BSC Panel 202
13 September 2012
Report on Progress of
Modification Proposals
Dean Riddell
13 September 2012
National Grid Update on
Energisation Issues
Duncan Burt
13 September 2012
Transmission Company Update
 Update on the rectification plan - January and June ’12
 No further failures
 Oversight team embedded
 Process aligned with generation connections
 Improved liaison between Transmission Company /
Elexon
Workshop Planned on 26th October 2012
Transmission Company Update
 Established ‘Tracker’ of Registrations
 Principle of “No surprises”
 Annual Review in Jan/Feb when plan handed over
 Regular updates from construction / operational teams
 Weekly teleconferences to review and coordinate actions
 Improved data submission - e.g. draft submissions,
forms with accompanying Single Line Diagrams
Transmission Company Update
 Improved awareness and training
 Engineering bulletin issued on 19th June to raise
awareness and proposed changes to working practices
 Two Transmission Procedures affected
TP131 (Settlement Metering) revised and updated
TP106 (Equipment Commissioning) consequential updates
Both updates to the TPs are currently in draft form for final
review meeting on 18th September
If no significant issues raised both will be issued formally
within weeks
Transmission Company Update
 Working Better
 Oversight team is key
Single point of contact and escalation route
 Improved awareness across the Transmission Company
 Senior Management committed to review for continuous
improvement
 Further improvements
Change in policy to simplify installations
Propose to introduce unique code into ‘TOGA’ to simplify
automated monitoring of outages
Minutes of Meeting 201 &
Actions Arising
Adam Richardson
13 September 2012
Chairman’s Report
BSC Panel
Andrew Pinder
13 September 2012
202/01
ELEXON Report
Peter Haigh
13 September 2012
202/01
ELEXON Report
Smart Update
Chris Rowell
13 September 2012
Smart Metering: Consultations
Smart Metering Equipment Technical
Specifications (SMETS) v2
•
•
•
•
Home Area Networking (HAN) solution
the communications hub requirements
responsibilities
equipment assurance
8
Oct
Consequential Changes
(SVG Paper)
Expected in the Autumn
• Smart Energy Code (initial sections legally drafted)
• DCC Licence (final version)
11
Smart Metering: DCC Licence Award
Draft
PQQissued
issuedonon
Aug
Draft PQQ
3131
Aug
•
•
Information regarding the DCC, the licence
Information
regarding
the DCC, the
licence
application process
& evaluation
process
application
process, & evaluation process
for the stage.
for the stage.
••
Draft
Qualification Questionnaire
Questionnaire
Draft Qualification
Expected Timetable
(dependent on Prohibition Order & Licence Application Regulations)
~ 3 month deferral of start
short formal PQQ process
BUT early sight of draft
~ 3 month deferral in grant
D+1 SP signing
no change to start of roll out
12
Smarter Markets: The Policy Reviews
P202/06:
Scope for review
of settlement
Q. When we have
smart metering,
how do we improve
the consumer
experience?
Scoping Report
Approach & Plan
8
Propositions
2011-12
13
Senior Advisory
Group
Review of Policy
not Process
4
Policy Reviews
2012-13
Change
Programme
2014 +
Impact on 2013/14
Business Plan?
Smart Grids: LCNF Projects
LCNF: Low Carbon Network Fund
Running from 2010 to 2015 - up to £500m - support to DNO sponsored projects addressing new technology, operating & commercial arrangements – sharing findings
First
Tier
14
Small projects - partial recovery
of funding – up to £16m per
year
Second Tier
Flagship projects - annual
competition - up to £64m per
year
Discretionary
Award
successful completion &
exceptional projects - up to
£100m over the 5 years
Technologies & equipment
Systems operation
Consumer behaviour
Data monitoring & analysis
Market models
Smart Budget
£ 1,200 K
Backfill
Memberships
Conferences
(Analysis)
£ 131K
£ 300K
A
15
M
J
J
A
S
O
N
D
J
F
M
Distribution Report
David Lane
13 September 2012
Transmission Report
Ian Pashley
13 September 2012
Ofgem Report
Dora Ianora
13 September 2012
Report from the PAB
(Quarterly Update)
Andrew Colley
13 September 2012
202/04
Proposal to hold the 2013
ISG & SVG meetings on
the same day
Kathryn Coffin
13 September 2012
Suggestion
• Hold 2013 ISG and SVG meetings on same dates
• Start with ISG, then shared business, then SVG
• Use indicative timed agendas to help members plan travel
• Provide room for SVG Members to work, in case ISG overruns
• If bumper agenda, start with shared business and then split into
different rooms
• Will still be separate Committees – existing Terms of Reference
continue to apply
21
Why?
ISG
131
132
133
134
-
135
136
-
137
21/12
24/01
21/02
27/03
24/04
29/05
26/06
24/07
28/08
Decision
papers
6
(+ 1)
2
4
2
0
2
(+ 3)
3
0
6
(+ 1)
Shared
business
14%
Zero
25%
50%
-
40%
33%
-
57%
SVG
131
132
133
134
135
136
137
138
139
03/01
31/01
28/02
03/04
01/05
06/06
03/07
31/07
04/09
Decision
papers
3
8
6
4
4
6
(+ 1)
2
2
12
Shared
business
33%
Zero
17%
25%
Zero
43%
Zero
50%
50%
Papers in brackets were ex-committee
Examples of shared business: CPs or Metering Dispensations with both CVA/SVA impacts
22
Committee views
ISG – Against (unanimous)
•
•
•
•
•
•
•
•
•
•
•
23
Some confidential Committee items
Volume of business is variable
Future workload could increase
No clear start time for SVG
Difficult to manage meeting
Potential late finish and travel issues
for SVG (more time away from office)
Already use teleconferencing if low
volume of business
Little apparent benefit for Parties
Parties who monitor/support both
Committees prefer spacing out papers
No issue with joint business – defer to
SVG if SVA; few disagreements
Could constrain ability to discuss wider
industry matters
SVG – For (unanimous)
• Supportive of suggestion in principle,
subject to practicalities
• Enthusiastic about bringing
Committees together – encourage
Panel to explore all options
• Unless causes excessively late finish,
would be more efficient
• Benefits in discussing joint business
together
• Reduces uncertainty for Parties on
whether a joint Change Proposal or
Metering Dispensation approved
Recommendations
The BSC Panel is invited to:
• NOTE ELEXON’s paper on the suggested benefits and practicalities;
• NOTE the views expressed by Committee Members for and against;
• AGREE whether the 2013 ISG meetings should be held a week
later than currently, on the same dates as SVG; and
• NOTE that, if the Panel adopts this approach, the ISG and SVG can
review in 12 months (or sooner if needed)
24
202/05
Panel and Panel Committee
Dates for 2013
Nicola Dempsey
13 September 2012
Recommendations
The BSC Panel is invited to:
• APPROVE the proposed dates; and
• APPROVE their publication on the ELEXON website.
26
202/06
Scope for Review of
Settlement
David Jones / Justin Andrews
13 September 2012
Smarter Markets – review of Settlement
Reform
» Panel agreed to provide a report to Ofgem – how it would
undertake a review of Settlement in a smart world
» Establish an advisory group:
» Settlement Reform Scoping Group (SRSG)
» Membership drawn from existing committees with
varied industry backgrounds
» Terms of Reference (includes outline of report content)
Timetable
29
Recommendations
The BSC Panel is invited to:
• AGREE to the creation of the Settlement Reform Scoping Group
(SRSG) and the group Terms of Reference (Attachment 1);
• AGREE to the chairmanship and membership of SRSG (Appendix
A); and
• AGREE the plan for delivering the scoping report (Appendix B).
30
Summary of Consultation
on BSC Service Manager
Contract Principles
Adam Richardson
13 September 2012
Appointing a BSC Service Manager
Work Stream
1.
Modification P284:
Enables BSCCo to outsource work to a
BSC Service Manager.
2.
Contract:
Negotiating and agreeing appropriate
Contractual Provisions required for
outsourced arrangement with a BSC
Service Manager.
32
The Authority makes a
determination following a BSC Panel
recommendation.
BSC Service Description: The BSC Panel is responsible for
Defines the services capable of being
outsourced.
3.
Responsibility
approving the BSC Service Description
for use.
The BSCCo Board is responsible
for putting in place appropriate
commercial and contractual provisions.
Ultimately
• Should a case be made for outsourcing and appropriate
commercial and contractual terms developed, the BSC Service
Manager Contract will be provided to the BSCCo Board for
review and approval prior to being agreed.
Or
• If a case is not made for outsourcing or if commercial and
contractual terms cannot be agreed which satisfy the principles
established by the BSCCo Board the BSC services will not be
outsourced and will continue to be provided by BSCCo.
33
Consultation Respondents
3 Sep
1 Aug
6 Sep
Workshop
Consultation
•
•
•
•
•
•
•
49
•
•
•
•
•
National Grid
Electricity North West Ltd
Scottish Power Group
Drax Power Ltd
EDF Energy
Centrica
E.ON
Parties,
9 Non-Parties
SmartestEnergy Ltd
RWE npower
Eggborough Power Ltd
TMA Data Management Ltd
EnAppSys Ltd
12 Responses
34
•
•
•
•
•
•
•
•
•
•
Peter Bolitho – E.ON
Andy Colley – SSE
David Lane – Clear Energy
Ian Pashley – National Grid
Colette Baldwin – E.ON
Tim Collins – Centrica
Gemma Hunt – Smartest
Cem Sueyman – Drax
Mari Toda – EDF
Lisa Waters – WatersWye
Summary of Consultation Responses (1)
Question
1: Are there any specific discretions, judgements or services
currently provided by ELEXON Ltd that you feel it would be
inappropriate for BSCCo to subcontract to a service
management company?
2: Are the principles set out in Section 4 appropriate for use in
underpinning a decision whether to appointment a BSC Service
Manager?
3: Do you believe the principles set out in section 4 are
consistent with Ofgem’s conclusions and prerequisite conditions
published in its letter of 30 April 2012?
4: Are there any additional principles which you believe the
BSCCo Board should use to underpin any outsourcing decision?
5: Do you have any other comments?
35
Yes
No Other
7
5
-
7
2
3
8
2
2
7
5
-
7
5
-
Summary of Consultation Responses (2)
• 3 New bullet points within Principles
• Confidentiality and Data Protection
• Conflict of Interest
• Transition Arrangements
• Additional exclusions under paragraph 3.4 (related to areas of
potential conflict of interest)
• A number of clarifications to Contract Principles
36
Summary of Consultation Responses (3)
• Many responses identify elements that will flow through into:
• BSC Service Manager Service Description
• BSC Service Manager Contract
• Some comments aimed at operating model and resourcing
• Comments on “zero Risk” & “all IPR irrespective of commercial
viability”
• Desire for more information on KPIs and Service Levels (to be
detailed in contract)
• Pension liability - avoid crystallising for as long as possible
• Contract term - preference for 5 years (recognising incentive
value in possible extenion options).
37
Amendment Details
Next Steps
Subject to Approval of P284…
• Panel Invited to Appoint Panel Observer to:
• review documentation; advise BSCCo team; and ensure process
followed
• Update the Contract Framework (Contract Principles)
• Develop Term Sheet
• Review Business Case against Contract Principles
38
Any Other Business
13 September 2012
Confidential Business
Closed Session
13 September 2012
202/07
ISG & SVG Membership
Changes
Adam Richardson
13 September 2012
Recommendations
The BSC Panel is invited to:
• NOTE the resignations of Bob Brown as ISG/SVG Industry Member
and Mark Field as SVG Industry Alternate
• APPOINT Edward Hunter as SVG Industry Alternate
• APPOINT Colette Baldwin as SVG Industry Alternate
• NOTE that ELEXON has advertised the ISG/SVG Industry Member
vacancy and will bring all applications to the October Panel
42
202/08
Appointment of PAB
Industry Alternate
Adam Richardson
13 September 2012
Recommendations
The BSC Panel is invited to:
• APPROVE Hazel Ward as a Member of the PAB
44
Any Other Business
13 September 2012
Next Panel Meeting:
11 October 2012
13 September 2012