1. Overview of Supplier Volume Allocation
David Osborne

2. Introduction Supplier Volume Allocation (SVA) Purpose History
Supplier Hub and other participants
Interface with Central Services

3. Generation, Transmission, Distribution and Supply
Transmission Network (the ‘Grid’)
Grid Supply Points
400/275 kV
Distribution Network
132 kV
Change this slide if not same as Keith using.
Where does SVA market sit?
Supplier’s customer
factory >100 kW
Supply
Supplier’s
customer -
domestic
GSP Group

4. SVA History 14 Regional Electricity Boards
1990 – competition in Supply > 1MW
1994 – extended to > 100 kW
1998 – full competition
2000+ – competition in agency services
2001 – NETA Arrangements
2005 – BETTA Arrangements
Prior to 1990 …
….competition in Supply included metering
Since 2000 – competition in Agent services, and Distribution

5. Distribution Companies / Grid Supplier Point Groups
GSPGs equated to the original 14 RECs
There are a few small independent network operators, but the LDSOs’ areas still pretty much match the GSPG areas.
Distribution businesses are responsible for managing their network, and providing certain services to Suppliers with customers in their area.

6. Liberalised market
Now in any given GSPG (e.g. Eastern) a customer has a choice of electricity Suppliers
Logos here are just examples…

7. Metering Systems
29 million Metering Systems
314,000,000 MWh demand per year
(45% Half Hourly Metered)

8. Profiling Over 29 million NHH meters Settlement operates on HH basis
Consumption is profiled to allocate annualised consumption to Half Hours

9. 8 Profile Classes 1 Domestic 24 * 7 2
2 –rate with night-time electrical storage and immersion heating 3
Non-domestic 4
2 –rate with night-time electrical storage heating
5 - 8
Maximum Demand with load factor of < 20%, 20-30%, 30-40% and >40%

10. Roles and Responsibilities – Suppliers and SMRAs
Supplier Meter Registration Agent (SMRA)
1 per GSP Group
SMRA service - LDSO licence requirement
Provides a registration service
LDSO Party to the BSC
Supplier
Discharges many obligations through Supplier Agents (MO, DC and DA)
Registers “Supplier Hubs” in each GSP Group
Supplier Hub = combination of Supplier, Meter Operator, Data Collector and Data Aggregator in each GSP Group
Multiple combinations of “Supplier Hubs” operate within each GSP Group
Supplier is a Party to the BSC

11. Roles and Responsibilities – Supplier Agents
Supplier Agents (NHH and HH)
Meter Operator - asset provider and maintainer
Data Collector - data retrieval and processing
For NHH - determines EAC/AA data based on Daily Profile Coefficients received from the SVAA
Data Aggregator - provides aggregated meter data by Supplier, GSP Group, Profile Class to the Supplier Volume Allocation Agent
Supplier Agents are not BSC Parties

12. Roles and Responsibilities – BSC Agents
Appointed by ELEXON to perform certain activities
ELEXON cannot be a BSC Agent
Supplier Volume Allocation Agent (SVAA)
Calculate Supplier volumes
Produces Daily Profiles for use by NHH Data Collectors
Manages market data
Contracts for Sunset Data and Temperature Data
Applies GSP Group Correction

13. Roles and Responsibilities - BSC Agents
Profile Administrator
Programme of load research in order to collect demand data from customers
Derives Regression Coefficients
Teleswitch Agent
Provides switching times for certain groups of customers

14. BSC Systems and Processes
Processes undertaken by Suppliers/Supplier Agents are highly prescribed in the BSC and procedures
Some systems provided centrally and operated under licence
EAC/AA software
NHHDA software

15. SVA Process Overview Industry Processes Central Systems Processes
Profile Administrator
Central Data Collection Agent
DC/DA appointments
Supplier
SMRS
Regression Data
GSP Group Take
Aggregated consumption Data
Appointment and Settlement Data
SVAA
Meter Operator
Data Collector
Data Aggregator
Teleswitch, sunset and temp data
Allocated Supplier Volumes
Other Data Providers
NHH Daily Profile Coefficients
Settlement Administration Agent

16. Timing of Settlement Runs
Settlement Day
Final Settlement Run
2nd Reconciliation
Final Reconciliation
Time
+5WD
+39WD
+154WD
+30 Months
+16WD
+84WD
+292WD
1st Reconciliation
3rd Reconciliation
Post-Final Settlement Run
Interim Information Settlement Run
This process is repeated for a single Settlement day over a period of at least 14 months.
This is designed to account for the more accurate data that will come in, particularly in the NHH market, over time.
Therefore we have a series of Reconciliation runs after the Settlement Final run. Most CVA data is final by the II run at 5WD, by some yearly read meters may not provide AAs in the NHH market until the 14 month RF run.
There is also the Post Final run, available to process Settlement data that is disputed and can’t be rectified in the normal runs.
Here you can see the % standards NHH Suppliers are expected to achieve. If they miss the standards at R3 and RF, Supplier Charges are applied to the volume of energy they fall short by.
n/a
30%
60%
80%
97%
Reading Targets
Supplier Charges

17. Costs Supplier Volume Allocation SVA Operations
Data Transfer Service (DTS)
Profiling
Software Support
Entry Process/Qualification
Other
SVA Total Cost
Year to March £m
1.59
0.58
0.74
0.87
0.41
0.14
4.33

18. Electricity Metering & Settlement
Jon Spence, ELEXON
8 November 2008

19. The Ice Cream Test If 50% of annual ice cream sales occur in August
And 50,000 ice creams are sold in August
What are the annual sales? ______
If 5% of annual ice-cream sales occur on 5th August
How many are sold on 5th August? ______

20. That’s how electricity settlement works!
What do profiles look like?
How are they used to annualise customer demand?
How are they used to estimate Suppliers’ demand in a given half hour?

21. Yearly Profile – domestic unrestricted
April to March

22. Daily Profile – domestic unrestricted

23. Winter Weekday – single-rate and dual-rate

24. Non-Domestic Load Profiles

25. Non Domestic Maximum Demand

26. Profiling Cycle
Year one – data logged at sample 2,500 customers (split between domestic & non-domestic) – confidential process
Year two – data analysed
Year three – profiles used in Settlement process

27. Profiling process Temperatures and sunset times switching times
Sample data
Data Collector
SVAA
Annualise Meter Advances
Daily Profile Production
Load Research
Regression Analysis
Profile Administrator
SVAA
Recap
Deemed Take calculation
Yearly
Supplier Reports
Daily

28. Data Collector
An estimate of annual consumption is extrapolated from meter advance using profile
1,150 kWh in 90 days
4,250 kWh per year (AA)

29. EACs/AAs Annualised Advance Estimated Annual Consumption
the rate of consumption for a Settlement Register over the period between two meter readings.
Estimated Annual Consumption
an estimated rate of consumption used in Settlement until an AA is calculated
similar to an Annual Quantity (AQ) in Gas?
This info is then combined with reads for use in Settlement, via AAs and EACs AA
(Read definition)
Used because reading periods don’t coincide with Settlement Periods
So MA needs to be scaled up, then broken down by HH, to allocate to BMU’s for settlement purposes
EAC
Used for same reason, to fill in gap between last read and Settlement Run, and to aid in predicting consumption, eg for Trading

30. EAC / AA cycle
timeline
INITIAL EAC
AA 1
EAC 1
AA 1
AA 2
EAC 2
AA 1
AA 2
AA 3
EAC 3
“carried forward” EAC is calculated using latest AA and “brought forward” EAC (weighted using the profile over the meter advance period)

31. AA Example 1/1/07 31/3/07 MR1 7,000 MR2 9,000 MA = 2,000
MAP∑DPCs = 0.4
Previous EAC = 3000
AA = Meter Advance / MAP∑DPCs
NHHDC received DPC’s from SVAA (previous slide)
5,000 kwH
= 2,000 / 0.4
=5,000

32. EAC Example 1/1/04 31/3/04 MR1 7,000 MR2 9,000 MA = 2,000
MAP∑DPCs = 0.4
Previous EAC = 3000
EACnew
AA = 5,000
EACnew = AA * (MAP∑DPCs * SP) + EACold * (1-MAP∑DPCs * SP)
New EAC – Prop AA + Prop old EAC
4,600 is good
Intuitively expect answer to lie bwtween previous EAC, and new AA
(because you’re using AA to refine PEAC)
EACnew = 5,000 * (0.4 * 2)
,000 * (1 – (0.4 * 2))
= 4,600
EACnew = ,

33. Data Aggregation
Estimated yearly demand values are added up for customers with same Supplier, Profile Class, meter configuration by a Data Aggregator to give the estimated yearly demand for Settlement Class or a “super customer”

34. NHH Data Aggregation
NHH Data Aggregator aggregates annualised consumption for each distribution area, Settlement Date and Run Type
an AA is used in preference to an EAC
a default value is used where there is no AA or EAC

35. The NHH Settlement Cycle
Meter Advance
Daily Profiles
AA / EAC (Meter)
Aggregated AA / EAC (Supplier/ Profile Class)
Half Hourly Profiles
HH profiled demand (Supplier)

36. Supplier Volume Allocation Agent
applies half hourly profile to aggregated AA/EACs to calculate profiled HH demand per Supplier
estimates line losses based on factors from Distribution businesses
applies ‘GSP Group Correction’

37. GSP Group Correction
Electricity is metered twice – at customer’s meter and at Grid Supply Point (i.e. entry/exit points to distribution networks)
NHH
GSP GROUP TAKE
NHH HH HH

38. GSP Group Correction
NHH demand (import less export plus estimated line losses) are “corrected” so that total NHH and HH volumes for the Settlement Period equal the GSP Group Take
volumes attributable to each Supplier are scaled up or down in each HH/GSP Group via CF
since GSP Group correction is effectively distributing “settlement error” amongst Suppliers, it makes sense to correct those categories of consumption that are more prone to error than others
NHH is obvious candidate as Settlement Period values are estimated (using profiles) rather than metered.

39. The Ice Cream Test If 50% of annual ice cream sales occur in August
And 50,000 ice creams are sold in August
What are the annual sales? ______
If 5% of annual ice-cream sales occur on 5th August
How many are sold on 5th August? ______
PrA
NHH Data Collector
PrA
SVAA

40. Questions ?