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TAR NC Implementation Document – Second Edition September 2017 |
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Clearing Price
WHAT A CLEARING PRICE IS
Responsibility: no implications for TSO/NRA responsibility
A clearing price is the price resulting from the auction. The two components that
make up the clearing price are the reserve price and, if any, the auction premium.
A clearing price may diverge from the payable price for the following reasons related
to the reserve price used in the auction:
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Where the TSO does not have a tariff period that matches the gas year, the
reserve price will only reflect the first part of the gas year depending on the
applied tariff period. The reserve price will change part way through the gas
year.
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For fixed tariffs beyond the gas year following the auction, the reserve price in
later years is indexed.
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In a floating price regime, where capacity is bought for a gas year beyond the
one following the auction, the reserve price is not known, as it will not be calcu-
lated until the auction prior to the gas year, unless the applied tariff period
exceeds one year. Therefore, the clearing price will only reflect the indicative
reserve price, and not the actual payable price.
ARTICLE 23