Section N contains the rules for the clearing, invoicing and payment of Parties' Trading Charges and Reconciliation Charges by the Funds Administration Agent (FAA) and the BSC Clearer (Elexon Clear). It sets out: how Parties are notified of amounts payable; how Parties make or receive payments; the consequences of failing to make or receive payments; and how Parties' Credit Cover is held and used.

21.0

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

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

<div data-id="section-n-2-2.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.1 General</div>

<div data-id="section-n-2-2.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.2 The BSC Clearer as counter party to each Party</div>

<div data-id="section-n-2-2.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.3 Determination of payments for Trading Charges</div>

<div data-id="section-n-2-2.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.4 Payment netting</div>

<div data-id="section-n-2-2.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.5 Conditions for payment by the BSC Clearer</div>

<div data-id="section-n-2-2.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.7 Liability of the BSC Clearer</div>

<div data-id="section-n-2-2.8" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.8 Trading Disputes</div>

<div data-id="section-n-2-2.9" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2.9 Assignment</div>

<div data-id="section-n-2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">2. CLEARING ARRANGEMENTS</div>

<div data-id="section-n-3-3.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.1 Content</div>

<div data-id="section-n-3-3.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">3.2 Requirements</div>

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

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

<div data-id="section-n-4-4.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.1 Establishment of Accounts</div>

<div data-id="section-n-4-4.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.2. Funds Transfer Agreement</div>

<div data-id="section-n-4-4.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.3 Settlement Account</div>

<div data-id="section-n-4-4.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.4 Notification of Settlement Account</div>

<div data-id="section-n-4-4.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.5 Change of Settlement Account</div>

<div data-id="section-n-4-4.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.6 Reserve Account</div>

<div data-id="section-n-4-4.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.7 Details of Accounts</div>

<div data-id="section-n-4-4.8" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.8 Banking Communications Links</div>

<div data-id="section-n-4-4.9" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.9 Credit Facility</div>

<div data-id="section-n-4-4.10" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4.10 Treasury Policy and investment of Reserve Account monies</div>

<div data-id="section-n-4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">4. BANKING ARRANGEMENTS</div>

<div data-id="section-n-5-5.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.1 Tax Agreements</div>

<div data-id="section-n-5-5.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.2 Withholdings on account of taxation</div>

<div data-id="section-n-5-5.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.3 Taxation of BSC Clearer</div>

<div data-id="section-n-5-5.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">5.4 Value Added Tax</div>

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

<div data-id="section-n-6-6.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.1 Settlement Runs</div>

<div data-id="section-n-6-6.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.2 Validation by FAA</div>

<div data-id="section-n-6-6.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.3 Rectification of errors</div>

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

<div data-id="section-n-6-6.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.5 Amounts in Advice Notes</div>

<div data-id="section-n-6-6.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.6 Postponed Payments</div>

<div data-id="section-n-6-6.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.7 Payment by BSC Debtors, the BSC Clearer and BSCCo</div>

<div data-id="section-n-6-6.8" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.8 Liability several</div>

<div data-id="section-n-6-6.9" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.9 Ad-hoc Trading Charges</div>

<div data-id="section-n-6-6.10" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6.10 Replacement Supplier</div>

<div data-id="section-n-6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">6. CALCULATION OF PAYMENTS</div>

<div data-id="section-n-7-7.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">7.1 Despatch of Advice Notes</div>

<div data-id="section-n-7-7.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">7.2 Method of despatch</div>

<div data-id="section-n-7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">7. ADVICE NOTES</div>

<div data-id="section-n-8-8.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8.1 Instructions for payment</div>

<div data-id="section-n-8-8.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8.2 FAA’s responsibilities</div>

<div data-id="section-n-8-8.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8.3 Non-payment</div>

<div data-id="section-n-8-8.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8.4 Excess payments</div>

<div data-id="section-n-8-8.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8.5 Payment to BSC Creditors</div>

<div data-id="section-n-8-8.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8.6 Prohibition on transfers</div>

<div data-id="section-n-8-8.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8.7 Clearing of Clearing Account</div>

<div data-id="section-n-8" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">8. PAYMENT PROCEDURE</div>

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

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

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

<div data-id="section-n-9-9.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.4 Interest</div>

<div data-id="section-n-9-9.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">9.7 No liability</div>

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

<div data-id="section-n-10-10.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.1 Despatch of Confirmation Notices</div>

<div data-id="section-n-10-10.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.2 Information – Imbalance Parties</div>

<div data-id="section-n-10-10.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10.3 Information - NETSO</div>

<div data-id="section-n-10" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">10. CONFIRMATION NOTICES IN RESPECT OF A PAYMENT DATE</div>

<div data-id="section-n-11-11.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">11.1 Overpayments</div>

<div data-id="section-n-11-11.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">11.2 Failure to repay overpayments</div>

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

<div data-id="section-n-11" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">11. PAYMENT ERRORS</div>

<div data-id="section-n-12-12.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">12.1 Duties of FAA</div>

<div data-id="section-n-12-12.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">12.2 Action to recover Default Share Amounts</div>

<div data-id="section-n-12" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">12. ENFORCEMENT OF CLAIMS</div>

<div data-id="section-n-13-13.1" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">13.1 Maintenance of Ledger Accounts</div>

<div data-id="section-n-13-13.2" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">13.2 Ledger extracts</div>

<div data-id="section-n-13-13.3" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">13.3 Certified copy extracts</div>

<div data-id="section-n-13-13.4" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">13.4 Confidentiality</div>

<div data-id="section-n-13-13.5" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">13.5 Information</div>

<div data-id="section-n-13-13.6" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">13.6 Review of extracts</div>

<div data-id="section-n-13-13.7" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">13.7 Dispute of accuracy</div>

<div data-id="section-n-13" style="margin-left:0.69in;text-align:justify;text-indent:-0.69in">13. LEDGER ACCOUNTS</div>

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

<div data-id="section-n" style="text-align:center">SECTION N: CLEARING, INVOICING &amp; PAYMENT</div>

CONTENTS

BSC Section N: Clearing, Invoicing & Payment V21.0

Defined Terms

Cross-references