Developments
A number of changes have been made to the electricity trading arrangements since their instigation. This section highlights the key developments likely to be of interest to smaller generators.
P7 – “Allocation of Supplier demand to the same BM Unit in a GSP Group for all suppliers in the same company”.
P7 was the first of BSC modifications which enhanced the ability of LEGs to access the embedded benefits which accrue to them. P7 introduced a mechanism allowing any group of Suppliers in the same GSP Group to join the same Trading Unit as any number of CVA registered LEGs (within that GSP Group), thus increasing the opportunity for an LEG to recover the embedded benefits to which it is entitled.
P55 – “BSC Conflicts with Consolidation of Embedded Generation in Central Volume Allocation”.
P55 enabled an LEG to register its export meter in CMRS, independently of the associated SMRS import meter and in so doing removed an obstacle to consolidator trading, in turn enabling more small generators to participate in NETA.
P67 “Facilitation of Further Consolidation Options for Licence Exempt Generators (DTI Consolidator Working Group ‘Option 4’”.
P67 introduced mechanisms to allow a LEG to split its output into predictable and unpredictable output and in so doing gave SMRS registered generators which are not parties to the BSC greater choice as to whom they contract with and under what terms.
P100 “Extension of demand-side Trading Units in order to increase the competitiveness of the market for embedded benefits”
This modification gives ELEGs which are signatories to the BSC and which have registered meter(s) in the CMRS the opportunity to receive the benefit of reducing the BSUoS charge, as well as other benefits relating to BSCCo costs and transmission losses directly from NGC.
UoSCM-M-07
UoSCM-M-07 ensured that all embedded generators capable of exporting less than 100 MW would be exempt from TNUoS charges. It also ensured that CVA registered ELEGs would pay or be paid demand TNUoS charges on the basis of their metered volumes.
As the latter effects the TNUoS demand charges accruing to suppliers participating in a netting-off agreement with a CVA registered ELEG, it was decided such generators would be paid or charged directly.
P78 Revised Definitions of System Buy Price and System Sell Price
The revision introduced by P78, and the later clarification provided by P104, improved the position of small generators by significantly reducing the spread of imbalance prices and thus the risk to which smaller generators are exposed.
P81 Removal of the Requirement for Half Hourly Metering on Third Party Generators at Domestic Premises
P81 relaxed the previous BSC requirements such that Exports from domestic premises of below 16 amps per phase can be taken into account in Settlement without Half Hourly Metering Equipment (HHME) being installed.
A review recently carried out of this limit (the Small Scale Third Party Generation Limit - SSTPGL) recommended it be raised to 30kW. Ofgem approved the new limit on 8 November 2004, and this became operationally effective in the BSC on 15 November 2004.
Introduction of Generator Distribution Use of System (GDUoS) charges
On 7 July 2004 a collective licence modification to standard licence condition 4 of all the electricity distribution licences was made.
This modification placed a requirement on all the electricity distribution network operators (“DNOs”) to determine use of system (“UoS”) and connection charging methodologies, and gain approval for these methodologies from Ofgem by 1 April 2005. They are further obliged to review this methodology at least once in every year.
Prior to April 2005 demand and generation customers were charged in a different manner, with generators paying connection charges for all works required to connect them to the system (know as deep connection charging) and demand customers paying more limited connection charges plus use of system charges (known as shallowish connection charging).
From 1 April 2005 a common connection boundary is applied across generation and demand. New generators will pay shallower connection charges and will begin to pay use of system charges.