the settlement process - ofgem€¦ · the settlement process distribution losses ‘a settlements...
TRANSCRIPT
![Page 1: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/1.jpg)
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.
The Settlement Process
Distribution Losses
‘A Settlements Eye View’
John Lindup
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.
![Page 2: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/2.jpg)
Presentation Objectives
• Distribution Losses Perspective from Settlements
• Root Causes
• ELEXON initiatives
![Page 3: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/3.jpg)
Settlements
GSP Group
NHH
HH Export
HH Import
![Page 4: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/4.jpg)
Distributions Losses
Import ExportHH Energy
HH Energy Loss Estimates
Total Uncorrected Energy
HH Energy
NHH Energy
NHH Line Loss Estimates
HH Line Loss Estimates
![Page 5: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/5.jpg)
Uncorrected Energy Vs GSP Group Take
GSP Group Take(Net) NHH Energy + Losses
Net HH Energy + Lossesi.e. (import - export)
Group Correction Factors
![Page 6: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/6.jpg)
GSP Group Correction Factors
Σ
( )ΣΣΣ
Where Σ is the sum of energy within a half hour, this equation produces the GSP Group Correction Factor for that half hour settlement period.
![Page 7: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/7.jpg)
Long-term average correction
ossesGSP Group Take
ses - export)
• Settlement Error within a half hour is expected (Profiles are estimated values and
so are expected to exhibit small
deviations from actual data)
• When group correction factors are averaged over a year this ‘shape’ error should cancel out.
Net NHH Energy + L
Net HH Energy + Losi.e. (import
Group Correction Factors
![Page 8: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/8.jpg)
Annual Demand Ratio (ADR)
Σ
( )ΣΣΣ
Where Σ is the sum of energy within a year, this equation produces the GSP Annual Demand Ratio (ADR), which is used to measure market performance.
![Page 9: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/9.jpg)
Average CF v ADR
• time-weighted average CF over a year measures ‘shape’ and ‘volume’ error
• ADR measures ‘volume’ error only
![Page 10: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/10.jpg)
ADR values
0.92
0.94
0.96
0.98
1
1.02
1.04
07/0
2/01
07/0
3/01
07/0
4/01
07/0
5/01
07/0
6/01
07/0
7/01
07/0
8/01
07/0
9/01
07/1
0/01
07/1
1/01
07/1
2/01
07/0
1/02
07/0
2/02
07/0
3/02
07/0
4/02
07/0
5/02
07/0
6/02
07/0
7/02
07/0
8/02
07/0
9/02
07/1
0/02
07/1
1/02
07/1
2/02
07/0
1/03
07/0
2/03
Eastern East Midlands LondonMerseyside & N Wales Midlands NorthernNorth Western Southern South EasternSouth Wales South Western Yorkshire
![Page 11: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/11.jpg)
Net Magnitude of Settlement Error
08/02/99 07/02/00 NHH Review 221 6,764 6,98508/02/99 07/02/00 Final Rec 276 3,559 3,83511/01/01 10/01/02 latest RF 222 1,610 1,83217/03/02 16/03/03 latest data 509 1,710 2,219
From To as at above unity below unity total error
error in GWh
![Page 12: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/12.jpg)
Potential Causes of ADR deviation from 1.0?
1.0
ADRToo Much
GSP Group Take
Too LittleGSP
Group Take
Too Much HH
Import
Too Little HH
Export
Too Much HH
Export
Too Little NHH
Too Little HH
Import
Too MuchNHH
![Page 13: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/13.jpg)
GSP Metering
• High Volumes / Low Numbers
• Strict Controls and Monitoring
• Long Established Systems
• CDCS / CDCA teething troubles
• CDCA Improvement
![Page 14: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/14.jpg)
GSP Metered Volumes
• PDSOs registrants of GSP metering
• Monitoring of Transmission Losses
• CVA registered embedded generation
• PDSOs review Aggregation Rules and submit LLFs for embedded generation
![Page 15: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/15.jpg)
HH Import
• D00235 Exception
– Half Hourly Aggregation Exception Report
– ELEXON monitor missing half hourly data
• RF 27/03/2001 275
• RF 18/02/2002 61
• Over 1 year, this equates to 0-321 GWh improvement
• Access Issues: e.g. MOD, railways
![Page 16: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/16.jpg)
NHH
• EAC / AA
• D0095 aggregation exception report
• Reading Frequency
• Unmetered Supplies
![Page 17: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/17.jpg)
NHH: EAC / AAs
• EAC / AA
– Large EACs and AAs send ADR below 1.0.
– Negative EACs send ADR above 1.0
• ELEXON: large EAC / AA monitoring
• Poor Performance = Escalation to
the Performance Assurance Board
(PAB)
![Page 18: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/18.jpg)
NHH: EAC / AAs Statistics
• Erroneously Large EACs and AAs
– Gross uncorrected energy error (Magnitude of issue) crystallised at RF or DF
– Audit Year 2000/2001 625 GWh
– Audit Year 2002/2003 354 GWh
– Effect on ADR
![Page 19: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/19.jpg)
NHH: D0095s
• The D0095 Aggregation Exception Report is Produced by the Non Half Hourly Data Aggregator (NHHDA)
• Reports on inconsistencies between SMRS and DC and missing consumption Data
![Page 20: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/20.jpg)
Reading Frequency
• Less Frequent Reads leads to seasonal profile
error
• Only creates volume error if meters are not
read by RF
• The Target for NHH is 97% of NHH energy on
Annualised Advances (AAs)
• PAB escalation Process
• Vacant but energised premises will be settled
on EACs until access is gained
![Page 21: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/21.jpg)
Unmetered Supplies
• Load Research on Street Lights (Currently in Progress)
• EACs and inventories are then responsibility of the UMSO (Distribution)
• This represents 1% of the total energy in the market.
![Page 22: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/22.jpg)
Unmetered Supplies Continued… (Market Share)
HH ImportNHH meteredHH ExportUnmetered
![Page 23: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/23.jpg)
Unmetered Supplies
• Suppliers have the option to choose equivalent metering (e.g. LAMP and FLARE) and trade Half Hourly
• This increases accuracy
![Page 24: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/24.jpg)
HH Export
• Cannot be estimated without a
Meter Advance Reconciliation
(MAR)
• Suppliers incentivised to account
for all export volumes
• Represents a small slice of the pieHH ImportNHH meteredHH ExportUnmetered
![Page 25: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/25.jpg)
General Issues
• Registration, connections / disconnections not registered in SMRS
• Energisation Status
• Line Loss Factor Estimate Accuracy
• Illegal Abstraction
• Metering
![Page 26: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/26.jpg)
Registration, Connection and Disconnection
• Unregistered metering
systems
• Untraded MPANs in SMRS
• ELEXON has no visibility of
magnitude of error
• Retrospective correction of
(dis)connection in SMRS
(review of MAP04)
![Page 27: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/27.jpg)
Energisation Status
• Issue raised by PDSOs that DUoS revenue was
being lost due to inaccurate data on energisation
at SMRS
• ELEXON project concluded that areas of non-
compliance that are impacting Settlements data
• SVG have approved a programme of quarterly
monitoring, guidance to Suppliers, and
improvements to the current process.
• Monitored by the PAB
![Page 28: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/28.jpg)
Line Loss Factor Estimate Accuracy
• Seasonal Errors are inevitable.
• Shape Errors resulting from the
application of LLFs to profile data
(which itself contains shape errors)
• Established Distribution Business
Processes for deriving Line Loss Factors
(with long series of sales/purchase
ratios) should mitigate risk of volume
errors.
![Page 29: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/29.jpg)
Illegal Abstraction
• ELEXON has no visibility of this
issue
• The responsibility for this falls
under Revenue Protection
• Settlement supports Revenue
Protection adjustments
• Low Volume?
![Page 30: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/30.jpg)
Metering
• Codes of Practice
• Technical Assurance
• Certification of Meters
• Proving Tests
![Page 31: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/31.jpg)
and finally…Settlement Vs DUoS Measurement
Distributor
NHHDC
NHHDA
HHDC
HHDA
SVAA
HHDA
![Page 32: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/32.jpg)
and finally…Settlement Vs DUoS Measurement
• NOT a cause of Error
• Two different views
• This can decrease visibility
• SVG agreed regular comparisons of DUoS and Settlement in
order to improve settlement data quality
• PDSO involvement in progressing Change Proposal
• Post Final Disputes agreed outside settlement
![Page 33: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/33.jpg)
Presentation Objectives
• Distribution Losses Perspective from Settlements
• Root Causes
• What are we doing about Losses?
![Page 34: The Settlement Process - Ofgem€¦ · The Settlement Process Distribution Losses ‘A Settlements Eye View ... improvements to the current process](https://reader034.vdocuments.mx/reader034/viewer/2022050513/5f9d80450b9a0e5ae728aead/html5/thumbnails/34.jpg)
Lunch
GSP Group
NHH
HH Export
HH Import