Glossary Term: Buy Price Price Adjustment
The Buy Price Price Adjustment can occur when balancing actions are taken outside of the Balancing Mechanism and are submitted to the BSC Systems. The Buy Price Price Adjustment is added when the net imbalance of the Transmission System is short.
BPA is one of the BSAD items. Its derivation is given in the System Operator’s BSAD Methodology Statement as:
BPA = ((Aggregated cost of purchases of standing reserve option fees * relevant standing reserve weighting factor) + Aggregated cost of purchases of firm regulating reserve option fees + Aggregated cost of purchases of Forward Contract option fees) / (MWh capability of standing reserve contracts purchased + MWh capability of firm regulating reserve contracts purchased + Contracted MWh associated with options for Forward Contracts purchased). For the avoidance of doubt, if the denominator of BPA is zero in any Settlement Period, then BPA will be set to zero in that period.
BSC defined definition
The amount sent by the Transmission Company as the ‘Buy Price Price Adjustment’. The amount sent by the Transmission Company to the Settlement Administration Agent (SAA) and BMRA, as part of Balancing Services Adjustment Data (BSAD), as the ‘Buy Price Price Adjustment’.