Ofgem Rejects Urgency Request for P509 Demand Side Response Code Modification
Summary
Ofgem has rejected the request for urgent progression of Balancing and Settlement Code modification P509, proposed by Voltalis on 5 March 2026. The modification would require Elexon to conduct regular benefit assessments and publish insights on Demand Side Response performance, with governance and escalation arrangements if negative net impacts are identified. Ofgem determined the urgency request did not warrant expedited treatment. P509 remains under consideration on its merits.
What changed
Ofgem rejected the request for urgent treatment of BSC modification P509, which was raised by Voltalis to establish regular benefit assessments and published insights on Demand Side Response performance, including governance arrangements for repeated negative net impacts. The urgency request was made in light of increased volume and cost of the P415 mutualised compensation fund. The BSC Panel did not recommend urgency, and Ofgem agreed after considering related urgency requests for P510 and P511.
Energy companies participating in demand side response programs and wholesale electricity markets should note that while P509 remains under consideration, the regulator has determined the underlying issues do not require expedited action. Market participants with interests in demand side response governance should continue monitoring the standard modification process for P509, P510, and P511.
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
P509 Balancing and Settlement Code (BSC) urgency decision
Publication type: Code modification Publication date:
16 April 2026
Topic: Energy codes, Electricity generation Subtopic: Balancing and settlement code (BSC), Wholesale markets Print this page
Related links
- Ofgem decision P415 'Facilitating Access to Wholesale Markets for Flexibility Dispatched by VLPs'
- P510 Balancing and Settlement Code (BSC) urgency decision
- P511 Balancing and Settlement Code (BSC) urgency decision
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- Outcome of request for an urgent review of proposed changes to Balancing and Settlement Code, P509 Consumer benefits and safety net for Demand Side Response participation in the wholesale market.
Details of outcome
We have decided to reject urgency for Balancing and Settlement Code (BSC) modification proposal P509.
Code modification description
P509 was raised by Voltalis on 5 March 2026. P509 proposes that Elexon undertake regular benefit assessments and publish aggregated insights on Demand Side Response performance. If repeated negative net impacts are identified, the framework would provide appropriate governance, escalation arrangements and regulatory oversight.
At the BSC Panel on 12 March, Voltalis requested urgency in light of information showing that there has been a recent increase in the volume and cost of the P415 mutualised compensation fund. Related code modifications P510 and P511 also requested urgency on similar grounds.
The BSC Panel did not agree to recommend to Ofgem that P509 should be progressed as an urgent modification proposal.
We have considered P509 alongside the related urgency requests for P510 and P511. We have decided to reject the request for urgency for P509. This letter sets out our reasoning.
Documents
BSC modification proposal P509 ‘Consumer benefits and safety net for Demand Side Response participation in the wholesale market’: decision on urgency [PDF, 173.78KB] Print this page
Related links
- Ofgem decision P415 'Facilitating Access to Wholesale Markets for Flexibility Dispatched by VLPs'
- P510 Balancing and Settlement Code (BSC) urgency decision
- P511 Balancing and Settlement Code (BSC) urgency decision
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