Ofgem decision P415 'Facilitating Access to Wholesale Markets for Flexibility Dispatched by VLPs'
Decision
Publication date
Industry sector
Transmission Network
This letter presents the Authority's decision to approve the Proposed Solution for BSC Modification P415: 'Facilitating access to wholesale markets for flexibility dispatched by Virtual Lead Parties'.
BSC modification P415 amends the Balancing and Settlement Code (BSC) to allow Virtual Lead Parties (VLPs) to participate in the GB wholesale market. The modification includes an introduction of compensation arrangements to account for the impacts VLP actions may have in the market.
We have considered the issues raised by the modification proposal and the Final Modification Report (FMR), and we have taken into account the responses to the industry consultations as well as the BSC Panel’s views and recommendation.
We have concluded that implementation of the Proposed Solution (where compensation costs are mutualised amongst suppliers) will better facilitate the achievement of the applicable objectives of the BSC, and that the modification is consistent with our principal objective and statutory duties.