P443 Report Phase Consultation

This Modification seeks to limit the exposure of all GB parties, including consumers, to extreme prices because of tight margins across the European energy markets. The proposed solution is to cap the price that enters the BSC Imbalance Price calculation at the Value of Lost Load (VoLL – currently £6,000/MWh), for Interconnector actions only. VoLL under the BSC represents the value to customers of unsupplied energy. National Grid Electricity System Operator (NGESO) would still be able to take Interconnector actions it deems necessary, but these would be capped in the Imbalance Price calculation where the relevant actions exceed VoLL.