Glossary Term: Gate Closure
For each half hour, known as a Settlement Period, companies can trade up to 1 hour beforehand that time period is closed. This is known as Gate Closure.
Following Gate Closure, National Grid uses the Balancing Mechanism to balance the system. Contract notifications, bids and offers, and other data, is sent to BSC Central Services for Imbalance Settlement.
Gate Closure is a point one hour prior to the start of a Settlement Period. This is the point by which
BSC Parties must submit information to NGESO regarding their planned production or consumption in
a Settlement Period.
The Electricity System Operator has its forecast of demand for the Settlement Period, which it compares against the physical data submitted by the Generators. This data is used to determine whether there is likely to be a surplus or deficit of electricity in the Settlement Period. This helps the System Operator to plan how it is going to match generation to demand.
After Gate Closure, Parties are expected to adhere to the physical data submitted to the Electricity System Operator before Gate Closure. They should only deviate from this position at the instruction of the Electricity System Operator.
BSC defined definition
(i) in relation to a Settlement Period, the spot time one hour before the spot time at the start of that Settlement Period; or
(ii) in relation to a Replacement Reserve Auction Period, the Gate Closure time to be notified to BSCCo by the NETSO following the approval of the relevant proposal under Article 24 of Commission Regulation 2017/2195 provided that:
(A) such spot time shall occur no earlier than one hour before, and no later than fifty five minutes before, the spot time at the start of the Settlement Period that coincides with the start of that Replacement Reserve Auction Period;
(B) such approved Gate Closure shall be published by BSCCo on the BSC Website; and
(C) in the absence of an approved proposal under Article 24 of Commission Regulation 2017/2195, Gate Closure in relation to a Replacement Reserve Auction Period shall be one hour before the spot time at the start of the Settlement Period that coincides with the start of that Replacement Reserve Auction Period;
Further information
- The Electricity Trading Arrangements A Beginner’s Guide
- More about settlement and invoicing
- EU Commission Regulation 2017/2195 establishing a guideline on electricity balancing