8. How are the time weighted and load weighted average contract prices calculated?
The Hedge Disclosure system will calculate the time weighted average contract price and load weighted average contract price from the information disclosed in the price schedule using the following formulas respectively:
Time weighted average formula:
CP _{tw} =

{

_{n}
∑ P_{i} x TP_{i}
^{
} i=1
_{n}
∑ TP_{i}
^{i=1}

}

/ LF x LAF

Load weighted average formula:
CP _{lw} =

{

_{n}
∑ P_{i}
x V_{i}
^{} i=1
_{n}
∑ V_{i}
^{i=1}

}

/ LF x LAF

Where:
CP_{tw} means the time weighted contract price
CP_{lw} means the load weighted contract price
n means the number of different prices within the contract
P_{i} means a price specified
in the contract (for contracts with an adjustment clause it is a starting price)
TP_{i} means
the number of trading periods during which each price in the contract applies
V_{i} means the total volume for which price P_{i} applies
LF means
the location factor for the node at which the price is set in the contract, as published by the Board in accordance with rule 5
LAF
means a loss adjustment factor which is:
(a) if the
contract price for the contract is referenced to a
point of connection
on the
grid,
1; or
(b) for all other contracts, 0.937 (being the difference between 1 and the loss factor of 0.063).
Top of Page