What is a Trading Unit?
What are the benefits of registering as a Trading Unit?
How to register a Trading Unit.
Transmission Loss Multipliers (TLMs);
Certain BSC costs; and
Balancing Services use of System (BSUoS) charges.
Classes 1-3: Generation Primary BM Units and demand Primary BM Units at the same site.
Class 4: Exempt Export Primary BM Units in the same GSP Group
Class 5: Interconnector Primary BM Units
Class 6: Primary BM Units that should be treated as Trading Units but don’t meet the conditions of classes 1-5.
All output from the four Primary BM Units will go to the Party’s Production Energy Account – normally 1, 2 and 3 would go to the production account and 4 to consumption account.
The Trading Unit results in the four Primary BM Units being in the production account. The Party does not have to balance both the production account and consumption account.
Transmission Loss Multipliers (TLMs) are applied to all Primary BM Unit Metered Volumes according to whether the Trading Unit is delivering or offtaking in the Settlement Period.
TLMs scale down the Metered Volumes of exporting (delivering) Primary BM Units and scale up those for importing (offtaking) Primary BM Units.
Note: Interconnector Primary BM Units have a TLM of 1 which means they have no transmission loss.
Where the Trading Unit is delivering in a Settlement Period, all Primary BM Units in the Trading Unit are classed as delivering and the Metered Volume is multiplied by the delivering TLM. The delivering TLM is less than 1 and decreases the volume consumed on Primary BM Unit 4. Decreasing the consumption volume will improve the Party’s energy imbalance position.
BSC Costs are also charged according to Energy Account aggregate Credited Energy Volumes.
The volume netted off from the demand Primary BM Unit reduces the Energy Account aggregate Credited Energy Volumes and hence decreases BSC costs.
The National Electricity Transmission System Operator’s (NETSO) Balancing Services Use of System (BSUoS) charges are also based on Energy Account aggregate Credited Energy Volumes.
The volume netted off from the demand Primary BM Unit reduces the Energy Account aggregate Credited Energy Volumes and hence decreases BSUoS charges.
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