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TAR NC Implementation Document – Second Edition September 2017
Chapter VI
‘Clearing and payable price’
Scope: IPs
Application date: 1 October 2017
This Chapter first covers the calculation of the
clearing price
: the price when the ca-
pacity auction is closed, calculated as the reserve price plus any auction premium.
The second issue concerns the calculation of the payable price, for which two
approaches are possible:
\\
Floating payable price
based on the reserve price applicable at the time when
a capacity product becomes usable; and
\\
Fixed payable price
based on the reserve price published at the time of an
auction, subject to indexation and a risk premium.
This Chapter also sets out the specific conditions for offering these approaches,
depending on the applicable regulatory regime and on the nature of the capacity as
existing or incremental.
The TAR NC sets out the formulas for all three calculations mentioned above:
clearing price, floating payable price and fixed payable price.