Glossary Term: 2nd Reconciliation
Electricity companies that are signed up to the BSC are paid or charged through a series of Settlement Runs, calculations carried out between one and 14 months after the Settlement Period, unless there is a dispute over data, in which case it is 28 months after.
There are four Reconciliation Runs (R1, R2, R3 and RF) and these Runs provide a continually clearer picture of Settlement at spaced dates after the Settlement Date.
The second reconciliation run carried out by the Settlement Administration Agent (SAA) in line with the published settlements calendar. This occurs approximately one quarter after the first run.
The target is for all Suppliers to have 97% of energy on actual data by RF. The Reconciliation Runs should be thought of as improving the accuracy of Settlement each time. We generate invoices and Settlement Reports for each Run.
Settlement Run Timetable
- Interim Information Run – 1 week after the Settlement Period (for information only as no Parties are charged or credited at this stage)
- Initial Settlement Run (SSF) – 1 month after the Settlement Period and first time Parties are charged or credited
- 1st Reconciliation Run (R1) – 2 months after the Settlement Period
- 2nd Reconciliation Run (R2) – 5 months after the Settlement Period
- 3rd Reconciliation Run (R3) – 7 months after the Settlement Period
- Final Run (RF) – 14 months after the Settlement Period
- Dispute Final (DF) – 28 months after the Settlement Period
BSC defined definition
The second reconciliation run carried out by the Settlement Administration Agent (SAA) in line with the published settlements calendar. This occurs approximately one quarter after the first run.