Advanced search
Home > About the BSC > Introduction to the BSC > FAQs
Add to myFavourites
What is the balancing mechanism?
This is one of the tools National Grid uses to balance electricity supply and demand close to real time. It is needed because electricity cannot be stored and must be manufactured at the time of demand. Where National Grid predicts that there will be a discrepancy between the amount of electricity produced and that which will be in demand during a certain time period, they may accept a ‘bid’ or ‘offer’ to either increase or decrease generation (or consumption). The balancing mechanism is used to balance supply and demand in each half hour trading period of every day.
back to top of page
What are bids and offers?
The balancing mechanism allows BSC Parties (if they wish) to submit offers to sell energy (by increasing generation or decreasing consumption) to the system and bids to buy energy (by decreasing generation or increasing consumption) from the system, at prices of the BSC Party's choosing.
Accepted bids and offers for individual BSC Parties are reported at BMReports.com
What is the imbalance settlement process?
The imbalance settlement process settles discrepancies between the amount of electricity that a company has contracted to generate or consume and that which they actually generated or consumed. Due to the nature of electricity, generators may generate more or less energy than they have sold; customers of suppliers may consume more or less energy than their supplier has purchased on their behalf and traders may buy more or less energy than they have sold. In such circumstances, these BSC Parties are regarded as being ‘in imbalance’ and the ‘energy imbalances’ (i.e., the amounts of energy generated or consumed and not covered by contracts) have, in effect, been bought or sold from or to the National Grid system. Two ‘cash-out’ prices, also known as ‘energy imbalance price’ are calculated for each half hour of the day and are used to settle these differences. These are called the System Buy Price (SBP) and the System Sell Price (SSP).
What is the System Sell Price and the System Buy Price?
The System Sell Price (SSP) and the System Buy Price (SBP) are the ‘cash-out’ prices or ‘imbalance prices’ that are used to settle the difference between contracted generation or consumption and the amount that was actually generated or consumed in each half hour trading period. SSP is paid to BSC Trading Parties who have a net surplus of imbalance energy, and SBP is paid by BSC Trading Parties who have a net deficit of imbalance energy. These prices are designed to reflect either the prices associated with the balancing mechanism offers and bids selected by National Grid to balance the energy flows in the Transmission System, or to reflect the prices associated with the sale and purchase of (short-term) energy ahead of Gate Closure (set at one hour before each half our trading period) in the forwards and spot markets.
Indicative SSP and SBP is reported in BMReports.com
How are the System Sell Price and the System Buy Price calculated?
For each half hour trading period one of the ‘cash-out prices or ‘energy imbalance prices’ (System Sell Price and System Buy Price) will be associated with balancing mechanism offers and bids. In this case the price will be known as the main price. The other price will be derived from short term energy trades and is known as the reverse price.
More information about how the prices are applied can be found in Imbalance Pricing Guidance.
What is a BSC Party?
A BSC Party is any company that has signed the Balancing and Settlement Code Framework Agreement. This includes all licensed electricity companies in Great Britain who are obliged by their licence obligations to sign the BSC. Other companies may choose to do so. A BSC Party is bound by the terms of the BSC, and is subject to certain consequences if they fail to abide by these terms. A full list of BSC Parties can be found here.
When is a BSC Party in Default of the BSC?
Under the terms of the Balancing and Settlement Code (BSC), the BSC Panel has certain decision-making powers. This includes taking decisions on how to deal with a BSC Party that is in Default of the BSC. The options open to the BSC Panel in taking decisions are set out in Section H of the BSC and include: suspension of the rights of the Defaulting Party (such as notification of contract and metered volumes), naming of the Defaulting Party to all other BSC Parties and, in extreame cases, expulsion from the BSC.
What is BMReports.com?
BMReports.com provides near real time and historic data about the balancing mechanism. The website contains information such as the indicative System Buy Price (SBP) and System Sell Price (SSP) for each half hour of trading. Logica is the Service Provider or BSC Agent who has responsibility for the development and maintenance of this facility. ELEXON procures and manages contracts with all BSC Agents.
What is the ELEXON Portal?
The ELEXON Portal is a site that provides operational Central Services data such as file sequence numbers, Credit Cover information, Imbalance volumes, P114 data and more. You can also find BSC Data related items such as CALF values, Line Loss Factor values, etc. Single sign-on allows you quick access to applications such as the Service Desk, ELEXON Exchange and more.
Can I use data from BMReports, the ELEXON Portal, or ELEXON.co.uk?
All Intellectual Property Rights in the data and information on these websites are owned in accordance with the terms of the Balancing and Settlement Code (BSC). If you wish to use the data and information from either of these websites you must write to ELEXON detailing which information you wish to use and the purpose of intention. Send your letter to:
Company SecretaryELEXON Limited4th Floor350 Euston RoadLondon NW1 3AW
How do interconnectors work?
BSC Interconnector Trading was produced to assist BSC participants in understanding the operation and general terminology used in relation to Interconnectors under the BSC.
What are MPANs and MSIDs?
Each point of entry and exit onto a Distribution System Operator’s Distribution System has an associated Metering Point, and each Metering Point has an associated Administration Number (MPAN) and Metering System Identifier (MSID).
MPAN is the term used in the Master Registration Agreement (MRA), the governance document for the registration of Supplier Volume Allocation (SVA) Metering Points registered in Supplier Meter Registration Systems (SMRS).
To find out more refer to the MSID/MPAN Guidance article in the ELEXON LINK - March 2003.
Where can I find details of wholesale prices of electricity in Great Britain?
ELEXON does not have any involvement in the setting of wholesale prices in Great Britain. Wholesale trading takes place directly between willing buyers and sellers of electricity at a price agreed between them. Alternatively, organisations such as Power Exchanges can be used to purchase or sell electricity on behalf of organisations. An indication of wholesale prices can therefore be obtained from one of these organisations, for example APX-ENDEX, or from electricity price reporting organisations.