Virtual Lead Parties could trade in the wholesale market

Elexon is calling for volunteers to join a new Workgroup to assess a Balancing and Settlement Code Modification proposal allowing Virtual Lead Parties to trade electricity from demand-side response (DSR) providers directly in the wholesale electricity market.

Last December, alongside National Grid ESO, Elexon (BM) opened up the Balancing Mechanism through Modification P344 so that independent aggregators can participate in it as Virtual Lead Parties (VLPs).

This is an important step towards a smarter, more flexible system, however it means that VLPs are currently limited to trading DSR offers in the Balancing Mechanism.

Proposed approach

Demand-side response offers could be traded in the wholesale market through Virtual Lead Parties

Modification P415 proposed by Enel X would amend BSC systems and processes so that factories and businesses with DSR to offer can trade this in the wholesale electricity market through a VLP, rather than through their Supplier.

P415 would adopt methodologies that are being developed to improve the process for recording in Settlement the volumes of energy delivered by DSR providers (P376).

P415 would also use processes to obtain data on that activity through the fitting of asset meters to generators or DSR providers located behind the boundary point (P375).

Modification P376 and P375 are currently being assessed, and if approved by Ofgem they would be implemented from 2022. The implementation date for the P415 changes (If approved) has not been agreed yet.

About Modification P415

Visit our webpage to find out more about the proposal, and see the Initial Written Assessment for it.

Volunteer for Workgroups to asses the P415 proposals

We are aiming to hold Workgroup meetings for P415 in mid-November and December 2020. An Assessment Procedure Consultation will be published in November 2021.

The proposal will be sent to the BSC Panel for consideration in February 2022, before a final recommendation is made to Ofgem.  

If you would like to join the P415 Workgroup, please contact the BSC Change team.

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