History of the BSC
The Balancing and Settlement Code (BSC) was introduced as part of the New Electricity Trading Arrangements (NETA), which came into force in England and Wales in March 2001. These arrangements, and the scope of the BSC, were subsequently extended to Scotland in April 2005 as the British Electricity Trading and Transmission Arrangements (BETTA).
NETA and BETTA were established to:
- Enable electricity to be traded bilaterally, and ahead of time, between willing buyers and sellers in an open and competitive wholesale market (outside the BSC)
- Ensure that total electricity generation and demand are balanced in real time, through a Balancing Mechanism operated by National Grid as the GB Transmission System Operator
- Establish any differences (‘imbalances’) between the amounts of electricity which are traded and the actual electricity which is generated/consumed, and ensure that these are paid for, through a post-event imbalance settlement process operated by ELEXON
The BSC contains the rules and governance arrangements for the Balancing Mechanism and imbalance settlement processes.