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Energy Imbalance Price Parameters

PAR Volume

The Price Averaging Reference (PAR) Volume was introduced on a ‘Settlement Period’ basis for Approved Modification P194 ‘Revised Derivation of the ‘Main’ Energy Imbalance Price’ as amended by P205 ‘Increase in PAR Level from 100 MWh to 500 MWh’ on 2 November 2006.

Effective From Date Effective To Date Value of PAR
02/11/2006 N/A 500MWh

PAR is used to tag Bid-Offer acceptances such that a maximum volume of PAR MWh is used to set the Main Energy Imbalance Price.

The value of PAR may only be amended by an Approved Modification.

Minimis Acceptance Threshold (DMAT)

The De Minimis Acceptance Threshold is a parameter used to eliminate Bid/Offer acceptances of small volume (currently less than 1 MWh).

Effective From Date Effective To Date Value of DMAT
11/05/2001 N/A 1MWh

This value is written into the text of the PDF IconBSC Section T(321Kb) Paragraph 1.7 with the stipulation that the BSC Panel may review it from time to time. DMAT was introduced in the implementation of PDF IconModification Proposal P10 Eliminating Imbalance Price Spikes Caused By Truncating Effects’(10Kb) (raised by the Transmission Company) on 11 May 2001.

Proposed revisions to the value of DMAT are consulted upon with the Transmission Company and Trading Parties before a Panel determination is made, and are subject to approval by the Authority.

Continuous Acceptance Duration Limit (CADL)

CADL is used to remove short duration Bid-Offer acceptances, associated with system balancing actions, from the Energy Imbalance Price calculation.

A Bid-Offer acceptance relating to any given Balancing Mechanism (BM) Unit will be removed from the system price calculation if it has duration of less than the CADL value in minutes.

Effective From Date Effective To Date Value of CADL
25/09/2001 N/A 15 Minutes

CADL was introduced into the BSC as part of the implementation of Approved Modification P18 ‘Removing/Mitigating the Effect of System Balancing Actions in the Imbalance Price,’ in September 2001. CADL is defined in PDF IconBSC Section T(321Kb) Paragraph 3.1B.

The BSC Panel may revise the value of CADL after consulting with BSC Parties but subject to the approval of the Authority.

Market Index Definition Statement (MIDS) Parameters

The Market Index Definition Statement (MIDS) defines two main parameters. These are the Individual Liquidity Threshold (ILT) and (time and product) weightings.

Market Index Data is used in Settlement to calculate a price, expressed in £/MWh in respect of each Settlement Period which reflects the price of wholesale electricity in Great Britain for delivery in respect of that Settlement Period in the short term market circumstances where the levels of liquidity in the market during that period are not exceptionally low.

The Market Index Definition Statement (MIDS) defines the parameters for use by the Market Index Data Provider (MIDP) in the provision of Market Index data (MID) to the Settlement Administration Agent (SAA). The MIDS was approved for use by the Authority on 11 March 2003 as part of Approved Modification Proposal P78 ‘Revised definitions of System Buy Price and System Sell Price’.

PDF IconVersion 5.0 of the MIDS(142Kb) is available on the BSC and Related Documents page of the ELEXON website.

In accordance with the obligation set out in PDF IconBSC section T(321Kb) Paragraph 1.5.2 the Market Index Definition Statement contains the Individual Liquidity Threshold (ILT) and product and timeband weightings, these are detailed below:

MIDP From   Settlement Periods ILT
APX 01 April 2005 For 1-48 25MWh
Weightings
Timebands
  Product 1 2 3 4 5 6 7 8 9 11 12
Half-Hour H 1 1 1 1 1 1 1 1 0 0 0
2 Hour Block 2 1 1 1 1 1 1 1 1 0 0 0
4 Hour Block 4 1 1 1 1 1 1 1 1 0 0 0
Extended Peak E 0 0 0 0 0 0 0 0 0 0 0
Overnight O 0 0 0 0 0 0 0 0 0 0 0
Peak P 0 0 0 0 0 0 0 0 0 0 0

The Market Index Definition Statement is reviewed by the BSC Panel at least once every 12 months. Any proposed changes are consulted upon with BSC Parties and other interested Parties before the Panel determines that a change is to be made. A change to the MIDS is subject to approval by the Authority.

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