Imbalance Pricing

Out of position participants FPNs (Final Physical Notifications) and BOAs

System price: has to buy at system price charged per megawatt hour £/MW/h

System length: visualising imbalance long (too much generation) /short (too little) to meet demand

NIV-chasing

Ancillary Services

For each participant:

$$Imbalance=MeteredVolume-ContractedVolume$$

Since cash-out reform (2015):

• A single imbalance price applies
• It reflects the marginal balancing action

This strengthens incentives for accurate forecasting.