18 December 2025

P462: Could fixing a market distortion cause another?

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P462: Could fixing a market distortion cause another?

​P462 is a proposed modification to the Balancing and Settlement Code that claims it could save consumers £518 million by 2030. The proposal addresses a long-standing feature of the Balancing Mechanism: subsidised wind generators currently bid at deeply negative prices to avoid losing subsidy payments when curtailed. These negative bids sometimes reach -£100/MWh or lower.

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