Elexon is vital to the operation of the wholesale electricity market, the capacity market and the flexibility market. We are a trusted, independent and reliable market expert. We continuously look to evolve and innovate so that customers and consumers can feel the benefit. We are a not-for-profit entity, funded by electricity market participants.
What we did during the year
Our role in the wholesale electricity market
The Balancing and Settlement Code (BSC) was introduced as part of the New Electricity Trading Arrangements (NETA), which came into force in England and Wales in March 2001. The BSC contains the rules and governance arrangements for the Balancing Mechanism and imbalance settlement processes. Elexon oversees the strategic operation and day-to-day management of the BSC and compares how much electricity generators and suppliers say they will produce or consume with actual volumes.
Our role in the capacity market
The Government has introduced the Capacity Market to provide an insurance policy against the possibility of future blackouts – for example, during periods of low wind and high demand – to ensure that consumers continue to benefit from reliable electricity supplies at an affordable price.
The Capacity Market is designed to ensure sufficient reliable capacity is available by providing payments to encourage investment in new capacity or for existing capacity to remain open. EMRS administers the payment mechanism.
Our role in the flexibility market
The Government has set a target for clean power by 2030 and to reach that goal we need flexibility to play a much bigger role in managing electricity supply and demand.
However, given the complex nature of the GB energy system, local flexibility markets are currently fragmented and uncoordinated. To address this, in July 2024, Ofgem appointed Elexon as the market facilitator to support these markets.
Video: What Elexon does
Watch our video to find out more about our role within the electricity market.
Our purpose
Our purpose is simple: Serving at the heart of the energy industry, building a path to Net Zero.
Elexon has an important role to play in supporting the UK’s climate goals whilst ensuring security of supply. We help facilitate the changes needed in the energy industry to achieve Net Zero.