Cross-Codes Forum
18 October 2013

If there is an alarm, follow the instructions of the Fire Wardens
The evacuation point is here…
Evacuation Muster Point

Update on BSC
Modifications
David Kemp
18 October 2013

3
Active BSC Modifications
Mod Title Phase
P272 Mandatory Half Hourly Settlement for Profile Classes 5-8
P276
Introduce an additional trigger/threshold for suspending the market in the event of a Partial Shutdown
P283 Reinforcing the Commissioning of Metering Equipment Processes
With Authority
Awaiting Implementation
Awaiting Implementation
P286 Revised treatment of RCRC for generation BM Units
P291 REMIT Inside Information Reporting Platform for GB Electricity
P292
P294
Amending Supplier & Meter Operator Agent responsibilities for smart Meter
Technical Details
Addition of Offshore Transmission System and OTSUA to the definition of the Total
System
P295 Submission and publication of Transparency regulation data via the BMRS
P296
Introduction of a ‘Fast Track’ Modification Process following the outcomes of the
Code Governance Review (Phase 2)
P297 Receipt and Publication of New and Revised Dynamic Data Items
With Authority
Awaiting Implementation
Awaiting Implementation
Report Phase
Assessment Procedure
Awaiting Implementation
Assessment Procedure

4
BSC Modifications – P272 (1 of 2)
Who will be impacted by P272?
• Suppliers • DCs • MOAs • Distributors
• Issue:
• HH Settlement for PCs 5-8 not currently enforced
• New meters in PCs 5-8 must be ‘advance/smart’
• All PC 5-8 meters to be ‘advanced/smart’ by 2014
P272
Mandatory Half
Hourly
Settlement for
Profile Classes 5-
8
• Proposed Solution:
• All SVA Metering Systems for PCs 5-8 will be settled as HH from April 2014
• Alternative Solution:
• As Proposed, but from April 2015
Phase
With Authority
Contact
David Kemp
020 7380 4303 david.kemp@ele xon.co.uk

5
BSC Modifications – P272 (2 of 2)
• Panel’s Recommendation: Reject both Proposed and
Alternative
• Recommend implementation on 1 April 2014 (Pro) or 1
April 2015 (Alt)
P272
Mandatory Half
Hourly
Settlement for
Profile Classes 5-
8
• Currently with Authority for decision
Phase
With Authority
Contact
David Kemp
020 7380 4303 david.kemp@ele xon.co.uk

6
BSC Modifications – P276 (1 of 1)
Who will be impacted by P276?
• BSC Trading Parties
• Issue:
• Partial Shutdown would suspend entire Market
• Disproportionate for small localised Partial Shutdowns
• Approved Solution:
• Introduce Market Suspension Threshold
• If not met, Market continues as normal
• Does not affect Total Shutdowns
• Approved for implementation on 31 March 2014
• Authority: Better facilitates ABOs (b), (c) and (d)
P276
Introduce an additional trigger/threshold for suspending the market in the event of a Partial
Shutdown
Phase
Awaiting
Implementation
Contact
ELEXON
Change elexon.change@ elexon.co.uk

BSC Modifications – P283 (1 of 1)
Who will be impacted by P283?
• Metering System Registrants • Distributors • MOAs
• Issue:
• Hard to perform full commissioning of Metering Equipment
• Some equipment not within control of Registrant or MOA when commissioning required
P283
Reinforcing the
Commissioning of Metering
Equipment
Process
• Approved Solution:
• Relevant SO responsible for commissioning CTs/VTs & providing certificates/records
• MOAs would assess performance; notify Registrant of potential uncontrolled risks
• Registrant works with SO to minimise risks
Phase
Awaiting
Implementation
Contact
Claire Anthony
020 7380 4293 claire.anthony@e lexon.co.uk
7
• Approved for implementation on 6 November 2014
• Authority: Better facilitates ABOs (b), (c) and (d)

8
BSC Modifications – P286 (1 of 2)
Who will be impacted by P286?
• Generators • Indirect: Other BSC Trading Parties
• Issue:
• CMP201 proposes to remove BSUoS from generation BM
Units
• If approved, creates potentially anomalous situation where
Parties liable for RCRC but not liable for BSUoS
P286
Revised treatment of
RCRC for generation BM
Units
• Proposed Solution:
• Exclude generation BM Units from RCRC
• Generation BM Unit: BM Unit in a delivering Trading Unit
Phase
With Authority
Contact
David Kemp
020 7380 4303 david.kemp@ele xon.co.uk

9
BSC Modifications – P286 (2 of 2)
• Panel’s Recommendation: Approve
• Recommend implementation on 1 April 2015
P286
Revised treatment of
RCRC for generation BM
Units
• Currently with Authority for decision
Phase
With Authority
Contact
David Kemp
020 7380 4303 david.kemp@ele xon.co.uk

10
BSC Modifications – P291 (1 of 1)
Who will be impacted by P291?
• Transmission Company • BSC Parties
• Issue:
• REMIT requires public reporting of inside information
• Preference for use of central reporting platforms
P291
REMIT Inside
Information
Reporting
Platform for GB
Electricity
• Approved Solution:
• Place an inside information reporting platform on BMRS
• Messages submitted via Grid Code or ELEXON Portal
• Approved for implementation on 31 December 2014
• Authority: Better facilitates ABOs (b), (c) and (d)
Phase
Awaiting
Implementation
Contact
David Kemp
020 7380 4303 david.kemp@ele xon.co.uk

11
BSC Modifications – P292 (1 of 1)
Who will be impacted by P292?
• Suppliers • NHHMOAs • LDSOs • NHHDCs
• Issue:
• New operating model – only Suppliers will be able to configure Smart Meters under the DCC
• This has a direct impact on responsibilities for sending MTDs
•
• Approved Solution:
• Provide ‘hook’ in Code to enable implementation of detailed requirements (CP1388/CP1395)
Approved for implementation on 26 June 2014
• Authority: Better facilitates ABO (d)
P292
Amending
Supplier & Meter
Operator Agent responsibilities for smart Meter
Technical Details
Phase
Awaiting
Implementation
Contact
Simon Fox
020 7380 4299 simon.fox@elexo n.co.uk

12
BSC Modifications – P294 (1 of 2)
Who will be impacted by P294?
• Offshore Generators • Transmission Company
• Issue:
• Offshore generator required to install metering at Boundary
Point during development
• This metering becomes defunct when Offshore Transmission
Assets are transferred to the OFTO
• Proposed Solution:
• Amend definition of ‘Total System’
• Include ‘Offshore Transmission System’ and ‘OTSUA’
• Address confusion between BSC and Grid Code
• Remove requirement to install metering at Boundary Point
P294
Addition of
Offshore
Transmission
System and
OTSUA to the definition of the
Total System
Phase
Report Phase
Contact
David Barber
020 7380 4327 david.barber@el exon.co.uk

13
BSC Modifications – P294 (2 of 2)
• Panel’s initial Recommendation: Approve
• Final Recommendation at November meeting
• Recommend implementation 5WD after Approval
P294
Addition of
Offshore
Transmission
System and
OTSUA to the definition of the
Total System
Phase
Report Phase
Contact
David Barber
020 7380 4327 david.barber@el exon.co.uk

BSC Modifications – P295 (1 of 2)
Who will be impacted by P295?
• Transmission Company • Potential: Interconnector Administrators
• Issue:
• Transparency regulation requires data to be published on
EMFIP
• TSOs provide this information to ENTSO-E
P295
Submission and publication of
Transparency regulation data via the BMRS
• Proposed Solution:
• BMRA act as data provider for National Grid’s data
• Data also published on BMRS
14
• Potential Alternative Solution:
• As Proposed, but with Interconnector data also published on
BMRS
• Int. Administrators to submit info to BMRA in parallel with submitting to ENTSO-E
Phase
Assessment
Procedure
Contact
Talia Addy
020 7380 4043 talia.addy@elexo n.co.uk

15
BSC Modifications – P295 (2 of 2)
• Undergoing assessment by Workgroup
• Assessment Report to Panel in November
• Proposing implementation on 31 December 2014
P295
Submission and publication of
Transparency regulation data via the BMRS
• Report Phase Consultation will be issued in November Phase
Assessment
Procedure
Contact
Talia Addy
020 7380 4043 talia.addy@elexo n.co.uk

16
BSC Modifications – P296 (1 of 1)
Who will be impacted by P296?
• BSC Panel
• Issue:
• CGR2 introduces new ‘Fast Track’ Modifications
• Required to be introduced into BSC
• Approved Solution:
• Introduce new ‘Fast Track’ process into BSC
• Used to progress minor housekeeping changes quickly
• Approved for implementation on 6 November 2013
• Authority: Better facilitates ABOs (a) and (d)
P296
Introduction of a
‘Fast Track’
Modification Process following the outcomes of the
Code Governance
Review (Phase 2)
Phase
Awaiting
Implementation
Contact
Claire Anthony
020 7380 4293 claire.anthony@e lexon.co.uk

17
BSC Modifications – P297 (1 of 2)
Who will be impacted by P297?
• Transmission Company
• Issue:
• Grid Code EBS Group has made changes to the Dynamic
Data Set
P297
Receipt and
Publication of
New and Revised
Dynamic Data
Items
• Proposed Solution:
• Amend BSC to ensure data on BMRS corresponds with data submitted to Transmission Company by Parties
Phase
Assessment
Procedure
Contact
Claire Anthony
020 7380 4293 claire.anthony@e lexon.co.uk

18
BSC Modifications – P297 (2 of 2)
• Undergoing assessment by Workgroup
• Assessment Report to Panel in November
• Proposing implementation on 6 November 2014
P297
Receipt and
Publication of
New and Revised
Dynamic Data
Items
• Currently out for Assessment Consultation
• Responses due by 24 October
• Report Phase Consultation will be issued in November
Phase
Assessment
Procedure
Contact
Claire Anthony
020 7380 4293 claire.anthony@e lexon.co.uk

19
Consultations
• Current Consultations:
• P297 Assessment Consultation – responses due by 24 October
• Upcoming Consultations:
• P295 Report Phase Consultation – November
• P297 Report Phase Consultation – November
This will be your final chance to comment on these Modifications

Where can I find more information?
20 www.elexon.co.uk/change/modifications/

21
Adam Lattimore
020 7380 4363 adam.lattimore@elexon.co.uk
David Barber
020 7380 4327 david.barber@elexon.co.uk
Any Questions?
Claire Anthony
020 7380 4293 claire.anthony@elexon.co.uk
David Kemp
020 7380 4303 david.kemp@elexon.co.uk
Simon Fox
020 7380 4299 simon.fox@elexon.co.uk
Talia Addy
020 7380 4043 talia.addy@elexon.co.uk

Place your chosen image here. The four corners must just cover the arrow tips.
For covers, the three pictures should be the same size and in a straight line.
Adam Hipgrave
Cross Codes Forum
18 October 2013

Change raised
Panel decision on progression
Urgent process
Workgroup assessment
Industry consultation optional
Panel
Vote
Final report to Ofgem
Appeal to
Competition
Commission
Ofgem decision to approve or reject
23

 CMP201 – Removal of BSUoS charges from
Generators
 Seeks to align GB arrangements with other EU Member States by removing BSUoS charges from GB Generators.
 Panel voted on 26 April 2013 and Final Report sent to Ofgem on 9 May 2013.
 Ofgem will be publishing their Impact Assessment shortly
24

CMP213 – Project TransmiT TNUoS Developments
 Made up of 3 main elements – Network Capacity Sharing,
Inclusion of HDVC in the charging calculation and inclusion of island links into the charging methodology.
 Complex and extensive Workgroup process.
 26 Workgroup Alternative CUSC Modifications (WACM)
 Panel voted in May that 8 of the 26 WACMs better facilitated the Objectives.
 Final Report sent to Ofgem on 14 June 2014.
 Impact Assessment closed on the 10th October 2013, awaiting
Ofgem decision.
25

 CMP218 – Changes required for use of new banking product to hold Users’ cash securities
 Seeks to facilitate the use of a new banking product by
NGET.
 Raised in March 2013 and is being progressed as Selfgovernance.
 Code Administrator Consultation closed on 4 July 2013.
 The Panel voted unanimously that CMP220 better facilitates the Applicable CUSC Objectives.
 Implemented on 16 th October 2013.
26

 CMP219 – CMP192 Post Implementation Clarifications
 Seeks to address issues with the legal text for CMP192
(Arrangements for Enduring Generation User
Commitment) identified following its implementation.
 Raised in June 2013.
 Code Administrator Consultation was published on the
2 October 2013 and closes on 30 th October2013.
 Being progressed as self-governance; Panel
Determination Vote to be carried out in November.
27

 CMP221 – Interruption Compensation in the absence of
Market Suspension during Partial Shutdown
 Seeks to extend the existing CUSC compensation to cover Settlement Periods during a Partial Shutdown where market operations continue.
 Raised in September 2013.
 Code Administrator Consultation was published on the
1 st October and closes on 29 th October.
28

 CMP222 – User Commitment for Non-Generation Users
 Generation user commitment for pre- and postcommissioning sites was introduced into the CUSC in
April 2012 for April 2013 go-live.
 Seeks to introduce enduring user commitment arrangements for interconnector and demand users by
April 2015.
 Raised September 2013.
 First Workgroup meeting to be held on the 18 th October.
29

 CMP223 – Arrangements for Relevant Distributed
Generators under the Enduring Generation User
Commitment.
 Seeks to address issues associated with the way liability and security terms and conditions are set and calculated for distribution connected generators
 Raised September 2013.
 First Workgroup meeting to be held on the 18 th October.
30

 CMP224 – Cap on the Total TNUoS Target Revenue to be recovered from Generation Users
 Seeks to ensure that the average annual generation transmission charges remain within the current prescribed European Commission range until December
2014, and within the revised range (if modified after
ACER’s review) that may come into force from 1st
January 2015.
 Raised September 2013.
 First Workgroup meeting to be held on the 24 th October.
31


• cusc.team@nationalgrid.com

• http://www.nationalgrid.com/uk/Electricity/Codes/systemcode/
32

Place your chosen image here. The four corners must just cover the arrow tips.
For covers, the three pictures should be the same size and in a straight line.
Adam Hipgrave
National Grid
Commercial Analyst - European Code Development
Transmission Network Services | Markets & Balancing Development
National Grid House, Warwick Technology Park, Warwick, CV34 6DA
T: 01926 656191 M: 07825193568
E: adam.hipgrave@nationalgrid.com

Place your chosen image here. The four corners must just cover the arrow tips.
For covers, the three pictures should be the same size and in a straight line.
Adam Hipgrave
Cross Codes Forum
18 October 2013

GC0042 Information on Embedded Small
Power Stations and Impact on Demand
 The Workgroup determined that further information than what is currently provided under PC.A.4.3.2 is required to enable National
Grid to efficiently plan and securely operate the transmission system.
 A list of additional requirements was agreed upon for each Embedded
Small Power Stations (ESPS) of 1 MW and above
 The Distribution code will be be reviewed to enable the DNOs to capture any additional information that they are currently not entitled to receive
 Implementation date for the above information to be submitted was agreed to be the Calendar Week 24 data submission beginning 2015.
 Workgroup Report was presented at the September GCRP.
 Industry Consultation anticipated early 2014 (in line with the DCode).
35

GC0050 Demand Control and OC6
 The Workgroup was tasked with assessing the existing capabilities of the industry to implement Demand Control instructions and evaluate whether current requirements are still fit for purpose.
 The Workgroup determined and assessed:
 The need for, and requirements of, Demand Control Instructions
 Existing capabilities of the DNOs to implement Demand Control
Instructions
 The costs, benefits and risks of any actions necessary to ensure that
DNOs can implement the required Demand Control Instructions in the required timescales under future system requirements
 Demand Reduction tests ongoing during October
 GC0050 Workgroup Report to be presented to January GCRP.
36

GC0063 Power Available
 The Workgroup have defined and critically reviewed the deficiencies
 A number of options have been considered, and the
Workgroup are likely to recommend
 the submission of Power Available as an operational metering signal which would be fed to the National Grid Control Centre via
SCADA with the definition of MEL used to indicate electrically connected capacity.
 There are still questions regarding the costs of implementation, and retrospective application that require further analysis
 The Workgroup is expected to present the Workgroup
Report at the November GCRP and carry out an Industry
Consultation during December.
37

GC0035 Frequency Changes during Large
Disturbances and their effect on the total system
 The joint DCRP and GCRP Workgroup is examining how the maximum rate of change of frequency (RoCoF) seen by the electricity networks in GB is likely to increase, and how this impacts on the effectiveness of RoCoF based Loss of
Mains (LOM) protection.
 Phase 1 (5-50MW Total Registered Capacity)
 Workgroup report presented in July
 Recommended changing RoCoF to 1Hzs -1 measured over 500ms
 Industry Consultation closed on 27 September
 Workgroup are reviewing the responses before presenting their recommendation to Ofgem
 Phase 2
 Incorporates sub 5MW machines, inverter technology and multi-machine islands
 Requests for proposals for two independent studies will be published soon
 Workgroup will develop RoCoF withstand requirements
38

Other areas of note
 GC0033 (Offshore Wind Farms not connected to an
Offshore Transmission System)
 The Authority decision is expected on 22 October
 GC0037 (BMU Configurations Offshore)
 National Grid are reviewing the Industry Consultation response
 GC0071, 72 and 73 (Code Governance Phase 2
Modifications)
 The Authority decision is expected on 18 October
39


• grid.code@nationalgrid.com

• http://www.nationalgrid.com/uk/Electricity/Codes/gridcode/
40

Place your chosen image here. The four corners must just cover the arrow tips.
For covers, the three pictures should be the same size and in a straight line.
Adam Hipgrave
National Grid
Commercial Analyst - European Code Development
Transmission Network Services | Markets & Balancing Development
National Grid House, Warwick Technology Park, Warwick, CV34 6DA
T: 01926 656191 M: 07825193568
E: adam.hipgrave@nationalgrid.com

Michael Walls
Governance Services Senior Analyst – ElectraLink Ltd.
Email: michael.walls@electralink.co.uk
Tel: 020 7432 3014

• The Distribution Connection and Use of System Agreement is a multi-party contract between the licensed electricity distributors, suppliers and generators of Great Britain
• The DCUSA defines the rules for connecting and using the UK’s electricity network distribution systems
• It is essentially a legal contract which commenced on 6 October
2006
• Parties to the DCUSA include: DNOs, Suppliers, IDNOs, DG, Gas
Suppliers and OTSO

DCUSA website review
Smart Metering
Induction training sessions
Next DCUSA
Release 7
November 2013
31 Change Proposals in progress
21 of those are
Charging Related
Theft of
Electricity (CoP)
Code
Administration
Code of Practice

DCUSA Change Process - Overview
Pre-Change Process
(Charging methodology changes)
CP raised
Parties
Panel
Secretariat
Ofgem
Initial
Assessment
Change Report
Working Group
Assessment
Modelling
Resource
Industry
Consultation
Party Voting Change
Declaration
Implementation
Authority
Consent

Overview of the DCMF MIG Pre-Change Process
Originator
Issue submitted
Decision
DCMF MIG
Issue defined
DCMF
Recommendation
From Pre-Change Process to formal DCUSA Change Process
Modelling Resource Industry Consultation
DCUSA
Outcome
CP Raised
Working Group
Change Report
Voting
Implemented

• The governance and change management processes for the Common Distribution Charging
Methodology (CDCM) were implemented into the DCUSA on 01 January 2010.
• The governance and change management processes for the EHV Distribution Charging
Methodology (EDCM) (import) were implemented into the DCUSA on 01 April 2012.
• The governance and change management processes for the Common Connection Charging
Methodology (CCCM) were implemented on 30 October 2012.
• The governance and change management processes for the EDCM (export) were implemented on 01 April 2013.
• As the methodologies will be common among all DNOs, this brings about many improvements, such as:
– More transparency, and as the complexities of the methodologies have been agreed, dialogue among all Parties have to be taken into account for any change; and
– When there is a change brought about by any Party, all DNOs must implement it and model the changes.

• Unless otherwise agreed, the NTC is the connection agreement between the end user and the distributor
• When you enter into your electricity supply contract with your supplier, you are also entering into a connection agreement with your electricity network operator on these terms

Status
WG: Pre
Consultation
CDCM
7 (DCP 133, 159, 160, 161,
165, 178, 179)
EDCM
1 (DCP 138)
CCCM
1 (DCP 172)
WG: Consultation 1 (DCP 158) 3 (DCP 162, 166,
167)
WG: Post
Consultation
Change Report
Voting
Awaiting Consent
Approved: Awaiting
Implementation
Approved:
Implemented
Rejected
8 ( DCP 137, 123, 117, 168,
169, 173, 174, 180)
1 (DCP 118)
10 (DCP 130, 126, 131, 132,
134, 136, 150, 163, 128,
129)
1 (DCP 164)
1(DCP 152)
1 (DCP 139)
1 (DCP 140)
Total 28 3 5
Billing
5 (DCP 142, 144,
146, 147, 148)
4 (DCP 141, 145,
143, 149)
9

DCP Title
DCP 117 Treatment of ‘Load related new connections & reinforcement
(net of contributions)’ in the Price Control
DCP 123 Revenue Matching Methodology Change
Status
Working Group considering progression routes for the CP
Awaiting consultancy support
DCP 133
DCP 137
DCP 138
DCP 158
DCP 159
500 MW network common model for CDCM input
Introduction of locational tariffs for the export from HV generators in areas identified as generation dominated.
Implementation of alternative network use factor (NUF) calculation method in EDCM
DNO DUoS re EDNOs
Volumes data in the CDCM
Impact analysis to be completed in
January 2014
Awaiting consultancy support
Awaiting Ofgem decision on
Network Use Factor proposals
Working Group reviewing consultation responses
Awaiting consultancy support

DCP Title Status
DCP 160 Non-Half Hourly (NHH) Notional Capacity Awaiting outcome of DCP 165 before progressing
DCP 161 Excess Capacity Charges
DCP 162 Non-Secure Connections in the Common Connections Charging
Methodology
Working Group is drafting a consultation which will be issued shortly
Working Group reviewing consultation responses
DCP 165 Voltage Level Approach to Unit Charges in the CDCM
DCP 166 Additional text for the DNO Common Connection Charging
Methodology to provide clarity where a customer requests a supply voltage in excess of the ‘minimum scheme’ for the capacity requested.
DCP 167 Additional examples for the Common Connection Charging
Methodology to illustrate ‘remote reinforcement and remote reconfiguration’
DCP 168 The Administration of Use of System charges relating to connections from Embedded Distribution Network Operator
(EDNO) systems to Unmetered Supplies (UMS) for LA customers.
Awaiting outcome of DCP 179 before determining how to progress
Working Group reviewing consultation responses
Working Group reviewing consultation responses
Working Group is reviewing the consultation responses and determining how to progress

DCP Title Status
DCP 169 Seasonal Time of Day (SToD) HH Metered Tariffs in the CDCM Awaiting the progression of DCP
123
DCP 172 Clarification of way in which voltage rise is used in determining the New Network Capacity
DCP 173 Retrospective changes of Tariff (LLFC / Unique Identifier)
DCP 174 Qualification and application of LV sub-station tariffs
Working Group drafting consultation document
The Working Group will issue a second consultation on legal text and progression routes in due course
Change Report will be issued to
Parties for voting today
DCP 178 Notification period for change to use of system charges
DCP 179 Amending the CDCM tariff structure
Working Group drafting consultation document
Awaiting consultancy support
DCP 180 Further reduction in the volatility of Use of System Charges Working Group reviewing consultation responses

DCP
DCP 142
Title
Using D2021 for all invoices/credit notes if it is used at all
DCP 144 Prohibiting rounding of HH data
Status
Implemented 1 October 2013
Implemented 1 October 2013
DCP 146
DCP 147
HH invoice runs
Preventing UoS invoices containing non-UoS elements
DCP 148
DCP 171
Rebilling to be done via credit/rebill
Housekeeping re Black Yellow Green
DCP 177 Housekeeping change relating to DCP 127 to allow Gas
Suppliers accession to DCUSA
DCP 184 Housekeeping change following implementation of DCP127
Implemented 1 October 2013
Implemented 1 October 2013
Implemented 1 October 2013
Implemented 1 October 2013
Implemented 1 October 2013
Implemented 1 October 2013

Charging Methodology CPs and DCMF/DCMF MIG
– Roz Timperley rosalind.timperley@electralink.co.uk
– Michael Walls michael.walls@electralink.co.uk
DCUSA CPs, CCCM CPs and DCUSA SIG
– Claire Hynes claire.hynes@electralink.co.uk
Telephone – 0207 432 3011

Verena Leckebusch
Governance Services Coordinator – ElectraLink Ltd.
Email: spaa@electralink.co.uk
Tel: 020 7432 2840

 Multi-party agreement: inter-operational arrangements between gas suppliers & transporters
 Domestic gas suppliers and gas transporters required to accede
 SPAA - Agreement
 24 Sections: Administration and governance arrangements
 34 Schedules (mandatory/elective/voluntary): Pre-payment arrangements, erroneous transfers, duplicate meter points, crossed meters, Metering Schedule data, Theft of Gas arrangements et al.
 Market Domain Data (incl. market participant short codes, meter and converter models)
 SPAA Products
 Review of Gas Metering Arrangements (RGMA)
 AMR Processes
 Code of Practice for Gas Meter Asset Managers (MAMCoP)
56

Executive Committee SPAA Board
Change
Board
Expert
Group
GPEG
MAMCoP
Theft of
Gas
TRAS Forum FACC
Code Administrator and Secretariat (CAS)
57

Last date for submission of CPs
Provide Comments Change Board Formal Minutes
Change Pack Issued Issue comments and voting indications
If CP modified proposer to send confirmation to SPAA
CCA
Appeals Close
D - 19
D - 18
Ofgem Receive
Change Pack
D - 8
D - 5
Ofgem to say if disagree on the need for Authority Consent
D -18 – D-0
D - 0
D + 4
D + 5
D + 15
Key
SPAA CCA
SPAA Party
Ofgem
58

Smart Consequential Changes
 Background
 Smart Metering Implementation Programme “Legacy System Changes (Enduring)” 2011
 Cross-code Smart Working Issues Group (SWIG): identification changes UNC, iGT UNC & SPAA
 SPAA Changes
 Modifications to SPAA & SPAA Products (RGMA, MDD): smart meter values and market participants (values and procedures for retrospective changes)
Theft of Gas Arrangements
 Theft of Gas Code of Practice (CoP)
 Implemented in March 2013
 Further enhancements (e.g. unregistered & shipper-less sites; Data Protection Act)
 Version 2.0 to be implemented in February 2014
 Theft Risk Assessment Service (TRAS)
 Supply Licence condition: Service to assist efforts to detect theft by using data to profile the risk of gas theft at premises
 Ongoing; CP 13/239 on TRAS arrangements awaiting implementation

Ofgem Code Governance Review (CGR) Phase 2
 Aim to reduce red tape and ensure consistency across codes
 Changes to enact CGR2 final proposals/ Licence conditions due by 31 December 2013
Code of Practice for Gas Meter Asset Managers (MAMCoP)
 Version 3.0 to be implemented in November (MAM CP 12/001)
 MAM CP 13/002 ‘Ensuring Supply Contracts Are In Place Before Meter Fits’
 Audit and Governance Review in view of Registration Agent re-procurement in 2014
Ofgem Approved Meter Installers (OAMI)
 OAMI = registered meter installers  Ofgem codes of practice
 Opportunities to bring OAMI under SPAA governance? (current contract still runs until 2016)
Further Activities: reconciliation MDD and UK Link data; review Metering Schedule Report

CP Number
CP 13/241
CP 13/240
CP 13/237
CP 13/236
CP 13/235
CP 13/234
CP 13/231
Name Status
Smart Consequential Changes
Gas Smart Metering System Operator (SMO) Retrospective Update
Process
Awaiting implementation
Smart changes to Schedule 31 'Procedure for the resolution of Crossed Appeal Window Open
Meters'
Gas Smart Metering Retrospective Update Process
Amendment to Schedule 20 to update with new Meter Mechanism codes
Rejected (Published as SPAA
Guideline)
Implemented (SPAA 9.5)
Inclusion of SMSO Id as MDD Market Participant
Amendment to Schedule 23 for the Foundation Stage of the Smart
Metering Implementation Programme
RGMA Changes for Smart
TRAS Arrangements: TRAS Product
TRAS
Implemented (SPAA 9.6)
Implemented (SPAA 9.6)
Appeal Window Open
Awaiting Implementation CP 13/239
MAMCoP
MAM 13/002 Ensuring Supply Contracts Are In Place Before Meter Fits
MAM 12/001 Approve MAMCoP version 3.0
CP 13/243
CP 12/227
Further Changes
Changes to the Debt Assignment Protocol Process
Mandating Schedule 22 for Small Transporters
Deferred
Awaiting Implementation
Deferred
Awaiting Implementation

Verena Leckebusch
Governance Services Coordinator – ElectraLink Ltd.
Email: spaa@electralink.co.uk
Tel: 020 7432 2840

The Supplier Obligation and Setting CfD
Payments
Mark Bygraves, Director of Strategy and Development
18 October 2013

64
Content
• Background to ELEXON and to our CfD Settlement Agent role
• How is Generator CfD payment and Supplier Obligation calculated
• How is Supplier Obligation collected in the meantime (Fixed vs
Variable Levy)
• Backstops to provide certainty of payment to Generators
• Next Steps

65
ELEXON and our Settlement Agent Role
• ELEXON’s existing balancing and settlement role
• We make sure that payment for imbalances in wholesale electricity supply and demand is settled accurately, fairly and efficiently
• ELEXON’s new Settlement Agent (SA) role for EMR
• April 2013 DECC confirmed intention to appoint ELEXON as SA for CfD & CM
• DECC: “ELEXON’s expertise and the fact that it already collects and processes the data that will be required for this work puts it in a unique position in the electricity market to fulfil the role as settlement agent for EMR”
• SA role to be separate from BSC role (both not for profit)
• Role driven by contract with CP, Supplier Obligation Regulations and CfD Ts&Cs
• DECC publications:
• CfD Supplier Obligation Policy update and response to call for evidence 7 August
• More information in October consultation

Contract for Difference (CfD)
66
Source: UK Government White Paper, July 2011, licensed under the Open Government
Licence v1.0

CfD Contract
CFD Flows
Licence Obligation
67
CfD
Generator
£ CfD Payment
SP>RP
£ CfD if RP>SP
CfD
Counterparty
(CP)
£ CfD Costs Levy
£ Operating Costs Levy
Licensed
Suppliers
Collateral if RP>SP
Collateral & Backstops
Reconciliation £
BSCCo
(ELEXON)
Generation Volumes
Supplier Volumes
Services
Contract
Settlement
Agent
(ELEXON)
Reference Price (RP) Data
• Supplier Obligation: to ensure that CP can meet its contractual obligations and provide certainty to Generators they will be paid
• Non payment is breach of Supply Licence

Lifecycle of CfD Generation Project
68
Phase 1
•Policy
Framework
Established
•Legislation
Takes Effect
•Stakeholders
Prepare for Go-
Live
DECC
Phase 2
•Allocation
Process
•Application, assessment and
CfD contract award
•CfD is signed by
CP
Delivery Body (NG)
Generator
Phase 3
•Project Achieves
Financial Close
•Substantial
Financial
Commitment
Satisfied
•Commissioning of project begins
Counterparty
Generator
Phase 4
•Conditions
Precedent satisfied under contract
•Generation commences
Counterparty
Generator
Phase 5
•Payments start under the CfD
•Updates to contractual parameters
(indexation, reference prices)
•Contract expires
Settlement Agent
Counterparty
Generator
Phase 6
•Potential for contract variation (e.g. change in law)
•Contract termination
Counterparty
Generator
Setting of eligibility criteria and technology allocation parameters
Strike Prices
Managing the process for application and allocation of CfDs
Offer contract
Reserve fund(s) and collateral
Invoicing and data reconciliation
Handling receipts and payments
Manage disputes
• Allocation Process begins as First Come First Served. Moves to auction in future
• HMT Levy Control Framework is a financial cap, so limits number of projects
• Early or special projects (“FIDe”) have own negotiation with DECC, avoiding Phases 1 & 2
• Collection of levy from Suppliers not shown

69
How is Generator CfD Payment and
Supplier Obligation Calculated?
1. For each
CFD/FIDe:
Strike
Price –
Ref. Price
MWh
CfD
Payment
Strike price: technology specific, as adjusted by CFD/FIDe terms
Reference price: day ahead or season ahead
Generation metered volumes from BSC (HH volumes), private wire arrangements or NI
Calculated half hourly, payable daily
2. For each
Supplier:
Total CfD
Costs
Supplier’s
Market
Share
Supplier
Obligation
Total payments to Generators under CfDs and FIDe
And operating costs of Counterparty and the Settlement Agent
Based on volume of eligible electricity supplied each HH
EII volumes discounted
Calculated half hourly

How are CfD Payments from Suppliers
Collected in Meantime?
Total CfD
Costs
Forecast
Market
Demand
Forecast
£/MWh
“Fixed”
POA Levy
70
In advance, CP forecasts total annual CfD/FIDe costs
CP forecasts total annual electricity demand
EII eligible volumes discounted
CP derives annual Fixed Rate
Levy expressed in £/MWh
Really a Payment on Account or POA
• Fixed POA Levy £/MWh designed to provide Suppliers with some certainty on costs to include in customer tariffs
• Suppliers charged using POA x Supplier’s actual Gross Demand for each HH (aggregated into daily billing periods)
• Billing period of 1 day; invoiced 7 days after; payable within 5 days
• CP also estimates operating costs of CP (incl SA) to derive separate
Operating Cost Levy (£/MWh)

71
Backstops to Ensure Certainty of Funds to
Pay Generators
CP can withhold payments to Suppliers if insufficient funds. So:
Reserve Fund • Acts as working capital and held in cash
• Lump sum determined by CP’s model, paid annually and reconciled
• Suppliers pay based on market share
Collateral
Insolvency
Reserve Fund
Mutualisation
• To cover Supplier Default
• Cash and Letters of Credit, not PCG
• Amount based on time between billing period and payment for that period
• Cash and Letters of Credit, not PCG
• Called upon when Suppliers’ collateral exhausted
• Lump sum paid annually, amount based on potential exposure if small Supplier(s) default
• Used to recover unpaid levy of defaulting Supplier(s)
• Tops up Insolvency Fund
• From non insolvent Suppliers, based on market share at time of mutualisation
SOLR/ESCA • Supplier of Last Resort – effective mainly to cover small Suppliers
• Energy Supply Company Administration regime – appointment of energy administrator to run the Supplier

Next Steps
72
• ELEXON is currently:
• Identifying requirements of the settlement system
• Identifying changes to BSC to provide relevant information to SA
• Preparing to establish new EMR SA business
• Further information on Supplier Obligation in October consultation
• Primary legislation in force this winter and Secondary Regulations in force “July 2014”*; Payments ready to flow “End 2014”*
* Source “CfD Supplier Obligation Policy update and response to call for evidence” 7 Aug
• Industry needs to know:
• Timing of first CfD/FIDe payments
• Timing of first levy collection, and of collection of backstop funds
• Amount of levy rates (CfD and Op costs) and amount of backstops
• Timing of notification of levy rates and backstops, to include in tariffs
• Over recovery pay back to Supplier

Cross-Codes Electricity
Forum:
Smart Update
Victoria Moxham
18 October 2013

Source: www.gov.uk
74
Recap

75
August: Key roles announced
Data and Communications Company
• Capita PLC
• Under licence regulated by Ofgem
Smart energy code administrator and secretariat
• Gemserv
Data Service Provider
• GCI IT UK Limited
Communications Service Provider
• Arquiva Limited
• Scotland & North of England
Communications Service Provider
• Telefonica UK Limited
• Wales & rest of England

76
SMIP working groups
Source: www.gov.uk

77
Publications & updates
• Ofgem’s response to DECC’s open letter on proposed amendments to non-domestic roll-out licence conditions (23 Aug)
• Supplier reporting to Ofgem during the smart meter roll-out (30 July)
• Ofgem’s response to DECC’s further consultation the Foundation Smart
Market (7 June)
• Ofgem’s response to the Department of Energy and Climate Change’s
(DECC) consultation on the draft legal text to support transitional arrangements for Smart Metering (20 May) https://www.ofgem.gov.uk/electricity/retail-market/metering/transitionsmart-meters

78
Publications & updates
• Smart Meters statistics (26 Sep)
• Designation of the Smart Energy Code and charging methodology (23
Sep)
• Foundation Smart Market: The Government Response to the
Consultation on the Foundation Smart Market and Further
Consultation (27 Aug)
• Smart metering equipment technical specifications: second version (24
July) https://www.gov.uk/government/policies/helping-households-to-cuttheir-energy-bills/supporting-pages/smart-meters

BSC Changes
79
Modification Proposal P292
• ‘Amending Supplier & Meter Operator Agent responsibilities for smart Meter Technical Details’
• Approved by Ofgem in June
• Will enable the changes to Supplier and Non-Half-Hourly Meter
Operator Agent (NHHMOA) responsibilities for smart Meter
Technical Details (MTD) proposed by the Department of Energy and Climate Change’s smart metering operating model
• Due to be implemented June 2014
• http://www.elexon.co.uk/mod-proposal/p292/
• http://www.elexon.co.uk/release/june-2014-release/

80
Profiling and Settlement Review Group
(PSRG)
• ELEXON is reviewing the BSC profiling and settlement arrangements in light of the recent advances in metering and the rollout of smart meters developments
• PSRG established in March 2010 by the Supplier Volume Allocation
Group (SVG) to assist in this review
• Current focus (Stage 2): how to maintain accuracy, equitability and efficiency of the profiling and settlement processes
Improving the existing profiling approach
Mandating half hourly settlement
Reducing the settlement timetable
How GSP Group
Correction Factor could be applied to half hourly meters

81
Where to find further information
• Monthly updates provided by ELEXON to the BSC Panel
• http://www.elexon.co.uk/group/the-panel/
• Smart metering pages on the ELEXON website
• http://www.elexon.co.uk/reference/smart-metering/
• Profiling and Settlement Review Group
• http://www.elexon.co.uk/group/profiling-and-settlement-reviewgroup-psrg/

Place your chosen image here. The four corners must just cover the arrow tips.
For covers, the three pictures should be the same size and in a straight line.
Adam Hipgrave
Cross Codes Forum
18 October 2013

The challenge: Achieving a harmonised European energy market

 3 regulations and 2 directives.
 Adopted July 2009, law since March 2011
 Key step forward in developing a (more) harmonised European energy market
 Separation of ownership of monopoly energy transmission activities
 Formation of European Transmission System bodies, ENTSOG and ENTSO-E
 Formation of ACER – Agency for Cooperation of Energy Regulators
Security of supply
Sustainability Competitiveness
84

European Network Code Development Process
Commission starts development process
ACER develops
FWGL
6 months
Commission invites
ENTSO to develop
Network
Code
ENTSO develops
Network
Code
Stakeholder Engagement
To fit work programme
1 year
ACER reviews
Network
Code
1 year?
Comitology
Commission
3 months
By 2014
Network Code becomes Law
85

 ENTSO-E workshops and consultations
 http://www.entsoe.eu
 Joint European Standing Group: GB stakeholder workshops and consultations facilitated by National Grid
 http://www.nationalgrid.com/uk/Electricity/Codes/systemc ode/workingstandinggroups/JointEuroSG/
 DECC / Ofgem Stakeholder Group
 http://www.ofgem.gov.uk/Europe/stakeholdergroup/Pages/index.aspx
86

Grid Connection
Codes
Requirements for
Generators
Demand Connection
Code
HVDC
Market Codes
CACM
Forward Capacity
Allocation
Balancing
System
Operation Codes
Operational
Security
Operational Planning and Scheduling
Load-Frequency
Control and Reserves
87

European Network Code Development Status: October 2013
6 months
To fit work programme 12 months 3 months
ACER recommends
Network Code to EC
ACER develops
FWGL
EC invites
ENTSO-E to develop
Network
Code
ENTSO-E develops
Network
Code
ACER reviews
Network
Code
Revisions to
Code after
Opinion
ACER revises opinion
Grid Connection
CACM
System Operation
Balancing
Developed by EC*
1 year (?)
Comitology
Network Code becomes Law
Member State
Implementation
1 2 3 4 5 6 7 8 9 10 11 12 Preparation
Drafting Approval Public
Consultation
Revise
Code
Approval
* Areas developed by EC follow a different development process and there are no Framework Guidelines.
† Governance Guidelines prepared by Commission are being merged with CACM NC.
Member State
Approval
Council & Parliament
Approval
88

TODAY
KEY
Activities undertaken by ACER
Activities undertaken by ENTSO-E
Activities undertaken by European Commission
Comitology process - led by Commission
Entry into Force / Applicability of Requirements
TODAY
2012 2013 2014 2015 2016
Network Code
Transparency
Regulations
Capacity Allocation and Congestion
Management
Drafting of
Regulation
(started as an ERGEG document, later become a
Commission document)
Me mb er
Stat
Comitology
Parliamentary Approval
Drafts Manual of Procedures
ENTSO-E
Drafting
Finalise
ACER
Review
Commission drafting of
Governance Guidelines
Implementation period of 18 months as specified in Regulation
Public
Consult ation on
MOP
Pre-Comitology
Finalise
MOP
Merge CACM and Gov. Guide; IA, text review and translations
ACER
Review
Refinement of
Cross Border
Committee
MOP
Comitology (estimated)
Parliament and Council
Pre-Comitology Comitology (estimated)
Requirements for
Generators
ACER
Review
Revision of Code based on ACER
Opinion
Impact Assessment, text review and translations
Cross Border Committee
Parliament and Council
Comitology timescales for all Codes updated based on ENTSO-E workplan (page 6) https://www.entsoe.eu/fileadmin/user_upload/_library/consultations/Work_Program_2014/130701-
_draft_ENTSO-E_Work_Programme_2013_through_2014_Assembly_Approved.pdf
Implementation period of 24 months (TBC)
Implementation period of 36 months (TBC)
Demand Connection
Code
ENTSO-E Drafting
Cons ultatio n
Finalise drafting
Pre-Comitology Comitology (estimated)
ACER
Review Impact Assessment, text review and translations
Cross Border Committee
Parliament and Council
Operational Security
ENTSO-E Drafting
Initial drafti ng
Consult ation
Finalise drafting
Operational Planning
& Scheduling
ENTSO-E Drafting
Initial drafting
Consult ation
Finalise drafting
ACER
Review
ACER
Review
ENTSO-E
Revisions
ENTSO-E
Revisions
Pre-Comitology
IA, text review & translations
Pre-Comitology
IA, text review & translations
Comitology
Cross Border
Committee
Parliament and Council
Comitology
Cross Border
Committee
Implementation period of 36 months (TBC)
Implementation period assumed 18 months (Nothing stated in NC)
Parliament and Council
Implementation period of 'at least 18 months' and the same as OS (TBC)
Load Frequency
Control & Reserves
Forward Capacity
Allocation
Electricity Balancing
Framewo rk
Guideline s on
Balancin
ENTSO-E Drafting
Initial drafting
Consult ation
Initial drafting
Finalise drafting
ENTSO-E Drafting
ACER
Review
Consult ation
Finalise drafting
Pre-Comitology
IA, text review & translations
ACER
Review
ENTSO-E Drafting
Initial Drafting
Consult ation
Finalise drafting
ACER
Review
Comitology
Cross Border
Committee
Parliament and Council
Pre-Comitology
IA, text review & translations
Pre-Comitology
IA, text review & translations
Implementation period of 'a minimum of 18 months' (TBC)
Comitology
Cross Border
Committee
Parliament and Council
Comitology
Cross Border
Committee
Parliament and Council
Implementation period of 24 months (Assumed the same as CACM)
Phased Introduction over 6 years Until c.2021
HVDC
ENTSO-E Drafting
Call for
Stake holder evide
Initial Drafting
Consult ation
Finalise drafting
ACER
Review
Pre-Comitology Comitology
IA, text review & translations
Cross Border Committee
Parliament and Council
Implementation period of 36 months
(assumed same as RFG/DCC)
Until c.June
2018
2016
89

 European Network Codes due to become law during
2014 in a phased manner
 GB will have 18 months – 3 years to demonstrate compliance (varies code-by-code)
 Alignment with GB Codes will aid application and compliance
 GB Code panels will retain their role to make changes to individual codes – strong feedback from all parties was to use existing processes
 A complex programme with a significant risk, which needs cross-code coordination
90

European Code Coordination Application Forum
 Advises the Code Panels on coordination of application of European Network Codes to GB
Codes
 No firm legal or governance role
 Constituted as a joint standing group of 7 code panels
 Grid Code, CUSC, BSC, SQSS, STC, D-Code,
DCUSA
 Membership:
 7 industry members representing Code Panels
 National Grid, Consumer Futures, DECC, Ofgem
 Chair appointed by DECC and Ofgem
91

 European Codes will supersede GB Codes
 Network Codes become EU Law ‘by 2014’
 Codes have varying compliance periods (typically 2014-17)
 Significant workload and changes over the next few years
 Complete development of Codes
 Apply them to the GB Framework
 Implement changes to the GB Operations and Market
 Ample opportunity to get your thoughts heard
 JESG / ENTSO-E consultations /DECC-Ofgem stakeholder group
92

Place your chosen image here. The four corners must just cover the arrow tips.
For covers, the three pictures should be the same size and in a straight line.
Adam Hipgrave
National Grid
Commercial Analyst - European Code Development
Transmission Network Services | Markets & Balancing Development
National Grid House, Warwick Technology Park, Warwick, CV34 6DA
T: 01926 656191 M: 07825193568
E: adam.hipgrave@nationalgrid.com