Approval of BSC Modification P442

Decision
Publication date
Industry sector
Supply and Retail Market

This letter presents the Authority’s decision to approve the Alternative Solution to BSC Modification P442: 'Reporting to EMRS of chargeable volumes for SVA Metering Systems that record both exempt and licensed supply'.

BSC modification P442 amends the Balancing and Settlement Code (BSC) to allow for licence-exempt supply volumes to be excluded from the calculation used to assign levies to licensed suppliers that fund the Government Electricity Market Reform (EMR) programme (including the Contracts for Difference and Capacity Market mechanisms). The EMR regulations only apply to licensed supply, not licence-exempt supply.

We have considered the issues raised by the modification proposal and the Final Modification Report, and we have taken into account the responses to the industry consultations as well as the BSC Panel’s views and recommendation.

We have concluded that implementation of the Alternative Solution will bring the BSC into alignment with the EMR regulations, thereby better facilitating the achievement of the applicable objectives of the BSC, and that the modification is consistent with our principal objective and statutory duties.