Alright crew? Neil again - bringing you another episode of The Energy Academy.

So, now you know how the Balancing Mechanism operates, let’s explore what happens when participants are “out of position”.

A generator or supplier is ‘out of position’ in a settlement period when it doesn’t deliver in line with the amounts agreed in its Final Physical Notification or its Bid-Offer-Acceptance.

Imbalance pricing, also known as cash-out or the system price, is the amount they are charged by Elexon as a ‘penalty’ for being out of balance.

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