P202 – Energy Imbalance Incentive Band

Formal title: Energy Imbalance Incentive Band

Summary

All supplier trading parties with consumption accounts under the BSC should be allowed an Energy Imbalance Tolerance Band in certain defined circumstances. The band should be 20MWh per half hour trading period. Imbalance within the narrow band should be cashed out at different price to the current cashout price. The circumstances where this should be applied would be tailored to instances where the supplier is short of contracted power and the system is also short, in recognition of the fact that small parties cannot often contract for power either because of their size relative to the market or because of illiquidity in the traded markets. The price indicator in such circumstances should be linked to a market-based price, which would reverse price for the relevant trading period, rather than the main price which would otherwise applied.