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BSC Audit Reviews


Over the last five years ELEXON has conducted two separate reviews of the BSC Audit Terms of Reference. These reviews were conducted by ELEXON in consultation with a Working Group of industry experts, and the BSC Panel, PAB and the BSC Auditor.

BSC Audit Review 2009

The objective was to identify any areas of the BSC Audit Terms of Reference that could be further aligned with the new risk based Performance Assurance Framework (PAF).

A report containing the findings of the working group was issued for industry consultation by the BSC Panel in August.

Industry and PAB feedback to this report (detailed within Panel paper 158/12) was considered by the BSC Panel.

The main changes to the Scope resulting from the BSC Audit Review were:

  • Publishing the quantified error in financial terms to enhance understanding & encourage rectification.
  • Developing a process for checking data accuracy as well as the compliance with BSCP timescales.
  • Producing a Peer Comparison ranking system for all audited entities.
  • Producing a set of guidance notes based around key areas of risk or underperformance.
  • Speeding up the rectification of non-compliances by ensuring that this process begins after Clearance Meetings.
  • Publicising the current rotational approach.
  • Publishing the criteria used to select Audited Entities.
  • The alignment of Audit Issues to Settlement Risks (and using this to determine the impact rating) as well as including the scale of non-compliance within the document.

BSC Audit Review 2005

The objective was to identify options to amend the BSC Audit to ensure that it delivers valuable and relevant assurance to BSC Parties at an appropriate cost. A report containing the findings of the working group was issued for industry consultation by the BSC Panel in April.

Industry and PAB feedback to this report (detailed within Panel paper 93/008) was considered by the BSC Panel when they set the scope for the BSC Year 1 April 2005 to 31 March 2006.

The main changes to the Scope resulting from the BSC Audit Review were:

  • Increase the materiality threshold to approximately 0.5% (1,650GWh) of the electricity supplied across Great Britain.
  • Maintain the current precision of the BSC Audit so that the magnitude of individual non compliances identified remains as at present.
  • Discontinue the production of the Status Report.
  • Expand the BSC Audit Scope to include those processes auditable under the BSC followed by Licensed Distribution System Operators and Unmetered Supplies Operators.
  • An ad hoc audit should be undertaken to assess the underlying consistency of data held within settlement.