New ancillary auction platform (EAC) sees clearing prices fall sharply

Launched on 2nd November, the Enduring Auction Capability (EAC) is the new platform for procurement of dynamic frequency response services in the GB power market (Dynamic Containment, Dynamic Moderation, and Dynamic Regulation). The EAC enables providers to bid across multiple dynamic services within the same EFA block, facilitating co-optimisation in the procurement of these services by the ESO.

The switch to a single auction has improved market efficiency and, when combined with the removal of the £0/MW/hr floor, has led to a reduction in average prices with the High services starting to clear at negative prices as BESS use the services to cheaply charge.