Training Video on Imbalance Pricing

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This page contains a training video and training materials on Imbalance Pricing. This video will be of interest to those new to the electricity industry and those who want an overview of the electricity settlement process. Basic understanding of the roles of Generators and Suppliers is assumed.

What is covered in this training video

When Imbalance Prices are used
The meaning of the terms ‘Long’ and ‘Short’
The importance of Imbalance Prices
Calculation of Imbalance Prices

Imbalance Pricing training video

Video Published: October 2020

Video Length: 28 mins, 14 sec

For the Imbalance Pricing training video transcript please contact [email protected]

Operational guidance

Balancing & Settlement

Training video slides

FAQs

How are the System Sell Price and the System Buy Price calculated?

For each half hour trading period or ‘Settlement Period’, the ‘cash-out prices’ or ‘energy imbalance prices’ (System Sell Price and System Buy Price) will be calculated based on the cost incurred by National Grid – the System Operator – to bring the system into balance (based on accepted Balancing Mechanism Bids and Offers). The System Buy Price (SBP) is applied to BSC Parties that have negative imbalances and the System Sell Price (SSP) to those that have positive imbalances.

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