Independent electricity aggregators gained a new opportunity today as Elexon implemented a pivotal rule change, allowing these providers to register in the UK’s wholesale electricity market.
Known as Virtual Lead Parties (VLPs) in the Balancing and Settlement Code (BSC), these independent aggregators were previously restricted to offering services within the Balancing Mechanism.
The modification, named P415, enables VLPs to register as Virtual Trading Parties, allowing them to compete directly in the wholesale market alongside traditional electricity suppliers.
This change is seen as crucial to advancing the UK’s flexibility in energy consumption and supporting decarbonisation targets.
Elexon Chief Executive Peter Stanley said: “Flexibility must play a much more prominent role in managing supply and demand if the energy sector is to meet the Government’s Clean Power 2030 and Net Zero targets.
“The National Energy System Operator’s latest analysis shows scenarios where GB would have around four times as much flexibility by 2030 compared with what was available in 2023.
“To reach that potential, we must create more opportunities for consumers to provide flexibility services. Reforms such as P415 can have a major impact, overcoming barriers to flexibility, and driving growth.”
Copyright © 2024 Energy Live News LtdELN