The balancing and settlement code (BSC) company had been struggling to come up with a structure that would allow it to diversify while protecting its core business.
At a meeting on 15 January, the BSC panel voted against “P289”, the latest proposal to set up a subsidiary for the DCC bid. The majority considered the financial risks outweighed any potential benefit.
Under the proposal, BSC parties would have met set-up costs of £600,000. These would have been repaid if Elexon were successful in the bid. However, the panel noted that dividends from the DCC bid would not be guaranteed even if Elexon won it, and said ring-fencing proposals might not be adequate.
National Grid had also raised objections at consultation stage, saying the plan conflicted with a condition of the Electricity Transmission Licence.