Comply with the Elexon settlement code

The Elexon Settlement Code, also known as the Balancing and Settlement Code (BSC), is a regulatory framework that governs the balancing and settlement of electricity supply and demand in Great Britain.

Administered by Elexon, it ensures that the energy market operates efficiently, fairly, and transparently by accurately accounting for electricity consumed and generated by each market participant. To comply with its regimental code, you need to be aware of the below elements:

Key requirements

Energy suppliers must comply with several key requirements under the BSC. Suppliers must provide precise and timely data on electricity consumption and generation to Elexon for settlement purposes. They must also validate the accuracy of the data submitted to avoid discrepancies and ensure reliability. Finally, with the transition to Market-Wide Half-Hourly Settlement (MHHS), suppliers need to ensure that their metering portfolio is capable of recording data on a half-hourly basis.

Strategy and system requirements

To comply with the BSC, you must implement several strategies and systems:

• Advanced Metering Infrastructure: Deploying half-hourly data reporting ensures accurate and timely data services for SME customers through various solutions, including smart meters and AMR.

• Data Management Systems: Robust data management systems are essential to handle the large volumes of data generated, ensuring seamless integration and accurate reporting.

• PAB Escalation: The Performance Assurance Board reviews non-compliance issues and assesses resolution plans to address and rectify any discrepancies in adherence to industry standards.

• Up-to-Date Data Monitoring: Data monitoring in line with the settlement performance targets helps in identifying and correcting any anomalies promptly, maintaining data integrity.

• Regular Audits and Reviews: Conducting regular audits and reviews of metering and data management processes ensures ongoing compliance with settlement requirements.

• Staff Training: Ensuring that staff are well-trained in the use of metering and data management systems, as well as understanding regulatory requirements, is crucial for maintaining compliance.

Consequences for non-compliance

While inaccurate data and reporting can lead to operational inefficiencies, disrupting business processes and increasing costs, failure to comply with the BSC can lead to more serious consequences for energy suppliers. Significant fines and financial penalties can be imposed by regulatory bodies, and suppliers may suffer reputational damage, leading to loss of customer trust and increased churn rates. Persistent non-compliance can also result in exclusion from the energy market, preventing the supplier from operating and trading.

The solution

By implementing robust metering and data management solutions, energy suppliers can ensure compliance with the Elexon Settlement Code (BSC), maintain operational efficiency, and build trust with customers. TMA’s comprehensive suite of tools and services is designed to support suppliers in meeting these regulatory requirements, ensuring accurate data services, seamless integration, and exceptional performance.