Elexon takes a step towards ‘leveling the playing field’ as Ofgem approves Modification P399.
The balancing and settlements code (BSC) modification – which has the formal title Making the identity of Balancing Service providers visible in the Balancing Services Adjustment Data – is designed to improve transparency within the Balancing Mechanism (BM).
Currently, Balancing Adjustment Actions that are taken outside the BM are reported with a unique sequential number. The proposer of the modification argued that this does not identify the counterparty to the bilateral trade, and therefore gives them an information advantage over those counterparties. This lack of transparency in the operation of the system has created a barrier to effective competition, according to Elexon.
The Modification was raised on Tuesday 24 December 2019, following which a series of workgroups and impact assessments were used to put together the solution that progressed to report phase in October 2020. Following further assessment, the Modification Report was sent to Ofgem on 10 January 2021.
P399 was approved by the regulator on 18 May Elexon announced on Friday 21 May, and will now be implemented on 4 November 2021 as part of the November 2021 BSC release.
“Following the implementation of P399, a level the playing field will be established between publicly available data on BM and non-BM trades. This will mean that market participants can identify the organisations and assets that are providing these additional non-BM balancing services,” Elexon said in a statement.
The approval of Modification P399 follows Elexon announcing earlier this year that it was modifying the BSC to open up the BM further for smaller participants. The P375 modification was hailed as “ground-breaking” by the company, allowing individual asset meters to be used for settlement purposes for the first time.
Current± caught up with Elexon’s metering manager Iain Nicoll recently to discuss the modification and how the company is working to open up the BM, in the first in Current±’s new webinar series. The whole video can be watched here, ahead of the second session which will focus on Dynamic Containment taking place on 16 June.