Beginner’s Guide to Settlement Performance for Suppliers€¦ · Beginner’s Guide to Settlement...

Beginner’s Guide to Settlement

Performance for Suppliers

6 December 2017

Laura Henshall and Sarah Ross

Public

INTRODUCTIONS

2

Laura Henshall Operational Support Manager

Laura.Henshall@elexon.co.uk

0207 380 4325

Sarah Ross

Market Entry Analyst

Sarah.Ross@elexon.co.uk 0207 380 4322

OVERVIEW

3

■ Introduction to ELEXON

■ What is the Supplier Hub Principle and what does that mean for me?

■ How and why does ELEXON monitor settlement performance?

■ How can I monitor my own performance?

■ What are my obligations as a Supplier?

■ What are the incentives for me to achieve this?

■ Tips for maintaining/improving performance

IMBALANCE SETTLEMENT

Developed by the market

Years in advance 1 hour 30 minutes 14 months

Forwards market

Power exchanges

Balancing Mechanism Imbalance Settlement

Gate

Clo

sure

Settlement Period

SETTLEMENT RUNS

5

Time

Settlement Day

+5WD

Interim Information

Settlement Run (II)

+16WD

Initial Settlement Run (SF)

+39WD

+84WD

+154WD

+292WD

+30 Months

1st Reconciliation

(R1)

3rd Reconciliation

(R3)

2nd Reconciliation

(R2)

Final Reconciliation

(RF)

Dispute Final (DF)

SUPPLIER HUB PRINCIPLE

6

Supplier

Meter Operator

Data Collector

Data Aggregator

PERFORMANCE ASSURANCE TECHNIQUES

7

Re - Qualificaiton Education

Material Error Monitoring

Tech Assurance of Metering Systems

Tech Assurance of Performance

Assurance Parties

BSC Audit

Performance Monitoring and

Reporting

Peer Comparison Breach and Default

Removal of 'Qualification

Supplier Charges

Error and Failure Resolution

Trading Disputes

Change Mechanisms

Bulk Change of Agent

Qualificaiton

Incentive

Remedial

Preventive

Detective

Performance Assurance Framework

Delivered by PARMS

WHAT IS PARMS?

8

Data Providers

• Suppliers

• Data Collectors

• Meter Operator Agents

Database

• Performance Assurance Reporting and Monitoring System

Reports

• Auto generated PARMS Reports

• Supplier-Agent Statistics

• Peer Comparison

• Supplier Charges

• SRR & Dashboard

• OSM Reports

WHAT DO I NEED TO SUBMIT?

9

DPI

SP04 and Serial data

» parms@parms.bsccentralservices.com

MORE INFO ON PARMS

10

Supplier

ID

Average RF

Performance

Over Period

RF Month

on Month

Change

% From 97%

Target

Energy from

97% Target

Peer

Ranking

Average % MSIDs

Settling on Default

EACs at RF over Period

Month on

Month

Change

Risk Rating

MPID 96.08% -0.35% -0.92% -63 48 1.25% -0.10%

Industry 96.70% 0.01% - - - 1.99% 0.05%

AMBER

95.00%

95.50%

96.00%

96.50%

97.00%

97.50%

98.00%

98.50%

99.00%

13/0

6/2

015

13/0

7/2

015

13/0

8/2

015

13/0

9/2

015

13/1

0/2

015

13/1

1/2

015

13/1

2/2

015

13/0

1/2

016

13/0

2/2

016

13/0

3/2

016

13/0

4/2

016

13/0

5/2

016

% E

ne

rgy o

n A

ctu

al

Da

ta

Settlement Date

Percentage Energy Settled on Actual Data

MPIDAA%

MONTHLY DASHBOARD EXAMPLE

11

SR0074 CRITERIA

12

Measure RED AMBER GREEN

Energy Settled

on 97% of

Actual Energy at

RF

Settling less than

97% of energy on

Actual reads AND

more than 700MWh

of Estimated Energy

Settling less than 97%

of energy on Actual

reads AND less than

700MWh of Estimated

Energy

Settling 97% or

more on Actual

reads

AAs and EACs

13

We calculate Half-Hourly consumption for days before the last Meter read using Annualised Advances (AAs), and use

Estimated Annual Consumption (EACs) for those after the last Meter read.

SR0081 CRITERIA

14

WEEKLY REPORTS – EXAMPLE 1

15

20 August 2017

GSP Group Total MSIDs Actual MSIDs Estimated MSIDs Actual Energy Estimated Energy Default MSID's UMS MSID's Export MSID's Total Energy AA%

_A 125 100 25 6.34 0.67 2 0 0 7.01 97.00%

_B 225 200 25 4.90 0.21 1 0 0 5.11 97.02%

_C 325 300 25 6.30 0.64 0 0 0 6.94 95.63%

_D 425 400 25 0.55 0.02 0 0 0 0.57 98.30%

_E 50 40 10 2.30 0.23 1 0 0 2.53 92.35%

_F 10 9 1 2.30 0.28 0 0 0 2.58 97.25%

_G 100 95 5 1.30 0.16 0 0 0 1.46 95.99%

_H 29 25 4 2.50 0.25 0 0 0 2.75 97.33%

_J 11 10 1 2.10 0.40 1 0 0 2.50 96.66%

_K 7 6 1 0.66 0.02 0 0 0 0.68 91.66%

_L 652 600 52 3.66 0.10 0 0 0 3.76 98.66%

_M 129 100 29 0.88 0.04 0 0 0 0.92 97.66%

_N 56 50 6 0.96 0.08 1 0 0 1.04 96.77%

_P 97 90 7 0.50 0.01 0 0 0 0.51 97.66%

Total 2,241 2,025 216 35.25 3.10 6 0 0 38.35 96.42%

GSP Group Total MSIDs Actual MSIDs Estimated MSIDs Actual Energy Estimated Energy Default MSID's UMS MSID's Export MSID's Total Energy AA%

_A 680 600 80 26.33 15.66 10 0 0 41.99 87.33%

_B 740 700 40 15.33 7.44 45 0 0 22.77 81.66%

_C 460 400 60 45.66 8.96 52 0 0 54.62 78.56%

_D 963 900 63 25.78 5.66 43 0 0 31.44 85.66%

_E 1,025 1,000 25 14.77 7.65 36 0 0 22.42 79.26%

_F 125 100 25 15.98 9.96 5 0 0 25.94 80.15%

_G 260 200 60 10.77 7.50 0 0 0 18.27 79.85%

_H 225 200 25 13.58 9.56 64 0 0 23.14 85.23%

_J 69 60 9 0.99 8.36 12 0 0 9.35 74.55%

_K 1,400 1,000 400 56.66 4.69 5 0 0 61.35 80.66%

_L 560 500 60 12.66 7.23 8 0 0 19.89 86.25%

_M 696 600 96 16.89 5.21 16 0 0 22.10 90.11%

_N 120 100 20 1.25 1.68 5 0 0 2.93 75.66%

_P 110 100 10 3.69 0.66 6 0 0 4.35 80.63%

Total 7,433 6,460 973 260.34 100.22 307 0 0 360.56 81.83%

R3: 17 January 2016

RF: 03 July 2015

View your AA% and MSID Count

WEEKLY REPORTS – EXAMPLE 2

16

View your AA% and MSID Count against the industry average

WEEKLY REPORTS – EXAMPLE 3

17

View your performance by GSP Group

WEEKLY REPORTS – EXAMPLE 4

18 Comparison against Suppliers of a similar size

WEEKLY REPORTS

19

■ Don’t miss out on your reports!

–Who is currently receiving your reports?

–Are they the right person or people?

–What happens when they are away from the office? Do you have alternatives in

place?

KEY DATA FLOWS

20

26 41 63 19

31 17 4 50

10 13 47 22

12 6 38 5

81 15 41 39

74 2 28 7

For a full list of Data flows visit the Data Transfer Catalogue https://dtc.mrasco.com/ListDataFlows.aspx

KEY DATA FLOWS D0010

21

26 41 63 19

31 17 4 50

10 13 47 22

12 6 38 5

81 15 41 39

74 2 28 7

10

D0010 – Meter Readings

KEY DATA FLOWS D0019

22

26 41 63 19

31 17 4 50

10 13 47 22

12 6 38 5

81 15 41 39

74 2 28 7

10

19

D0019 - Metering System EAC/AA Data

KEY DATA FLOWS D0041

23

26 41 63 19

31 17 4 50

10 13 47 22

12 6 38 5

81 15 41 39

74 2 28 7

10

19

D0041 – Supplier Purchase Matrix Data

41

KEY DATA FLOWS D0081

24

26 41 63 19

31 17 4 50

10 13 47 22

12 6 38 5

81 15 41 39

74 2 28 7

10

19

41

D0081 – Supplier HH Demand Report

81

Why should I meet my performance obligations?

Distribution and Transmission Use of System charges (DUoS & TUoS)

Signed up to the rules and regulations in the BSC and the Code Subsidiary Documents

Compliance with the Code is also one of your Supplier License Conditions (SLC 11) with Ofgem

WHY SHOULD I MEET MY OBLIGATIONS?

26

■ Settlement impacts your business in a number of different ways…

SUPPLIER CHARGES

27

Suppliers incur liquidated damages if they fail to meet certain performance levels

ERROR AND FAILURE RESOLUTION (EFR)

28

If you incur three consecutive red BUSRRs, you will be a candidate for EFR

LAURA’s ENERGY SUPPLY LTD (SUPPLIER ID: LAUR)

29

Matl. Bus Unit MPID

Total Energy Share (HH & NHH) at RF

SR0024 SR0025 SR3019 SR0072 SR0074 SR0081 Overall BUSRR (Sig - 12) (Sig - 12) (Sig - 12) (Sig - 16) (Sig - 15) (Sig - 12)

LAUR 0.20% AMBER AMBER RED GREEN RED AMBER AMBER

96.45%

EFR PLAN

30

■ Make an Error and Failure Resolution (EFR) plan;

–What are the root causes?

–What actions will you take to fix those issues?

–What milestones will you and ELEXON use to track

performance?

Apr 2018

96.75%

Jun 2018

97.00%

ESCALATION ROUTES

31

■ Performance Assurance Board (PAB)

–1st level of escalation

–Senior Manager or Director

–PAB will continue to approve and

monitor your plan

■ BSC Panel

–2nd level of escalation

–PAB may recommend Panel

escalation if performance does not

improve or Party is uncooperative

FURTHER ESCALATION ROUTES

32

COLLABORATION of TEAMS

33

Call Centres

Sales

Settlement Team Strategy

Contract Managers

IT systems

COLLABORATION with SUPPLIER AGENTS

34

SVAA

NHHDA*

NHHDC* HHDC*

HHDA*

MOAs* HH Meters

NHH Meters

*Appointed by Supplier

Collect NHH Reading

Collect HH Reading

Profile

Coefficients

Aggregate

data

Aggregate

data

Install and

maintain

meters

Install and

maintain

meters

D0010 D0086

D0041 D0040

D0019 D0036

D0010 D0086

Report by Data Transfer Network (DTN)

REVIEW YOUR DATA SOURCES

35

What do you do with the reporting you receive?

WEEKLY REPORTS SNAPSHOT

36

What is your performance at earlier runs?

Can you catch problems earlier, before a

significant decline happens?

ROOT CAUSE ANALYSIS

37

■ Look at root causes not just symptoms of the

problem!

■ Suggestion: Use the ‘5 Whys’ technique

–The 5-whys is a question-asking technique

–Keep asking ‘why’ to move past the

symptoms

–Primary goal is to determine the root cause

of a defect or a problem

OVERVIEW

38

■ Introduction to ELEXON

■ What is the Supplier Hub Principle and what does that mean for me?

■ How and why does ELEXON monitor settlement performance?

■ How can I monitor my own performance?

■ What are my obligations as a Supplier?

■ What are the incentives for me to achieve this?

–Tips for maintaining/improving performance

FOLLOW UP

• https://www.elexon.co.uk/guidance-note/supplier-guidance-achieving-97/ • https://www.elexon.co.uk/about/other-services/training • https://www.elexon.co.uk/about/elexon-key-contacts/operational-support-managers-osms/

QUESTIONS

40

FEEDBACK FORMS

41