Post-lockdown settlement arrangements approved

The Performance Assurance Board for the Balancing and Settlement Code (BSC) has approved a new set of derogations that will allow suppliers to submit fresh consumption estimates for business customers once the coronavirus lockdown ends or they re-open.

Data collectors have also been relieved from their obligations to conduct site inspections both during the lockdown and for three months afterwards to allow them to focus on taking meter readings and investigating faults.

The board had already approved a set of temporary derogations from the code at the beginning of April that allowed suppliers to submit new estimates of annual consumption for non-domestic properties to reflect changes in behaviour.

As annual consumption is normally estimated using load profiles derived from historical data, they would otherwise be compelled to overbuy power for businesses that have shut down operations and therefore require less electricity than usual.

In a paper recommending further derogations to the board, BSC administrator Elexon said neither these estimates, reflecting substantially reduced demand, or those from before the lockdown will be accurate. Whilst it is expected to rebound, demand will likely remain below pre-covid levels for some time due to continued social distancing measures.

It said suppliers should be allowed to submit fresh estimates reflecting businesses actual consumption during this transitionary period. The derogations were approved by the Performance Assurance Board at a meeting last week.

Elexon said both itself and the board “recognise the potential concerns that suppliers may make inappropriate use of the new process or not take action to reinstate the estimates when businesses resume trading”. It informed suppliers that their actions in this regard may be subject to an audit in future and instructed them to keep records of any use of the derogations.