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Reconciliation Support Workshop

Reconciliation Support Workshop. Wednesday, 22 May 2019 AEMO Melbourne office Level 22, 530 Collins Street, Melbourne. Agenda – Change in Approach. Welcome and housekeeping Facilities, phones, laptops and leaving the room Approach for today Objectives and context for the workshop

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Reconciliation Support Workshop

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  1. Reconciliation Support Workshop Wednesday, 22 May 2019 AEMO Melbourne office Level 22, 530 Collins Street, Melbourne

  2. Agenda – Change in Approach • Welcome and housekeeping • Facilities, phones, laptops and leaving the room • Approach for today • Objectives and context for the workshop • High-level summary of 5MS and Global Settlements (GS) • Settlement and Reconciliation – today and in the future • General Business and Next Steps

  3. Approach and Questions Before We Start • Approach • Guided conversations • AEMO resources in the room • May need to park some conversations • Composite of the group • Operations vs systems • Retailer vs Generator vs MSP vs Distributor vs Other • Previous experience in the areas being discussed • Meter data mgt, Standing data mgt and Settlements • Expectations for today e.g. level of detail, outputs, etc.

  4. Notes – Introduction and welcome • Blaine Miner of AEMO welcomed participants and AEMO staff to the workshop • He went through the agenda for the day and started by confirming the breadth of representation in the workshop by highlighting the AEMO SMEs in attendance and the cross section of organisations and areas of expertise of participant attendees • High representation of Retailers and some Generators • Strong cross section of operational and system experts • Blaine did note that while the content of the slides had for the most part not changed, compared to what was distributed prior to the workshop, the sequence of the slides had been modified to better support the flow of today’s conversations

  5. Objectives and Context of the Workshop

  6. Objectives of the Workshop • To communicate how AEMO performs market settlements today • To understand the various approaches market participants currently adopt in reconciling market charges • Including understanding the current pain points faced by market participants today • To ensure a common understanding of the 5MS and GS rules • To communicate how AEMO expects to perform market settlements in a 5MS/GS environment • To discuss how industry expects to reconcile market charges in a 5MS/GS environment • Including pre-emptively identify potential issues industry may face either transitioning to or in a 5MS and GS environment • To identify potential opportunities in minimising/managing these potential issues • To discuss next steps in progressing any industry opportunities identified

  7. NEM Electricity Data Flows

  8. System Change Heatmap

  9. Notes – Objectives and Context • Attendees mentioned that the Workshop conversations needed to consider items beyond the AEMO/wholesale perspective • E.g. Customer billing, network charges, etc. • AEMO was more than happy for broader considerations to be raised throughout the day • It was noted that while the Workshop would highlight and discuss key matters, it was not a decision-making forum • AEMO mentioned the various existing channels for participants to formally and informally provide feedback to AEMO, including: • 5MS forums, working groups and focus groups • Consultation submissions • 5MS Inbox • 5MS Change Requests • Workshop attendees commented and expected that many of the issues raised during the workshop weren’t necessarily matters for AEMO to ‘fix’ but that industry would need to remedy them amongst themselves.

  10. High-level summary of 5MS and GS

  11. 5MS - Re-cap

  12. 5MS - Impact on the industry Example footer text

  13. 5MS - High Level Metering Requirements • Progressive re-configuration of interval meters to allow the measurement and delivery of five minute metering data. • Types 1, 2 and 3 meters to record and store five-minute data from the commencement date of the rule. • Type 4 meters at a transmission network connection point or distribution network connection point where the relevant financially responsible Market Participant is a Market Generator or Small Generation Aggregator to record and store five-minute data from the commencement date of the rule. • All other types 4, 4A, 5 and 6 meters that are already installed do not need to provide five-minute data at the commencement date. The data from these meters will be profiled to five-minute trading intervals by AEMO using load profiles. • All new and replacement metering installations, other than type 4A, installed from 1 December 2018 must provide five-minute data from 1 December 2022 at the latest. • All type 4A new and replacement metering installations installed from 1 December 2019 must provide five-minute data from 1 December 2022 at the latest • Key functional implications include: • Moving from 30-min settlement to 5-min settlement e.g. 5-min spot prices • AEMO and Participant systems to deliver, receive and apply five minute metering data (as applicable) • New profiles being introduced to convert 15 and 30-min metering data to 5-min resolution • Controlled Load Profiles (CLP) and Net System Load Profiles (NSLP) to change from 30-min to 5-min

  14. Settlements by Difference vs Global Settlements

  15. Global Settlement (GS)- Implementation timeline New annual report [NER 3.15.5B] and new reporting guidelines [NER 3.15.5B(d) and 11.112.6] New procedure required [NER 3.15.5(d) and 11.112.5]

  16. Notes – High-level summary of 5MS and GS • AEMO including these slides to ensure a common understanding of the 5MS and GS Rules • AEMO noted that there are approximately 19k meters that must be providing 5-minute metering data from 1 July 2021 • AEMO noted that only a subset of MDPs support these particular meters and suggesting that these specific MDPs would be highlighted during Readiness activities to ensure a successful 1 July 2021 5MS Go-live • AEMO noted that the conversation surrounding five minute metering data had evolved from delivery and reception to functional application of this information in key wholesale and participant based activities • AEMO suggested that participants should be discussing their requirements, including any transitional arrangements, with their MCs/MDPs as soon as possible • Including, any aggregations of five minute meter reads to 15 and 30-minute levels pre and post 1 July 2021 • AEMO advised that there would most likely need to be an ‘update’ to MDPs accreditation to ensure appropriate systems and processes are in place to support five minute metering data provisioning

  17. Notes – High-level summary of 5MS and GS • Workshop attendees queried how AEMO will be supporting Readiness activities and how AEMO would ensure Readiness of particular participants when AEMO cannot mandate various aspects and participation • AEMO recognised the challenges but mentioned that they have developed a program to support successful implementation, and are open to further input from the industry on any further activities • AEMO noted that Readiness had been discussed within AEMO for a number of months and that nominations are now open for the Readiness Working Group (RWG) • The RWG is scheduled to meet late June/early July • The AEMO Readiness plan and approach would be tailored to mitigate/manage key risks including MDP readiness who have a high proportion of 5-minute data to be delivered from 1 July 2021. • Market trials are expected to be leveraged as a key component of assessing market readiness, across all participants. • AEMO expected that all ‘priority’ MDPs would need to participate in the first round of market trails

  18. Settlements and Reconciliation

  19. Reconciliation, what is it and why is it needed? • What is your primary objective in reconciling AEMO’s settlement statements? • Gain confidence in the settlements calculation and that the subsequent amounts are correct? • Gain confidence in the inputs used (standing data, meter data and spot prices)? • Gain confidence in information for downstream processes and activities e.g. customer billing, network billing, financial reporting and Trading? • Allow hedge (and other secondary market) contracts to be settled? • Determine the profitability of customers and products? • Meet the demands of internal and/or external auditors? • What AEMO provided data is most important to participants and why?

  20. Notes – Why participants reconcile AEMO charges • Participants specifically called out: • Evidence to the Board and auditors that the amount paid to AEMO was ‘correct’ • Regulatory and financial obligations • To support revenue and cost assurance activities • Standing and meter data integrity checks

  21. AEMO’s Market Settlement Process (Today) 1 2 3 4 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling Spot Prices and MLFs Settlement Cycles and Settlement Case IDs 5 6 7 • Settlement Report and Tax Invoice RM Reports, DI Data and EMMS Data Model MSATS Browser Interface

  22. AEMO’s Market Settlement Process (5MS/GS) 1 2 3 4 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling Spot Prices and MLFs Settlement Cycles and Settlement Case IDs 5 6 7 Settlement Report and Tax Invoice RM/UFE Reports, DI Data and EMMS Data Model MSATS Browser Interface Legend High impact Medium impact No impact

  23. Maintain and Receive Standing and Meter Data 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  24. Notes – Standing and Meter Data today • Discussed current pain points regarding meter data versioning: • Workshop attendees said it was common for a Retailer to encounter energy reconciliation variances due to meter data versioning issues • AEMO noted that MDPs currently have to send out 2 different meter data files, MDMF to AEMO and MDFF to participants, which may be contributing to the issue being experienced • Which is a key reason why AEMO is transitioning to MDFF for interval metering data in 2021. • There was broad acceptance that timing issues cannot be fully mitigated, due to timing delays between AEMO calculating the charges and a participant reconciling the charges, but that additional information in the relevant RM reports may assist identifying these instances in a more efficient manner • E.g. Potent opportunity to include MDP version date/time stamps, used in AEMO NEM Settlement calculations, in the RM reports • Workshop attendees indicated that this would be useful information. • Other discussions occurred regarding other potential inclusions such as meter read quality flags • AEMO suggested that these potential opportunities should be further considered by participants and for any final feedback to be provided through the previously discussed channels, including their Metering Package 2 consultation submissions • AEMO mentioned that it would perform some analysis to see if meter data time/stamp inconsistencies was an existing issue between the MDMF and MDFF files • If it is, AEMO would raise the issue at the June Metering Focus Group (MFG) meeting

  25. Notes – Standing and Meter Data today • AEMO enquired whether workshop attendees experience issues in synchronising with MSATS Standing data and how this synchronisation occurred. • Various approaches were currently being performed, depending on the participant: • Some relied on CATS notifications while others relied on C4 reports • When it comes to metering, some used CR4000 notifications (Datastream table) where others used CR3000 notifications (Register table) and then others used the MDFFs themselves • Some participants mentioned that it wasn’t synchronisation that was the issue but rather the delay in relevant parties e.g. distributors, MPs and MDPs updating the standing data in MSATS • Overall, synchronisation did not appear to be a major issue – largely more of a timing issue

  26. Maintain and Receive Standing and Meter Data 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  27. Maintain and Receive Standing and Meter Data 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  28. Notes – Standing and Meter Data Future • AEMO commented that there would need to be quite a few changes in CATS/MSATS to accommodate the various scenarios associated with the requirements of GS. For example, how the FRMP and LR fields are to be populated in certain situations and what additional NMI Classification Codes and Meter Installation Type codes would be required to enable the accurate settlement of the market • AEMO commented that under the GS Rule, LRs would no longer receive 1st tier lost customer and TNI/boundary metering data and that participants should consider what that means for various down stream activities e.g. financial reporting, load forecasting, etc. • AEMO commented that it had identified almost 40 scenarios to date that needs to be allowed for, including cross border supply and non-contestable unmetered loads. • Workshop attendees suggested that visibility of this information would be very useful to enable appropriate Metering Package 2 consultation feedback. • AEMO stated that this information would be shared with industry shortly, through various 5MS engagement channels e.g. June MFG as well as through the Metering Package 2 consultation • Workshop attendees enquired how AEMO would provide assurances that standing data updates are ultimately applied correctly? • AEMO advised that standing data updates would be applied in partnership with relevant participants and would likely form part of the 5MS test plan

  29. Profiling and Settlement Load Aggregations 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  30. Profiling and Settlement Load Aggregations 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  31. Profiling and Meter Data Aggregations 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  32. Notes – Profiling and Meter Data Aggregations • AEMO commented they will be implementing changes to profiling to allow for the profiling of 15 and 30-minute metering data from 1 July 2021 • AEMO commented that as all connection points would be required to settle the market in a GS environment, 1st tier accumulation meter reads would now need to be profiled to support settlement calculations • AEMO commented they have been approached by a market participant to potentially provide profiled meter data to Retailers – at data stream level. • AEMO commented that this would be a lot of data and consideration should be done by Retailers as to how the data would ultimately be applied e.g. how would the Retailer know that the meter read that the profiled data was based on matches the meter read they have in their database?

  33. Spot Prices and MLFs 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  34. Spot Prices and MLFs 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  35. Notes – Spot Prices and MLFs • AEMO indicated there are minimal changes to Spot Prices and MLFs with the implementation of 5MS and GS • AEMO commented that dual MLF’s, which currently exist today, will continue to exist in a 5-minute environment. • AEMO stated there can only ever be one applicable MLF at a 5-minute interval however, in some scenarios such as Pumped hydro, the MLF can switch based on whether it is importing or exporting.

  36. Settlement Cycles and Settlement Case IDs 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  37. Settlement Cycles and Settlement Case IDs 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  38. Notes – Settlement Cycles and Settlement Case IDs • AEMO stated that there are no proposed changes to Settlement Cycles or Settlement Case IDs • One attendee suggested that this may be challenging in the early stages of UFE i.e. the current cycles may not provide sufficient time to stabilise the effect of UFE for on-market financial settlement purposes • AEMO noted that the associated procedures had recently been consulted on and no changes had been adopted • Workshop attendees enquired how the 5MS transition week would be handled i.e. how the market would be settled on both a 30-minute and 5-minute basis • AEMO advised that its systems would be able to calculate on a 30-minute basis for periods up to 30 June 2021 and then on a 5-minute basis from 1 July 2021 • Only one settlement case and one tax invoice would be generated for the transitional trading week

  39. Settlement Report and Invoice 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  40. Settlement Report and Invoice 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  41. Notes – Settlement Report and Invoice • Most of the discussion was in relation to the inclusion of Unaccounted for Energy (UFE) • Retailers mentioned that they must provide customers 6 months notice of any price/structural changes • Allowing for related system/communication changes, the lead time may actually be 12 months • AEMO mentioned that UFE will be published by AEMO between 1 July 2021 – 5 Feb 2022 but that UFE would not be included in Settlement statements/tax invoices until 6 Feb 2022 • The Exact format as to how UFE will be included in the SR is still to be finalised • UFE will be recalculated and reallocated for each settlement cycle • UFE dollars will not be published in the SR, UFE energy values will be • AEMO mentioned and discussed some of the likely contributors to UFE • Incorrect meter configuration (CT ratios), illegal connections, technical losses, profiling related issues, etc. • AEMO mentioned that changes in UFE between settlement cycles should provide additional visibility around some of these contributors e.g. the impact of MDP forward estimates on profiling outcomes • The quantification of these contributors would result in actionable activities e.g. targeted rollout of 5-minute meters, reducing issues associated to profiling

  42. RM Reports 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  43. RM Reports 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  44. Data Interchange and EMMS Data Model 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs • Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  45. RM & UFE Reports 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  46. RM & UFE Reports 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  47. RM & UFE Reports 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  48. DI Data and EMMS Data Model 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  49. DI Data and EMMS Data Model 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

  50. DI Data and EMMS Data Model 1 2 3 4 5 6 7 Maintain and Receive Standing and Meter Data • Settlement Load Aggregations and Profiling • Spot Prices and MLFs Settlement Cycles and Settlement Case IDs • Settlement Report and Invoice • RM/UFE Reports, DI Data and EMMS Data Model • MSATS Browser Interface

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