Overview of Supplier Volume Allocation

David Osborne

• Supplier Volume Allocation (SVA)

– Purpose

– History

– Supplier Hub and other participants

– Interface with Central Services

Introduction

Generation, Transmission, Distribution and Supply

Transmission Network (the

‘Grid’)

Distribution Network

Grid Supply Points

Supplier’s customer

factory >100 kW Supplier’s

customer -domestic

GSP Group

Generation Generation

Supply

400/275 kV

132 kV

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 MWhdemand 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

Appointment and

Settlement DataMeter

OperatorData

CollectorData

Aggregator

Supplier SMRS

SVAA

Industry Processes Central Systems Processes

Profile Administrat

or

Settlement Administratio

n Agent

Central Data

Collection Agent

Aggregated consumptio

n Data

DC/DA appointment

s

GSP Group Take

Allocated Supplier Volumes

Regression Data

NHH Daily Profile

Coefficients

Other Data Providers

Teleswitch, sunset and temp data

Timing of Settlement Runs

Time

Settlement Day

+5WD

Interim Informatio

n Settlemen

t Run

+16WD

Final Settlemen

t Run

+39WD

+84WD

+154WD +292W

D

+30Months

1st Reconciliatio

n

3rd Reconciliatio

n

2nd Reconciliatio

n

Final Reconciliatio

n

Post-Final Settlement

Run

Reading Targets n/a 30% 60% 80% 97%

Supplier Charges

Costs

• Supplier Volume Allocation

– SVA Operations

– Data Transfer Service (DTS)

– Profiling

– Software Support

– Entry Process/Qualification

– Other

– SVA Total Cost

Year to March 2008

£m

1.59

0.58

0.14

0.41

0.74

0.87

4.33

Electricity Metering & Settlement

Jon Spence, ELEXON8 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

April to MarchAverage Domestic, Unrestricted Customer - Yearly Profile

0

2

4

6

8

10

12

14

16

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

kWh

Daily Profile – domestic unrestricted

Average Domestic, Unrestricted Customer - Daily Profile

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

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

kW

Winter Weekday – single-rate and dual-rate Domestic Profile Classes

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47

Settlement Period

kW

Profile Class 1 - Domestic Unrestricted Customers Profile Class 2 - Domestic Economy 7 Customers

Non-Domestic Load Profiles

Non-Domestic Customers

0

1

2

3

4

5

6

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

kW

Profile Class 3 - Non-Domestic Unrestricted Customers Profile Class 4 - Non-Domestic Economy 7 Customers

Non Domestic Maximum Demand

Non-Domestic Maximum Demand Customers

0

5

10

15

20

25

30

35

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

kW

Profile Class 5 - Non-Domestic MD 0-20% LF Profile Class 6 - Non-Domestic MD & 20-30% LF

Profile Class 7 - Non-Domestic MD & 30-40% 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) – confidentialprocess

Year two – data analysed

Year three – profiles used in Settlement process

Load Research

Regression Analysis

Daily Profile Production

Annualise Meter

Advances

Deemed Take calculation

Temperatures and sunset

times

switching times

Supplier ReportsYearly

Sample data

Profile Administrator

SVAAData

Collector

Daily

Profiling process

SVAA

Data CollectorAn estimate of annual consumption is extrapolated from meter advance using profile

Average Domestic, Unrestricted Customer - Yearly Profile

0

2

4

6

8

10

12

14

16

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

kWh

1,150 kWh in 90 days

4,250 kWh per year (AA)

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

INITIAL EAC

AA 1 EAC 1

AA 1 AA 2 EAC 2

AA 1 AA 2 AA 3 EAC 3

timeline

“carried forward” EAC is calculated using latest AAand “brought forward” EAC (weighted using theprofile over the meter advance period)

AA Example

1/1/07 31/3/07

MR1

7,000

MR2

9,000

MA = 2,000

MAP∑DPCs = 0.4

Previous EAC = 3000

AA = Meter Advance / MAP∑DPCs

= 2,000 / 0.4

=5,000

EAC Example

1/1/04 31/3/04

MR1

7,000

MR2

9,000

MA = 2,000

MAP∑DPCs = 0.4

Previous EAC = 3000

AA = 5,000

EACnew = AA * (MAP∑DPCs * SP) + EACold * (1-MAP∑DPCs * SP)

EACnew = 5,000 * (0.4 * 2)

EACnew = 4,000 + 600 = 4,600

EACnew

+ 3,000 * (1 – (0.4 * 2))

Data AggregationEstimated yearly demand values are added up for customerswith same Supplier, Profile Class, meter configuration by a Data Aggregator to give theestimated yearly demand for Settlement Class ora “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

Aggregated AA / EAC (Supplier/Profile Class)

AA / EAC (Meter)

Meter Advance

Average Domestic, Unrestricted Customer - Yearly Profile

0

2

4

6

8

10

12

14

16

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

kWh

Daily Profiles

Half Hourly Profiles

Average Domestic, Unrestricted Customer - Daily Profile

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

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

kWHH

profiled demand (Supplier)

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’

HH

GSP Group Correction

GSP GROUP TAKENHH

HH

NHH

Electricity is metered twice – at customer’s meter and at Grid

Supply Point (i.e. entry/exit points to distribution networks)

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 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? ______

PrA

PrA

NHH Data

Collector

SVAA

Questions

?