A Virtual Lead Party (VLP) or an Asset Metering Virtual Lead Party (AMVLP) has access to offer flexibility on the Balancing Mechanism without Supplier involvement. However they do not have access to the wholesale markets. The VTP role is an additional role alongside the VLP and AMVLP roles that will provide access to trade on the wholesale electricity markets without Supplier involvement. The VTP role goes live on 4th November 2024.
As with VLPs and AMVLPs, the VTP must register Secondary BMUs (sBMU) with Elexon. In the case of a VTP, the sBMUs must be baselined. A VTP will associate one or more MSID Pairs (representing import and export meters) with the sBMU. Should a VTP wish to associate AMSID Pairs, the VTP must also qualify through the self-assessment process as an AMVLP.
As a VTP’s sBMUs are baselined, Elexon will calculate the difference between the forecasted and actual volume consumed or generated, known as a Deviation Volume. This applies if the deviation arises from the actions of a VTP. In order for Elexon to determine whether a VTP has been active in a settlement period to trigger the calculation of a Deviation Volume, the VTP must submit Wholesale Market Activity Notifications (WMAN) to Elexon prior to gate closure.
Delivered Volume submissions apply to a VTP as they do currently for VLPs and AMVLPs. This covers both VTP activity and any activity resulting from balancing mechanism participation and should be the total volume resulting from both activities in a settlement period.
In order to participate in the Balancing Mechanism under the VTP role, an applicant must complete a qualification process, conducted by KPMG on behalf of Elexon. This is similar to the requirements for supplier accreditation under the SVA process.
It takes the form of an evidence oriented self-assessment process where the applicant’s business processes, systems and infrastructure are examined by KPMG. Once KPMG are satisfied with the applicant’s responses, they will recommend to the Performance Assessment Board (PAB) that the applicant is awarded the VTP role.
The applicant must complete the relevant sections of the self-assessment document (SAD). The topics under examination and the objectives of each response are:
If the applicant is already a VLP or AMVLP, the applicable content in the generic sections of the SAD previous submitted can be re-used.
A key difference in the self-assessment process for a VTP compared to a VLP or AMVLP is that the applicant must complete CVA testing with Elexon prior to PAB.
The VLP role is closely associated with that of a VLP or an AMVLP.
Enegen provide a comprehensive consultancy service to guide an applicant through the VLP self-assessment process and AMVLP self-assessment process.
Genstar4 will provide full support for a VTPs obligations for exchanging data with NGESO and Elexon with the Genstar4 VLP module.
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