Glossary

P444 Send Back Consultation

This is the P444 ‘Compensation for Virtual Lead Party actions in the Balancing Mechanism’ Send Back Consultation, which Elexon is issuing for industry consultation on behalf of the BSC Panel. The purpose of this consultation is to invite BSC Parties and other interested parties to provide their views on the outcomes of the P444 Send Back process. It includes a summary of the additional work undertaken by Elexon and the Workgroup.

Status

Who will this impact?

  • Suppliers
  • Virtual Lead Parties
  • Elexon

What is proposed?

Under BSC arrangements introduced by P344 ‘Project TERRE implementation into GB market arrangements’ there is no mechanism for compensation of Parties who have been affected by Virtual Lead Party (VLP) activity in the Balancing Mechanism (BM).

As a result, Suppliers are commercially impacted and left with a cost from the Balancing Mechanism that they cannot recover through the central arrangements.

The P444 solution seeks to introduce compensation for Suppliers and VLPs who are currently left with an undue cost because of VLP volumes in the Balancing Mechanism that they cannot recover.

How to respond

We invite you to respond to this  consultation to provide your views on the outcomes of the P444 Send Back Process, and provide any views on the revised Implementation Date and Legal Text. Please send your response to [email protected] using the form attached to the consultation by 5:00 pm on Wednesday 2 October 2024.  

 

Related information

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