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Issue 862 | Imbalance Settlement Group

Issue 862 | Imbalance Settlement Group

Emma Burns Emma Burns Senior Consultant

Imbalance Settlement Group 21 May 2019 Emma Burns Headlines New Generic Supplier Export Credit Assessment Load Factor values were approved, which will increase suppliers’ credit cover requirements A metering dispensation for Network Rail was approved 1 Background Imbalance Settlement Group (ISG) is a sub-committee of the Balancing and Settlement Code (BSC) Panel, and is responsible for overseeing the operation of the Imbalance Settlement processes and systems in the Central Volume Allocation (CVA) Market. 2 Decision Papers 2.1 New Generic SECALF values approved ISG agreed to amend the generic Supplier Export Credit Assessment Load Factor (SECALF) values used from the Autumn 2019 BSC season onwards. The SECALF value has decreased, which is likely to increase credit cover requirements for suppliers. SECALF is a value used along with Generation or Demand Capacity (GC/DC) to estimate suppliers’ Energy Indebtedness until interim information (II) data is available. Amending the SECALF will therefore affect suppliers’ credit cover requirements until aII data becomes available approximately five working days after a given trading day. SECALFs are calculating using an average of metering volumes from SECALF-qualifying Balancing Mechanism Units (BMUs) for each BSC Season over the last two years. Autumn 2019 values reflect metered volumes from SECALF BMUs for Autumn 2018 and 2017. Elexon review SECALFs each year, and will seek ISG’s approval where there is a greater than 0.2MW difference. Elexon explained that the decrease in SECALF was partly driven by an increase in supplier BMUs. Elexon said it will complete the SECALF annual process next year and will highlight ...

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