P462 explained. David from EDF Wholesale Market Services is joined by market specialists Selina Paxton and Joshua Raw to unpack Balancing and Settlement Code modification P462 (“Removal of subsidies from bid prices in the Balancing Mechanism”). We cover what P462 changes, why it matters, and how it could affect cash-out, wholesale prices, and revenues for batteries, BTM assets, and consumers.
What you’ll learn:
How subsidy-driven bid prices distort BM actions and cash-out, and what P462 seeks to fix
Expected impacts on negative pricing, spreads, and prompt vs curve
Implications for battery optimisation, ancillary services, and consumer costs
Potential unintended consequences and alternatives under discussion
Key dates: ESO cost–benefit analysis due October; Workgroup report to Ofgem targeted for Q2 next year; consultation likely December.
