Elexon implements change to boost flexibility

Energy suppliers and independent aggregators are set to benefit from a change aimed at encouraging greater flexibility on the grid.

Elexon has implemented the P444 modification to the Balancing and Settlement Code, introducing compensation arrangements for any volumes adjusted for actions taken by independent aggregators, known as Virtual Lead Parties (VLPs). 

It said it creates a level playing field, preventing market distortions between suppliers and VLPs and “strengthen the pathway to a cleaner, more flexible electricity system”.

The VLP role was introduced to give independent aggregators access to the Balancing Mechanism.

Elexon Chief Executive, Peter Stanley said: “This step is essential to unlocking the full potential of flexibility services, which will be vital to achieving the Clean Power 2030 targets and delivering a secure, efficient, and low carbon energy system for all consumers.”