National Grid ESO announces review of balancing market

National Grid ESO is to undertake a review of the balancing market.

Every day the ESO balances supply and demand across the power system. In recent weeks there have been some very high-cost days in the balancing mechanism. As those costs are ultimately borne by consumers it is important to fully understand the factors driving the market.

The ESO will therefore undertake a review of the balancing market. It will be run by the National Grid ESO Market Monitoring Team and will be carried out by external consultants.

There are many issues that can, and will, have contributed to the high costs. Our review will seek to ensure that, at a time when households’ budgets are under strain, consumers can continue to have confidence in the market.