GC0179: Removal of Balancing Code No.4 and Balancing Code No.5 from the Grid Code
What is being proposed
Balancing Code No.4 (BC4) and Balancing Code No.5 (BC5) cover Terre Processes and Prequalification Processes. This modification seeks to remove them from the Grid Code due to them being no longer required following the exit of the United Kingdom from the European Union. This modification will also remove references to TERRE from the Grid Code.
Current status
The Proposal was submitted to the March Grid Code Review Panel where the Panel asked the Proposer to complete further work on their Modification Proposal before returning to a future Panel meeting. An updated Proposal was submitted in the April 2025 Panel Papers. The Panel agreed that GC0179 should follow the Standard Governance Route with a Workgroup. Workgroup Nominations opened on 06 May 2025 and closed on 28 May 2025, but were then extended until 12 June 2025. No nominations were received. At the Panel meeting on 26 June 2025, the Panel asked the Proposer to complete further work on their Modification Proposal before returning to a future Panel meeting where the Panel will determine the Governance Route.The Proposer is currently developing next steps for this Proposal. The modification was presented at the November Panel. The Panel agreed for GC0179 to proceed to Code Administrator Consultation with a delay to the timeline. The Draft Final Modification Report will be presented to the February Panel. 09/03/2026 The Final Modification Report will be set to Ogem on 11 March 2026.
Details
Timeline
Analysis
NESO proposes removing Balancing Codes 4 and 5 from the Grid Code, which cover TERRE cross-border balancing processes that became obsolete after Brexit. The modification eliminates administrative complexity from terminated EU market coupling arrangements. Final decision expected March 2026.
Why it matters
Pure administrative cleanup that removes dead code without changing any operational processes or costs. As such, this represents the completion of Brexit-related regulatory housekeeping rather than substantive market reform.
Key facts
- •Removes Balancing Code No.4 and No.5 covering TERRE processes
- •Eliminates all Grid Code references to TERRE cross-border balancing
- •Final Modification Report to Ofgem on 11 March 2026
- •No workgroup nominations received during extended period