ABSVD preference and supplementary payments
This article explains how Flexibility Service Providers (FSPs) can manage their ABSVD (Applicable Balancing Services Volume Data) preferences on Piclo. By opting in or out, you ensure compliance with industry regulations and can receive supplementary payments where eligible.
Also read our blog post about this topic.
In this article:
Step 1: Setting Your ABSVD Preferences
Step 2: Uploading Asset Information
Step 3: Receiving Supplementary Payments
Top Tips for Managing ABSVD Preferences
What is ABSVD?
ABSVD stands for Applicable Balancing Services Volume Data. It is a mechanism used by Elexon to adjust suppliers' energy volumes, ensuring that energy used for balancing services is accurately accounted for in the wholesale market.
Step 1: Setting Your ABSVD Preferences
Note: If you are an existing FSP and have completed your company qualification already, we can help update your preferences for you, please fill out this form to indicate how / if you'd like to Opt-Out
- To set your ABSVD preferences:
- Navigate to Piclo Max and log in with your credentials.
- Access ABSVD Settings:
- Go to Manage > Company Qualification > View Applications in your dashboard.
- Select ‘NESO LCM Qualification’ and navigate to the form to set your preferences.
- Choose to Opt-In or Opt-Out:
- Opt-In: Select this if you want all your assets to be included in the ABSVD adjustments.
- Opt-Out: Select this if you prefer all your assets to be excluded from ABSVD adjustments and potentially receive a supplementary payment (if eligible).
- Asset by asset: Please get in touch with us at support@piclo.energy. If you want to opt-out some (not all) of your assets, so we can help you progress this further.
- Confirm Customer Consent:
- Consent Verification: You must confirm that you have obtained the necessary consents from your customers to opt-out of ABSVD.
- Supplier Status: Indicate whether you are a licensed supplier. This information is required by Elexon for verification purposes.
- Click Submit to save your ABSVD preferences.
Note: Changing your ABSVD preferences may affect your participation in certain competitions or services. Ensure you understand the implications before making changes.
Step 2: Uploading Asset Information
To verify eligibility for ABSVD opt-out, you need to upload information about your assets boundary meters. For details on how to upload and edit your submitted assets please refer to the articles available here.
Important: Accurate MPAN information stored in the Import Meter and Export Meter columns of your asset spreadsheet are crucial for determining ABSVD opt-out eligibility.
Step 3: Receiving Supplementary Payments
If your assets are eligible for ABSVD opt-out:
- Eligibility Confirmation:
- Piclo will verify your assets' eligibility with Elexon.
- You will receive a notification confirming the assets that are eligible for ABSVD opt-out.
- Participation in Competitions:
- Continue to participate in the LCM as usual.
- Your ABSVD opt-out status will be taken into account during settlement.
- Receive Supplementary Payments:
- At the end of the settlement period, you will receive a supplementary payment for eligible assets.
- This payment corresponds to the relevant half-hourly wholesale market prices (based on the EPEX Day-Ahead Index).
- The supplementary payment will be included in your performance report.
- Review Your Performance:
- Go to Settlement > Settlement Reports to view and download your details on monthly payments.
- The supplementary payment will be itemised separately for each 30 minute period of dispatch over the course of the previous month.
- Note: Supplementary payments are calculated based on your assets' performance and the prevailing market prices during the relevant periods. For more details on the specific methodology, please refer to the LCM service terms.
- Example: Bidding £40/MWh during a Settlement Period where the EPEX Day-Ahead half-hour price is £50/MWh would result in a payment of £90/MWh for full 100% delivery.
Top Tips for Managing ABSVD Preferences
Obtain Customer Consent:
- Ensure you have documented consent from all customers associated with the assets you wish to opt-out.
Keep Asset Information Up to Date:
- Regularly update your asset data to reflect any changes in capacity, status, or location. Assets can be updated through file upload in platform or in bulk through our APIs.
Understand Supplier Obligations:
- If you are a licensed supplier, be aware of additional responsibilities under Elexon's regulations.
Monitor Notifications:
- Keep an eye on notifications from Piclo regarding your ABSVD status and any required actions.
Review Market Prices:
- Stay informed about wholesale market prices to understand potential supplementary payments.
Frequently Asked Questions
Q1: What happens if I don't have customer consent for ABSVD opt-out?
A: You must obtain customer consent before opting out. Without consent, you should opt-in to ABSVD to remain compliant.
Q2: How do I know if my assets are eligible for ABSVD opt-out?
A: After uploading your asset information, Piclo will verify eligibility with Elexon and inform you of the results.
Q3: Can I change my ABSVD preferences after setting them?
A: Yes, you can update your ABSVD preferences at any time via resubmission of the form available here.
Q4: How are supplementary payments calculated?
A: Payments are based on the relevant half-hourly wholesale market prices from the EPEX Day-Ahead Index and your assets' performance during those periods.
Q5: What if there are discrepancies in my supplementary payment?
A: Contact Piclo Support to investigate any discrepancies. Provide details of the issue and any supporting documentation.
By following the steps outlined in this article, you can effectively manage your ABSVD preferences on Piclo, ensuring compliance and optimising your participation in the LCM. For any additional questions or support, don't hesitate to reach out to our team or book a demo.