P376 Online

By reducing financial risk, P376 encourages more independent aggregators and customers to participate in the market, leading to a more efficient and lower-cost transmission system. Implementation Timeline Proposed: December 2018. Approved by Ofgem: August 6, 2021. Go-Live Date: February 23, 2023. Other Potential Meanings

Before P376, energy providers were required to submit a , which is a forecast of exactly how much energy they intended to generate or consume. For large power stations, this is straightforward. However, for "Virtual Lead Parties" (VLPs) managing many small household or business assets, predicting a precise baseline is extremely difficult. By reducing financial risk, P376 encourages more independent

P376 solves this by "decoupling" the data used for grid instructions from the data used for payment. Go-Live Date: February 23, 2023

Understanding P376: The Shift to Baselining in Energy Settlement Introduction However, for "Virtual Lead Parties" (VLPs) managing many

Instead of using that potentially inaccurate FPN, Elexon now uses a Baselining Methodology . This looks at a site’s historical behavior to calculate what its energy flow would have been without the intervention, ensuring more accurate compensation. Key Features of P376

, formally titled "Utilising a Baselining Methodology to set Physical Notifications," is a modification to the UK's Balancing and Settlement Code (BSC) . Approved by Ofgem and managed by Elexon , it aims to level the playing field for smaller, flexible energy providers—such as demand-side response aggregators—participating in the Balancing Market. The Problem: The "Physical Notification" Barrier

If the FPN was inaccurate, these providers could face financial penalties for "non-delivery," even if they successfully delivered the requested energy service. The Solution: Decoupling Dispatch and Settlement