This page provide an overview of the Balancing and Settlement Code (BSC), how it operates, and the role of Elexon in delivering and managing it. There are also details about the wider electricity industry in Great Britain and its relationship with the BSC.
On this page
What is the BSC?
The Balancing and Settlement Code (BSC) is a multi-party legal framework that underpins the electricity trading arrangements in Great Britain. It sets out the rules and processes for how:
- Electricity suppliers buy energy from generators
- Market participants are charged or paid for imbalances between contracted and actual electricity volumes
The BSC ensures that energy trades are settled accurately and that the system stays balanced in real-time. All licensed electricity suppliers and generators in Great Britain are required to become signatories to the BSC.
Why the BSC matters
Electricity cannot be stored in large quantities and must be balanced continuously. While contracts between generators and suppliers are agreed in advance, actual generation and consumption often differ. The BSC provides a mechanism to:
- Compare contracted vs actual energy volumes
- Calculate and settle payments for any imbalances
- Maintain fairness and transparency across the market
These processes support the efficient functioning of Great Britain’s wholesale electricity market and ensure system stability.
Who does it apply to?
Any organisation involved in electricity generation, supply, trading, or distribution in Great Britain must accede to the BSC. This includes:
- Licensed Suppliers and Generators
- Distributors
- Non-Physical Traders (e.g. financial institutions)
- Interconnectors
These entities are known as BSC Parties and are legally bound by the Code’s terms. Parties are held accountable for compliance and are subject to performance assurance measures.
- View the list of all Parties
Elexon’s role
Elexon administers the BSC on behalf of the industry. It is responsible for:
- Collecting and comparing data on forecasted vs actual energy use
- Calculating payments for imbalances
- Managing compliance with the BSC rules
- Supporting market entry and exit
- Facilitating change and innovation within the Code framework
Elexon provides a full “end-to-end” service to BSC Parties, from onboarding through to performance monitoring.
- Find out more about Elexon’s services
Governance of the BSC
The BSC is governed by the BSC Panel, supported by committees and working groups. Together, they ensure that:
- The Code and its subsidiary documents are kept up to date
- Issues and proposals from industry participants are assessed
- Changes are implemented efficiently and transparently
- More on the BSC Panel and committees