UK electricity imbalance reforms ‘send sharper signal for flexibility’: regulator Ofgem

London — Average imbalance electricity prices have fallen in the UK since reforms were introduced in November 2015, but when the system is short the incentive for participants to balance their positions is stronger, energy regulator Ofgem has said in a working paper.

A greater incentive to balance when the system is tight represents a significant contribution to the UK’s security of supply and shows the reforms are working, the regulator said in its Analysis of the first phase of the Electricity Balancing Significant Code Review.

Published in S&P Global, 9th August, 2018