Price Derivation Codes

Every published settlement period will have a PDC attached to it.

PDC's are there to indicate the default rules that are applied to calculate both the main and reverse energy prices. The PDC will explain how the system buy price (SBP) and system sell price (SSP) are calculated. 

For example, if the system went short and an aggregate of 50MW or more traded in the 4hr, 2hr, 1hr or half hour products, then this would be a code A. Therefore SBP>SSP, with SBP being the Main price = Accepted Offers + Buy Price-Adjuster (BPA) and SSP being the reverse price Market Index Price (MIP).

• Short System Code - CODE P: NIV is positive
• Long System Code - CODE N: NIV is negative
• SSP & SBP default to MIP - CODE K: NIV = 0MW. Volume of trades exceeds 50MW. Cashout price = MIP. There are no trades for energy purposes so no main price and both prices go to MIP
• SSP & SBP default to 0 - CODE L: NIV=0MW. Volume of trade is less than 50MW. Cashout price = 0. There are no trades for energy purposes so there is no main price and less than 50MW traded on trading platforms.