Payment

Flexibility Services delivered during the TRANSITION trials will be paid for using two standard mechanisms:

  • Availability Payment: A payment made to the Service Provider for being available to deliver the contracted Flexibility Service during a specified time period (described as the ‘Service Window’)
  • Utilisation Payment: A payment made to the Service Provider for the Energy which has been delivered for a Flexibility Service

The one exception to this is the Dynamic – DSO Constraint Management (post-fault) service which will be paid only on utilisation.

You can read more about the Flexibility Services we are testing here.

All payments will be made using the Bankers’ Automated Clearing System (BACS).

Availability Payments

If a Distributed Energy Resource (DER) or portfolio of DERs is completely unavailable during a Service Window, perhaps because of scheduled maintenance, then it will not receive an Availability Fee Payment.

We are currently considering whether a proportionate payment can be made for assets not available for the whole service window (hours) or who would not be able to dispatch their full contracted flexibility capacity (kW).

The Availability Fee pays a DER or Portfolio based on their average delivery in the previous month.

You can find out more about the calculation of the Availability payments in the Flexibility Services Agreement.

Utilisation Payment

The ‘Utilisation Fee Rule’ shown below encourages Service Providers to have a good performance and deliver against their contracted requirements. The Rule provides a payment on a sliding scale for the delivery of anything between 50-100% of the instructed amount on the scale given below.

Service Providers Utilisation Fee for each half hour is:

  • The Energy Delivered during the Flexibility Service (capped at the total instructed Energy)
  • Multiplied by the Utilisation Fee
  • Paid per kWh

You can find out more about the calculation of Utilisation payments in the TRANSITION Flexibility Services Agreement.

 

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