An introduction to the Balancing and Settlement Code (BSC) and other key industry codes in the Great Britain electricity market
Produced in partnership with Lis Blunsdon of Fieldfisher

The following Energy practice note produced in partnership with Lis Blunsdon of Fieldfisher provides comprehensive and up to date legal information covering:

  • An introduction to the Balancing and Settlement Code (BSC) and other key industry codes in the Great Britain electricity market
  • Legal basis
  • BSC
  • Balancing and Settlement processes
  • Grid Code
  • CUSC
  • D-Code
  • DCUSA
  • Code modifications
  • Code reform

An introduction to the Balancing and Settlement Code (BSC) and other key industry codes in the Great Britain electricity market

Legal basis

The primary piece of legislation governing the electricity industry in mainland Great Britain (GB) is the Electricity Act 1989 (EA 1989) which established the structure of the market that we see today.

There have been numerous amendments to the EA 1989 since it came into force, due to various policy developments from the UK government and emanating from the EU, as incorporated into the consolidated version of the EA 1989 linked in this Practice Note.

The EA 1989 establishes a regulatory regime which follows the standard model adopted by other regulated utility industries in GB, namely that it is prohibited to undertake certain activities relating to, in this case, electricity unless authorised to do so. (For further detail on the regulatory regime for the GB electricity market, see Practice Note: An Introduction to Electricity Licensing in Great Britain.)

Authorisation in this case means either the grant of a licence under the EA 1989, or availing of an exemption from the requirement for a licence (as provided for by way of statutory instruments passed under EA 1989, s 5). Exemptions may be made where a ‘class exemption’ applies pursuant to the Electricity (Class Exemptions from the Requirement for a Licence) Order 2001, SI 2001/3270, or on an individual

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