{"id":130,"date":"2011-10-14T19:12:15","date_gmt":"2011-10-14T19:12:15","guid":{"rendered":"http:\/\/elexonresearch.preview4.co.uk\/?page_id=130"},"modified":"2025-06-18T14:31:18","modified_gmt":"2025-06-18T13:31:18","slug":"about","status":"publish","type":"page","link":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/about\/","title":{"rendered":"About Balancing and Settlement Code (BSC)"},"content":{"rendered":"<h2 id=\"what-is-the-bsc\">What is the BSC?<\/h2>\n<p>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:<\/p>\n<ul>\n<li>Electricity suppliers buy energy from generators<\/li>\n<li>Market participants are charged or paid for imbalances between contracted and actual electricity volumes<\/li>\n<\/ul>\n<p>The BSC ensures that energy trades are settled accurately and that the system stays balanced in real-time.&#xA0; All licensed electricity suppliers and generators in Great Britain are required to become signatories to the BSC.<\/p>\n<ul>\n<li>Learn more <a href=\"https:\/\/www.neso.energy\/what-we-do\/energy-markets\/electricity-markets-explained\">about the electricity market [Source: National Energy System Operator (NESO) website]<\/a><\/li>\n<\/ul>\n<h2 id=\"why-the-bsc-matters\">Why the BSC matters<\/h2>\n<p>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:<\/p>\n<ul>\n<li>Compare contracted vs actual energy volumes<\/li>\n<li>Calculate and settle payments for any imbalances<\/li>\n<li>Maintain fairness and transparency across the market<\/li>\n<\/ul>\n<p>These processes support the efficient functioning of Great Britain&#x2019;s wholesale electricity market and ensure system stability.<\/p>\n<h2 id=\"who-does-it-apply-to\">Who does it apply to?<\/h2>\n<p>Any organisation involved in electricity generation, supply, trading, or distribution in Great Britain must accede to the BSC. This includes:<\/p>\n<ul>\n<li>Licensed Suppliers and Generators<\/li>\n<li>Distributors<\/li>\n<li>Non-Physical Traders (e.g. financial institutions)<\/li>\n<li>Interconnectors<\/li>\n<\/ul>\n<p>These entities are known as BSC Parties and are legally bound by the Code&#x2019;s terms. Parties are held accountable for compliance and are subject to performance assurance measures.<\/p>\n<ul>\n<li>View the <a href=\"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/about\/elexon-key-contacts\/bsc-signatories-qualified-persons\/\">list of all Parties<\/a><\/li>\n<\/ul>\n<h2 id=\"elexons-role\">Elexon&#x2019;s role<\/h2>\n<p>Elexon administers the BSC on behalf of the industry. It is responsible for:<\/p>\n<ul>\n<li>Collecting and comparing data on forecasted vs actual energy use<\/li>\n<li>Calculating payments for imbalances<\/li>\n<li>Managing compliance with the BSC rules<\/li>\n<li>Supporting market entry and exit<\/li>\n<li>Facilitating change and innovation within the Code framework<\/li>\n<\/ul>\n<p>Elexon provides a full &#x201C;end-to-end&#x201D; service to BSC Parties, from onboarding through to performance monitoring.<\/p>\n<ul>\n<li>Find out more about <a href=\"https:\/\/elexon-beta.elexonhostings.co.uk\/\">Elexon&#x2019;s services<\/a><\/li>\n<\/ul>\n<h2 id=\"governance-of-the-bsc\">Governance of the BSC<\/h2>\n<p>The BSC is governed by the BSC Panel, supported by committees and working groups. Together, they ensure that:<\/p>\n<ul>\n<li>The Code and its subsidiary documents are kept up to date<\/li>\n<li>Issues and proposals from industry participants are assessed<\/li>\n<li>Changes are implemented efficiently and transparently<\/li>\n<li>More on the <a href=\"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/committees-meetings\/\" data-wpel-link=\"internal\">BSC Panel and committees<\/a><\/li>\n<\/ul>\n\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":416,"featured_media":0,"parent":0,"menu_order":20,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","inline_featured_image":false,"footnotes":""},"tags":[],"class_list":["post-130","page","type-page","status-publish","hentry"],"acf":[],"semantic_search":{"post_id":130,"title":"About Balancing and Settlement Code (BSC)","link":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/about\/","categories":[],"tags":[],"content":"    <div class=\"panel-content\">\n        <p>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.<\/p>\n\n    <\/div>\n\n    <div class=\"panel-content\">\n        <h2 id=\"what-is-the-bsc\">What is the BSC?<\/h2>\n<p>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:<\/p>\n<ul>\n<li>Electricity suppliers buy energy from generators<\/li>\n<li>Market participants are charged or paid for imbalances between contracted and actual electricity volumes<\/li>\n<\/ul>\n<p>The BSC ensures that energy trades are settled accurately and that the system stays balanced in real-time.&#xA0; All licensed electricity suppliers and generators in Great Britain are required to become signatories to the BSC.<\/p>\n<ul>\n<li>Learn more <a href=\"https:\/\/www.neso.energy\/what-we-do\/energy-markets\/electricity-markets-explained\">about the electricity market [Source: National Energy System Operator (NESO) website]<\/a><\/li>\n<\/ul>\n<h2 id=\"why-the-bsc-matters\">Why the BSC matters<\/h2>\n<p>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:<\/p>\n<ul>\n<li>Compare contracted vs actual energy volumes<\/li>\n<li>Calculate and settle payments for any imbalances<\/li>\n<li>Maintain fairness and transparency across the market<\/li>\n<\/ul>\n<p>These processes support the efficient functioning of Great Britain&#x2019;s wholesale electricity market and ensure system stability.<\/p>\n<h2 id=\"who-does-it-apply-to\">Who does it apply to?<\/h2>\n<p>Any organisation involved in electricity generation, supply, trading, or distribution in Great Britain must accede to the BSC. This includes:<\/p>\n<ul>\n<li>Licensed Suppliers and Generators<\/li>\n<li>Distributors<\/li>\n<li>Non-Physical Traders (e.g. financial institutions)<\/li>\n<li>Interconnectors<\/li>\n<\/ul>\n<p>These entities are known as BSC Parties and are legally bound by the Code&#x2019;s terms. Parties are held accountable for compliance and are subject to performance assurance measures.<\/p>\n<ul>\n<li>View the <a href=\"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/about\/elexon-key-contacts\/bsc-signatories-qualified-persons\/\">list of all Parties<\/a><\/li>\n<\/ul>\n<h2 id=\"elexons-role\">Elexon&#x2019;s role<\/h2>\n<p>Elexon administers the BSC on behalf of the industry. It is responsible for:<\/p>\n<ul>\n<li>Collecting and comparing data on forecasted vs actual energy use<\/li>\n<li>Calculating payments for imbalances<\/li>\n<li>Managing compliance with the BSC rules<\/li>\n<li>Supporting market entry and exit<\/li>\n<li>Facilitating change and innovation within the Code framework<\/li>\n<\/ul>\n<p>Elexon provides a full &#x201C;end-to-end&#x201D; service to BSC Parties, from onboarding through to performance monitoring.<\/p>\n<ul>\n<li>Find out more about <a href=\"https:\/\/elexon-beta.elexonhostings.co.uk\/\">Elexon&#x2019;s services<\/a><\/li>\n<\/ul>\n<h2 id=\"governance-of-the-bsc\">Governance of the BSC<\/h2>\n<p>The BSC is governed by the BSC Panel, supported by committees and working groups. Together, they ensure that:<\/p>\n<ul>\n<li>The Code and its subsidiary documents are kept up to date<\/li>\n<li>Issues and proposals from industry participants are assessed<\/li>\n<li>Changes are implemented efficiently and transparently<\/li>\n<li>More on the <a href=\"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/committees-meetings\/\" data-wpel-link=\"internal\">BSC Panel and committees<\/a><\/li>\n<\/ul>\n\n    <\/div>\n\n<div class=\"pagebuilder-blocks\"><div class=\"panel-content\">\n    <div class=\"accordion\">\n        <div class=\"accordion-group\">\n            <h2 class=\"accordion-title h2\" tabindex=\"0\" id=\"history-of-the-bsc\" aria-expanded=\"false\">History of the BSC<\/h2>            <div class=\"accordion-panel\" aria-hidden=\"true\">\n                <div class=\"panel-inner\">\n                    <p>The Balancing and Settlement Code (BSC) was launched in March 2001 as part of the New Electricity Trading Arrangements (NETA), which applied to England and Wales.<\/p>\n<p>In 2005 this was extended to include Scotland through the British Electricity Trading and Transmission Arrangements (BETTA).<\/p>\n<p>These arrangements were established to:<\/p>\n<ul>\n<li>allow electricity to be traded in advance between buyers and sellers through a competitive, bilateral market (outside central trading platforms).<\/li>\n<li>ensure that supply and demand are matched in real time using the Balancing Mechanism, operated by a single system operator for Great Britain (National Grid)<\/li>\n<li>work out the difference between what companies planned to use or generate and what actually happened, and then charge or credit them for those differences after it happens &#x2013; (this is the &#x2018;imbalance settlement&#x2019; process manged by Elexon)<\/li>\n<\/ul>\n\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n<\/div><\/div>","s3_url":""},"_links":{"self":[{"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/pages\/130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/users\/416"}],"replies":[{"embeddable":true,"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/comments?post=130"}],"version-history":[{"count":4,"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/pages\/130\/revisions"}],"predecessor-version":[{"id":215880,"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/pages\/130\/revisions\/215880"}],"wp:attachment":[{"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/media?parent=130"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/elexon-beta.elexonhostings.co.uk\/bsc\/wp-json\/wp\/v2\/tags?post=130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}