P410 ‘Changing imbalance price calculations to comply with the Imbalance Settlement Harmonisation regulations’
Formal title: Changing imbalance price calculations to comply with the Imbalance Settlement Harmonisation regulations
Following discussions with Ofgem and BEIS regarding interpretation of the UK-EU Free Trade agreement, NGESO have established that they can, and intend to, submit a new Imbalance Settlement Harmonisation Proposal (ISHP) for approval by Ofgem, as the sole relevant approval authority. This introduces the ability to maintain the Market Index Price as a component of the Imbalance Price calculation. Given the potential distortive effects of introducing a Value of Avoided activation (VOAA) compliant with the current ISHP, NGESO have determined that making this submission is the best course of action.
The amended ISHP will be consistent with the current mechanics of the BSC, and so the defect being addressed by P410 ‘Changing imbalance price calculations to comply with the Imbalance Settlement Harmonisation regulations’ will no longer exist. As such we do not expect to hold any further Workgroup meetings of P410, and expect the Modification to be withdrawn in due course.
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