P476 Exemption from MHHS Requirements for SMS Supplier Qualification
Formal title: Exemption from MHHS Requirements for Smart Market Segment Supplier Qualification
P476 sought to allow the Performance Assurance Board to have the authority to exempt Suppliers from Smart Segment Qualification obligations. This would allow a Supplier operating in the advanced market segment (that does not have the system, processes or controls in place to meet these obligations) without a specific cost associated to be exempted from Design, Test and Build.
During industry engagement conducted by the Performance Assurance Board (PAB), and documented in the paper PAB279/07, several Suppliers participating in the Market-wide Half-Hourly Settlement (MHHS) Programme have requested exemptions from MHHS requirements as part of the MHHS Qualification. These Suppliers do not operate within the Smart Market Segment, which covers smart meters serviced by the Data Communications Company (DCC). They primarily serve the Industrial and Commercial (I&C) sector, managing a portfolio of Advanced Meters, and plan to maintain this focus moving forward. As they only hold a Non-Domestic Supply Licence, these suppliers are not registered with the DCC to manage smart meters enrolled in the DCC system.
Given the Suppliers’ niche market focus and the specific nature of their Advanced Meters portfolio, they argue that MHHS requirements, designed primarily for the smart meter market, are not applicable to their operations. Consequently, they seek exemptions to avoid unnecessary compliance obligations that do not align with their operational model.
The proposed solution is to permit an exemption for the Smart Market Segment for MHHS Qualification. This would require changes to BSC Section J to establish eligibility criteria detailing the conditions that parties must meet to qualify for these exemptions.
Additionally, the Qualification Assessment Document (QAD) would be amended to outline the processes and controls that suppliers must implement to ensure they do not acquire any Meter Points outside of the Advanced Market Segment. Any affected Supplier and Agent Testing documentation would also be updated accordingly.