Last week Ofgem, the National Regulatory Authority for Great Britain, issued this open letter entitled “Dynamic parameters and other information submitted by generators in the Balancing Mechanism”. The letter refers to the practice of asset owners in the GB Balancing Market (BM) setting parameters such as the SEL (Stability Export Limit) to values that do not purely reflect technical characteristics and constraints, and instead may be submitted for commercial reasons. The letter suggests that the commercial element of BM submissions should be confined to bids and offers submitted in order to avoid the possibility of a breach of REMIT Article 5. The letter is issued following a fine of 37.2 million GBP levied in April for a breach of REMIT Article 5 (see here). Ofgem issued an open letter on the topic of scarcity pricing in December 2016 (see here).