Balancing and Settlement Code (BSC) modification P444
Decision
- Publication date
- Industry sector
- Transmission Network
This letter presents the Authority's decision to approve the Alternative Solution for BSC Modification P444: ‘Compensation for Suppliers and Virtual Lead Parties for Virtual Lead Party actions in the Balancing Mechanism (BM)’.
BSC modification P444 will amend the Balancing and Settlement Code (BSC) to introduce compensation arrangements to account for the impacts that VLP actions may have in the BM.
We have considered the issues raised by the modification proposal and the revised Final Modification Report (FMR), along with other relevant considerations. We have taken into account the responses to the industry consultations as well as the BSC Panel’s views and recommendation.
We have concluded that implementation of the Alternative Solution (where compensation costs are paid directly by suppliers and VLPs) will better facilitate the achievement of the applicable objectives of the BSC, and that the modification is consistent with our principal objective and statutory duties.