Decision to approve proposal from the Electricity System Operator for an alternative pricing methodology for settlement of balancing energy for specific balancing products submitted in accordance with Article 6(4) of the Electricity Regulation

Decision
Publication date
Industry sector
Transmission Network

Article 6(4) of the Clean Energy Package (CEP) obliges TSOs to settle balancing energy (utilisation) on a pay-as-clear (PAC) basis for standard and specific balancing products.



The ESO have developed a draft Pricing Proposal (PP) that is specific to the GB market, outlining when marginal pricing (pay-as-cleared) should be used for settlement of balancing energy, and the process for determining when an alternative settlement method can be utilised.



This letter sets out decision to approve the PP as the new GB pricing methodology and outlines the necessary next steps.