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Calculation of Residual Cashflow Reallocation Cashflow

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Calculation of Residual Cashflow Reallocation Cashflow

Guidance Note

Calculation of Residual Cashflow Reallocation Cashflow

For all Settlement Periods, the Total Residual Cashflow (TRC) is calculated as being the sum of all energy imbalance charges across all parties and accounts. This value represents the total amount of money to be redistributed (or collected) via the Residual Cashflow Reallocation Cashflow (RCRC).

Each party will be allocated a Residual Cashflow Reallocation Proportion (RCRP) of the TRC for both of its accounts (Production and Consumption). These proportions will sum to one across the whole market. RCRP is calculated based on the Trading Parties’ proportion of the market credited energy in a particular Settlement Period with the exception of interconnector Balancing Mechanism (BM) Units which are excluded from the calculation. The calculation of RCRP is defined in Section T of the Balancing and Settlement Code.

Credited energy is calculated using the metered energy from Trading Units. The Trading Unit will be determined as a Delivering Trading Unit if the sum of the metered volumes in that Settlement Period is greater than zero.

Please note, that according to this definition, BMUs may flip between being delivering and offtaking from one Settlement Period to another, therefore care must be taken in aggregating the credited energy, ensuring that the correct signs are applied according to the status of the Trading Unit.

Credited energy won’t always have a positive effect on RCRP, for example, negative credited energy (relating to consumption) on a BMU in a delivering Trading Unit will have the effect of reducing that account’s RCRP. To calculate the RCRC for any account, it is necessary to multiply the TRC (£/MWh) figure by the RCRP.

Notes on the RCRC Data

The RCRC is calculated using the Total Residual Cashflow and the RCRP values from the SAA I014 flow. It is also available on the Elexon Portal.

Need more information?

For more information please contact the BSC Service Desk at or call 0370 010 6950.

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