Formal title: Defining default price when NIV equals zero and when there is no priced action left after NIV tagging
Currently, the Market Index Price (MIP) is used as the default option on two occasions in the Imbalance Price calculation:
- When the Net Imbalance Volume (NIV) equals zero and there is therefore no actions to set the Imbalance Price.
- When all actions in the stack are unpriced by the calculation process, there is no actions left to set the Replacement Price.
As part of the annual Market Index Definition Statement (MIDS) review in 2015, the Imbalance Settlement Group (ISG) and the BSC Panel recommended forming an Issue Group to review the use of the MIP in its current form in defaulting situations described above.
Issue 64 was raised by ELEXON on 21 July 2016.
The first Issue Group meeting was held on 10 October 2016. The Issue Group concluded the MIP should not be changed.