Market Entry
Most Suppliers, Generators, and Licensed Distribution System Operators (LDSOs) may have to become a BSC Party because it is a condition within their Ofgem licence. Other companies wishing to trade within the BSC arrangements, like Non-Physical Trader and Virtual Lead Parties (VLPs), may also have to do so.
Where do I start?
If you are new to the industry we strongly recommend you read Beginners Guide to the Electricity Arrangements.
The next step is to establish the type of BSC Party you intend to become (e.g. Supplier, Generator, Non Physical Trader). You will find the description of each Party role in our Market Role guide.
The Market Entry team is happy to have an initial meeting to discuss and understand your requirements and guide you through the process.
To book a meeting
To arrange a meeting, please complete the Market Entry Meeting Request Form.
Market entry process diagrams
The below market entry process diagrams take you through the requirements for applying to individual Market Roles. Each of the diagrams below link you to the relevant forms and documents you will need to enter the market.
- Supplier flow diagram
- Virtual Lead Party flow diagram
- Non-Physical Trader flow diagram
- Generator flow diagram
- Interconnector User flow diagram
SVA Qualification and Re-Qualification
If you wish to operate in any of the roles mentioned below, you will have to undergo SVA Qualification as part of your Market Entry steps.
- Supplier
- Data Collector
- Data Aggregator
- Meter Operator
- Meter Administrator
- Unmetered Supplies Operator
- Supplier Meter Registration Agent
- Virtual Lead Party
Further information
What support is on offer?
We provide new entrants with detailed guidance on the entry requirements. In addition, we also offer the following services:
- Initial market entry meeting
- The BSC Service Desk 24 hour support
Changes to Market Entry
We’re developing a new platform that will create improved customer experience for those entering the market, exiting the market and registering with the Balancing and Settlement Code (BSC).
The online service aims to provide digital forms with self-service access to your market entry and asset registrations data along with a guided process through the various routes you can take when registering different market roles.
Market Entry FAQs
Additional FAQS can be found on our Market Entry knowledgebase page.
How long does the Market Entry process take?
This depends on your market role, it can take as little as two months for a Non-Physical Trader and up to a year for a Supplier. The timelines will be discussed with you in the early stages of your registration. For further information on the relevant processes, please refer to the market entry process diagrams.
What are the costs associated with being a BSC Party?
Parties acceding to the BSC must pay a £500 accession fee which covers the administrative costs of entering the market.
Once acceded, a flat monthly fee of £250 + VAT applies to all BSC Party (except VLPs). This is known as a base monthly charge. For VLPs, who are not also a Trading Party, a flat monthly fee of £125+VAT applies.
More information on BSC costs can be found on our BSC Costs and Charges page.
Are there any costs associated with the Low Grade and High Grade services?
The Low Grade service is free to all BSC Parties, however there are costs associated with the High Grade service but they are dependent on the type of service you require.
The Schedule of Specified Communication Charges includes full details of the charges.
What are the Central Volume Allocation (CVA) system requirements?
Parties & Party Agents’ CVA system must be able to communicate with the CVA BSC Agent systems. This system is tested during the CVA Qualification process.
For more information on the system requirements please refer to our CVA Qualification New Participants Guide and the Communication Requirements Document or contact the BSC Service Desk or call 0370 010 6950.
Do I need to lodge collateral (Credit Cover) with Elexon?
Charges are made to Parties (or by them) as a result of any imbalance (Trading Charges) 29 days after a Settlement Day. Credit Cover ensures that we have enough collateral from you to cover these payments and subsequently all other Trading Parties if you cannot make them.
We do not specify the amount of Credit Cover you must lodge; it is up to the Party to decide. Parties usually make this decision based on their trading characteristics.
For more information on Credit Cover please refer to the Overview of Credit Cover or email [email protected]