System Operation Changes – Interaction with ELEXON

APEx Conference: Leipzig October 2004

Content

• System Operator Changes– BETTA - what is it?

• System Operator Interaction with ELEXON– The Role of the SO

BETTA and the SO

• Single GB wide market – GB wide settlement

• Single Deep ISO

Now

England and Wales :1 SO/TO, NETA

GeneratorsSuppliers

12 Distributors

Scotland2 SO/TO/Generators/ Suppliers/Distributors

Nuclear Generators(Long term contract)Some independent Generation and Supply

Settlement based on NETA prices

A Single Market

England and Wales Scotland NETA Now

BETTA

The Big Change

• System and Transmission Operation

England and Wales

TO

GB System Operator

Scotland TO Scotland TO

NGC Scottish PowerScottish and

Southern

How deep?

How Deep?

• Very Deep– System control– Outage planning– Connection agreements– Balancing services

• Transmission Operators – asset owners

Market Timescales

Rolling half hour trades

Balancing Mechanism

Forward Markets

Year Ahead - T(or earlier)

1hr - T

Imbalance Settlement

T+ 14 months

Bilateral contracting

OTC

Power Exchanges

T- 48 hrs

Generation & demand

balanced by National Grid

as SO

Real time reportingwww.bmreports.com

Post event settlement

Information Required from NGCfor Market settlement

•Bids and Offers Accepted in the Balancing Mechanism–Used in the calculation of energy imbalance prices–Settlement of Bids and Offers with counterparties

•Two categories of data on Balancing Services procured outside of the Balancing Mechanism–one used in the calculation of energy imbalance prices

–one removes provider’s imbalance exposure when delivering certain Balancing Services

Forecast Data Provided by NGC

• Demand Forecast• National and zonal

generation availability (in timescales up to 52 weeks ahead)

• Forecast Imbalance • BM Unit Specific Info

– Generation scheduled to run

– Bids / Offers available to SO

Outturn Data Provided by NGC• Initial Demand

Outturn• Bids/Offers

Accepted in BM• BM Unit import /

export limits• Balancing Services

Adjustment Data

Allows indicative imbalance prices to be calculated within 15 mins of settlement period end

Progress towards BETTA

• The new codes are Active now• Connection agreements transferring

to NGC• Outage Planning Transferring to NGC• Settlement in testing phase• SO transfer on time but challenging

Go Live 1 April 2004