Industry workshop on the harmonisation of imbalance settlement
National Grid and Elexon held an industry workshop at Elexon’s offices on the morning of Wednesday 22 August, from 10:30 to 12:30.
This workshop examined the European TSOs’ proposals for the harmonisation of imbalance settlement across Europe, which is out for consultation until 28 September 2018. System Operators are legally required to make such a proposal in 2018 by Article 52 of the European Electricity Balancing Guideline.
The aim of the workshop was to get a common understanding of the likely impacts on the BSC arrangements; and to encourage GB parties to respond to the current European consultation even if they agreed with the proposals. As it is possible the European regulators might require changes before they give final approval.
Views expressed in the workshop were mixed: some thought that the proposals to harmonise could be more ambitious; but others thought that the existing GB arrangements were fine as they were and no change was best.
The potential impacts of the draft proposals on the BSC arrangements were identified to be:
- A change to the uses and formulation of Market Index Price in our imbalance prices
- A possible need to get Ofgem approval for scarcity pricing
- Implementation of any changes by end 2020, which would be within a potential Brexit transition period.