About Elexon, its work and its roles
Elexon was established on 1 August 2000 to manage the Balancing and Settlement Code (BSC) ahead of the New Electricity Trading Arrangements (NETA) that went live on 27 March 2001. Since then other changes have taken place that have transformed Elexon’s role within the electricity market.
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Articles of Interest
Balancing and Settlement Code for Dummies launches4 May 2020
Message from Mark Bygraves: Supporting Our Customers25 March 2020
Temporary closure of our office to manage impact of coronavirus16 March 2020
Elexon is a company of over 150 members of staff and are key to the successful running of the electricity industry. We are a not-for-profit entity, funded by electricity market participants. Any funds we have left over from our budget is always returned to market participants. We are a trusted, independent and reliable market expert and we continuously look to evolve and innovate so that customers and consumers can feel the benefit.
To find out more about Elexon please visit the Elexon corporate website.
The corporate website offers information and details about:
- how Elexon works
- the company’s strategic goals
- its vision and targets for the future
- what Elexon manages
Other information available on the the corporate website includes:
- Working at Elexon
- Elexon news and insights
Elexon’s role managing the BSC
The Balancing and Settlement Code (BSC) was introduced as part of the New Electricity Trading Arrangements (NETA), which came into force in England and Wales in March 2001. These arrangements, and the scope of the BSC, were subsequently extended to Scotland in April 2005 as the British Electricity Trading and Transmission Arrangements (BETTA).
The BSC contains the rules and governance arrangements for the Balancing Mechanism and imbalance settlement processes. Elexon oversees the strategic operation and day-to-day management of the Balancing and Settlement Code (BSC). Elexon compares how much electricity generators and suppliers say they will produce or consume with actual volumes.
We work out a price for the difference and transfer funds. This involves taking 1.25 million meter readings every day. Our expertise and impartiality give our customers the confidence that the BSC operates efficiently and accurately.
History of the BSC
NETA and BETTA were established to:
- Enable electricity to be traded bilaterally, and ahead of time, between willing buyers and sellers in an open and competitive wholesale market (outside the BSC)
- Ensure that total electricity generation and demand are balanced in real time, through a Balancing Mechanism operated by National Grid as the GB Transmission System Operator
- Establish any differences (‘imbalances’) between the amounts of electricity which are traded and the actual electricity which is generated/consumed, and ensure that these are paid for, through a post-event imbalance settlement process operated by Elexon
More about BETTA
Modification P108 proposed to authorise BSCCo to provide or procure assistance to the Gas and Electricity Markets Authority in connection with the development and implementation of the British Electricity Trading and Transmission Arrangements (BETTA).
- Modification P108 ’Enable the BSCCo (Elexon) to prepare for the implementation of British Electricity Trading and Transmission Arrangements (BETTA)’
During 2013 and 2014 Elexon provided expertise to the UK Government to introduce Electricity Market Reform (EMR) Contracts for Difference, and Capacity Market settlement which is carried out by Elexon’s subsidiary EMR Settlement Ltd.