PAB147 25 April 2013
PAB147 Open Session 25 April 2013
PAB147/ 01b Non-confidential Settlement Risk Report Tabled 25 April 2013
PAB147/ 05 Risk Evaluation Methodology 2014/ 2015 – Post I ndustry Consultation Melinda Anderson 25 April 2013
REM Consultation PAB endorsed the 2014/2015 issue of the Risk Evaluation Methodology (REM) for industry consultation on 28 January 2013. The REM was published on 1 March 2013 for a 3 week consultation. We received four responses from BSC Parties which represented views from: » Suppliers (NHH & HH); and » Party Agents (NHH & HH). 4
Consultation responses Question Participant Response Question 1 Do you agree with the proposed methodology? 100% agreed with the proposed methodology. Question 2 For each area where you disagree, please N/A provide an alternative methodology. Question 3 Please provide any additional comments you One respondent provided comments (discussed may have on the content of the REM next). 5
Comments » Npower said that while the Settlement Risk Report details the measures in place for Suppliers and Meter Operator Agents it fails to capture the role Distributors have in relation Settlement Risks (An example of this risk is SR0028). » They also suggested further consideration of the risks associated with customer appointed agents and their impact on supplier’s performance is required to capture current market conditions. » Npower said they would welcome further information and assurance that the risks posed by Smart metering are being considered. » Npower said that in support of transparency and understanding of the methodology a plain English version of this document would be appreciated. In particular it was noted that the number of acronyms in the document creates unnecessary confusion for first time readers. 6
Our response » The first two comments will be addressed through the annual review of the Risk Evaluation Register (RER) in June 2013; » Npower have been assured that we will/do consider the risks posed by Smart metering; » The final comment about readability of the document has been discussed both with the respondent and internally; » As a result, acronyms are re-introduced more frequently so that a reader can commence reading the Methodology from any section without having to refer back to where the acronym was first established; and » Links to often referred to documents have been added to the reference section for easy access. 7
Recommendations » The PAB is invited to: NOTE the responses received from industry consultation; » NOTE the minor amendments made to improve readability of the REM; » APPROVE the REM; and » AGREE that the REM is published on the ELEXON website. » 8
Panel Update Verbal 25 April 2013
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