Solution section
Energy Pricing & Dispatch
How electricity is traded, dispatched and priced.
Energy Pricing & Dispatch
Great Britain principally uses a national wholesale energy price.
Commercial positions are established ahead of delivery through wholesale trading. The market does not directly encode every transmission or distribution constraint into the principal wholesale price.
A simplified representation of the energy layer is:
where the same broad wholesale reference price applies across Great Britain rather than a nodal or zonal settlement price.
Physical feasibility is subsequently restored through balancing and constraint-management actions.
This creates a distinction between:
and:
That separation is one of the defining characteristics of the architecture.