UK Energy Regulator ofgem has approved a change in the balancing and settlement code (BSC) that says it will unlock the larger amounts of domestic flexibility and the system can be balanced at lower costs.
BSC P483 removes the requirement that customers take half an hour to arrange aggregators to trade their flexibility.
The recent implementation of BSC P415 And P375, which means that independent aggregators can participate in the wholesale market and the balance mechanism on behalf of consumers, means that aggregators a virtual head party (VLP) or virtual trading party (VTP)-the flexibility of the Interior and small business customers cannot act for half an hour.
Although this year will see the implementation of market-wide half-hour settlement (MHHS), Supervision of ElexonOnly about 3% of consumers are currently arranged for half an hour.
According to the decision of OFGEM, the BSC panel agreed that although the MHHS program will migrate the most customers to half an hour-long settlement “in due course”, there is more advantage to be able to trade the flexibility of those customers earlier.
Energy Flex Service Company Axle Energy has increased code change. Co-founder and CEO of Axle, Karl Bach, said that in order to be able to continue the schedule and reduce energy costs through flexibility, “we must be able to participate in energy markets that were originally designed with large power plants in mind”.
Elexon CEO Peter Stanley said: “Increasing the amount of flexibility guided by the consumer to between 10 GW and 12GW will be crucial to achieve the purpose of Clean Power 2030. We now have to take steps, so that consumers want to offer flexibility, but are unable to miss these opportunities.”
Market -wide half -hour settlement implementation
The move is also intended to help stimulate the market prior to the completion of MHHS.
The change supports two of the objectives of the BSC: (B) is “the efficient, economic and coordinated operation of the national electricity transmission system”, and (C) is “promoting effective competition in generating and supplying electricity, and (insofar as consistent) competition promotes such competition”.
Marzia Zafar, Deputy Director of Directorate for Data and Digitization at OFEM, said in a LinkedIn -post: “P483 may seem like a small technical change. But in the larger whole it is a crucial piece of the puzzle that will unlock new opportunities for customers to effortlessly participate.”
She added that the code change “inclusive, accessible and impactful, even before MHHS is fully rolled out”, which indicates that when approving the code change of GEM, one of the actions has been completed in the flexibility report card of the government.
The MHHS is set to be implemented in 2026. By changing all customers to be arranged for half an hour – instead of trusting estimates and periodic meter lectures – The switch to MHHS is one of the largest transformations to the British electricity market so far.
Transition to a billing system that reflects the actual electricity consumption of consumers is expected to save consumers, support energy flexibility and facilitates the balance of demand and supply.
