Virtual Party Market Entry

As the UK moves to a smart and flexible energy system, a variety of new revenue streams and party roles have been created, offering new opportunities to trade energy and capitalise on owned or non-owned assets as a Virtual Party.      

New Market Players

To enhance flexibility and competition in the electricity market, in 2019, Ofgem introduced radical changes to the status quo by approving Balancing Settlement Code (BSC) Modification P344, which granted independent aggregators access to electricity markets under the title of Virtual Lead Party (VLPs). VLPs participate in the Balancing Mechanism by bundling changes in consumer load at a site boundary. 

Since the introduction of P365 in 2022, Asset Metering Virtual Lead Parties (AMVLP) have been able to measure and trade consumer load changes more precisely using behind boundary assets, such as storage batteries. The latest evolution in virtual parties was introduced by BSC modification P415 in 2024, which allowed independent aggregators to participate in wholesale electricity markets for the first time by registering as ‘Virtual Trading Parties’ (VTP).  

Virtual Party Market Entry

Navigating Market Entry

For organisations that want to participate in the electricity markets as VLP, AMVLP or VTP they will need to navigate ascension to the BSC and Connections Use of System Code, meet Elexon qualification requirements and comply with NESO requirements for eventual trading activity. Aggregators and asset owners who have yet to operate under these codes face a complicated system and process. Moreover, with changes to the BSC constantly being considered and implemented, prospective parties must monitor and evaluate risks and opportunities to their business plans and timelines. 

Our Solution

At Engage, we have a team of expert consultants with extensive experience in energy sector Market Arrangements. We guide organisations through the various stages of market entry as a VLP, AMVLP, or VTP:     

  • Understanding the market and entry routes – our experts support organisations that are new to GB Energy markets to understand the governance, operations, and costs of the Balancing Mechanism and Wholesale markets. By guiding organisations through the sector and the different market entry routes of VLPs, AMVLPs, and VTPs, we help them understand their business opportunities and the suitability of the various categories of Virtual Parties.  
  • Qualification support- We support organisations with market entry by coordinating the various qualification stages of becoming any category of Virtual Party, tailoring the level of support to meet each organisation needs.  
  • Market readiness- We help clients efficiently prepare for market activity in parallel to qualification. We support organisations to understand NESO and Elexon requirements for Secondary Balancing Mechanism Unit registration to allow them to participate in markets once qualified
Virtual Party Market Entry

Why Choose Us? ​

Our team has 25 years of experience in the energy sector with extensive experience in energy sector Market Arrangements and the challenges that chxanges in these have on your business. We have the knowledge, expertise, and commitment to help you succeed.

Tailored support: We tailor support for organisations interested in becoming any category of virtual party. We support those who know their market entry goal to attain qualification or provide guidance to organisations that are new to the GB energy market and seeking an understanding of the landscape and suitable opportunities.    

Proven Track Record: We are supporting clients in the market entry process and have experience with the various stages, forms, and codes parties must comply with.    

Diverse Skill Set: Our consultancy and compliance work spans multiple areas, including energy markets, metering, flexible systems, heat networks, electric vehicles and code compliance. We can provide insight into the opportunities your existing asset base could offer under virtual party status.  

Deep Involvement in Demand Side Response: Our experts are deeply embedded in the Domestic Demand Side Response /Flexibility space and have experience developing and trialling new technology solutions with technology innovators and industry parties to help deliver Net Zero ambitions. 

Expert Support

Contact us today to learn more about how we can support your organisation.  Find out more about our Market Entry Expert, Grace Carroll.

Contact Us
Engage Consulting combine their deep understanding of settlements processes with a consistent and open approach to stakeholder engagement which has allowed them to overcome the early challenges associated with a change in methodology.
XOSERVE
Chris DwyerHEAD OF CONTRACTS AND PROCUREMENT, XOSERVE
I’ve had the pleasure of working with Engage’s consultants for over six years on a large, complex, wide-ranging, technical and challenging project of critical importance to our members and government.
Energy UK
Daisy CrossHEAD OF FUTURE RETAIL MARKETS, ENERGY UK
Engage Consulting has been instrumental in establishing the Alt HAN Co; ensuring the complex journey from inception to being an independently operational business, was delivered with professional and invaluable expertise and support.
Alt HAN Co
Paul CooperMANAGING DIRECTOR, ALT HAN CO
The 105 number for customers to call in a power cut was a key project for the ENA to deliver on behalf of electricity network operators. Engage overcame the many multi-stakeholder challenges – enabling us to obtain a three-digit number from Ofcom.
David Smith
David SmithCEO, ENERGY NETWORKS ASSOCIATION
We brought Engage in, as industry experts, to review our systems, processes and controls – and ensure that they would support our next phase of growth. The report they provided us with was clear and insightful – and enabled us to make real improvements across our business.
Darren Braham
Darren BrahamFINANCE DIRECTOR, FIRST UTILITY
Engage analysed gigabytes of our portfolio data and identified customer accounts causing the imbalance. They also successfully identified the key causes, provided detailed recommendations and proposed a model settlements function to allow us to improve our processes and manage future imbalances.
Lesley Baxter
Lesley BaxterFINANCE DIRECTOR, TOTAL GAS & POWER
Engage applied their detailed industry knowledge to develop a robust methodology for quantifying the impact of these adjustments, applied this to large volumes of our metered data, and produced a far more accurate determination of our losses.
SP Energy Networks
Allan HendryHEAD OF LICENCE & REVENUE, SCOTTISH POWER ENERGY NETWORKS
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