P350: Seasonal Zonal Transmission Losses

27 February 2018

David Thomas and Riccardo Lampini

Webinar

Public

What we will cover today

P350: Seasonal Zonal Transmission Losses 2

■ Background and context

■ Timeline for Modification P350 approval

■ TLFs and TLMs: Before and After 1 April 2018

■ How are TLFs calculated?

■ Timetable for TLF creation and publication

■ Where can I find TLF information?

■ Worked examples:

– Delivering BMUs (Generators)

– Offtaking BMUs (Suppliers)

■ Conclusion

■ Questions

Background and context

P350: Seasonal Zonal Transmission Losses 3

■ The CMA mandated the implementation of a Transmission Loss Factor (TLF), for each TLF

Zone1 and BSC Season, on 1 April 2018.

1 TLF Zones are aligned to the existing Grid Supply Point (GSP) Groups across Great Britain

■ As part of the Energy Market Investigation, the Competition and Markets Authority

(CMA) concluded that the absence of locational pricing for transmission losses has an adverse

effect on competition.

■ The CMA stated that this modification to the Balancing and Settlements Code (BSC) be

identical to P229, except for the inclusion of a small number of additional elements that had

emerged since 2010.

■ These elements included:

– Treatment of Interconnectors and High Voltage Direct Current (HVDC) circuits

– National Grid’s rights to ‘step in’ and take over the process if required

– A new TLF Adjustment value to neutralise the impact on certain strike price adjustments by

the Low Carbon Contracts Company (LCCC) for Contracts for Difference (CFD).

Timeline for Modification P350 Approval

P350: Seasonal Zonal Transmission Losses 4

Jul 16 • Modification P350: Introduction of a Seasonal Zonal Transmission Losses scheme’ raised

Sep 16 • P350 Industry Impact Assessment Consultation opened

Oct 16 • P350 Industry Impact Assessment Consultation closed

Jan 17

• The Panel unanimously agreed to approve P350, and submitted to the Report Phase

• The Report Phase Consultation opened

Feb 17

• The Report Phase Consultation closed

• The Panel unanimously recommended P350 be approved

• The Final Modification Report was issued to OFGEM

Mar 17

• OFGEM approve P350: Introduction of a Seasonal Zonal Transmission Losses scheme for implementation on 1 April 2018

TLFs and TLMs – Before and After 1 April 2018

P350: Seasonal Zonal Transmission Losses 5

■ Before 1 April 2018:

– TLF = 0

– TLM values do not change with location; they only

differ by whether the Balancing Mechanism Unit

(BMU) is Delivering or Offtaking

– Delivering BMUs have a TLM below 1, whilst

Offtaking BMUs have a TLM above 1

■ After 1 April 2018:

– TLF and TLM values differ based on location and

whether the BMU is Delivering or Offtaking

– Delivering BMUs still tend to have TLMs below 1,

whilst Offtaking BMUs still tend to have TLMs

above 1

■ Further details can be found on the ELEXON website:

Introduction of a seasonal Zonal Transmission Losses

scheme

How are TLFs calculated?

P350: Seasonal Zonal Transmission Losses 6

BSCCo

CDCA

Transmission Company

Calculate Adjusted Seasonal

Zonal TLFs by Season and Zone

Calculate Seasonal Zonal

TLFs by Season and Zone

Calculate Zonal TLFs by SSP

LFM

Derive Nodal Power Flows

Validate Metered Volumes

Metered vol.

Transmission

Network Data

NMS

LPs and SSPs

Metered vol. and HVDC vol.

Network Data

BSCCo

Nodal power flows

Nodal TLFs, Branch

power flows

Seasonal Zonal

TLFs

Adjusted Seasonal

Zonal TLFs

BSCCo Balancing and Settlement Code Company

CDCA Central Data Collection Agent

DSO Distribution System Operator

HVDC High-Voltage Direct Current

LFM Load Flow Model

LP Load Period

NMS Network Mapping Statement

SSP Sample Settlement Period

TLFA Transmission Loss Factor Agent

TLFA

DSO

Distribution

Network Data

Timetable for TLF creation and publication

P350: Seasonal Zonal Transmission Losses 7

By 30/06

ISG to agree methodology for Load Periods and Sample Settlement Periods calculation

10 WD

Industry consultation on agreed methodology for Load Periods and Sample Settlement Periods calculation

By 31/08

ISG decision on Load Periods and Sample Settlement Periods

Load Periods and Sample Settlement Periods

A proposed reference NMS and methodology presented to Panel

10 WD Industry review of draft reference NMS

By 19/10

Updated draft reference NMS presented to Panel for approval

Network Mapping Statement

Transmission Network Data

Distribution Network Data

Metered Volumes and HVDC Metered Volume

By 30/11

Nodal Power Flows

Branch Power Flows1

Nodal TLFs

Seasonal Zonal TLFs

Adjusted Seasonal Zonal TLFs

From To

BSCCo ISG

BSCCo

BSCCo

BSCCo

BSCCo

TLFA

Industry

ISG TLFA/Industry Panel

Industry

BSCCo

Panel TLFA/Industry TLFA TLFA TLFA

Data type

1 This is called “Load Flow Model Power Flows in the BSC.”

Where can I find TLF information?

P350: Seasonal Zonal Transmission Losses 8

Where TLFA outputs are stored?

Data will be published on the ELEXON Portal www.elexonportal.co.uk/tlfdetermination by the end of December.

Which file I’m more likely to use?

Actual TLFs are saved in the TLFA-I009.

Indicative TLMs and TLMOs have been calculated using historic Metered Volume data for the Reference Year from zero

TLFs (TLFA-I013) and non zero TLFs (TLFA-I014), to give meaningful indicators of Parties’ potential losses allocation.

Where can I find additional information on Code Subsidiary Documents (CSDs) and Configurable Items?

Documents like Service Description or Load Flow Model specifications are published here:

https://www.elexon.co.uk/change/releases/p350-introduction-seasonal-zonal-transmission-losses-scheme/.

The page also contains information on the Estimated Transmission Losses Adjustments (ETLMOs).

Do I need to calculate actual TLMs?

Historic values are published here www.elexonportal.co.uk/historictlmdata.

File structure will be updated to include the additional zone field.

Having actual TLMs and TLFs, actual TLMOs can be derived from the formula TLM = 1 + TLF + TLMO

95.596

96.597

97.598

98.599

99.5100

100.5

48 1 48 1

31/03/2018 01/04/2018 31/03/2018 01/04/2018

T_GEN1 T_GEN2

8 14

MW

h

Sum of Mvol [MWh]

Sum of CEV [MWh]

Worked example – Delivering BMUs (Generators)

P350: Seasonal Zonal Transmission Losses 9

Two Delivering BMUs:

1. T_GEN1 located in Southern England (GSP Group _H, Zone 8); and

2. T_GEN2 in North Scotland (GSP Group _P, Zone 14).

BMU Settlement Day Settlement Period Zone TLF Mvol [MWh] TLM CEV [MWh]

T_GEN1 31/03/2018 48 8 0 100 0.989 98.939

T_GEN1 01/04/2018 1 8 0.007801 100 0.998 99.814

T_GEN2 31/03/2018 48 14 0 100 0.989 98.939

T_GEN2 01/04/2018 1 14 -0.017974 100 0.972 97.236

1

1

1Credited Energy Volume

-102

-101.5

-101

-100.5

-100

-99.5

-99

-98.5

-98

-97.5

48 1 48 1

31/03/2018 01/04/2018 31/03/2018 01/04/2018

2__HSUP1000 2__PSUP2000

8 14

MW

h

Sum of Mvol [MWh]

Sum of CEV [MWh]

Worked example – Offtaking BMUs (Suppliers)

P350: Seasonal Zonal Transmission Losses 10

Two Offtaking BMUs:

1. 2__HSUP1000 located in Southern England (GSP Group _H, Zone 8); and

2. 2__PSUP2000 in North Scotland (GSP Group _P, Zone 14).

BMU Settlement Day Settlement Period Zone TLF Mvol [MWh] TLM CEV [MWh]

2__HSUP1000 31/03/2018 48 8 0 -100 1.012 -101.174

2__HSUP1000 01/04/2018 1 8 0.007801 -100 1.016 -101.599

2__PSUP2000 31/03/2018 48 14 0 -100 1.012 -101.174

2__PSUP2000 01/04/2018 1 14 -0.017974 -100 0.990 -99.022

1

1

1Credited Energy Volume

Conclusion

P350: Seasonal Zonal Transmission Losses 11

■ TLFs are negative in the North and positive in the South because the majority of Generation is in the

North, whilst the majority of Consumption is in the South.

■ If you are a Generator in the North, or a Supplier in the South, you are more likely to be negatively

impacted by P350 as:

– An increase in Generation in the North, or an increase in Consumption in the South, means an

increase in total losses.

■ If you are a Supplier in the North, or a Generator in the South, you are more likely to be positively

impacted by P350 as:

‒ An increase in Consumption in the North, or an increase in Generation in the South, means a

decrease in total losses.

Any Questions?

Please contact: market.analysis@elexon.co.uk