Balancing Mechanism
Planning our electric future: a White Paper for secure, affordable and low-carbon electricity, Glossary, published by the Department of Energy & Climate Change on 14 July 2011, suggests that the Balancing Mechanism (BM) is: ‘Operated by National Grid (the GB System Operator) to ensure the electricity system balances (i.e. supply equals demand) at any one time. Participants in the balancing mechanism can submit ‘offers’ (proposed trades to increase generation or decrease demand) and/or ‘bids’ (proposed trades to decrease generation or increase demand). National Grid then purchases offers and bids to balance the system.’
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