Glossary Term: Non-Delivered Offer Charge
A Non-Delivered Offer Charge is a fee applied in the electricity market when an accepted offer to supply electricity is not delivered, either wholly or partially. This charge is determined during a specific settlement period and is associated with a particular balancing mechanism unit.
The Non-Delivered Offer Charge in relation to each Offer is the product of the Non-Delivered Offer Volume, the Transmission Loss Multiplier, and the difference between the Offer Price and System Buy Price (where the difference is capped at zero).
Therefore, if the Offer Price of a non-delivered Offer is greater than System Buy Price, the Non-Delivered Offer Charge is the Transmission Loss Multiplier scaled quantity of non delivered Offer priced at the difference between the Offer Price and System Buy Price.
It represents a recouping of a portion of the Period BM Unit Cashflow, as a consequence of the fact that certain accepted Offers were not delivered in practice.
BSC defined definition
The Non-Delivered Offer Charge is a charge in Settlement Period j, that may relate to an accepted Offer n, that is determined not to have been delivered (either wholly or in part) from BM Unit i. Determined in accordance with Section T4.8.11.