Market Specific Terms

Piclo Max Service Fee - DSO Market Access

Structure

The Piclo MAX Service Fee is designed to enable and encourage participation in energy markets, while the Flexibility Service Provider (FSP) keeps 100% of their revenue.

The Service Fee is charged by Piclo to the Distribution System Operator (DSO) separate to any contractual arrangements between the FSP and the DSO.

The Service Fee is calculated as a fixed percentage of the FSP revenue; the settled value of the flexibility made available delivered by the FSP.

Application

This Service Fee is applicable to the following markets:

• United Kingdom:
  • Electricity North West
  • National Grid Electricity Distribution (more competitions soon)

Bidding

The FSP uses the Piclo platform as normal to identify opportunities and submit bids. Upon bidding, Piclo adds the service fee (in this case 2.5%) to the FSP bid for both availability and utilisation as applicable, before submitting the total bid price to the DSO for evaluation alongside other bids received.

Outcomes

In a pay as clear market, the DSO evaluates all bids received and the participants are all awarded the highest price procured; the cleared price.

Each FSP bid will therefore result in one of three outcomes:

1. Accepted - the total bid was the cleared price, and has been accepted at face value
2. Accepted - the cleared price was greater than the total bid price, and has been accepted at the cleared price
3. Rejected - the cleared price was lower than total bid price, and has been rejected 

Calculations

Total Bid Price = FSP Bid + (FSP Bid x Service Fee %)

FSP Revenue* = Cleared Price / (100 + Service Fee %) x 100

Piclo Service Fee = Cleared Price / (100 + Service Fee %) x Service Fee % 

*Subject to asset’s performance where applicable

Worked Examples

1. Accepted - the total bid was the cleared price

• FSP bid £50
• Piclo service fee £1.25
• Total bid price £51.25

• Cleared price £51.25
• FSP revenue* £50 - Paid by DSO to FSP
• Piclo service fee £1.25 - Paid by DSO to Piclo

*assumes 100% asset performance

2. Accepted - the cleared price was greater than the total bid price

• FSP bid £50
• Piclo service fee £1.25
• Total bid price £51.25

• Cleared price £102.50
• FSP revenue*£100 - Paid by DSO to FSP
• Piclo service fee £2.50 - Paid by DSO to Piclo

*assumes 100% asset performance

3. Rejected - the total bid was lower than the cleared price

• FSP bid £50
• Piclo service fee £1.25
• Total bid price £51.25

• Cleared price £25
• FSP revenue £0
• Piclo service fee £0

If you have any questions, please get in touch with support@piclo.energy for further support.