A British Electricity Market 30 June 2004 30/06/04 A British - PowerPoint PPT Presentation

A British Electricity Market Implications of BETTA (BSC) � BSC parties obliged to undertake registration activities in respect of metering in Scotland � All transactions settled under GB BSC � Scottish GSP groups to be added to settlement � Further information from ELEXON 30/06/04

A British Electricity Market Implications of BETTA (Grid Code) � England & Wales used as the basis for GB document, with some regional differences � Second consultation published 7 May � Near final version end of July � Key differences: – regional differences where necessary – prudent retention of definitions of large, medium & small generation – review Panel membership – Derogations – Balancing mechanism not scheduling and despatch 30/06/04

A British Electricity Market Implications of BETTA (Grid Code) � Secretary of State will designate changes to NGT’s Grid Code to form the GB Grid Code � GB Grid Code will come into effect as early as possible to enable GB governance to be put into effect � Establishment of GB Grid Code Review Panel � All generation, distribution and supply licensees obliged to comply with GB Grid Code 30/06/04

A British Electricity Market Implications of BETTA (Scottish Grid Code) � Scottish Grid Code remains in effect until BETTA go-live � Need for existing arrangements to continue � Some provisions may cease before go-live (under consideration) � Scottish Grid Code Review Panel already working closely with E&W’s Grid Code Review Panel � Later with GB Grid Code Review Panel 30/06/04

A British Electricity Market Implications of BETTA (Interconnectors) � England – Scotland interconnector to become part of transmission system – Access agreement no longer required – Use of system agreements no longer required � Anglo-French (no change) � Moyle interconnector – Balancing & Settlement arrangements apply (IEA, IA) – Connection agreement required with NGT – Operational agreement required with NGT 30/06/04

A British Electricity Market Implications of BETTA Existing arrangements – Scotland � Settlement Agreement for Scotland � Connection agreements in Scotland � Trading Code � British Grid Systems Agreement 30/06/04

A British Electricity Market Implications of BETTA System Operator Transmission Owner Code (STC) � Between Transmission Licensees � Interfaces with CUSC/Grid Code � No impact for users – users contract with the GB system operator – GB system operator contracts with transmission owners for services – STC provides “back-off” for user-facing obligations 30/06/04

A British Electricity Market Implications of BETTA (Small Generators) Ofgem/DTI recognise the small generator issues cut across documents � Therefore decision to consult additionally on the theme of small � generators Ofgem/DTI conclusions � – provide small transmission connected generators in Scotland with a discount against transmission use of system charges: • interim period of three years • expected to be in the range £2.5 to £3.5 per kilowatt – amendment to the GB CUSC to relieve licence exempt transmission connected generators from the obligation to become a party to the BSC: • a BSC Party registers the generation on their behalf 30/06/04

A British Electricity Market A British Electricity Market Refreshments – 30 minutes 30/06/04

A British Electricity Market A British Electricity Market 30 June 2004 Transition to the new arrangements Simon Street BETTA Project Ofgem 30/06/04

A British Electricity Market Transition to a British Electricity Market � Timetable � Energy Bill � Legal arrangements to support transition � Activities to support transition period 30/06/04

A British Electricity Market Transition to a British Electricity Market Planning Assumptions Royal Assent Commencement of Powers “go-active” Go Live Power(s) in use 21JUL AUGUST SEPTEMBER APRIL 30/06/04

A British Electricity Market Transition to a British Electricity Market Energy Bill Powers for Secretary of State to: � Put in place new transmission licences (and amend code framework agreements) � Amend licences and codes 30/06/04

A British Electricity Market Transition to a British Electricity Market Go-Active � “appointment of GB system operator” � New transmission licence conditions � Changes to generation, distribution and supply licences � GB CUSC, Grid Code and GB BSC � STC introduced � GB governance in place for codes 30/06/04

A British Electricity Market Transition to a British Electricity Market The Transition Model � Model is transition obligations within codes and licences � Parties will be required to sign framework agreements to the codes ( to the extent not already done so ) � No need has been identified for bespoke contractual document ( as per NETA ) � Need to look to codes and licences for full suite of transitional obligations 30/06/04

A British Electricity Market Transition to a British Electricity Market All Licensees at “ go-active” will have obligations to: � Take such steps and do such things that are necessary to give full and timely effect to BETTA arrangements � Cooperate with licensees and other parties in discharge of above � Provide the Authority with information on progress � Transitional obligations will fall away at BETTA go live 30/06/04

A British Electricity Market Transition to a British Electricity Market Other possible obligations on transmission licensees � Requirement for NGT to enter into (in case of users in Scotland) and amend (in case of users in England & Wales) connection and use of system agreements � Requirement for SPT and SHETL to provide information to NGT to support NGT’s offers to users � Finalising such licence conditions 30/06/04

A British Electricity Market Transition to a British Electricity Market � Transitional obligations applying between NGT, generation, supply and distribution licensees in user facing codes � Provision made in relevant code licence condition for Authority to modify CUSC, GC, BSC STC during transition period � Still considering what if any obligations need to put in place to facilitate the run-off of existing arrangements 30/06/04

A British Electricity Market Transition to a British Electricity Market � Lead role for transmission licensees and ELEXON who will have enduring responsibilities in relation to a number of key BETTA business processes: – GB Transmission Despatch (NGT) – GB Outage Planning (NGT) – GB Connections Process (NGT) – GB charging arrangements (NGT) – GB Investment Planning (NGT) – GB Settlement and Metering (ELEXON) – Transmission owner user facing activities (SPTL/SHETL) – Run-off of existing arrangements (SPTL/SHETL) 30/06/04

A British Electricity Market Transition to a British Electricity Market Further activities in progress consideration: � Development of an approach to testing SO-TO interface � Development and refinement of data requirements for the transition to new arrangements � Development of go-live criteria and appropriate readiness indicators � Further detail on operational cut-over to the new arrangements � Detailed planning of the activities to support “go-active” � Further refinements to the programme plan to include above 30/06/04

A British Electricity Market Transition to a British Electricity Market Summary: Several important transition documents � Legal arrangements for the transition to and implementation of BETTA � CUSC /Grid Code (Early July) � BSC already out � G,S,D Licence changes (Early July) � Publish designation text (mid August) 30/06/04

A British Electricity Market Transition to a British Electricity Market � NGT - Key Business Processes and interface with GB system operator � SHETL – What role will SHETL perform � SPTL – What role will SPTL perform � ELEXON – GB Settlement and Metering 30/06/04

The Transition to BETTA Ofgem Seminar 29 June 2004, London 30 June 2004, Glasgow Nigel Williams, BETTA Programme Director

Contents • Introduction to GBSO function • Timeline for GBSO Transition Activities • Activity Detail • Outage Planning • Energy Balancing • Transmission Despatch • Charging and price Controls • Connection and Use of System Agreements • Impact on Users

What Will The GBSO Do?? • Outage Planning • Energy Balancing • Transmission Despatch • Charging and Price Controls • Connection and Use of System Agreements

Timeline Transition of Legal Framework and Industry Codes Integrated Testing (NGT/SP/SSE, NGT/ELEXON) Parallel Running Training Commercial Arrangements Transitional Arrangements Go Active Cut-over Royal Assent Shadowing Go Live Start of Transition Connections of Connections Process Agreements 1st April 05 Jul 04 Aug 04 Oct 04 Jan 05

Outage Planning J J A S O N D J F M A DNOs\ Generators Contact SP\SSE DNOs\Generators SP\SSE Manage OP Contact GBSO Data GBSO Shadows Scottish SOs 13 week GBSO Manages OP Obligations on TL’s to ahead provide Data shadowing GO-LIVE 12 weeks ahead 4 weeks ahead: – GB Zonal start of enhanced Margin reporting shadow operation Highlights: 1. GBSO Shadowing SP\SSE from 13 weeks ahead, SP/SSE continue with existing processes until Go Live. Go Live 1st April 05 2. Obligations for all User and TO technical data to be provided from designation to populate models etc 3. From 4 weeks ahead GBSO may prohibit actions with respect to GB Security (under review) 4. Assess need for commercial Balancing Service contracts

Energy Balancing J J A S O N D J F M A Reactive and Reserve Identify Requirements Market Tender Tender Assessment Tender Award BS \ AS Contracts effective 6 Monthly Reactive Services All BMUs Registered (Inc. Black Start) Market Tender (will be GB wide) (from Elexon Plan) D - 3 Live PN data Annual Standing Reserve GB submission Market Tender (will be GB wide) Balancing GO - LIVE Highlights: 1. Tender for GB Reactive Services (6 Monthly) in October 2. Tender for GB Standing Reserve (Annual) in October 3. Testing and Trialling activities will be bi-lateral and not involve live generation despatch 4. Training assistance provided to Users where required / Requested 5. Only limited integration testing with Elexon will be necessary 6. Cut-over to GB system commences Tuesday 29 March 2005 7. Initial GB Physical Notifications required by 1100hrs on Thurs 31 March 2005

Transmission Despatch J J A S O N D J F M A Training shadowing GO SCADA LIVE D - 7 Data required Testing and Trialing (Procedures \Facilities ) Installation of Control facilities Highlights: 1. Extensive period of datalink and facilities testing required 2. Extensive period of GBSO - TO testing and trialling (including role playing and simulations) 3. Will meet all transmission connected users to explain the role of GBSO and TO in the Transmission Despatch process 4. Short period of shadowing and cutover 4. Go Live Midnight on 31st March 05 5. Use of existing control facilities and staff in Scotland

Charging and Price Controls J J A S O N D J F M A M J J Licence Condition:150 Days notice Form of required for tariff change Publish GB Charges Price Controls Methodology Effective Charges Known Approved GB Formal Charging 2 Month Notice Period Charge Calculation Methodology Consultation GO - LIVE Highlights: 1. Assumes 1st April Go Live. 2. Policy with respect to form of Price Control needed prior to charging methodology publication 3. Approval of methodology by November 2004 to meet present 150 day licence condition. 4. Definitive GB charges published 2 months prior to Go-Live

v Connection and Use of System Agreements A M J J A S O N D J F M A SP/SSE Continue to GO - ACTIVE make Offers until GO - LIVE GBSO Shadows SP/SSE Go Live GB SQSS GBSO Access Policy Decision A B C Receives New Applications Existing Agreements - Discussion/Prep Transitioning of Existing Agreements Info Provided by TOs. Contact established with users • Category A: Existing Users (Connection and Use of System only) Users with a Connection Agreement connected or connecting before Go Live • Category B: New Users (Connection, UoS, and Construction Agreement) Users with a Connection Offer connecting after Go Live • Category C: New Applicants Any new Connection or Modification application made from 1 Jan. 2005

How this will effect Users • For Transition: • Existing Connection Agreements replaced with new CUSC Connection Agreement and Construction Agreement (where appropriate) • New Users may have new offers with new dates for connection • For Enduring: • All Applications for New Connections and Modification Applications should be made to the GBSO from Go Live • No major impact expected for E&W Users

Summary of Key User Activities • Operational readiness • procedures • facilities • training • test programs • Implement Connections process • site data • draft agreements • bilateral requirements

NGT BETTA Contacts BETTA Issues Nigel Brooks, Issues Manager Tel - 01926 656028, email - nigel.brooks@ngtuk.com Contracts and Agreements Guy Phillips, Senior Commercial Analyst Tel - 01926 656339, email - guy.phillips@ngtuk.com Nigel Williams, Programme Director, BETTA Tel - 01926 656952, email - nigel.williams@ngtuk.com

Alec Morrison BETTA Programme Manager Scottish Hydro-Electric Transmission Limited (SHETL) Implications of BETTA [BETTA Seminar 30th June 2004]

CONTENT • What role will SHETL perform? • Contractual Run-Off • What role will NGT perform? • What will Users need to do? • Summary

WHAT ROLE WILL SHETL PERFORM? Up until BETTA Go-Live (1 st April 2005) SHETL will continue to process your connection applications in the usual manner (“ its business as usual”). At BETTA Go-Live the contractual arrangements between SHETL and transmission Users will formally transfer to the GBSO. • Prior to BETTA Go-Live SHETL will initiate the termination of all transmission Agreements. • Prior to BETTA Go-Live, where applicable, SSE Distribution business will vary any distribution Agreement to remove any transmission reference. • SHETL will provide User data to the GBSO to support the enduring GBSO- User and GBSO-TO contractual framework. Post BETTA Go-Live SHETL will remain the north of Scotland Transmission business.

CONTRACTUAL RUN-OFF • Prior to BETTA Go-Live all the existing bilateral and tripartite transmission and interconnector contracts will be run-off. • This work will be co-ordinated to coincide with the introduction of the enduring contractual framework (e.g. CUSC, MSA, BSC, GBGC)

WHAT ROLE WILL NGT PERFORM? • NGT will enter into bilateral discussions with affected Users, both transmission and distribution connected (where appropriate). • Establish new contractual arrangements with transmission Users under the new BETTA legal framework for switching on at BETTA Go-Live. • Any distribution connected embedded Generator providing services to the GBSO will be required to enter into a Scottish Embedded Generator Agreement (SEGA).

WHAT WILL USERS NEED TO DO? • Assist SHETL and NGT with the transitional arrangements. • Make early contact with SHETL and NGT to discuss any areas of concern.

WHAT WILL USERS NEED TO DO? • Assist SHETL and NGT with the transitional arrangements. • Make early contact with SHETL and NGT to discuss any areas of concern.

SUMMARY • BETTA is going to happen. • We are here to help you. • We will contact you. • Come and talk to us. SHETL (TO): Craig Neill, Contracts Manager, Tel. 01738 456463 NGT (GBSO): Nigel Brooks, BETTA Issues Manager, Tel. 01926 656028

SP Transmission & Distribution Robin MacLaren Managing Director, SP Transmission Ltd 30 June 2004

BETTA SPT is supportive of BETTA and is working with Ofgem/DTI and the other transmission licensees to deliver BETTA. BETTA must deliver: • An equitable GB market for our customers • Consistency with wider energy policy objectives and support renewables • A sound electricity infrastructure for Scotland BETTA is a fundamental restructuring of the transmission sector : • SPT will continue to own, plan, maintain and develop its network • NGC will become responsible for system operations

Changed Transmission Responsibilities • Infrastructure Investment • Network Security • New Connections Scottish TOs - Infrastructure Investment Grid Control Grid Control SHETL SPT GBSO – Network Security • Infrastructure Investment New Connections • Network Security • New Connections NGC - Infrastructure Grid Grid Control Investment Control NGC GBSO

BETTA Under BETTA, SP Transmission will no longer be responsible for: • Use of system or connection charging; • Use of System or connection agreements; or • Applications for connections. All of the above will be undertaken by NGC

Planned Switching User Liaison with User Switching Instructions Notification when Switching TO takes control Safety Permitting TO(SPT & SHETL) GBSO(NGC) Releases control to TO

Outage Planning USER User Outage Request Publish System Discuss mutual work Outage Plan Execute outage TO(SPT & SHETL) GBSO(NGC) Agree TO Outages Plan & request TO Outages

Connections USER Formal Application Offer of Connection Offer Acceptance Pre-Application Feasibility Request GBSO(NGC) TO(SPT& SHETL) Design & Build Request for TO connection offer TO offer of connection Acceptance of TO offer

Transition to BETTA • TO - User Arrangements - Safety Framework - Interface Agreements/Site Responsibility Schedules - Connections • Transition of existing connections - Transition of connection offers - Transition of connections under construction

User’s role in Transition to BETTA • Users have an important role to play in supporting the Transition process – Run-off of existing arrangements – Connection Agreements – Connection Offers – Testing and Trialling • User Training – Full participation in Training (where required) • Concerns? – Raise them NOW with ourselves or NGC

ELEXON BETTA Project – Transition John Talbot BETTA Project Manager Ofgem/DTI Seminar 29-30 June 2004 The information in this presentation has been collated by ELEXON and while all due care has been taken to ensure the accuracy of this information, ELEXON accepts no responsibility for errors.

Agenda • Recent Developments/Present Status • Transition Timetable • Transition Activities – Governance & Legal Framework (GB BSC in place on 1 September 2004 - Go Active) – Data Acquisition – Testing & Trialling – Cutover • Further information/assistance

Recent Developments • CVA/SVA systems development completed – released 29 June • “Transition” has started (voluntarily) – Data Acquisition & Market Trialling Plans • Published in early February • Presented at roadshows in England and Scotland • Amended in light of consultation and republished – Data acquisition & market trialling commenced (>½ total data from Licensed Distribution System Operators now acquired)

Transition Timetable Data Acquisition Testing & Trialling Cutover Panel Election CSDs for Go Active 2004 2005 A M J J A S O N D J F M Go Active

Data Acquisition Data Acquisition 1 April 2004 31 October 2004 30 November 2004 Voluntary All data entities All data entities commencement submitted registered (inc BM Units) 2004 2005 A M J J A S O N D J F M Go Active

Testing and Trialling Testing & Trialling Limited Parallel Running End to End Tests Cutover Tests Level 3 Tests Level 2 Tests CDCA Data Set Complete Level 1 Tests 2004 2005 A M J J A S O N D J F M Go Active

GB BSC Panel Election Timetable Go 21 June 13 July 16 July 9 Aug 13 Aug Active TIME Request for nominations Deadline for Voting Votes Results Sent to BSC Parties and nominations Papers received announced Prospective GB Parties Issued GB Panel in place

Transitional Code Subsidiary Documents Transitional Code Subsidiary Documents BETTA Data Take on Procedures Created to allow effective acquisition of Scottish data Entry Process, Accreditation and Certification Document Created to allow evidence obtained under SAS to be used under GB BSC Testing Document Optional to include obligations relating to Testing Cutover Document Optional to include obligations relating to Cutover Any other document required for smooth transition to BETTA Optional as required

Steps in Approval of TCSDs required for Go Active Experts review Consultation Consultation on Responses BETTA TCSDs issued back and document Go Active TIME 17 June 14 July 27 July Special GB Panel ISG Members Meeting act as “experts” 2 Sept Panel entitled to rely on Pre-Go Active consultations as if they had been carried out under the GB BSC Approval of TCSDs

Entry Processes and Accreditation/Certification • Proposed recognition of equivalence arrangements between Scotland and E&W • To be handled via – Existing BSC Procedures – Transitional Code Subsidiary Document (presently under consultation) – GB Performance Assurance Board (to be established shortly after Go Active) • Invitations now being issued to participants to discuss requirements

Key Cutover Proposals • Preparations for Go Live start 1 February 2005 • GB-wide Market Domain Data to be disseminated on 15 March 2005 • Parties remain responsible for any adjustments from Go Live to – Energy Contract Volume and Metered Volume Reallocation Notifications (by first gate closure) – Collateral (cleared funds) lodged with Funds Administration Agent (by first settlement period)

User Interfaces • ELEXON Website – www.elexon.co.uk/betta • ELEXON Circulars – BETTA Distribution List • ELEXON Events – www.elexon.co.uk/AboutElexon/Events • Trading Operations Forum (TOF) • Supplier Agent Forum (SAF) • Software Technical Advisory Group (STAG)

Project Contact Details • ELEXON Helpdesk – helpdesk@elexon.co.uk – 020 7380 4222 • BETTA Project – betta@elexon.co.uk • User Assurance Co-ordinator – Duncan Jack – 020 7380 4039

A British Electricity Market Questions and Answers Panel 30/06/04

A British Electricity Market Closing Remarks and Next Steps Colin Sausman BETTA Ofgem 30/06/04

A British Electricity Market A British Electricity Market Benefits � More competition benefits consumers � More co-ordinated investment in GB Transmission System � More efficient traded markets � Open and fair access to the transmission system 30/06/04

A British Electricity Market A British Electricity Market Key Messages � Energy Bill completing passage through Parliament � Legal environment will be created to give effect to new arrangements in September � Several significant documents to look out for � You need to prepare for your transitional and enduring responsibilities � You need to prepare if you want to take advantage of the new arrangements 30/06/04

A British Electricity Market A British Electricity Market Next Steps Speak to NGT about: � – BETTA Issues Manager Nigel Brooks 01926 656 028 – Contracts and Agreements Guy Phillips 01926 656 339 SHETL contact: Contracts manager Craig Neill 01738 456463) � SPTL contacts: � – Operational Issues George Spowart 0141 776 2431 – BETTA Programme Director Dave Thornton 01698 413 485 ELEXON contact the helpdesk 020 7380 4222 � High-level plan of activities will be published in next few weeks � You will face obligations to get ready � Embrace the opportunities � 30/06/04