooth transition to the new settlement are described

9.1 Parallel settlement

eSett and the TSOs have decided to impose a parallel settlement period 12 weeks (weeks 6-17, 2017) before go-live in all countries. The first 6 weeks (weeks 6-11) it is strongly recommended to participate and the last 6 weeks (12-17) participation is mandatory for all market participants. Before the go-live date the official invoicing is carried out by the TSOs. After the go-live date, the invoicing will be done by eSett.

9.2 Parallel reporting

Based on the identified needs by each TSO different approaches towards

9.2.1 Finland

Finnish market participants shall be capable of sending messages in current format and current settlement model in case there are major obstacles in moving to the NBS settlement as planned.

9.2.2 Norway

Statnett will in addition to the twelve parallel settlement weeks utilize parallel reporting for another four weeks from go-live (2017-05-01 2017-05-28). Imbalance settlement procedures and calculations will be performed by both Statnett’s and eSett’s settlement systems and the goal is to achieve the corresponding settlement results and ensure quality of imbalance settlement.

9.2.3 Sweden

Svenska kraftnät will in addition to twelve parallel settlement weeks utilize parallel reporting for another three months from go-live (2017-05-01 2017-07-31, regulated in the secondary law

5). Imbalance settlement

procedures and calculations will be performed by both Svenska kraftnät’s and eSett’s settlement systems and the goal is to achieve the corresponding settlement results and ensure quality of imbalance settlement.

9.3 Holidays during transition period

During the transition period there will be holidays in all three countries. Since eSett will use a combined Nordic calendar a holiday in one country postpones the invoicing to the next working day. This is also applicable during the transition period.

5 Pending final approval (estimated approval december 2016)

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

10 Invoicing, payments and collateral

To participate in the imbalance settlement, a BRP will need to hold a bank account (settlement account) in a bank which has been approved by eSett to be used in the imbalance settlement (settlement bank). The payable amounts arising in the imbalance settlement are invoiced electronically by eSett and settled on the settlement accounts in accordance with instructions that eSett sends to the settlement banks through its main bank. The BRP also needs to provide collateral to eSett in the form of cash on the settlement account or an on-demand guarantee, or a combination of these. For the monitoring of cash collateral, eSett will receive daily reports from the settlement banks on the balances of the settlement accounts. The activities for establishing the necessary setup for invoicing, payments and collateral are described in this chapter. In the beginning of December an “agreement package” including all necessary agreements between eSett Oy and a BRP will be sent. The agreement package needs to be signed and returned to eSett according to instructions before the start of the parallel settlement period.

10.1 Establishment of contractual framework

The matters related to the invoicing and payment of the imbalance settlement results and the provision of collateral to eSett are governed by the following contractual documents:

1. Balance Agreement between TSO and each BRP

2. Imbalance Settlement Agreements between eSett and each BRP

3. Settlement Bank Agreements between eSett and each designated Settlement Bank

4. Pledged Cash Account Agreements signed by each BRP, eSett and the BRP's Settlement Bank

5. On-Demand Guarantees signed by the Settlement Bank for those BRPs that use this form of collateral

The final versions of the Imbalance Settlement Agreement, Settlement Bank Agreement, the Pledged Cash Account Agreement and the On-Demand Guarantee are available for download on www.eSett.com/materials.

10.2 Establishment of settlement bank network

The role of the settlement banks in the Nordic Imbalance Settlement includes the following:

Providing of settlement accounts to the BRPs

Carrying out the settlement of funds transfers between eSett and the BRP over the settlement account, as instructed by eSett

Providing balance statements for the BRPs' settlement accounts

Issuing On-Demand Guarantees to eSett as collateral for BRPs

Due to the specific role that the settlement banks have in the Nordic Imbalance Settlement, certain procedures need to be followed before a bank is allowed to provide settlement bank services to BRPs. The required activities to establish the network of eligible settlement banks include the following:

1. The eligibility of the prospective banks to act as settlement banks has to be assessed

o Check that the bank has sufficient technical capabilities

o Check that the bank has a sufficient credit rating

2. Settlement Bank agreements to be signed with the approved banks

3. The connection to be tested with the approved banks

o Test Request for Transfer service

o Test Balance Reporting service

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

4. eSett has on its web page www.eSett.com published a list of banks that are ready to provide settlement bank services

If a bank wants to start providing settlement bank services at a later point, the steps above are carried out with the bank in question.

10.3 Required preparation by BRPs

The required activities by each BRP to establish the necessary setup for invoicing and collateral are as follows:

1. Inform eSett what bank the BRP would like to use as settlement bank.

2. Establish readiness to receive invoices (to be completed at the latest 2 months prior to go live)

o Establish an agreement with an e-invoice operator to receive e-invoices

o Agree with the e-invoice operator on the format in which eSett's e-invoices will be provided by the operator

o Inform eSett of the selected e-invoice operator and the BRP's e-invoicing address

o Implement interface for reading e-invoice into accounting system if e-invoicing is chosen

o Inform eSett of an email address to which the invoices should be sent as PDF files in case the BRP does not want to receive e-invoices or as an alternative method of invoicing

3. Establish settlement account (to be completed at the latest 2 months prior to go live)

o Open a settlement account in an approved settlement bank

o Sign the Pledged Cash Account Agreement

o Sign MT101- and MT940-documents at the settlement bank and send copies of them to eSett together with the Pledged Cash Account Agreement. MT101 and MT940 are bank specific forms and are available at each bank.

4. Post collateral (to be completed at the latest 1 week prior to go live)

o Post collateral in the form of cash or a bank guarantee, or a combination thereof, to meet the initial collateral requirement communicated by eSett

10.4 Required testing of invoicing, funds transfers and balance reporting

To ensure that all procedures related to invoicing, payments and collateral work as designed between all counterparties, the following tests will be carried out:

Testing with each BRP (as soon as the connection is established but at the latest 1 month prior to go live)

o Testing objectives:

Ensure that valid invoice messages are generated and transferred correctly through the invoice operators to the BRP

Ensure that valid funds transfer messages are generated and that the transactions are processed correctly by eSett's bank and BRP's settlement bank

Ensure that balance reports can be obtained correctly from BRP's settlement bank through eSett's bank and read into eSett's systems

o Testing participants: eSett, BRPs, eSett's bank and BRPs' settlement banks

o Testing activities:

eSett sends test credit note of small amount to each BRP

eSett credits the invoice amount to the settlement account of each BRP

eSett sends test invoice of same amount to each BRP

eSett direct debits the invoice amount from the settlement account of each BRP

eSett retrieves bank statement for each BRP's settlement account

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

10.5 Collateral requirements

Collateral is a precondition to operate as a BRP. Collateral can be placed as an on-demand guarantee, as cash collateral or a combination of these two. Predefined collaterals will be used during the transition period. These predefined collaterals can be adjusted if the circumstances change. TSOs and eSett have agreed to use common collaterals during the transition period when BRPs have financial commitments towards both TSOs and eSett. This has been agreed to limit the need for double collaterals to a minimum. A new dynamic model for calculating collaterals will be taken into use after transition period. For an overview of the new formula for calculating the dynamic level of collaterals, please view chapter 9 in the NBS Handbook. The collateral must be in place at the latest one week prior to go-live.

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

11 Contingency plan

The plan for contingency stated below is valid during the transition period, i.e. until all processes have been stabilized after go-live (as stated in section 2.2) approximately 3 months post go-live.

11.1 eSett

11.1.1 Minor disturbances

If eSett for any reasons is unable to perform the daily routines regarding imbalance settlement eSett will, based on the situation, take any proper means (in co-operation with involved TSOs) to as soon as possible retrieve normal operations according to the NBS model. Any actions taken will be communicated via the company homepage (www.eSett.com) and in any suitable way (given the circumstances). If the disturbance is judged as minor invoicing will be postponed until a steady state has been achieved.

11.1.2 Major disturbances

In case of a major disturbance (system failure, etc.) eSett will communicate necessary actions to market in the most appropriate way.

11.2 DSO

The main task for the DSOs in relation to the NBS model is to submit structural changes to eSett and report metering data. If a DSO for some reason is not able to report data electronically it is the liability of the DSO to submit structural data or metered data manually via Online Service or other with eSett agreed solution. This shall be done in accordance with stipulated gate closures and quality of data. If the market participants’ can´t report the settlement data electronically, due to disturbance in the market participants’ solutions, the settlement data shall be reported via the Online Service. If the reporting can´t be performed due to disturbance in eSett´s IT solution, the messages will be received in the same order as they have been sent to eSett, when the disturbance is over.

11.3 BRP

BRPs are obliged to report production plans, bilateral trades, etc. If the BRP for any reason is not able to report the settlement data electronically, due to a disturbance in the BRP IT-solution, the settlement data (i.e. bilateral trades) shall be reported via the Online Service or directly to the respective TSO

67.

If the reporting can´t be performed due to a disturbance in eSett´s IT solution, the messages will be received in the same order as they have been sent to eSett, when the disturbance is over.

6 Production plans shall be sent to the responsible TSO

7 Swedish Balance Responsible Parties are obliged to report i.e. bilateral trades to the control room of Svenska kraftnät

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eSett Oy

Läkkisepäntie 21

FI-00101 Helsinki Finland

P.O.Box 530

www. esett.com

12 Communication plan

This chapter contains the following guidelines for communication to and from eSett to the market participants.

Objectives and guiding principles for communication

Definition of communication scope

Definition of communication methods and channels

For an overall description of the communication within the NBS project see the NBS Handbook.

12.1 Communication Objectives and Guiding Principles

There are some key objectives for communication during the commissioning time, which are the following:

Making the transition from present market model to the NBS model as smooth as possible without

any delays for market participants

Making information available to all market participants during the transition period through easy

access on homepages but also via eSett customer service (through email and telephone).

Delivery of important commissioning messages to all market participants (incl. TSO)

12.2 Communication Scope

The following defines the areas where NBS/eSett communications extend to:

All eSett employees

Internal project-wide communications, including all Project Group members

Internal project and task management activities (e.g. status reporting, weekly status meetings).

Fingrid, Statnett and Svenska Kraftnät employees impacted by the project

External stakeholders participating or impacted by the project activities or impacted by the outcomes of the activities

12.3 Communication Channels

Method Channel Audience Frequency

Public Status Communication eSett homepage TSO homepages

Public On demand – minimum weekly

during the commissioning period

NBS / eSett newsletter

Publication to whom has subscribed the newsletter (from eSett's website), and those who

are Online service users

All internal project stakeholders in eSett and TSOs and external

stakeholders in reference group Monthly / Bi-monthly

Telephone (via customer service)

Telephone All market participants On need basis

Public communication LinkedIn All market participants On need basis

Table 11. Communication methods and channels during the transition period

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www. esett.com

13 Risks

The objective of risk management is to manage the risks related to the project or task, and to avoid, mitigate, or minimize their negative impacts to the project if realized. Risk management is a continuous process performed during the whole lifecycle of a project or a task.

13.1 Main commissioning risks

During the commissioning there are multiple risks that need to be accounted for. It is of importance that as

many risks as possible are avoided or mitigated so that the shift in market model is handled smoothly.

Figure 4. Risk matrix

Pro

ba

bil

ity

(%)

Impact (1-5)

5,0

4,5

4,0

3,5

3,0

2,5

2,0

1,5

1,0

0,5

5,04,54,03,53,02,52,01,51,00,5

Risk 7 Risk 6

Risk 5

Risk 4

Risk 3

Risk2

Risk1

1. eSett not able to carry out

settlement

2. Multiple DSOs have poor

readiness for Go-Live

3. NBS model misunderstood

4. Communication problems

5. Incorrect structure data

6. Multiple BRPs have poor

readiness for Go-Live

7. Customer Service availability

Risk matrix Top risks

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eSett Oy

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P.O.Box 530

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13.2 Mitigation actions

Based on the identified and assessed risks proper mitigations actions have been identified and a risk owner have been decided upon.

# Risk P I [P*I] Description Mitigations action(s)

1 eSett not able to carry out settlement 3 5 15 eSett is for any reason not able to carry out settlement

* UAT, FAT, SAT * Testing together with testing partners * Shadow settlement

2 Multiple DSOs have poor readiness for Go-Live 4 3 12 Multiple DSOs have failed to adopt to the NBS model

* Go-Live checklists * Information days * Continuous dialogue with local energy associations

3 NBS model misunderstood 3 3 9 The NBS model has been misunderstood and/ or misinterpreted

* Information days * Written material * Daily customer service

4 Communication problems 3 3 9 Market participants lack capabilities in communicating via market messages

* Enable multiple solutions for submitting market messages

5 Incorrect structure data 1 3 3 Structure data is missing or has been reported incorrect

* eSett to provide generic data * Provided templates * Structure verification by MPs

6 Multiple BRPs have poor readiness for Go-Live 1 3 3 Multiple BRPs have failed to adopt to the NBS model

* Go-Live checklists * Surveys on readiness

7 Customer Service availability 1 2 2 The available resources for customer service is not sufficient

* Local host representatives (TSO) * Stepwise approach * Many interfaces towards eSett

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eSett Oy

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P.O.Box 530

www. esett.com

14 Documentation

14.1 NBS Handbook

The purpose of the NBS Handbook is to provide an overview to the Nordic Imbalance Settlement Model from the market participant’s perspective. The handbook describes instructions, rules, regulation and standards which act as requirements for all market participants operating in different roles in the countries involved in the Nordic Imbalance Settlement. The handbook also highlights the national differences on areas of the imbalance settlement, which have not been harmonized between the countries. The handbook will be continuously developed so it always contains the latest available information of the Nordic Imbalance Settlement model and of related areas. The handbook will be updated every half year (and more frequently if needed). www.esett.com

14.2 Business Requirement Specification

The Business Requirement Specification (BRS) is detailing the document exchanges needed to perform a Nordic Balance Settlement, seen from the actors in the Nordic downstream energy market. The focus of the document is the technical aspects of the document exchanges and the basis for the documents to be exchanged are the ENTSO-E and ebIX® Implementation Guides and BRSs. In addition, the Harmonized Electricity Market Role Model from ENTSO-E, ebIX® and EFET is used for identifying the relevant roles used in the BRS. www.ediel.org (NBS)

14.3 XML User guide

The basis for the document is the BRS (see section 14.2 above) for Nordic Balance Settlement. The focus of the document is the technical aspects of the documents to be exchanged, which is based on the ENTSO-E Implementation Guides and ebIX® requirements. www.ediel.org (NBS)

14.4 XML example files

XML example files have been provided to facilitate the implementation of the new format. www.ediel.org (NBS)

14.5 Guidelines

14.5.1 Online Service - User guideline

A user guideline for the Online Service is under preparation and will be made available on the eSett homepage www.eSett.com/materials by the end of February 2016.

14.5.2 Communication guidelines

Guidelines for communication provides information about practicalities to establish a connection between eSett and market participants. The Communication guideline is available on www.eSett.com/materials.

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14.5.3 Guide to System vendor testing and test cases

A guideline that will be sent to all participants participating in the system vendor testing. Including detailed descriptions of the testing as well as connection details, etc.

14.5.4 Guide to OTR and test cases

A detailed guideline to OTR describing the details of the testing period as well as connection details. The Guide to OTR and test cases will be made available on www.eSett.com/materials prior to OTR.

34

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www. esett.com

15 Change log

Version Date Changes

V 3.01 2016.10.20 Correction of minor errors in the 3.0 version mainly to chapter 8

V 3.0 2016.09.15 New version of the commissioning plan based on the new time plan. Updates to all chapters.

V 2.31 2016.05.02 * Updates regarding prolonged connectivity testing. Connectivity testing is now also possible during weeks 20-21. * Minor updates to chapter 10 regarding final dates for testing of settlement bank setup.

V 2.3 2016.04.14 Chapter 2 – Figure and table has been detailed Chapter 3 – Minor adjustments Chapter 8 – Updated with modified time plan for later parts of the Operational Test Run. Chapter 9 – Clarification regarding reporting capabilities in Finland after go-live

V 2.2 2016.02.01 Chapter 1 – Minor changes Chapter 2 – Figure and table has been detailed Chapter 3 – Minor adjustments Chapter 4 – Minor updates regarding available documents and Online Service log-in credentials Chapter 5 – Added section 5.5 “Authorization for service providers”. Service providers shall be authorized to access customer data. Chapter 6 – Added and clarified the process for submitting initial structures and maintaining structures until parallel settlement and go-live. Information about Shadow settlement have been moved to chapter 8 “Operational Test Run” Chapter 7 – The chapter has been clarified and simplified and does now only contain information about testing activities prior to Operational Test Run. Section 7.4 has been clarified and very much detailed. Chapter 8 – The chapter has been added to focus solely on the Operational Test Run. Updates have been added to the timing of the different sequences of Operational Test Run and also details describing the goals of each sequence. Chapter 9 – The chapter regarding “Parallel reporting” has been moved to follow the logics of the testing. No other changes. Chapter 10 – Minor updates of dates for testing and signing of agreements Chapter 11 – None Chapter 12 – None Chapter 13 – None Chapter 14 – Added links to new information material

V 2.1 2015.11.01 Minor enhancements to the overall time plan picture and the go-live checklist for Retailers (RE)

V 2.0 2015.10.02 Chapter 1 – Minor updates Chapter 2 – Figure and table has been revised to reflect the new time plan Chapter 3 – Email addresses have been updated and are active Chapter 4 – Minor updates Chapter 5 – Updated text regarding establishment of MGAs in Finland and Norway Chapter 6 – Updated text and instructions regarding submittance of structure data. Chapter 7 – Added information about testing with system vendors. Updated the whole description of the OTR. Chapter 8 – Alignments towards the new time plan Chapter 9 – The chapter “Go-live readiness” has been removed Chapter 10 – Minor updates to the description of the parallel operations

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Chapter 15 – The chapter “Lessons learned” has been removed

V 1.0 2015.05.22 Chapter 2 – Figure 2 updated and table 1 regarding the time plan for commissioning has been added. Definition of transition phase has been updated. Chapter 3 – Date for activation of the email addresses to eSett updated Chapter 6 – Added further clarifications to section 6.3 Chapter 11 – Text has been further developed with regards to the time perspective

Chapter 13 – Minor updates to wording

V 0.9 2015.04.20 Updated version of the Commissioning plan for public review and commenting

V 0 2015.02.04 Initial version of the Commissioning plan for the Nordic Imbalance Settlement for reference group review.

16 Appendix

Appendix 1 - Guide to OTR and test cases

(www.eSett.com/materials/commissioning)