Will System Prices reach £3,000/MWh if Supplemental Balancing Reserve (SBR) is used?

The System Price will not automatically reach £3,000 if SBR is used and could be higher or lower. The SBR action will be treated as an energy balancing action in the System Price calculation. It is possible that the action could set the System Price, however the most expensive actions are often removed from the final volume weighted average calculation. This is due to Net Imbalance Volume (NIV) Tagging.

Since National Grid will have exhausted all available Offers in the Balancing Mechanism prior to accepting SBR, it is possible that Offers above £3,000 could be in the price stack and set the System Price.

Although still in the Balancing and Settlement Code (BSC) this product is no longer used by National Grid as of 1 March 2017.

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