Authority decision on BSC modification P467
Licence modification
Publication date
Company
Industry sector
Transmission Network
Licence type
Electricity Transmission Licence
P467 was raised by National Grid Electricity System Operator on 1 February 2024 and is a follow on modification from P448.
Following P448, the Issue Group 105 was created to explore scenarios whereby there are issues around gas shortages, and the electricity market is long, and what the subsequent impacts would be on cash out prices. In this scenario, the outputs of P448 would essentially suppress the cash out prices, leading to the market being unable to correct itself. This would lead signals being sent causing parties that are short to potentially decide to pay the suppressed cash out price instead of trading out of their position.
This modification would remove bids from the cash out stack by winter 2024/25 as an enduring solution. This solution would keep the current Bids as they are, but not include them within the stack. This option will still include them in the imbalance calculation and the reasonable cost recovery will be covered.
This document outlines our decision on the proposed BSC modification.