Imbalance Pricing: News
We are seeking your views on the annual Market Index Definition Statement (MIDS) review. If you represent BSC Parties or any other party in connection with the MIDS please respond to this online consultation.
Market Index Definition Statement Review 2021
The Market Index Definition Statement (MIDS) is annually reviewed by the BSCCo. on behalf of the BSC Panel, to ensure that the Market Index Price is providing a reasonable reflection of the price of wholesale electricity in the short term market.
The review period covers 1 August to 31 July each year. This year the analysis has been updated with the period 1 August 2020 to 31 July 2021. The review consists of checking that parameters used in the Market Index Price (MIP) calculation defined in the MIDS (i.e. the Individual Liquidity Threshold (ILT), timeband weightings and product weightings) remain fit for purpose and through the parameters, checking the MIDS principles are being met (BSC Section T1.5.3). The purpose of the MIP is to reflect the price of wholesale electricity in Great Britain in the short term market, for delivery in respect of that Settlement Period.
BSC Insight: Why the Reserve Scarcity Price is being reviewed
National Grid ESO raised BSC Issue Group 92 to review the Reserve Scarcity Price with representatives from across the electricity industry. The need for this arose due to feedback from industry representatives that the Reserve Scarcity Price has had less of an impact on System Prices than expected and a need to ensure the calculation is fit for a future energy market.
The issue group will consist of a series of workgroups facilitated by Elexon. In this Insight article our Analysis and Insight Delivery Lead, Emma Tribe, explains how the Reserve Scarcity Price is calculated, how it is included in the System Price Calculation and how it has affected System Prices since its introduction in 2015.
- More on Issue 92: Reserve Scarcity Pricing Review
System Prices spike due to ‘Beast from the East 2’
System Prices reached or exceeded £1,000/MWh on seven occasions from 6 to 8 January due to cold weather brought on from the ‘Beast from the East 2’.
Market Index Definition Statement Review 2020 – consultation open
Our yearly analysis suggests that there are no further changes to the MIDS required at this time, with the current Individual Liquidity Threshold (ILT), timeband weightings and product weightings remaining suitable.
Insights: Negative System Prices during COVID-19
While much of the UK economy was shut down between mid-March and Mid-June, due to measures to manage COVID-19, the UK electricity market has seen an increase in negative System Prices. In this Elexon Insight, Emma Tribe explains why this was the case and shows the trends for negative System Prices in April and May 2020.
Insights: Highest System Price in 19 years
The future of open data at Elexon
There is no doubt that data, combined with use of new technology, will play a huge part in helping to transform the energy markets. It opens up so many new possibilities for both consumers and energy companies.