Public consultation on the analysis on faster BRP settlement and impact on the BRP financial guarantee

Context

Due to technological developments (i.e. smart/digital meter roll out), societal benefits can be realised. An opportunity lies in looking at the timing of the current settlement process for BRPs. The current settlement process for BRPs can take up to 5 months. This is mainly driven by the DGO allocation process. As the provisional allocations become more mature due to the availability of digital meters, they can be used for provisional settlement. An important improvement can be realized for the BRPs, as a shorter settlement process positively impacts their financial management, accelerating payment of BRP services by Elia and thus decreasing uncertainty for the BRP. Indeed, the invoices and credit notes represent significant amounts. A long invoicing and payment time consequently gives rise to financial uncertainty for current and future BRPs. Additionally, by shortening the settlement process, the reduction in risk can lead to a reduction in financial guarantees provided by the BRP to cover this risk. This leads to a lower cost for the BRPs. This reduction of uncertainty and costs is in line with Elia’s ambition to remove barriers for new BRPs and improve the BRP way of working. 

In the study currently under consultation, Elia proposes to shorten and improve the settlement process. This is done by assessing and evaluating aspects that are under its control, as well as defining measures for continuous improvement in areas where collaboration with other parties is required, such as the DSOs and their subcontractor Atrias who supports the underlying processes for DSOs allocations. In a second step, an updated system of financial guarantees is proposed, in function of the improved settlement process.      

Finally, market processes are increasingly happening more closely to real-time. Therefore, Elia aims to continuously evaluate and build on this proposition for faster settlement in the future. 

Consultation period

Elia invites all stakeholders to submit any comments or feedback they may have on the consulted document via the online form during the consultation period until 01 November 2024.

After the consultation period, Elia will collect all comments and feedback from market participants. Elia will analyse these comments and integrate them into a consultation report which will also include Elia's responses to the feedback received. In addition to the consultation report, Elia will publish the reactions of the market players (in a named manner) on the website, unless it is explicitly stated that the contribution is to be considered confidential. In al later phase, the modifications will be translated into a proposition for adaptations in the T&C BRP as well, to be consulted in 2025.