• Incentives:
p. p. 79
• Incentives: - o Under option 1, the imbalance top-up rate under schedule 4 represents the incremental NS Power generation cost only, excluding the recovery of fixed generation costs allocated to energy. An LRS could gain by over-forecast...
AI summary The text discusses two options for imbalance top-up rates. Option 1 creates perverse incentives for LRS to misforecast supply and load, while Option 2 eliminates these incentives by making top-up and spill quantities independent of forecasts, encouraging accurate generation forecasting to minimize costs.