Performance Assurance Techniques

Each year, the BSC Panel and the PAB identify, evaluate and prioritise the risks that may occur within Settlement and the extent to which they apply to each Performance Assurance Parties (PAPs). ELEXON conform to an agreed process assess each PAP based on the Settlement Risks that they may pose and this process includes the timetable, the methodology and the various reports.

How it relates to you

The Performance Assurance process will affect all the Performance Assurance Parties. These are:

  • Suppliers
  • Meter Operator Agents
  • Data Collectors
  • Data Aggregators
  • Meter Administrators
  • Licensed Distribution System Operators and/or a Registrant

Techniques used in the process

The Performance Assurance Framework (PAF) is a complementary set of preventive, detective, incentive and remedial assurance techniques. These techniques are used flexibly to address Settlement Risks.

A Settlement Risk is anything that could pose a risk to accurate Settlement: it could be a failure in a process or an error in data.

The Performance Assurance Techniques must address risks to Settlement and the impact of actual failures or errors in Settlement.

Preventive Techniques

Detective Technique

Incentive Technique

Remedial Technique


The Annual Performance Assurance Timetable (APAT) is approved by the PAB and sets out the timeline for the creation of the documents above for the relevant Performance Assurance Operating Period (PAOP).

Documents produced in the process

The BSC Panel and the PAB produce a suite of documents as per the Annual Performance Assurance Timetable. This procedure and the associated documents are completed in consultation with industry.

Risk Evaluation Methodology

The Risk Evaluation Methodology (REM) describes how the Performance Assurance Board does the following:

  • Identifies Settlement Risks
  • Evaluates Settlement Risks
  • Assesses the materiality of Settlement Risks

The REM is a reference document which is reviewed and approved annually by the PAB following consultation with industry.

Latest methodology documents

Risk Evaluation Register

The Risk Evaluation Register (RER) sets out the Settlement Risks that have been identified and evaluated by reference to classes of Performance Assurance Party (PAP) rather than to a particular PAP.

Settlement Risks relating to Supplier Volume Allocation, Central Volume Allocation and Central Systems processes fall under the scope of the RER.

The RER explains the annual process of review whereby existing risks are amended and/or new risks included.

The RER ledger sets out the risks, and the significance of each risk on Settlement in relation to a specific Performance Assurance Operating Period (PAOP).

The RER is reviewed and approved annually by the Performance Assurance Board (PAB) following consultation with industry.

Latest registers

Guidance notes

The Settlement Risk Evaluation guidance notes sets out the principles that the PAB uses when assessing the probability, impact and strength of controls relating to Settlement Risks. This document should be read in conjunction with the Risk Evaluation Methodology  and the Risk Evaluation Register .

Risk Operating Plan

The Risk Operating Plan (ROP) sets out what Performance Assurance Techniques (PATs) can and have been applied to each Settlement Risk identified in the Risk Evaluation Register and the estimated costs of implementing the techniques.

The ROP explains the annual process of review and identifies any changes to the deployment of PATs in relation to a specific Performance Assurance Operating Period (PAOP).

The Risk Operating Plan ledger is a shorter version of the Risk Evaluation Register. It sets out the PATs as applied to each risk and identifies the impacted class of Performance Assurance Party for that risk. The ROP is reviewed and approved annually by the PAB following consultation with industry.

The key principles of the techniques and how they are applied are detailed in the following document:

Latest Plans

Annual Performance Assurance Report

The APAR provides the results of the risk evaluation and risk assurance procedures for a particular Performance Assurance Operating Period (PAOP), in particular how well the techniques mitigated the Settlement Risks.

The report also:

  • Sets out the actual costs of ELEXON implementing the techniques
  • Recommends changes to existing techniques or recommends creating new techniques
  • Explains the benefits of changing the Performance Assurance Techniques

ELEXON is required to produce a number of associated reports which feed into the Annual Performance Assurance Report (APAR).


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