SP Energy Networks

What is the payment structure?

Please review document March 23- Pricing Strategy

Can the number of Utilisation Events be provided?

For Utilisation, it is anticipated that the products will be managed as follows:

Can bids only be submitted from assets already connected?

We will consider bids from assets already connected and also from those in development.However, we are using these services to ensure network security, therefore during our bidassessment phase we will consider the validity and certainty of projects and may require development milestones within the Flexibility Services Agreement.

We will also consider bids from providers who wish to contract with assets following Contract Award, however as for assets in development, we may require milestones to be included within the Flexibility Services Agreement.

Note: any asset would need to be available for testing at least one month prior to the first service window.

Is exclusivity required?

No, we do not require exclusivity.

You are required to declare your availability a week ahead during the contracted service window thereby confirming that you can provide the contracted import/export position in response to a schedule and/or instruction from us.

You are permitted to stack other services with other parties, providing they do not prevent you from meeting your contractual obligations with us. If, due to reduced network requirements, we do not accept your week ahead availability declaration you are free to provide other services during the contracted service window the week ahead declaration covered.

Can a split bid be submitted?

All bids must be submitted via the Picloflex platform and the following applies:

1. Providers can submit individual bids for the different Service Requirements within each area.
2. MWs/MVARs can be offered in smaller volumes with either a single price or split price offered.
3. Bids must be for the whole service window of the individual Service Requirements
4. You can bid different prices for different assets, but you cannot bid the same asset in at multiple different price points.

How will performance be monitored?

Performance will be monitored using meter data from meters at the site.

What is the baseline methodology?

For all successful bidders, a site-specific baseline will be agreed.

The intention of any baseline method is to determine how the site/asset offering the service would have been operating if it didn’t have a Flexibility Services contract in place, i.e. what the site would normally be doing – this is the baseline against which service provision will be measured and paid for. Once the baseline is agreed, we are not concerned with how you operate during the service windows providing that, if instructed by us, you can deliver the contracted service. For example, if the agreed baseline position for your site was 2MW exporting (i.e. that’s how the site/asset would be normally operating), and we had a contract with you to provide 3MW export of flexibility service, then your site would have to operate at an absolute export position of 5MW when it was providing us with the service.

To further clarify:

• If during a particular service window your site is already operating at 5MW export, and we then instruct the service, you don’t need to do anything as you are already at 5MW export so would be deemed to be providing the service.
• If during a particular service window your site is operating at 1MW export, and we then instruct the service, you need to increase your export by 4MW so the site is at 5MW export.
• In all cases, service provision is measured against the baseline position agreed with you in advance and included within the Flexibility Services Agreement.  Service provision is not measured against whatever import/export position you are operating at when a service instruction is issued.
• For connected sites, the baseline will be set based on historic meter data. For sites in development the baseline will be agreed via discussion between parties. Once agreed, the Baseline Positions will remain fixed for the duration of the contract, unless both the parties agree to change them.

What assessments will be carried out on the bids/bidders?

Please review the Bid Assessment document