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January 2017

Sent on : January 30, 2017
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 Headlines
    blue-bullet SEC Draft Budget 2017 – 2020 published for consultation
    yellow-bullet SEC Version 5.3 Designated - 26th January 2017
    green-bullet SECMP0016 approved by Authority for implementation


Headline
 Updates

SEC Draft Budget

The SEC Panel Draft Budget is currently out for consultation with Parties. The Draft Budget sets out the Panel’s good-faith estimate of the Recoverable Costs that it anticipates will be incurred during the Regulatory Years 2017 – 2020.

A letter inviting interested parties to comment and the Draft Budget can be found here:

Draft Budget Consultation Letter
SEC Draft Budget 2017 - 2020

If you would like to provide any comments on the consultation, please do so by emailing the SECAS helpdesk. The deadline for all responses is 5pm Tuesday 14th February 2017.

A teleconference has been scheduled for 3pm on Tuesday 7th February 2017 to provide an opportunity for Parties to ask any questions in advance of the consultation deadline. If you are interested in joining the teleconference, please contact the SECAS helpdesk who will confirm your attendance and provide you with the joining details. 

SEC version 5.3 designated - 26th January 2017

SEC version 5.3 was designated on 26th January 2017, introducing amendments consulted on in September 2016.

The designated changes to SEC Section N enable the government to direct the DCC to undertake further analysis on SMETS1 meter enrolment with DCC systems in relation to the Initial Enrolment and Adoption Feasibility Report (IEPFR), should it be necessary.

The amendments also require Supplier Parties to comply with any reasonable requests for information made by the DCC to support its analysis. Non-provision of the information would result in the exclusion of that Supplier’s SMETS1 meters from the DCC’s further analysis, unless government directs otherwise.

These amendments resulted in the designation of a new SEC Section N4A: Further Initial Enrolment Analysis’.

More information can be found in the Latest News.

SECMP0016 Approved

On  26th January 2017, the Authority (BEIS) approved SECMP0016 ‘Consideration of “Maximum Credit value in credit cover calculation’. This followed the Change Board vote for recommendation in December 2016

SECMP0016 changes the SEC Credit Cover Requirement calculation so that it takes into account the credit value specified by an independent credit assessor, similar to the approach taken for the Uniform Network Code. The proposed calculation introduces an Unsecured Credit Factor, in place of the current Credit Cover Factor, that is a proportion of a party’s Maximum Credit Value. The Unsecured Credit Factor is determined by the Party’s Recognised Credit Rating or Credit Assessment Score.

The modification has an implementation date of 1st April 2017.



SEC Governance

Modification Updates

In January 2017, the Panel agreed for four new Modification Proposals to progress to the Refinement Process:

If you would like to be involved in the refinement of these modifications, please contact us on 020 7090 7755 or email secas@gemserv.com.

Open Modification Consultations 

On 9th January 2017, SECAS issued SECMP0021 "Increase the representation of the “Other SEC Party” category on the SSC and TABASC for Working Group Consultation. Further detail on this consultation can be found here.

The Panel also agreed for SECMP0026 ‘Changes to the Security Sub-Committee Nomination Process’ to proceed to the Modification Report Phase. The consultation was issued on 18thJanuary 2017 and can be found here. It closes on 8th February 2017.


The next Modifications' Question Hour will be held at 11am on Monday 6th February 2017. Further information and the teleconference details can be found here



SEC Panel

The SEC Panel held its latest meeting on 13th January 2017. The key topics discussed can be found in the Meeting Headlines here, with the more detailed discussions and outcomes available in the Final Minutes, here.

During the meeting, a number of key items were discussed, including:

  • the handover of the maintenance of the Technical Specifications. The Panel have now approved the commencement of the handover activities required for the Panel to take on the tooling and processes required to support and maintain the Technical Specifications. The handover from BEIS is expected to complete in June 2017; and
  • consideration of the governance approach for Release 1.3, including the Panel’s role in approving the exit criteria for Systems Integration Testing and validating the entry criteria for End-to-End Testing.

The next Panel meeting will be held on 10th February 2017.


Security Sub-Committee

The Security Sub Committee (SSC) continue to split their time against two streams of core work:

  • to review SEC Party Full User Security Assessments as each SEC Party goes through the User Security Assessment Process; and
  • to discharge their obligations under the SEC and ensure that the End-to-End Security Requirements remain fit-for-purpose.

So far, the SSC have reviewed a number of assessments, providing a recommendation to the Panel on the assurance status that should be set. As the SSC goes through this process, lessons are learned, and the process is refined to ensure that fair and equal considerations are applied to those going through the SSC review process. Over the coming year, the SSC will play a pivotal role in ensuring that all SEC Parties subject to the DCC User Mandate are reviewed as part of their wider User Entry Process Requirements.

In terms of other SSC work, the Sub-Committee has looked at wider security-related matters, such as the ways in which ‘Incidents’ are communicated to the SSC, the Global Threshold Levels set by the DCC, and wider risks which are being tracked within their Risk Register and communicated if required.

 

Technical Architecture and Business Architecture Sub-Committee (TABASC) 

The TABASC are continuing to focus on a number of key areas, including the development of the Business Architecture Document. In December 2016, the TABASC were presented with the second drop of content for the BAD for review and were provided with access to the modelling aspect of the BAD developed so far through an online portal. A workshop was held in January 2017 with members of the Technical and Business Expert Community (TBEC), to review the modelling aspects of the BAD and to provide input into the usability of the online portal.

At the January 2017 meeting, the TABASC considered a number of areas in relation to new processes and roles. The TABASC discussed the management of issues through the transitional arrangements and the transfer of this to enduring governance. The Issues Form can now be found here.

The TABASC have also held initial discussions on the development of a process for the resolution of defects in the Technical Specifications. SECAS are currently developing a work flow of a strawman process for further discussion and refinement.

The next TABASC meeting is scheduled for 16th February 2017.


TBEC
 

SMKI Policy Management Authority (SMKI PMA) Update

The SMKI PMA met for the first time in 2017 on 17th January. The group continues to meet on a monthly basis. 

Following the implementation of SECMP0022, the SMKI PMA membership is increasing in order to take account of its operational responsibilities. The updated Terms of Reference to support the change will be presented to the Panel for approval in February, following which an election process will commence for the additional members.

The SMKI PMA were also provided with an update on progress towards the SMKI Recovery Desktop Exercise. Members advised that scenarios should be constructed in advance to help develop the measurements and metrics for assessing whether to evoke recovery. The desktop exercise for a SMKI Recovery event walkthrough was originally due to take place in January but has been rescheduled for March 2017.   

The next SMKI PMA meeting is scheduled for Tuesday 21st February 2017.

 


Guidance
 Materials
SEC 5.3
New content guides and updated SEC Section Guidance have been published to reflect changes that were introduced in SEC V5.3 on 26th January 2017 at the designation of SEC Version 5.3;

Recent
 Publications

Ofgem Forward Work Programme 2017-2018

Ofgem published their Forward Work Programme for consultation on19th December 2016. The deadline for responses is 12pm 15th February 2017.

The document sets out the key initiatives that Ofgem will be taking forward over the coming years, with a specific focus on 2017-2018. Ofgem plan to focus on enabling change and positioning themselves as agents of innovation. Ofgem believe this will help to create stability in the market, and give confidence to the stakeholders that Ofgem are doing the right thing.

You can read the entire document here.

The key initiatives include:

1. Enabling a better functioning retail market

2. Facilitating the energy transition

3. Learning from the first RIIO framework and setting RIIO-2 up for success

4. Introducing competition into monopoly areas

5. Becoming an authoritative source of quality analysis

 

Ofgem Consultation: Proposed direction pursuant to condition 44.3 of the electricity supply licence/condition 38.3 of the gas supply licence in relation to large suppliers’ roll out-plans

Suppliers are required to roll-out smart meters to all domestic and small business customers by the end of 2020. Ofgem published an open letter on 4th January 2017, setting out the following proposed amendments to the framework for regulating large energy suppliers, with respect to their smart meter roll-out plans, and the setting of annual milestones:

  • Proposal 1: Suppliers will be required to submit a revised roll-out plan with revised annual milestones in January 2018, where new evidence exists that will or could have a material effect on previously submitted annual mile stones or the assumed completion rate.
  • Proposal 2: Clarify the link between the revised roll-out plans and the obligation in the supply licences to take all reasonable steps to complete the smart meter roll out (the 2020 obligation).

The consultation closes on 15th February 2017. You can read the entire document here.

 

Consultation on the incorporation of the Technical Specifications Applicability Tables and a version of SMETS into the Smart Energy Code.

The Technical Specifications (TS) Applicability Tables set out the relevant periods for which the Technical Specifications are legally extant for the purposes of Installation and Maintenance. They also set out which version(s) of the GB Companion Specification (GBCS) are relevant to the TSs and which versions of the CPA Security Characteristics are relevant to each version of GBCS. This is to ensure that the TS Applicability Tables are designate into the SEC in tandem with the multiple TS drafting changes to the standard conditions of gas and electricity supply licences coming into effect.

Proposed designation date for incorporating Version 1.2 of the SMETS into the SEC – When the amendments to the supply licence conditions relating to multiple TSs come into effect, valid TSs are identified as such within the SEC. To ensure that the Smart Metering Equipment Technical Specification for SMETS1 Smart Metering Systems remains valid for such purposes, it is necessary to designate the document into the SEC at the same time as the supply licence condition amendments are given. Therefore, the proposed designation date is 8th February 2017.

BEIS have not specified an installation End Date for SMETS V1.2 in the initial version of the TS Applicability Tables that they are proposing. The Smart Metering Implementation Programme Senior Responsible Officer has stated that the SMETS1 Installation End Date is currently anticipated to be 6th April 2018, but it contingent on when Release 1.3 functionality is available in End-to-End Testing. 

You can read the consultation here, Annex A here and Annex B here.


SECAS Activities


SEC Parties and Accessions

The table below shows the current status of SEC Parties and Panel Members.

  
 Current SEC Parties 202
 Accession of new Parties to the SEC since last Newsletter                                         14
 Parties withdrawing from the SEC     0
 Expulsion of Parties from the SEC    1
 Changes to SEC Panel Member employment status     0

A list of SEC Parties can be accessed on the SEC Website via the link provided.

Upcoming SEC Calendar Dates

The following meetings coming up over the next month are accessible via the Meeting Calendar on the SECAS Website

 Date (2017)Meetings and Events
6th January 2017  Modifications Question Hour 09                
 8th January 2017 SSC Meeting 25
 10th January 2017 SEC Panel Meeting 25
16th January 2017 TABASC Meeting 15 
 21st January 2017  SMKI PMA Meeting 32
22nd January 2017SSC Meeting 26
SEC Change Board 10

The dates for the next meetings of the modification Working Groups can be found in the Calendar link provided above.  



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