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P510 Balancing and Settlement Code Urgency Decision Rejected

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Summary

Ofgem rejected urgency for Balancing and Settlement Code modification proposal P510, which would replace existing mutualised compensation arrangements with direct compensation for Virtual Trading Party actions in the Wholesale Market. The BSC Panel had voted by majority to recommend urgent progression. Ofgem considered P510 alongside related urgency requests P509 and P511 before rejecting the urgency designation.

What changed

Ofgem rejected the urgency request for BSC modification P510, which was raised by Flexitricity on 5 March 2026. P510 proposes replacing mutualised compensation arrangements (established under P415) with direct compensation for Virtual Trading Party actions in the Wholesale Market. The BSC Panel had recommended urgent progression, citing increased volume and cost of the P415 mutualised compensation fund. Ofgem rejected urgency for P510 after considering it alongside related modifications P509 and P511.

Affected parties in the energy market will not face accelerated timelines for P510 implementation. The modification will proceed under standard BSC modification timescales, meaning energy market participants, flexibility providers, and Virtual Trading Parties will have additional time to prepare for potential changes to compensation arrangements in wholesale markets.

Archived snapshot

Apr 16, 2026

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P510 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

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  • Outcome of request for an urgent review of proposed changes to Balancing and Settlement Code, P510 Introducing Direct Compensation for Virtual Trading Party actions in the Wholesale Market.

Details of outcome

We have decided to reject urgency for Balancing and Settlement Code (BSC) modification proposal P510.

Code modification description

P510 was raised by Flexitricity on 5 March 2026. P510 proposes replacing the existing mutualised compensation arrangements introduced under P415 with direct compensation.

At the BSC Panel on 12 March, Flexitricity 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 P509 and P511 also requested urgency on similar grounds.

The BSC Panel agreed by majority to recommend to Ofgem that P510 should be progressed as an urgent modification proposal.

We have considered P510 alongside the related urgency requests for P509 and P511. We have decided to reject the request for urgency for P510. This letter sets out our reasoning.

Documents

BSC modification proposal P510 ‘Introducing Direct Compensation for Virtual Trading Party actions in the Wholesale Market’: decision on urgency [PDF, 151.10KB] Print this page

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Last updated

Classification

Agency
Ofgem
Published
April 16th, 2026
Instrument
Notice
Legal weight
Non-binding
Stage
Final
Change scope
Minor

Who this affects

Applies to
Energy companies Investors
Industry sector
2210 Electric Utilities
Activity scope
Energy trading Wholesale market compensation
Geographic scope
United Kingdom GB

Taxonomy

Primary area
Energy
Operational domain
Regulatory Affairs
Topics
Wholesale Markets Financial Services

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