42.0

<div data-id="section-h-1-1.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.1 Introduction</div>

<div data-id="section-h-1-1.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.2 Internal structure</div>

<div data-id="section-h-1-1.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.3 Establishment of Code Subsidiary Documents</div>

<div data-id="section-h-1-1.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.4 Access to Code</div>

<div data-id="section-h-1-1.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.5 Precedence</div>

<div data-id="section-h-1-1.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.6 Relationship with other documents</div>

<div data-id="section-h-1-1.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1.7 IPR Litigation Requirements Document</div>

<div data-id="section-h-1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">1. STRUCTURE</div>

<div data-id="section-h-2-2.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.2 Implementation Scheme</div>

<div data-id="section-h-2-2.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.5 Effective Dates of Modification Proposal P344</div>

<div data-id="section-h-2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2. COMMENCEMENT AND TERM</div>

<div data-id="section-h-3-3.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.1 Events of Default</div>

<div data-id="section-h-3-3.1A" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.1A Default Values or Parameters Established by the Panel</div>

<div data-id="section-h-3-3.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.2 Consequences of Default</div>

<div data-id="section-h-3-3.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.3 Application</div>

<div data-id="section-h-3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3. DEFAULT</div>

<div data-id="section-h-4-4.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.1 Interpretation</div>

<div data-id="section-h-4-4.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.2 Party obligations</div>

<div data-id="section-h-4-4.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.3 BSCCo and BSC Clearer obligations</div>

<div data-id="section-h-4-4.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.4 Confidentiality for the NETSO</div>

<div data-id="section-h-4-4.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.5 Additional provisions</div>

<div data-id="section-h-4-4.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.6 Data ownership</div>

<div data-id="section-h-4-4.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.7 Other Intellectual Property Rights</div>

<div data-id="section-h-4-4.8" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.8 Data Protection</div>

<div data-id="section-h-4-4.10" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.10 Privilege</div>

<div data-id="section-h-4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4. CONFIDENTIALITY AND OTHER INTELLECTUAL PROPERTY RIGHTS</div>

<div data-id="section-h-5-5.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.1 BSC Audit</div>

<div data-id="section-h-5-5.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.2 Terms of reference for BSC Auditor</div>

<div data-id="section-h-5-5.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.3 Required contract terms</div>

<div data-id="section-h-5-5.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.4 Reporting</div>

<div data-id="section-h-5-5.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.5 Access/co-operation</div>

<div data-id="section-h-5-5.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.6 Corrective Action</div>

<div data-id="section-h-5-5.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.7 BM Auditor</div>

<div data-id="section-h-5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5. AUDIT</div>

<div data-id="section-h-6-6.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.1 Relationship between Parties</div>

<div data-id="section-h-6-6.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.2 Limitation of liability</div>

<div data-id="section-h-6-6.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.3 Exclusion of certain rights and remedies</div>

<div data-id="section-h-6-6.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.4 General provisions</div>

<div data-id="section-h-6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6. LIABILITY AND RELATED ISSUES</div>

<div data-id="section-h-7-7.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">7.1 Arbitration</div>

<div data-id="section-h-7-7.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">7.2 Third Party Claims</div>

<div data-id="section-h-7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">7. DISPUTE RESOLUTION</div>

<div data-id="section-h-8-8.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8.1 General provisions</div>

<div data-id="section-h-8" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8. REFERENCES TO THE AUTHORITY</div>

<div data-id="section-h-9-9.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.1 Assignment</div>

<div data-id="section-h-9-9.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.2 Notices</div>

<div data-id="section-h-9-9.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.3 Waiver</div>

<div data-id="section-h-9-9.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.4 Rights of Third Parties</div>

<div data-id="section-h-9-9.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.5 Language</div>

<div data-id="section-h-9-9.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.6 Severance of Terms</div>

<div data-id="section-h-9-9.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.7 Entire Agreement</div>

<div data-id="section-h-9-9.9" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.9 Jurisdiction</div>

<div data-id="section-h-9-9.10" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.10 Governing law</div>

<div data-id="section-h-9-9.11" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.11 Directions related to national security</div>

<div data-id="section-h-9-9.11.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in"><span>9.11.1 The Parties acknowledge that:</span></div>

<div data-id="a-the-secretary-of-state-may-issue-a-direction-to-the-netso-as-referred-to-in-condition-b4-of-the-eso-licence-where-in-the-opinion-of-the-secretary-of-state-there-is-a-risk-relating-to-national-security-that-may-detrimentally-impact-the-resilience-safety-or-security-of-the-energy-system-or-the-continuity-of-essential-services-and-it-is-in-the-interest-of-national-security-that-a-direction-should-be-issued-to-the-netso-national-security-direction" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in"><span> (a) the Secretary of State may issue a direction to the NETSO as referred to in condition B4 of the ESO Licence where, in the opinion of the Secretary of State, there is a risk relating to national security that may detrimentally impact the resilience, safety or security of the energy system, or the continuity of essential services, and it is in the interest of national security that a direction should be issued to the NETSO ("national security direction");</span></div>

<div data-id="b-the-netso-must-comply-with-any-such-national-security-direction-and-is-not-required-to-comply-with-any-other-obligation-in-the-eso-licence-where-and-to-the-extent-that-compliance-with-that-obligation-would-be-inconsistent-with-the-requirement-to-comply-with-such-national-security-direction-for-the-period-set-out-in-that-direction-this-includes-the-requirement-set-out-in-condition-e3-of-the-eso-licence-to-comply-with-the-code" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in"><span> (b) the NETSO must comply with any such national security direction and is not required to comply with any other obligation in the ESO Licence, where and to the extent that compliance with that obligation would be inconsistent with the requirement to comply with such national security direction, for the period set out in that direction. This includes the requirement set out in condition E3 of the ESO Licence to comply with the Code;</span></div>

<div data-id="c-the-netso-is-required-under-condition-b4-of-its-eso-licence-to-inform-the-secretary-of-state-of-any-conflict-with-the-obligations-as-identified-in-9111b-as-soon-as-reasonably-practicable-after-the-conflict-is-identified-the-netso-will-include-in-such-a-notice-details-of-any-identified-impact-or-non-compliance-that-will-be-caused-or-will-be-likely-to-be-caused-to-parties-and-in-such-a-case-will-also-seek-clarification-of-whether-this-can-be-shared-with-the-affected-party" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in"><span> (c) the NETSO is required under condition B4 of its ESO Licence to inform the Secretary of State of any conflict with the obligations as identified in 9.11.1(b) as soon as reasonably practicable after the conflict is identified. The NETSO will include in such a notice, details of any identified impact or non-compliance that will be caused or will be likely to be caused to Parties, and in such a case will also seek clarification of whether this can be shared with the affected Party. </span></div>

<div data-id="section-h-9-9.11.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in"><span>9.11.2 Where reasonably practicable and subject to the agreement of the Secretary of State to share any such specific details, the NETSO will inform affected Parties as identified in 9.11.1(c) of what actions the NETSO will or has taken, or not taken, to comply with a national security direction or amended national security direction (including when such a direction is revoked) and what identified impact or non-compliance this will or is likely to cause to each affected Party. </span></div>

<div data-id="section-h-9-9.11.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in"><span>9.11.3 The NETSO’s obligations under the Code shall be suspended without liability where and to the extent that compliance with any such obligation would be inconsistent with the requirement upon the NETSO to comply with a national security direction.</span></div>

<div data-id="section-h-9-9.11.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in"><span>9.11.4 A Party (other than the NETSO)’s obligations under the Code shall be suspended without liability where and to the extent that the Party (other than the NETSO) is unable to comply with any such obligation as a result of any action taken, or not taken, by the NETSO to comply with a national security direction.</span></div>

<div data-id="section-h-9-9.11.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in"><span>9.11.5 The Secretary of State may at any time amend or revoke any national security direction.</span></div>

<div data-id="section-h-9-9.12" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.12 Advisory and information requests</div>

<div data-id="section-h-9" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9. GENERAL</div>

<div data-id="section-h-10-10.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.1 BSC Derogations</div>

<div data-id="section-h-10-10.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.2 Applications for a BSC Derogation</div>

<div data-id="section-h-10-10.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.3 Sandbox Send Back Process</div>

<div data-id="section-h-10-10.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.4 Impact of BSC Derogation</div>

<div data-id="section-h-10-10.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.5 Trial Period Duration</div>

<div data-id="section-h-10-10.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.6 BSC Derogation Transition and Exit</div>

<div data-id="section-h-10-10.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.7 Derogation Reporting and Monitoring</div>

<div data-id="section-h-10-10.8" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.8 BSCCo Derogation Reporting</div>

<div data-id="section-h-10" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10. BSC SANDBOX</div>

<div data-id="section-h-11-11.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">11.1 The Balancing Mechanism Reporting Service Change Board</div>

<div data-id="section-h-11-11.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">11.2 Data Disclosure Requests</div>

<div data-id="section-h-11-11.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">11.3 Appeals</div>

<div data-id="amendment-record--section-h" style="margin-left:0.69in;text-indent:-0.69in;text-align: center">AMENDMENT RECORD – SECTION H</div>

<div data-id="section-h" style="text-align:center">SECTION H: GENERAL</div>

CONTENTS

BSC Section H: General V42.0

Defined Terms

Cross-references