P467 Enduring solution for cash out price calculation in the event of a Gas Deficit Emergency (GDE)
This is a follow on Modification from Issue 105 and provides an enduring solution in an event of a Gas Deficit Emergency (GDE).
Status
Who will this impact?
P467 is expected to impact the following:
- All Trading Parties
- BSC Parties
- Elexon
What is proposed?
This is a follow on Modification from Issue 105 and provides an enduring solution in an event of a Gas Deficit Emergency (GDE).
In 2022, BSC Change Proposal P448 was raised to protect generation parties who load shed from high imbalance prices during a Gas Deficit Emergency (GDE).
Following P448, the Issue Group 105 was created to explore scenarios whereby there are issues around gas shortages, and the electricity market is long, and what the subsequent impacts would be on cash out prices. In this scenario, the outputs of P448 would essentially suppress the cash out prices, leading to the market being unable to correct itself. This would lead signals being sent causing parties that are short to potentially decide to pay the suppressed cash out price instead of trading out of their position.
This Modification would remove bids from the cash out stack by winter 2024/25 as an enduring solution. This solution would keep the current Bids as they are, but not include them within the stack. This option will still include them in the imbalance calculation and the reasonable cost recovery will be covered.