BSCCo Draft Business Plan 2012-2013:
Customer Workshop
9 January 2012
Agenda
Activity Lead
Welcome Peter
Overview of the BSCCo Strategy ELEXON Leads
Quick Break
Round Table Discussion All
Feedback Session Facilitators
Summary and Next Steps David
Lunch
Timetable
Nov Dec Jan Feb Mar Apr
Board
Parties
Panel
Note Process& Key Themes
Review draft Strategy
Considercomments
&revisions
Review Budget & Strategy
Consider comments &
revisions
Issue for comment
Workshop
Strategy approval
ConsiderPanel
comments
1
5
108
97
3
2
4
Request to vary
timetable
6
11Approve Budget
Governance Consultation/Decision
Governance
»In parallel »Ofgem consultation on governance»Consultation closed 6 January»Modification P281 - Change of BSCCo Board of
Directors & Chairman
Today is about BSCCo Strategic Priorities
These are relevant under any Governance
Welcome
Peter Haigh
9 January 2012
Where are we now?
Where are we now?
Percentage of customers rating ELEXON 8-10 out of
10
Overall satisfaction ratings
Key Theme – Continuity of the mission and vision
“To be a leader in the efficient transformation of energy markets by providing shared solutions to
address common industry problems”
“To deliver the BSC effectively, efficiently and economically, to the
benefit of our customers”
Support the best strategic outcomes for the evolving industry by pursuing our vision
Maintain and build upon our previous achievements to fulfil our mission
We’ve come a long way – but we ‘re only part way along the journey we
embarked upon in our 2011-12 Business Plan
Strategic Priorities
Con
tinu
atio
n fro
m
2011-2
012
Priorities 1-3
Mark Couldrick
9 January 2012
Key
BSC Operations
Support Services
Strategy & Development
Structure
5
• Parameter reviews: MIDS review complete and changes raised• Key BSC elements: CAP monitoring, LLF Audit of Methodology, LLF audit well underway
with the majority of site visits complete, OID updates, UMS Load Research, PrA operations, MIDs review complete
• Review of ELEXON guidance notes: 11 drafts produced• Analysis of issues: 2 Disputes, Corrected over £100k of error through transmission loss
analysis, Teleswitch issues, exporting GSP Group, SVA agent problems, circular production and review, working to resolve ECVAA web service issue
• Mods, Issues and CP support: P272, GVC, Issue 39, P274 and P275, reviewing and redlining for four GVC CPs, raised various CPs and TAIs
• Committees support: Panel, PAB, ISG, SVG, TDC, UMSUG, STAG, PEG, and Credit Committee. Team has written approx. 50 papers, chaired over 20 meetings
• Support to other governance bodies: Support to ENA DCMF workshops on GVC (DPCR), MRA IREG forum, MUESLI and Audit principles for UMS, UMSUF, support to National Grid on P217 impact, bi weekly calls with Ofgemand BGC
• Training: 3 presentations at the Introduction seminar, Indian delegation training (£6k), all major Customers, mainly Suppliers approx. 30 training sessions on: ELEXON overview, CVA, SVA, Profiling, detailed NHH processes, MDD, credit, UMS, D095, Erroneously large EACs/AAs, Imbalance Prices, Smart, Ofgem, DECC, internal
• Assisted in Market Entry and provision of OSMs: in house and various visits• Performance assurance: Risk process maps produced, amended the PAB SR72
monitoring criteria to better support the TDC objectives, organised erroneously large EAC/AA forum
• Profiling and Settlement Review: 3 PSRG meetings, Mandatory HH settlement for PCs 1-4 cost benefit analysis report, support to assessment of P272, SVG agreed to twice yearly profiling (trial complete and changes raised), HH GSP Group correction agreed by SVG and Panel, visits to BSC Parties on mandatory HH settlement
• Support to Smart and workstream 1: Process Modelling, SMIP support, draft SEC which handed to DECC, Tech Spec and various consultation responses produced/reviewed, smart grids support and Ofgem smarter markets liaison
• Advice requests: Helpdesk calls; typically 10 a week ranging from simple queries to in-depth market areas, other direct calls to the team approx. 10 a week including UMS and profiling issues
• Credit monitoring, managing credit default , market monitoring (SVA and UMS),• Data Requests: from DECC and Ofgem and sustainability first on profiling data• Other: Ofgem SCR support with fortnightly teleconference meetings, provided support to
FAA Rationalisation project• CRM: Technical support and champions
April 2011 – October 2011 Key Deliverables
Market Analysts and Advisors Team
8
• Committee support: Panel, ISG, SVG, TDC, PAB, TAMEG. The Team has written 28 papers. We have chaired 12 meetings and reviewed 38 papers.
• Metering
• Reconciled 150 CVA Aggregation rules to Site Plans and 80 to Site Plans and MTDs. 22 issues/queries have been noted. One Trading Dispute has been raised.
• Dealt with 598 Metering Queries
• 7 x Metering Dispensations (D/366 - 372)
• Training – 2 x EdF Haven
• Contribution – Smart Design Specification
• TAMEG meeting + Workshop– Ownership of Commissioning, ongoing.
• Technical Assurance
• Facilitated the resolution of 31 Cat1 non compliances
• Organised and facilitated MTD workshops as part of PAB strategy.
• Changes to Settlement Risk net significances
• Fault Investigation Process Review
• Wrote Newscast articles on :-
• TA No Access
• TAPAP Disputes Visits
• TAAMT Rectification guidance article
• TAAMT Rectification Guidance Note. ELEXON Website
• Materiality Calculation for NCs for Service Management
• Updated LWI for SR28 Supporting Data for SRR.
• Working on next TAPAP check – Disputes. Candidates notified of site visit dates (10) and agreed. First visit scheduled 29 November 2011, final visit 26 January 2012.
• Trading Disputes
• Twelve Disputes determined by TDC. Settlement Error ~ £6.4million.
• Eleven Disputes deemed invalid by ELEXON, no objections.
• ESD completed DA348/360 and DA391, £4.4million.
• ESD methodology approved DA329.
• One Q8 Claim £5k
• Day in the Life promotion completed with Internal Communications team.
April 2011 – October 2011 Key Deliverables
Metering and Disputes Team
7
• RER (2012/13) updated, consulted on and approved to timetable• ROP (2012/13) updated and consultation completed to timetable• APAR 2010/11 completed, approved by PAB and praised for clarity by
Panel• Reviewed and distributed main BSC Audit Report and 188 Audit Issue
documents, plus doing the compliance check and Audit peer comparison
• Scope for 2011/12 BSC Audit reviewed to cut out lower risk roles and approved
• Held team building/planning meetings with auditor in July & October• Supported BSC Audit contract extension discussions, securing
significant cost savings• CP1334 support provided and BUSRR criteria updated and guidance
note written• Issue 41 – provided chair and technical support to 3 meetings and
wrote Panel paper, and presented to Panel – good feedback received• PAB meetings chaired and supported• 97% performance across industry continues to improve• Escalated a Supplier to the PAB• PAB Strategy workstreams progressed: KPIs done and Agent
Performance underway. Initiated review of Strategy for next (2) years• SVA Forum held September 2011, good feedback received• Published public version of PAF KPIs as PAB requested• Training on PAF and Audit to Haven• Support to P275 (including in initial drafting of Mod)• Supported CSR initiatives
April 2011 – October 2011 Key Deliverables
Market Compliance Team
6
• 5 OFTOs (Walney 1, Barrow, Gunfleet 1 & 2 and Robin Rigg)• Meeting with NGRID to resolve process for transfer of information for
registrations • 308 UMS charge codes approved• 142 MDD change requests approved• Handover OSM accounts• Charlotte chaired Introduction Seminar• Understanding of customer reports – 8 customer interviews and c90
responses to emails sent re use of reports• 17 Market Entry meetings held• 13 customers Acceded to the Code• 9 customers exited the Code• 2 re-Qualifications applications approved by PAB• 4 Qualification applications approved by PAB• Annual review of SCs approved by PAB• 1 Bulk Change of Agent approved by PAB• 2 Supplier escalations to PAB• Attended team building/planning meetings with auditor in July &
October• CP1334 implemented and BUSRR criteria updated and guidance note
written• Presentation at SVA Forum re PARMS• 64 OSM visits• 21 training visits• Visited 20 Supplier Agents (covering 75 MPIDs) to go through new
PARMS Serials
April 2011 – October 2011 Key Deliverables
Customer & Settlement Operations
Key Deliverables
• Supporting the SCR• Europe• SMART Impacts
The Eggheads
• Consultations• Consultations
• Consultations
Priority 1: Actively manage, and continually improve, BSC services to ensure that we deliver in an efficient,
effective and economic way
• Supporting the SCR• Europe• SMART Impacts
“To deliver the BSC effectively, efficiently and economically, to the benefit of our Customers”
Priority 1: Actively manage, and continually improve, BSC services to ensure that we deliver in an efficient,
effective and economic way
» Application Strategy• Ageing systems
» Technology Strategy• Expensive technology
» Data Services
Central Data Collection
Source – Logica Status Report June 2011
» Number of CDCA Outstation Channels (March 2011)• 25,404
» Number of Readings collected per night, 7 days a week, 365 days a year• 1,219,392• At the end of each day the meters are read, processed and
validated, then distributed by 13:00 the next day to our customers• The average success rate over the past year has been 98.2%, and
that’s 98.2% the after day, not over a settlement reconciliation life cycle.
» Number of Readings Per Annum• 445,078,080
» The readings are obtained using a number of technologies through infrastructure contracts Logica have in place with 3rd Parties on our behalf.
BMReports
Source – BMRS Page Views - Logica Status Reports April 2010 – March 2011 – BOA’s – Roger Harris – TOMAS Extract 22 July 2011
» 1 April 2010 to 31 March 2011
» Number of Page Views• High Grade BMRS – 9,737,615• Low Grade BMRS – 353,841,209
- Includes a high volume of data scripting/scraping
» One of the major inputs to the calculations is the Bid Offer Acceptances (BOAs are instructions given by National Grid to Parties to balance the system)• 722,123
» The BSC allows Parties and P114 Licence Holders to receive Sub-flow 2 data as well, and ELEXON also uses it in TOMAS
» It’s the same 882,790,000 rows of data, but by the time we’ve distributed it to everyone who has requested it that’s 21,186,960,000 rows per/annum for just 1 data flow
Settlement Administration Agent
Type of Organisation Number Total Rows of Data Per Annum
National Grid 1 882,790,000
ELEXON 1 882,790,000
Other BSC Parties 17 15,007,430,000
P114 Licence Holders 5 4,413,950,000
TOTAL 24 21,186,960,000
Source – Copies of data received by ELEXON – Details of other Parties and P114 Licence Holders – Mark Gribble Logica
Priority 2: Drive efficiencies and savings in our operational business
2011/12 2012/13 2013/14
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
BSC Audit
Qualification
TAA
Market Monitoring
Customer Relationship Mgmt & OSM Service
We take huge pride in the Customer Service we deliver and that’s reflected in the
results we achieve
More of the same = BETTER
Further Web Developments
Streamline & enhance services through our web-
channels
More self-service and on-line services
More customer engagement
Sharing Knowledge & Expertise
To be a leader in the efficient transformation of
energy markets – by providing shared solutions
to address common industry problems.
Getting Customers Involved
It’s good to talk!Structure
Priority 3: Improve the customer experience and develop richer customer
relationships
Key
BSC Operations
Support Services
Strategy & Development
Where are we now?
Priority 4 – Develop our services and adapt our
business to address industry challenges
Chris Rowell & David Osborne
9 January 2012
23
Priority 4 Delivered within the BSC
Delivered outside the BSC
Issue Identification Establish FrameworkImplement Framework
Operate FrameworkPolicy Design
Possible consequential BSC Changes?
Several Years
Implemented as a BSC Change
Industry Transformation
Key activities include:• Reviewing the transformation landscape & consultations• Identifying possible impacts on BSC – analysis & modelling• Providing insight from our BSC experience• Providing expert (industry) support to programmes• Providing education on the BSC to policy makers• Providing information to BSC PartiesUsing:
ELEXON staff (backfilled where
required), external experts
Socialised through: consultation responses, conferences, thought pieces, ELEXON communications, committee briefings
GovernmentEU Industry
Government
Regulators
24
The Industry Challenges
Sustainability
Affordability
Security
Efficient, Effective & Economic BSC Delivery
Electricity Market Reform
EU Initiatives
Smart (metering – markets –
grids)
“In these matters the only certainty is that nothing is certain” Pliny the Elder
25
Changing our governance and vires
Recognition that ELEXON has the skills and capabilities to undertake a
wider role – but this will require changes to our governance and vires
Await the outcome of Ofgem’s consultation with interest
Continue to support Ofgem and industry in developing its thinking
We will know more when Ofgem has determined the way forward
26
Electricity Market Reform
“ ELEXON has a strong track record of calculating and managing complex payments and settlements in a way that minimises the credit risk and impacts for both suppliers and generators ”
Source: DECC Technical Update on Electricity Market Reform (15 Dec 2011)
FIT contract for differences
Capacity Mechanism
27
Settlement
BMRS (data reporter)
Settlement Payments
EU Initiatives
REMIT(Regulation on Energy
Market Integrity & Transparency)
MiFID II Exemption
(Markets in Financial Instruments Directive)Balancing,
Settlement, Market
Coupling, &Data
Exchange
Network Codes(Analysis of Framework
Guidelines)
etc
Third Package(Single European Market)
Comitology Guidelines
(Data Transparency)
28
Smart Metering: Activities
Pursuing opportunities
• Data & Communications Company ?• Smart Energy Code Secretariat ?• DCC Service Provider (Data & Comms) X
Supporting the SMIP
• Consequential changes to BSC framework• Advice on the Smart Energy Code framework• Commissioned work (e.g. BPM) ?
Evolving the BSC
• Implementation of any changes to BSC systems & processes• Evolving NHH settlement (profiling)• Evolving the Assurance Framework (meter > bank)
29
Revised SMIP Delivery Plan
Source: DECC Delivery Plan – 21 December 2011
Revised Plan impacts the BSC budget but not
strategy
30
Business Plan Period
Smart Metering: BSC Challenges
Full SEC
2011 2012 2013 2015 2016 2018
Optimised BSC - SEC• Metering CoPs etc• E2E Performance Assurance
The future of the NHH Market• Managing Profile drift• Application of correction• NHH v HH
Maintaining Data Quality• Issues revealed by meter churn• Risk of rapid loss of ‘legacy’ staff
Data Collection & Aggregation?• NHH ported software• The future of the Supplier Hub
Start of Mass Rollout
Registrationto DCC
Centralised Data Registration• Maintaining data quality • Revised CoS processes?
Managing non Smart?• Settling the ‘rump’
Mass Rollout completes
201920172014
31
Smarter Markets: Propositions
7 Ma
r
Improving Market processes5.Settlement Arrangements (HH settlement)6.Change of Supplier process (next day)7.Data Processing & aggregation (central)8.Code Consolidation (SEC to form retail code)
Enabling Retail Market Development1.Time of use tariffs (to reduce consumption) 2.Demand-side response (to reduce costs)3.Energy Services (to increase consumer benefits)4.Payment Methods (increased options)
Source: Ofgem Consultation - Promoting Smarter Energy Markets (15 Dec 2011)
32
Smarter Markets: Timetable
Source: Ofgem Presentation – Smart Metering Forum (1 Dec 2011)
Scoping PhasePolicy
DevelopmentImplementation
Start work programm
e
Implement Reforms
Evidence Gathering
Develop & Consult
Apr2011
Summer
2012
2013 onwards?
Dec2011
33
Smart Grids: Activities
The projects aim to:• tackle real and immediate issues facing the industry• share the information and expertise built up throughthe trials across the industry• produce solutions to ensure the best value from future investment.
The project aims to:• evaluate and understand the potential GB electricity demand-side resource• evaluate the key customer, commercial, regulatory and policy issues and interactions
GB ELECTRICITY DEMAND PROJECT
…. an open forum to share ideas and information and develop thinking on how smart grid can be achieved
SMART GRID FORUM
The project aims to:• Identify future challenges for electricity networks and system balancing, including current and potential barriers to efficient deployment of smart grids; • Guide the actions that DECC/Ofgem are taking to address future challenges,• Identify actions that DECC/Ofgem, the industry or other parties could be taking to facilitate the deployment of smart grids ……
34
Market Development Budget
External Expenditure
Budget ≠ Commitment to spend
12/13 Budget held BUT scope expanded
Includes ‘bid’ provision
Source: Table 7, Page 27
No provision for ELEXON ‘vires’ activities
Priority 5: Invest in our people for the benefit
of our industry
Peter Haigh
9 January 2012
Priority 5: Invest in our people for the benefit of our industry
Retention & Recruitment
Staff Survey
Invest in Future
Leaders
Knowledge Share & Self Development
Great Place to Work &
One ELEXON Days
Staff policy Review
Good for
Industry
Good for ELEXO
N
Our people are our key assets
Budget
Nigel Smith
9 January 2012
38
Budget
39
Budget
Round Table Discussion
Wrap up – thank you foryour support and feedback
Nov Dec Jan Feb Mar Apr
Board
Parties
Panel
Note Process& Key Themes
Review draft Strategy
Considercomments
&revisions
Review Budget & Strategy
Consider comments &
revisions
Issue for comment
Workshop
Strategy approval
ConsiderPanel
comments
1
5
108
97
3
2
4
Request to vary
timetable
6
11
Approve Budget
Governance Consultation/Decision