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Why we’re here What we do

What we do

Our systems record the volumes of electricity generators and suppliers have contracted with each other, so we can see what they said they would produce or consume.

The following video explains ELEXON’s role in the wholesale electricity industry

Electricity trading arrangements from ELEXON on Vimeo.


ELEXON is vital to the smooth operation of the wholesale electricity market. Participants exchange promises to buy and sell electricity, with National Grid balancing supply and demand in real time to keep the lights on. This is where we come in.

We compare how much electricity generators and suppliers said they would produce or consume with actual volumes. We work out a price for the difference and transfer funds accordingly. We carry out the calculations five times over 14 months to ensure their accuracy. This involves taking 1.25 million meter readings every day and handling £1.5 billion of our customers’ funds each year.

The rules are set out in the Balancing and Settlement Code (BSC). We administer the Code and provide and procure the services needed to implement it. We are funded by our customers and operate on a zero-profit basis.

These customers, known as BSC Parties, cover the entire wholesale electricity sector in Great Britain and include suppliers, generators, distributors, traders, and energy importers and exporters. We work with them to ensure the BSC evolves to meet the challenges facing the industry. Our expertise and impartiality give our customers the confidence that the BSC operates efficiently and accurately.

Here’s more information on the BSC and its sections.

How electricity is traded and ELEXON’s role in it?

Have you ever wondered how electricity is traded? If you have, ELEXON has produced a handy Beginner’s Guide to the Electricity Trading Arrangements.

It provides a detailed look at Trading Arrangements for electricity and covers:

  • how electricity is traded
  • what Imbalance Settlement is
  • what Bids and Offers are
  • how Generators and Suppliers fit into this model
  • what ELEXON’s role is in this
  • what all those acronyms mean.