Overview of Supplier Volume Allocation David Osborne Introduction • Supplier Volume Allocation (SVA) – Purpose – History – Supplier Hub and other participants – Interface with Central Services Generation, Transmission, Distribution and Supply Generation Generation Transmission Network (the ‘Grid’) Grid Supply Points 400/275 kV Distribution Network 132 kV Supplier’s customer factory >100 kW Supply Supplier’s customer domestic GSP Group SVA History • 14 Regional Electricity Boards • 1990 – competition in Supply > 1MW • 1994 – extended to > 100 kW • 1998 – full competition • 2000+ – competition in agency services • 2001 – NETA Arrangements • 2005 – BETTA Arrangements Distribution Companies / Grid Supplier Point Groups Liberalised market Metering Systems 29 million Metering Systems 314,000,000 MWh demand per year (45% Half Hourly Metered) Profiling • Over 29 million NHH meters • Settlement operates on HH basis • Consumption is profiled to allocate annualised consumption to Half Hours 8 Profile Classes 1 Domestic 24 * 7 2 Domestic 2 –rate with night-time electrical storage and immersion heating 3 Non-domestic 24 * 7 4 Non-domestic 2 –rate with night-time electrical storage heating 5-8 Non-domestic Maximum Demand with load factor of < 20%, 20-30%, 30-40% and >40% Roles and Responsibilities – Suppliers and SMRAs • Supplier Meter Registration Agent (SMRA) – 1 per GSP Group – SMRA service - LDSO licence requirement – Provides a registration service – LDSO Party to the BSC • Supplier – Discharges many obligations through Supplier Agents (MO, DC and DA) – Registers “Supplier Hubs” in each GSP Group – Supplier Hub = combination of Supplier, Meter Operator, Data Collector and Data Aggregator in each GSP Group – Multiple combinations of “Supplier Hubs” operate within each GSP Group – Supplier is a Party to the BSC Roles and Responsibilities – Supplier Agents • Supplier Agents (NHH and HH) – Meter Operator - asset provider and maintainer – Data Collector - data retrieval and processing • For NHH - determines EAC/AA data based on Daily Profile Coefficients received from the SVAA – Data Aggregator - provides aggregated meter data by Supplier, GSP Group, Profile Class to the Supplier Volume Allocation Agent – Supplier Agents are not BSC Parties Roles and Responsibilities – BSC Agents • Appointed by ELEXON to perform certain activities • ELEXON cannot be a BSC Agent • Supplier Volume Allocation Agent (SVAA) – Calculate Supplier volumes – Produces Daily Profiles for use by NHH Data Collectors – Manages market data – Contracts for Sunset Data and Temperature Data – Applies GSP Group Correction Roles and Responsibilities - BSC Agents • Profile Administrator – Programme of load research in order to collect demand data from customers – Derives Regression Coefficients • Teleswitch Agent – Provides switching times for certain groups of customers BSC Systems and Processes • Processes undertaken by Suppliers/Supplier Agents are highly prescribed in the BSC and procedures • Some systems provided centrally and operated under licence – EAC/AA software – NHHDA software SVA Process Overview Industry Processes Supplier DC/DA appointments Central Systems Processes SMRS Data Collector Regression Data Aggregated consumption Data Appointment and Settlement Data Meter Operator Profile Administrator Data Aggregator NHH Daily Profile Coefficients Central Data Collection Agent GSP Group Take SVAA Allocated Supplier Volumes Settlement Administration Agent Teleswitch, sunset and temp data Other Data Providers Timing of Settlement Runs Final Settlement Settlement Run Day Time +39WD +5WD +16WD Interim Information Settlement Run Reading Targets n/a Final Reconciliation 2nd Reconciliation +154WD +84WD 1st Reconciliation 30% +30 Months +292WD 3rd Reconciliation 60% 80% Post-Final Settlement Run 97% Supplier Charges Costs • Supplier Volume Allocation Year to March 2008 £m – SVA Operations 1.59 – Data Transfer Service (DTS) 0.58 – Profiling 0.74 – Software Support 0.87 – Entry Process/Qualification 0.41 – Other 0.14 – SVA Total Cost 4.33 Electricity Metering & Settlement Jon Spence, ELEXON 8 November 2008 The Ice Cream Test • If 50% of annual ice cream sales occur in August • And 50,000 ice creams are sold in August • What are the annual sales? ______ • If 5% of annual ice-cream sales occur on 5th August • How many are sold on 5th August? ______ That’s how electricity settlement works! • What do profiles look like? • How are they used to annualise customer demand? • How are they used to estimate Suppliers’ demand in a given half hour? Yearly Profile – domestic unrestricted Average Domestic, Unrestricted Customer - Yearly Profile April to March 16 14 12 kWh 10 8 6 4 2 0 1 12 23 34 45 56 67 78 89 100 111 122 133 144 155 166 177 188 199 210 221 232 243 254 265 276 287 298 309 320 331 342 353 364 Settlement Day Daily Profile – domestic unrestricted Average Domestic, Unrestricted Customer - Daily Profile 0.9 0.8 0.7 0.6 kW 0.5 0.4 0.3 0.2 0.1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Settlement Period Winter Weekday – single-rate and dual-rate Domestic Profile Classes 2 1.8 1.6 1.4 kW 1.2 1 0.8 0.6 0.4 0.2 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 Settlement Period Profile Class 1 - Domestic Unrestricted Customers Profile Class 2 - Domestic Economy 7 Customers 43 45 47 Non-Domestic Load Profiles Non-Domestic Customers 6 5 kW 4 3 2 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Settlement Period Profile Class 3 - Non-Domestic Unrestricted Customers Profile Class 4 - Non-Domestic Economy 7 Customers Non Domestic Maximum Demand Non-Domestic Maximum Demand Customers 35 30 25 kW 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Settlement Period Profile Class 5 - Non-Domestic MD 0-20% LF Profile Class 7 - Non-Domestic MD & 30-40% LF Profile Class 6 - Non-Domestic MD & 20-30% LF Profile Class 8 - Non-domestic MD and over 40% LF Profiling Cycle Year one – data logged at sample 2,500 customers (split 50-50 between domestic & non-domestic) – confidential process Year two – data analysed Year three – profiles used in Settlement process Profiling process Temperatures and sunset times Sample data switching times SVAA Load Research Regression Analysis Daily Profile Production Profile Administrator Data Collector Annualise Meter Advances SVAA Deemed Take calculation Yearly Supplier Reports Daily Data Collector An estimate of annual consumption is extrapolated from meter advance using profile 1,150 kWh in 90 days Average Domestic, Unrestricted Customer - Yearly Profile 16 14 12 kWh 10 4,250 kWh per year (AA) 8 6 4 2 0 1 12 23 34 45 56 67 78 89 100 111 122 133 144 155 166 177 188 199 210 221 232 243 254 265 276 287 298 309 320 331 342 353 364 Settlement Day EACs/AAs • Annualised Advance – the rate of consumption for a Settlement Register over the period between two meter readings. • Estimated Annual Consumption – an estimated rate of consumption used in Settlement until an AA is calculated – similar to an Annual Quantity (AQ) in Gas? EAC / AA cycle timeline INITIAL EAC AA 1 EAC 1 AA 1 AA 2 AA 1 AA 2 EAC 2 AA 3 EAC 3 “carried forward” EAC is calculated using latest AA and “brought forward” EAC (weighted using the profile over the meter advance period) AA Example 1/1/07 MR1 7,000 31/3/07 MA = 2,000 MAP∑DPCs = 0.4 Previous EAC = 3000 AA = Meter Advance / MAP∑DPCs = 2,000 / 0.4 =5,000 MR2 9,000 EAC Example 1/1/04 MR1 7,000 31/3/04 MR2 9,000 MA = 2,000 MAP∑DPCs EACnew = 0.4 Previous EAC = 3000 AA = 5,000 EACnew = AA * (MAP∑DPCs * SP) + EACold * (1-MAP∑DPCs * SP) EACnew = EACnew = 5,000 * (0.4 * 2) 4,000 + + 3,000 * (1 – (0.4 * 2)) 600 = 4,600 Data Aggregation Estimated yearly demand values are added up for customers with same Supplier, Profile Class, meter configuration by a Data Aggregator to give the estimated yearly demand for Settlement Class or a “super customer” NHH Data Aggregation • NHH Data Aggregator aggregates annualised consumption for each distribution area, Settlement Date and Run Type • an AA is used in preference to an EAC • a default value is used where there is no AA or EAC The NHH Settlement Cycle Average Domestic, Unrestricted Customer - Yearly Profile 16 AA / EAC (Meter) 14 12 kWh 10 8 6 4 2 0 1 12 23 34 45 56 67 78 89 100 111 122 133 144 155 166 177 188 199 210 221 232 243 254 265 276 287 298 309 320 331 342 353 364 Settlement Day Meter Advance Daily Profiles Average Domestic, Unrestricted Customer - Daily Profile 0.9 0.8 0.7 0.5 kW HH profiled demand (Supplier) 0.6 0.4 0.3 0.2 0.1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 Settlement Period Half Hourly Profiles Aggregated AA / EAC (Supplier/ Profile Class) Supplier Volume Allocation Agent • applies half hourly profile to aggregated AA/EACs to calculate profiled HH demand per Supplier • estimates line losses based on factors from Distribution businesses • applies ‘GSP Group Correction’ GSP Group Correction Electricity is metered twice – at customer’s meter and at Grid Supply Point (i.e. entry/exit points to distribution networks) NHH NHH HH GSP GROUP TAKE HH GSP Group Correction • NHH demand (import less export plus estimated line losses) are “corrected” so that total NHH and HH volumes for the Settlement Period equal the GSP Group Take • volumes attributable to each Supplier are scaled up or down in each HH/GSP Group via CF • since GSP Group correction is effectively distributing “settlement error” amongst Suppliers, it makes sense to correct those categories of consumption that are more prone to error than others • NHH is obvious candidate as Settlement Period values are estimated (using profiles) rather than metered. The Ice Cream Test • If 50% of annual ice cream sales occur PrA in August • And 50,000 ice creams are sold in August NHH Data Collector • What are the annual sales? ______ • If 5% of annual ice-cream sales PrA occur on 5th August • How many are sold on 5th August? ______ SVAA Questions ?