<div data-id="introduction" style="text-align:left">Introduction</div>

<html><head></head><body><div data-id="market-amp-registration-process-0.1" style="margin-left: 2em">0.1 Virtual <u class="defined-term">Lead <u class="defined-term">Party</u></u> (VLP) – Entering the Market</div></body></html>

<div data-id="accession" style="text-align:left">Accession</div>

<div data-id="appoint-authorised-signatories" style="text-align:left">Appoint Authorised Signatories</div>

<div data-id="order-communications-line" style="text-align:left">Order <u class='defined-term'>Communication</u>s Line</div>

<div data-id="cva-qualification-testing" style="text-align:left">CVA <u class='defined-term'>Qualification</u> testing</div>

<div data-id="funds-accession" style="text-align:left">Funds Accession</div>

<div data-id="nominate-operational-contracts" style="text-align:left">Nominate operational contracts</div>

<html><head></head><body><div data-id="register-party-role" style="text-align:left">Register <u class="defined-term">Party</u> Role</div></body></html>

<div data-id="market-amp-registration-process-0.2" style="margin-left: 2em">0.2 CVA Market Entry</div>

<div data-id="market-amp-registration-process" style="text-align:left">Market &amp; Registration Process</div>

<div data-id="sva-qualification-0.1" style="margin-left: 2em">0.1 Planning meeting</div>

<div data-id="sva-qualification-0.2" style="margin-left: 2em">0.2 Completion/submission of the SAD</div>

<div data-id="sva-qualification-0.3" style="margin-left: 2em">0.3 PAB Approval</div>

<div data-id="sva-qualification" style="text-align:left">SVA <u class='defined-term'>Qualification</u></div>

<div data-id="registration-of-secondary-bmus" style="text-align:left">Registration of Secondary BMUs</div>

<html><head></head><body><div data-id="msid-pair-allocation--p0278-0.1" style="margin-left: 2em">0.1 Completing the <u class="defined-term"><u class="defined-term">MSID</u> Pair</u> Allocation template</div></body></html>

<html><head></head><body><div data-id="msid-pair-allocation--p0278" style="text-align:left"><u class="defined-term"><u class="defined-term">MSID</u> Pair</u> Allocation – P0278</div></body></html>

<html><head></head><body><div data-id="lifecycle-of-the-trading-day-amp-how-we-calculate-settlement-for-vlps-0.1" style="margin-left: 2em">0.1 Imbalance <u class="defined-term">Settlement</u>s for VLPs</div></body></html>

<div data-id="lifecycle-of-the-trading-day-amp-how-we-calculate-settlement-for-vlps-0.2" style="margin-left: 2em">0.2 Data flows</div>

<div data-id="lifecycle-of-the-trading-day-amp-how-we-calculate-settlement-for-vlps-0.3" style="margin-left: 2em">0.3 Trading charges</div>

<html><head></head><body><div data-id="lifecycle-of-the-trading-day-amp-how-we-calculate-settlement-for-vlps" style="text-align:left">Lifecycle of the trading day &amp; how we calculate <u class="defined-term">Settlement</u> for VLPs</div></body></html>

<html><head></head><body><div data-id="faqs-0.1-1" style="margin-left:0.5in;text-align:left;text-indent:-0.5in"><span>1</span><span>. A Virtual <u class="defined-term">Lead <u class="defined-term">Party</u></u> (VLP) may register <u class="defined-term">Secondary <u class="defined-term">BM Unit</u></u>s for the purposes of bidding into the TERRE product. One function of <u class="defined-term">Secondary <u class="defined-term">BM Unit</u></u>s is to allow Virtual Lead Parties to aggregate a number of sites across multiple <u class="defined-term"><u class="defined-term">Supplier</u></u>s in order to provide balancing services. Therefore, <u class="defined-term">Secondary <u class="defined-term">BM Unit</u></u>s may be a single site, or a collection of sites within the same <u class="defined-term">GSP Group</u> whereby the minimum generation level exceeds 1MW. <u class="defined-term">Secondary <u class="defined-term">BM Unit</u></u>s will also be able to be bid into the Balancing Mechanism by the VLP.</span></div></body></html>

<html><head></head><body><div data-id="faqs-0.1-2" style="margin-left:0.5in;text-align:left;text-indent:-0.5in"><span>2</span><span>. A <u class="defined-term"><u class="defined-term">Supplier</u></u> may register <u class="defined-term">Additional <u class="defined-term">BM Unit</u></u>s for the purposes of bidding into the TERRE product, alongside bidding into the BM as per the current arrangements. Further, current arrangements within the BSC allow a <u class="defined-term">Supplier</u> to aggregate a number of sites, within an <u class="defined-term">Additional <u class="defined-term">BM Unit</u></u>, so long as these sites are all within that Supplier’s portfolio. This is commonly known as a Supplier aggregator function.</span></div></body></html>

<html><head></head><body><div data-id="faqs-0.1-3" style="margin-left:0.5in;text-align:left;text-indent:-0.5in"><span>3</span><span>. A Trading <u class="defined-term"><u class="defined-term">Party</u></u> that is not a <u class="defined-term">Supplier</u> may use its existing <u class="defined-term"><u class="defined-term">BM Unit</u></u>s for the purposes of bidding into the TERRE product, alongside bidding into the Balancing Mechanism as per the current arrangements. However, a Trading <u class="defined-term"><u class="defined-term">Party</u></u> that is not a <u class="defined-term">Supplier</u> cannot aggregate sites. Should a Trading Party that is not a <u class="defined-term">Supplier</u> wish to aggregate sites, they would have to register as a VLP.</span></div></body></html>

<div data-id="faqs-0.1" style="margin-left: 2em">0.1 How can you participate in TERRE?</div>

<div data-id="nan1-can-other-bsc-parties-have-aggregated-secondary-bmus" style="margin-left: 2em">NaN.1 Can other BSC parties have aggregated Secondary BMUs?</div>

<div data-id="faqs-0.1" style="margin-left: 2em">0.1 Can you register in multiple roles?</div>

<div data-id="faqs-0.2" style="margin-left: 2em">0.2 Where can you find a list of all the charges VLP face?</div>

<div data-id="faqs-0.3" style="margin-left: 2em">0.3 Can VLPs register assets on behalf of a third party (i.e. a client’s assets)?</div>

<div data-id="faqs-0.4" style="margin-left: 2em">0.4 Can VLPs use a trading agent to participate in BM and TERRE?</div>

<div data-id="faqs-0.5" style="margin-left: 2em">0.5 What are the penalties for over and under delivery in TERRE, and how does this compare to those in the BM?</div>

<div data-id="faqs-0.6" style="margin-left: 2em">0.6 Is there a limit to the size in MW of secondary BMUs?</div>

<div data-id="faqs-0.7" style="margin-left: 2em">0.7 In the case the BMU is larger than 50MW or 100MW, are there any additional requirements on the BMU (metering etc.)?</div>

<div data-id="faqs-0.8" style="margin-left: 2em">0.8 What data does a VLP need to send to Elexon for a Secondary BMU on a daily basis?</div>

<div data-id="faqs-0.9-1" style="margin-left:0.5in;text-align:left;text-indent:-0.5in"><span>1.</span><span> Following <u class='defined-term'>Gate Closure</u> for each auction period, National Grid will send details of <u class='defined-term'>Replacement Reserve Bid</u>s to <u class='defined-term'>BMRA</u>, who will publish them on the <u class='defined-term'>BMRS</u>. The legal text allows up to fifteen minutes for National Grid to provide this data.</span></div>

<div data-id="faqs-0.9-2" style="margin-left:0.5in;text-align:left;text-indent:-0.5in"><span>2</span><span>. By thirty minutes after <u class='defined-term'>Gate Closure</u> for each auction period, National Grid will send the results of the auction (as received from the LIBRA platform) to <u class='defined-term'>BMRA</u>, who will publish them on the <u class='defined-term'>BMRS</u>. These results include price and MW level data for all the <u class='defined-term'>Replacement Reserve</u> Activations issued to GB balancing service providers; the Level of GB Need Met; and flows scheduled by LIBRA on <u class='defined-term'>Interconnector</u>s.</span></div>

<html><head></head><body><div data-id="faqs-0.9-3" style="margin-left:0.5in;text-align:left;text-indent:-0.5in"><span>3</span><span>. <u class="defined-term">BMRA</u> will also include the results of the auction in the indicative imbalance prices, published (as currently) within 45 minutes of the end of the <u class="defined-term"><u class="defined-term">Settlement</u> Period</u></span></div></body></html>

<div data-id="faqs-0.9" style="margin-left: 2em">0.9 When will relevant data be published?</div>

<div data-id="nan1-can-a-vlp-setup-mvrn-authorisations-for-a-secondary-bmu" style="margin-left: 2em">NaN.1 Can a VLP setup MVRN Authorisations for a Secondary BMU?</div>

<html><head></head><body><div data-id="faqs-0.1" style="margin-left: 2em">0.1 What if an overlap occurs when submitting <u class="defined-term"><u class="defined-term">MSID</u> Pair</u>s?</div></body></html>

<html><head></head><body><div data-id="other-considerations-0.1" style="margin-left: 2em">0.1 Other <u class="defined-term">Code</u>s</div></body></html>

<div data-id="other-considerations" style="text-align:left">Other considerations</div>

<div data-id="need-more-information" style="text-align:left">Need more information?</div>

<div data-id="relevant-documents" style="text-align:left">Relevant Documents</div>

<div data-id="further-information" style="text-align:left">Further Information</div>

CONTENTS

Virtual Lead Party V3.0

Defined Terms

Cross-references