P415 ‘Facilitating access to wholesale markets for flexibility dispatched by Virtual Lead Parties’
Formal title: Facilitating access to wholesale markets for flexibility dispatched by Virtual Lead Parties
Customers (consumers of electricity) who are able to be flexible about their consumption cannot currently obtain any value from that flexibility from the Wholesale Energy Market, except if they work with their Supplier to do so. This is because the BSC assigns all flexibility delivered by a customer to their Supplier, with the exception of flexibility instructed by National Grid in the Balancing Mechanism or Replacement Reserve market (TERRE), which can be assigned to a third party (referred to in the BSC as a “Virtual Lead Party”).
As a result, customers can only access power exchanges (and other markets that require notification of contracts under the BSC) though their Supplier. This contrasts with Balancing Services, the Balancing Mechanism, and the Capacity Market, all of which allow a customer’s flexibility to be offered by an aggregator without the involvement of the Supplier.
If you have any problems or issues downloading or accessing any of the supporting documents on this page then please contact the highlighted Lead Analyst.
The last P415 Meeting took place on 9 February 2020. We are ascertaining the best time to hold the next meeting, aiming for mid-to-late March 2021.