Reformed National Pricing Call for Input (CfI)
Reformed National Pricing (RNP) CfI
We’re calling for industry input on the proposed Balancing, Settlement and Dispatch reforms which sit within the wider Reformed National Pricing (RNP) package of reforms.
The vision for the Balancing, Settlement and Dispatch reforms is to support a secure and cost-effective clean power system, that should align with and support efficient investment and provide enduring value for consumers.
Call for input questions and response form
We’re seeking your support and feedback on the effectiveness of the proposed balancing reform package in achieving the stated aims and potential impacts on reducing balancing costs, market behaviour and distributional impacts across market participants. You can also share your views on our proposed implementation pathway and any considerations for industry which are inherent to any significant transformation. Your responses will be used to collectively help shape the final design and implementation of the reforms.
Please note, if your organisation operates across different functions you may submit additional responses as needed to represent each function accurately. Please ensure you have submitted the feedback form (see button below) no later than 5pm on 14 April 2026.
We are holding a webinar for technical questions in March and the date will be confirmed soon, please submit questions in advance via Slido using #RNPCFI, we will also be answering your questions during the session. If you haven’t already, sign up to markets updates and you will receive the details of both webinars above via our weekly Energising Progress newsletter.
The CFI questions are available in PDF format, allowing you to review them offline prior to responding through the Qualtrics form. Additionally, a downloadable proforma is provided if you need to collate responses across your organisation. If you have any questions or require any help with your response please contact the RNP Engagement team at [email protected] with the subject being: CfI Questions.
View CFI questions and respond Download questions in PDF format Download Pro-Forma
FAQs
The purpose of this Call for Input is to seek feedback on the proposed balancing reforms under the Reformed National Pricing (RNP) programme. These reforms aim to ensure the electricity system can be operated securely and efficiently, delivering cost savings for consumers
NESO is encouraging all interested parties to respond to the call for input. The consultation is open to all customer and stakeholder groups.
For fairness and consistency, we require all responses to be submitted through the online Qualtrics form. The platform is easy to use and responses can be saved throughout, also giving the option to upload supporting evidence.
The key challenges addressed include:
- Operability and cost challenges from increasing redispatch
- Insufficient visibility of and access to balancing resources
- Overlap between the wholesale market and balancing
- Distorted wholesale price signals and incentives to exacerbate system constraints
The proposed balancing reforms include:
- Lowering the mandatory Balancing Mechanism (BM) participation threshold
- Aligning the market trading deadline with Gate Closure
- Requiring Final Physical Notifications (FPNs) to match traded positions
- Introducing unit-level bidding
- Shortening the Settlement Period to either 15 or 5 minutes
The proposal suggests a phased implementation to lower the mandatory BM participation threshold to 1 MW. This aims to increase NESO’s visibility and access to balancing resources, supporting efficient system operation and reducing balancing costs.
Aligning the market trading deadline with Gate Closure aims to remove the overlap of balancing responsibility in the final hour before real-time. This change is expected to provide more certainty on the actions required post-Gate Closure, reducing the need for NESO to take potentially unnecessary or counterproductive balancing actions.
Requiring FPNs to match traded positions prevents market participants from intentionally taking imbalanced positions at Gate Closure to benefit from exposure to the imbalance price. This reform aims to improve forecasting and scheduling, reducing the risk of NESO taking inefficient actions based on inaccurate or incomplete information.
Unit bidding requires market participants to provide unit-level bids and offers at the day-ahead stage and intraday markets instead of at the portfolio-level. This reform aims to increase transparency, reduce strategic positioning against constraints, and facilitate more effective implementation of establishing a link between FPNs and traded positions.
Shortening the Settlement Period to 5 or 15 minutes provides more granular temporal price signals, incentivising market participants to better match the demand curve and improve system flexibility. This reform is expected to reduce energy imbalance volumes and enhance the efficiency of the system
The next steps include holding a webinar to welcome questions around the Call for Input, reviewing responses to inform the cost-benefit analysis, impact assessments, and implementation planning, and providing recommendations to support decision-making.