CHAPTER VI U.K. CLEARING PRICE AND PAYABLE PRICE

Article 24 U.K. Calculation of payable price at interconnection points

The payable price for a given standard capacity product at an interconnection point shall be calculated in accordance with either of the following formulas:

(a)

where the floating payable price approach is applied:

P_flo = P_R,flo + AP

Where:

• P_flo is the floating payable price;

• P_R,flo is the reserve price for a standard capacity product applicable at the time when this product may be used;

• AP is the auction premium, if any.

(b)

where the fixed payable price approach is applied:

P_fix = (P_R,y × IND) + RP + AP

Where:

• P_fix is the fixed payable price;

• P_R,y is the applicable reserve price for a yearly standard capacity product which is published at the time when this product is auctioned;

• IND is the ratio between the chosen index at the time of use and the same index at the time the product was auctioned;

• RP is the risk premium reflecting the benefits of certainty regarding the level of transmission tariff, where such premium shall be no less than 0;

• AP is the auction premium, if any.