P443 ‘To Cap NGESO Interconnector Trades’
Formal title: To Cap NGESO Interconnector Trades at the Value of Lost Load (VoLL)
At the current time National Grid Electricity System Operator (NGESO) can trade at prices above the Value of Lost Load (VoLL – as defined in BSC Section T 1.12, currently set at £6,000/MWh). The Proposer’s view is that this adds to customers’ costs and sends a signal to the markets that customers are willing to buy power at any price. In a cost of living crisis the Proposer does not believe that the British public are prepared to buy energy at any price.
This Modification seeks to limit the exposure of all GB parties, including consumers, to extreme prices because of tight margins across the European energy markets. The proposed solution is to cap the price that enters the BSC Imbalance Price calculation at the Value of Lost Load (VoLL – currently £6,000/MWh), for Interconnector actions only. VoLL under the BSC represents the value to customers of unsupplied energy. National Grid Electricity System Operator (NGESO) would still be able to take Interconnector actions it deems necessary, but these would be capped in the Imbalance Price calculation where the relevant actions exceed VoLL.