Consultation on the Inflexible Offers Licence Condition
Related links
Call for Input on options to address high balancing costs
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Today we are proposing to introduce a new licence condition called the Inflexible Offers Licence Condition (IOLC). The new licence condition will prohibit generators from obtaining excessive benefit from offers in the Balancing Mechanism when their units are operated inflexibly in a manner that limits their responsiveness to market and system conditions. In addition to protecting consumers from the high balancing costs witnessed in recent years we anticipate that the IOLC will further encourage investment in new flexible production and demand side response.
This consultation draws on responses to our recent Call for Input from November 2022. The responses have now been published as an addendum to the Call for Input publication.
Respond name
Robin Dunne
Respond email
Main document
[IOLC Consultation [PDF, 312.21KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-02/IOLC%20Consultation.pdf)
Subsidiary documents
[IOLC Draft Guidance [PDF, 236.52KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-02/IOLC%20Draft%20Guidance.pdf)
[ADE Response [PDF, 113.29KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/ADE%20Response.pdf)
[Anonymous Response [PDF, 87.99KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/Anonymous%20Response.pdf)
[Arenko Response [PDF, 205.97KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/Arenko%20Response.pdf)
[EDF Response [PDF, 821.20KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/EDF%20Response.pdf)
[EFET Response [PDF, 173.65KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/EFET%20Response.pdf)
[Energy UK Response [PDF, 194.97KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/Energy%20UK%20Response.pdf)
[ENGIE Response [PDF, 186.87KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/ENGIE%20Response.pdf)
[EPUKI Response [PDF, 163.85KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/EPUKI%20Response.pdf)
[ESO Response [PDF, 256.25KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/ESO%20Response.pdf)
[Intergen Response [PDF, 718.78KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/Intergen%20Response.pdf)
[OVO Response [PDF, 58.06KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/OVO%20Response.pdf)
[REGEN- ESN Response [PDF, 1.31MB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/REGEN-%20ESN%20Response.pdf)
[RWE Response [PDF, 158.39KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/RWE%20Response.pdf)
[Scottish Power Response [PDF, 212.55KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/Scottish%20Power%20Response.pdf)
[Sembcorp Response [PDF, 218.45KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/Sembcorp%20Response.pdf)
[Shell Response [PDF, 842.53KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/Shell%20Response.pdf)
[SSE Response [PDF, 223.00KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/SSE%20Response.pdf)
[Uniper Response [PDF, 177.70KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/Uniper%20Response.pdf)
[WBE Response [PDF, 166.45KB]
](https://www.ofgem.gov.uk/sites/default/files/2023-06/WBE%20Response.pdf)
Related links
Call for Input on options to address high balancing costs