Ofgem endorses real-time tagging for cash-out (P217A)

Ofgem decision (11 pages, PDF) to direct the implementation of a cash-out pricing method under the Balancing and Settlement Code based on real-time tagging of actions by grid control staff (P217).

Prices of actions that are flagged as constraint-related by grid control would not be taken into account in the calculation of imbalance settlement prices. The version of P217 approved by Ofgem is the same as that recommended by the BSC Panel, retaining a 500 MWh PAR value (i.e. more average cost pricing than marginal cost pricing).

This decision also formally rejects cash-out pricing based on an ex post unconstrained schedule (P211), primarily on the ground that it would treat the cost of instructions to part-load plant to create reserve as constraint-related rather than as an energy balancing cost.

Filed under BETTA, Electricity, Ofgem.

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