European Daily Electricity Markets Methodology - … · EuropEAn DAily ElEctricity MArkEts...

European Daily Electricity Markets MethodologyAugust 2013

EuropEAn DAily ElEctricity MArkEts MEthoDology 2

introduction ICIS publishes European Daily Electricity Markets (EDEM) on every working day (in England and Wales) of the year. EDEM assesses and records prices and market activity on the liquid markets in Europe, including but not limited to:

• UK• Germany• France• CzechRepublic• Hungary• Poland• Romania• Serbia• Spain• TheNetherlands• Italy• Turkey• Bulgaria• Greece

Thefinancialvalueofelectricityisestablishedbytwomethods:

1.PriceAssessments.ICISassessesthemarketclosingprices for a range of European power hubs on the day of publication, and publishes a price range for each delivery periodonanumberofliquidmarkets.ThisisknownastheBID-OFFERRANGE,representingthehighestbuyer’sbidandthelowestseller’sofferattherelevantcloseofeachmarket.

2.Indexation(HerenIndex).Indicesarepublishedforavarietyofdeliveryperiodsanddeliverypoints.EachHerenIndexisatransaction-basedprice,calculatedusingthevolume-weightedaverageofeligibletransactions(trades)for the relevant delivery period reliably reported to ICIS.

MoreprecisedetailsofICISpriceassessmentsandHerenIndices, together with further information about our service, will be found below.

EDEM price Assessments General Definitions

CertainkeycriteriaapplytoallofEDEM’sdailypriceassessments.TheEuropeanwholesaleelectricitymarkets(variouslydefinedasover-the-countermarkets)areassessedeach working day during the period 13:00 to 18:00 London time (varying by country and market), when ICIS contacts a wide range of active market participants by telephone.

icis price assessments published and start datescountry start dateUK 7Apr1997

German 9Aug1999

Spanish(weeklyfrom7Feb2003) 2 Jan 2001

Dutch(weeklyfrom7Feb2003) 9Jan2001

French 11 Jul 2001

Czech 22Aug2006

Italian 7 Jun 2007

Polish 19Apr2010

Hungarian 19Apr2010

Romanian 19Apr2010

Serbian 19Apr2010

Turkish 3 Mar 2011

Bulgaria(weeklyfrom5Apr2012) 5Apr2012

Greek(weeklyfrom5Apr2012) 5Apr2012

Slovak (weekly from 20 May 2008, ended 13 April2010)

20 May 2008

PriceassessmentspublishedinEDEMareformulatedbyICIS at the conclusion of this process and represent ICIS close-of-daybid-offerrangesforelectricitydeliveredatanumberofhubsinthetimerangesspecifiedinthetable.Theyarenotbasedondealsdoneduringtheday(listedseparately in EDEM).

“Bid”isdeemedtobethehighestpricebidbybuyersattheclose of business on the trading day in question.

“Offer”isdeemedtobethelowestpriceofferedbysellersatthe close of business on the trading day in question.

Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod.Peakpricesquotedare for power delivered during the peak period of working days(generallyapproximately07:00-19:00butvarying


according to individual market) and do not include Weekend delivery.Pricesquotedasextendedpeaksaredifferentiatedfrom the peak loadshape in use elsewhere in a region, for example,Poland.

Anasterisk(*)onthepriceassessmentindicatesanindicativebidandoffer,eitherbecausetherewasnofirmquote at the close of the market, or the bid/offer spread was wider than £1/MWh or €1/MWh, or there was no consensus on the bid/offer spread among market sources.

periods

Day-ahead:Day-aheadpricesareforpowertobedeliveredfor the next working day (in England and Wales) following thedateofthereport.Thus,inareportpublishedonFriday,theDay-aheadquotewouldapplytothefollowingMonday,unless this was a public holiday in England and Wales.

AnyUKpublicholidaywillbetreatedasasingletradingdayon all markets and will be assessed as a separate period inthepriceassessmenttable.AseparateindexwillalsobecalculatedforthatUKpublicholiday.Thisisforthepurposeof continuity in our price series and is based on close analysisoftradingpatternsoverUKpublicholidays.

Weekend:WeekendpricesareforthefirstSaturdayandSunday following the date of the report.

Week-ahead:Week-aheadpricesareforpowertobedelivered each day Monday to Sunday the following week for BaseloadandeachdayMondaytoFridayforPeakload.

Months: Each month quoted represents power to be delivered oneachdayofthecalendarmonth.TheexceptiontothisruleistheUKmarket,whichfollowsEFAmonthpatternsratherthan calendar months (the calendar can be viewed at https://www.theice.com/publicdocs/EFA_Calendar.pdf).

Quarters:Thequartersarethree-monthperiodsbeginningon1January(Q1),1April(Q2),1July(Q3)and1October(Q4). Each represents power to be delivered on each day of thequarter.TheUKmarketquartersfollowtheEFAquarterpatterns as above.

seasons:Theseasonsaresix-monthperiodsbeginningon1April(Summer)and1October(Winter).TheexceptionstothisrulearetheUKmarket,whichfollowsEFAmonthpatterns rather than calendar months as above.

years: EDEM price assessment yearly quotes are for calendar years unless otherwise stated. Each assessment listed represents electricity to be delivered on each day of the 12-monthperiod.AprilAnnualreferstoelectricitysuppliedforayearfromthebeginningofApril(notnecessarily1AprilintheUK,seeabove)ofaparticularyearwhileOctoberAnnualrefers to electricity supplied for a year from the beginning of October(notnecessarily1OctoberintheUK).


Extended peaks load shapescountry hours Days notesCzech,Slovak and Hungarian

06-22 Mon-Fri Includes public holidays

Polish 07-22 Mon-Fri Excludes public holidays

Romanian 07-23 Mon-Fri Includes public holidays

Serbian 06-22 Mon-Fri Includes public holidays

uk otc power price assessments

TheUKphysicalpowermarket(variouslydefinedasthespotorover-the-countermarket)isassessedeachworkingdayduringtheperiod16:00to18:00Londontime,whenICIS contacts by telephone a wide range of active market participants.

PriceassessmentspublishedintheUKOTCPOWERPRICEASSESSMENTStableareformulatedbyICISattheconclusionofthisprocessandrepresentICISclose-of-daybid-offerrangesforpowerdeliveredunderGridTradeMasterAgreement(GTMA)terms.Theyarenotbasedondealsdone during the day (listed separately in EDEM).

LoadShapes:DailypowertradedontheUKmarketis bycustomsplitintosixfour-hourWeekDay(WD)orWeekend(WE)periods.Theperiodsarelaidoutasindicatedin table above.


quotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Peakpricesquotedarefor power delivered during the peak period of working days (07:00-23:00)anddonotincludeWeekenddelivery.

spanish price assessments

TheSpanishelectricitymarketisassessedeveryWednesdayduringtheperiod14:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.

czech price assessments

TheCzechelectricitymarketisassessedeachworkingdayduringtheperiod14:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Peakpricesquotedare for power delivered during the peak period of working days(08:00-20:00)anddonotincludeWeekenddelivery.Extendedpeakspricesareforpowerdeliveredduring06:00-22:00.

hungarian price assessments

TheHungarianelectricitymarketisassessedeachworkingdayduringtheperiod14:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Peakpricesquotedare for power delivered during the peak period of working days(08:00-20:00)anddonotincludeWeekenddelivery.Extendedpeakspricesareforpowerdeliveredduring06:00-22:00.

polish price assessments

ThePolishelectricitymarketisassessedeachworkingdayduringtheperiod13:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Extendedpeaksprices quoted are for power delivered during the peak period ofworkingdays(07:00-22:00)anddonotincludeWeekenddeliveryorPolishpublicholidays.


BaseloadpricesquotedareforpowerdeliveredataflatRatethroughoutthespecifieddeliveryperiod23:00to23:00,ieWD1-6andWE1-6(iftheperiodtradedincludes a weekend).

InthecontextoftheUKmarket,Peakpricesquotedarefor power delivered during the peak period of working days (07.00-19.00),ieWD3,4&5,anddonotincludeWeekenddelivery,ieWinterPeaksincludesWD3-5butNOTWD1,2&6andNOTWE1-6.Off-peaksreferstoWD1,2&6andWE1-6(iftheperiodtradedincludesaweekend).

Variousothernon-standardloadshapesaretradedontheUKpowermarket.WherethesearereportedinEDEM,EDEMwillprovideadefinitionbasedontheWD/WEperiodsthey comprise.

TradingperiodsontheUKpowermarketdonotfollowthestandardcalendarformatbutinsteadarebasedontheEFA(ElectricityForwardsAgreement)calendar(thecalendarcanbeviewedathttps://www.theice.com/publicdocs/EFA_Calendar.pdf).

german price assessments

TheGermanelectricitymarketisassessedeachworkingdayduringtheperiod14:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Peakpricesquotedare for power delivered during the peak period of working days(08:00-20:00)anddonotincludeWeekenddelivery.

French price assessments

TheFrenchelectricitymarketisassessedeachworkingdayduringtheperiod14:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Peakpricesquotedare for power delivered during the peak period of working days(08:00-20:00)anddonotincludeWeekenddelivery.

Dutch price assessments

TheDutchelectricitymarketisassessedeveryFridayduringtheperiod14:00to17:00Londontime.Baseloadprices


turkish price assessments

TheTurkishelectricitymarketisassessedeachworkingdayduringtheperiod13:00to17:00Londontime.IfThursdayfallsonaUKpublicholiday,themarketwillbeassessedtheUKworkingdaybefore.

Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.

TheRollingfrontyearcontracthasadeliveryperiodforthenextyear,beginningonthefirstcalendardayofthemonthahead of the publication date.

Bulgarian price assessments

TheBulgarianelectricitymarketisassessedeveryweekovertheThursdayworkingday.IfThursdayfallsonaUKpublicholiday,themarketwillbeassessedtheUKworkingdaybefore.

Baseloadpricesquotedareforpowerexportonly,ataflatratethroughoutthespecifieddeliveryperiod00:00-24:00,and include export fees.

ThespreadtoTurkeyiscalculatedbysubtractingthemidpointoftheTurkishfront-monthBaseloadpriceassessmentin€/MWhfromthemidpointoftheBulgarianfront-monthBaseloadpriceassessment.

greek price assessments

TheGreekelectricitymarketisassessedeveryweekovertheThursdayworkingday.IfThursdayfallsonaUKpublicholiday,themarketwillbeassessedtheUKworkingdaybefore.

Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.

ThespreadtoTurkeyiscalculatedbysubtractingthemidpointoftheTurkishfront-monthBaseloadpriceassessmentin€/MWhfromthemidpointoftheGreekfront-monthBaseloadpriceassessment.

romanian price assessments

TheRomanianelectricitymarketisassessedeachworkingdayduringtheperiod13:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Extendedpeaksprices quoted are for power delivered during the peak period ofworkingdays(07:00-22:00)anddonotincludeWeekenddelivery.

serbian price assessments

TheSerbianelectricitymarketisassessedeachworkingdayduringtheperiod13:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Peakpricesquotedare for power delivered during the peak period of working days(08:00-20:00)anddonotincludeWeekenddelivery.Extendedpeakspricesareforpowerdeliveredduring06:00-22:00.

cEE/sEE regional baseload spreads

TheRegionalbaseloadspreadsshowpricedifferentialsbetweenthenamedmarketsforkeycontracts.Thesedifferentialsarebasedonpriceassessments,andreflectthepremiumofthefirst-namedmarkettothesecond-namedmarket.Ifthefirst-namedmarketisassessedbelowthesecond-named,thespreadwillbenegative.

Where price assessments are made in a currency other than euros, the assessment is converted to euros using the daily currency exchange rates for the delivery period – ie, a forward exchange rate rather than a spot rate.

italian price assessments

TheItalianelectricitymarketisassessedeachworkingdayduringtheperiod14:00to17:00Londontime.Baseloadpricesquotedareforpowerdeliveredataflatratethroughoutthespecifieddeliveryperiod00:00-24:00.Peakpricesquotedare for power delivered during the peak period of working days(08:00-20:00)anddonotincludeWeekenddelivery.


the uk electricity heren daily index

TheUKElectricityHerenDay-aheadIndexvaluesBaseloadelectricity traded for the next working day and is published by ICIS each working day in EDEM.

TheIndexdayisthefirstworkingdayfollowingthedateofpublication.Thus,theIndexpublishedon27MarchvaluesBaseloadpowertradedon27Marchfordeliveryon28March.TheDay-aheadIndexpublishedonaFridayvaluespowertobedeliveredonMonday,oronTuesdaywhentheMonday is a public holiday in England and Wales. Separate holiday indices will be calculated for English and Welsh public holidays.

heren indices - general Definitions ICIS’variousmarketindicesshareanumberofcommoncharacteristics,regardlessofmarketortimeperiod.Theyareallvolume-weightedaveragesoftradesreportedtoICISduringthecourseofitsmarketreportingactivities.Allofthe trades on which the indices are based are published in EDEMonadailybasisinthetablesoftradesreported.ThisinformationissubjecttoEDEM’susualtestsofreliability:

1.Confirmationissoughtfrombothpartiestothedeal.

2.If,asisoftenthecase,bothcounter-partiesareunwillingtoconfirm,confirmationisacceptedfromonesideonly.However,corroborationisalsosoughtfromothermarketparticipants.

3.Ifnoconfirmationisavailable,thedealmaystillbeincludedif it is accepted by the wider market, and if EDEM itself regards it as reliable.

4. In addition to price and volume, which are essential for inclusion in the Index, EDEM ensures that deals included in theIndexarestand-alonedeals.

5.Intheeventthatreportedtradesfallnoticeablyaboveorbelow the traded range for that contract on a given day, and in the absence of any reasonable explanation, EDEM would discard the deal or deals. Deals would be liable for rejection if they were 1% above or below the highest or lowest deals reported to EDEM on that day. Evidence of the traded range given by market participants during the market reporting process would also be taken into account when assessing whether to include or discard a deal.AnydiscardeddealswouldnotbeenteredintotheICIS database and would not appear in the reported deals tablesinEDEM.TheywouldthereforealsobeexcludedfromanyHerenIndex.

6.EachdailyIndexrequiresaminimumofthreetransactions.Ondayswhentherearefewerthanthreeeligibletransactions for an Index, that Index is published as the midpointofthebid/offerspreadpublishedinEDEM’sOTCpower price assessment table.

heren indices published and start datesDay-ahead indicesUKDay-ahead 18Aug2000

GermanDay-ahead 1Feb2002

FrenchDay-ahead 30Apr2007

CzechDay-ahead 11Apr2007

HungarianDay-ahead 19Apr2010

Day-ahead peak indicesUK 17 Jan 2011

German 17 Jan 2011

French 17 Jan 2011

Czech 17 Jan 2011

Hungarian 17 Jan 2011

Weekend indicesUK 5Jan2001

German 3 May 2002

French 4 May 2007

Czech 13Apr2007

Hungarian 19Apr2010

Monthly indicesUK 1Feb1999

German 1 Jul 2001

French 1Aug2001

Czech 1 Jun 2007

Hungarian 1Apr2010

Polish 1Apr2010

Italian 1 Jan 2011


TheIndexisthevolume-weightedaverageoftransactionprices.

the uk electricity heren monthly index

TheUKElectricityHerenMonthlyIndexisamonthlyindexofvalueforelectricitytradedunderGTMAtermsandispublished by ICIS each working day in EDEM.

Expressed in £/MWh, the index is derived from actual transactionsforBaseloadelectricityforthemonthinquestion(IndexMonth).TheIndexisthevolume-weightedaverageoftransaction prices.

ThetransactionsonwhichtheIndexisbasedarethosewhichtookplaceintheEFAmonthprecedingtheIndexMonth.Thus,fortheJulyIndex,onlyentireJulydealswhichtookplaceintheJuneEFAperiodwereeligible.

the german electricity heren daily index

TheGermanElectricityHerenDay-aheadIndexvaluesBaseloadelectricitytradedforthenextworkingdayinEngland and Wales, where the market is assessed, and is published by ICIS each working day in EDEM. Separate holiday indices will be calculated for English and Welsh public holidays.

TheIndexdayisthefirstworkingdayfollowingthedateofpublication.Thus,theIndexpublishedon27JanuaryvaluesBaseloadpowertradedon27Januaryfordeliveryon28January.TheDay-aheadIndexpublishedonaFridayvaluespowertobedeliveredonMonday,oronTuesdaywhentheMonday is a public holiday in England and Wales.

TheDay-aheadIndexisavolume-weightedaverageoftransactionpricesforelectricitytobedeliveredinGermany.Expressed in €/MWh, the index is derived from actual transactionsforBaseloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weightedaverageoftransaction prices.

the german electricity heren daily peaks index

TheGermanElectricityHerenDay-aheadPeaksIndexvaluesPeakloadelectricitytradedforthenextworkingdayin England and Wales, where the market is assessed, and is published by ICIS each working day in EDEM. Separate holiday indices will be calculated for English and Welsh public holidays.

Expressed in pounds per megawatt hour (£/MWh), the index isderivedfromactualtransactionsforBaseloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weightedaverage of transaction prices.

the uk electricity heren daily peaks index

TheUKElectricityHerenDay-aheadPeaksIndexvaluesPeakloadelectricitytradedforthenextworkingdayandispublished by ICIS each working day in EDEM.

TheIndexdayisthefirstworkingdayfollowingthedateofpublication.Thus,theIndexpublishedon27MarchvaluesPeakloadpowertradedon27Marchfordeliveryon28March.TheDay-aheadPeaksIndexpublishedonaFridayvaluespowertobedeliveredonMonday,oronTuesdaywhen the Monday is a public holiday in England and Wales. Separate holiday indices will be calculated for English and Welsh public holidays.

Expressed in pounds per megawatt hour (£/MWh), the index isderivedfromactualtransactionsforPeakloadelectricity(WD3,4&5)fortheDay-aheadperiod.TheIndexisthevolume-weightedaverageoftransactionprices.

the uk electricity heren weekend index

TheUKElectricityHerenWeekendIndexispublishedbyICISeveryFriday(orthefinalworkingdayoftheweekwhenFridayisapublicholiday)inEDEM.

TheWeekendIndexisavolume-weightedaverageofdealprices for electricity to be delivered for the forthcoming weekend. It values power traded for the forthcoming weekend period over the immediately preceding working days.Thus,theIndexpublishedon,forexample,Friday6Aprilvaluespowertradedon2-6Aprilfordeliveryon7-8April.Itispublishedontheworkingdayimmediatelypriortothe Weekend period.

Becausethe‘Weekend’periodisgenerallyinterpretedwithintheUKpowermarketasreferringpurelytoSaturdayandSunday and not including any contiguous public holidays, Heren’sWeekendIndexisbasedpurelyonSaturdayandSunday deals. EDEM will include separate Indices for any public holidays that are contiguous with the weekend.

Expressed in £/MWh, the index is derived from actual transactions for baseload electricity for the Weekend period.


the german electricity heren monthly index

TheGermanElectricityHerenMonthlyIndexisamonthlyindexofvalueforelectricitytradedonamonth-aheadbasisand is published by ICIS each working day in EDEM.

Expressed in €/MWh, the index is derived from actual transactions for baseload electricity for the month in question (IndexMonth).TheIndexisthevolume-weightedaverageoftransaction prices.

ThetransactionsonwhichtheIndexisbasedarethosewhich took place in the month preceding the Index Month. Thus,fortheJulyIndex,onlyentireJulyBaseloaddealswhich took place in the June period are eligible.

the French electricity heren daily index

TheFrenchElectricityHerenDay-aheadIndexvaluesBaseloadelectricitytradedforthenextworkingdayinEngland and Wales, where the market is assessed, and is published by ICIS each working day in EDEM. Separate holiday indices will be calculated for English and Welsh public holidays.


TheDay-aheadIndexisavolume-weightedaverageoftransactionpricesforelectricitytobedeliveredinFrance.Expressed in €/MWh, the index is derived from actual transactionsforBaseloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weightedaverageoftransaction prices.

the French electricity heren daily peaks index

TheFrenchElectricityHerenDay-aheadPeaksIndexvaluesPeakloadelectricitytradedforthenextworkingdayin England and Wales, where the market is assessed, and is published by ICIS each working day in EDEM. Separate holiday indices will be calculated for English and Welsh public holidays.

TheIndexdayisthefirstworkingdayfollowingthedateofpublication.Thus,theIndexpublishedon27JanuaryvaluesPeakloadpowertradedon27Januaryfordeliveryon28January.TheDay-aheadIndexpublishedonaFridayvaluespowertobedeliveredonMonday,oronTuesdaywhentheMonday is a public holiday in England and Wales.

TheDay-aheadIndexisavolume-weightedaverageoftransactionpricesforPeakload(hours8-20)electricitytobedeliveredinGermany.Expressedin€/MWh,theindexisderivedfromactualtransactionsforPeakloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weightedaverage of transaction prices.

the german electricity heren weekend index

TheGermanElectricityHerenWeekendIndexispublishedbyICISeveryFriday(orthefinalworkingdayoftheweekwhenFridayisapublicholiday)inEDEM.


Becausethe‘Weekend’periodisgenerallyinterpretedwithintheGermanpowermarketasreferringpurelytoSaturday and Sunday and not including any contiguous publicholidays,Heren’sWeekendIndexisbasedpurelyonSaturday and Sunday deals. EDEM will include separate Indices for any public holidays that are contiguous with the weekend.

Expressed in €/MWh, the index is derived from actual transactions for baseload electricity for the Weekend period. TheIndexisthevolume-weightedaverageoftransactionprices.



ThetransactionsonwhichtheIndexisbasedarethosethattookplaceinthemonthprecedingtheIndexMonth.Thus,fortheJulyIndex,onlyentireJulyBaseloaddealsthattookplacein the June period are eligible.

the czech electricity heren daily index

TheCzechElectricityHerenDay-aheadIndexvaluesBaseloadelectricitytradedforthenextworkingdayinEngland and Wales, where the market is assessed, and is published by ICIS each working day in EDEM. Separate holiday indices will be calculated for English and Welsh public holidays.


TheDay-aheadIndexisavolume-weightedaverageoftransactionpricesforelectricitytobedeliveredintheCzechRepublic.Expressedin€/MWh,theindexisderivedfromactualtransactionsforBaseloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weightedaverageoftransaction prices.

the czech electricity heren daily peaks index

TheCzechElectricityHerenDay-aheadPeaksIndexvaluesPeakloadelectricitytradedforthenextworkingdayin England and Wales, where the market is assessed, and is published by ICIS each working day in EDEM. Separate holiday indices will be calculated for English and Welsh public holidays.

TheIndexdayisthefirstworkingdayfollowingthedateofpublication.Thus,theIndexpublishedon27JanuaryvaluesPeakloadpowertradedon27Januaryfordeliveryon28January.TheDay-aheadIndexpublishedonaFridayvalues


TheDay-aheadIndexisavolume-weightedaverageoftransactionpricesforPeakload(hours8-20)electricitytobedeliveredinFrance.Expressedin€/MWh,theindexisderivedfromactualtransactionsforPeakloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weightedaverage of transaction prices.

the French electricity heren weekend index

TheFrenchElectricityHerenWeekendIndexispublishedbyICISeveryFriday(orfinalworkingdayoftheweekwhenFridayisapublicholiday)inEDEM.


Becausethe‘Weekend’periodisgenerallyinterpretedwithintheFrenchpowermarketasreferringpurelytoSaturdayandSunday and not including any contiguous public holidays, Heren’sWeekendIndexisbasedpurelyonSaturdayandSunday deals. EDEM will include separate Indices for any public holidays that are contiguous with the weekend.


the French electricity heren monthly index

TheFrenchElectricityHerenMonthlyIndexisamonthlyindexofvalueforelectricitytradedonamonth-aheadbasisand is published by ICIS each working day in EDEM.


Sunday deals. EDEM will include separate Indices for any public holidays that are contiguous with the weekend.


the czech electricity heren monthly index

TheCzechElectricityHerenMonthlyIndexisamonthlyindexofvalueforelectricitytradedonamonth-aheadbasisandispublished by ICIS each working day in EDEM.



the hungarian electricity heren daily index

TheHungarianElectricityHerenDay-aheadIndexvaluesBaseloadelectricitytradedforthenextworkingdayinEngland and Wales, where the market is assessed, and is published by ICIS each working day in EDEM. Separate holiday indices will be calculated for English and Welsh public holidays.


TheDay-aheadIndexisavolume-weightedaverageoftransactionpricesforelectricitytobedeliveredinHungary.Expressed in €/MWh, the index is derived from actual transactionsforBaseloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weightedaverageoftransaction prices.

powertobedeliveredonMonday,oronTuesdaywhentheMonday is a public holiday in England and Wales.

TheDay-aheadIndexisavolume-weightedaverageoftransactionpricesforPeakload(hours8-20)electricitytobedeliveredintheCzechRepublic.Expressedin€/MWh,theindexisderivedfromactualtransactionsforPeakloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weighted average of transaction prices.

the czech electricity heren weekend index

TheCzechElectricityHerenWeekendIndexispublishedbyICISeveryFriday(orfinalworkingdayoftheweekwhenFridayisapublicholiday)inEDEM.


Becausethe‘Weekend’periodisgenerallyinterpretedwithintheCzechpowermarketasreferringpurelytoSaturdayandSunday and not including any contiguous public holidays, Heren’sWeekendIndexisbasedpurelyonSaturdayand

trades series published and start datesUK 10Dec1997

German 27 Sep 2000

Spanish 26Mar2001

Dutch 8 Mar 2001

French 11 Jul 2001

Czech 12Sep2006

Italian 14 Jun 2007

Hungarian 29Jun2009

Polish 29Jun2009

Slovak 29Jun2009

Romanian 19Apr2010

Serbian 19Apr2010

Belgian 18 Jan 2011

Swiss 18 Jan 2011

Turkish 3 Mar 2011



the hungarian electricity heren monthly index

TheHungarianElectricityHerenMonthlyIndexisamonthlyindexofvalueforelectricitytradedonamonth-aheadbasisand is published by ICIS each working day in EDEM.



the polish electricity heren monthly index

ThePolishElectricityHerenMonthlyIndexisamonthlyindexofvalueforelectricitytradedonamonth-aheadbasisandispublished by ICIS each working day in EDEM.



the italian electricity heren monthly index

TheItalianElectricityHerenMonthlyIndexisamonthlyindexofvalueforelectricitytradedonamonth-aheadbasisandispublished by ICIS each working day in EDEM.


the hungarian electricity heren daily peaks index

TheHungarianElectricityHerenDay-aheadPeaksIndexvaluesPeakloadelectricitytradedforthenextworkingdayin England and Wales, where the market is assessed, and is published by ICIS each working day in EDEM. Separate holiday indices will be calculated for English and Welsh public holidays.


TheDay-aheadIndexisavolume-weightedaverageoftransactionpricesforPeakload(hours8-20)electricitytobedeliveredinHungary.Expressedin€/MWh,theindexisderivedfromactualtransactionsforPeakloadelectricityfortheDay-aheadperiod.TheIndexisthevolume-weightedaverage of transaction prices.

the hungarian electricity heren weekend index

TheHungarianElectricityHerenWeekendIndexispublishedbyICISeveryFriday(orfinalworkingdayoftheweekwhenFridayisapublicholiday)inEDEM.


Becausethe‘Weekend’periodisgenerallyinterpretedwithintheHungarianpowermarketasreferringpurelytoSaturday and Sunday and not including any contiguous publicholidays,Heren’sWeekendIndexisbasedpurelyonSaturday and Sunday deals. EDEM will include separate Indices for any public holidays that are contiguous with the weekend.


calculations;theTTFforGermancalculationsastheTTFhub is currently the most liquid gas market in the region, and iswidelyusedasareferenceforGermangasprices;andtheItalianPSVforItaliancalculations(pleaseseeESGMmethodology for an explanation of how those values are reached).TheUKgaspriceinpence/therm(Britishthermalunit) is converted to £/MWh by dividing by a standard factor of2.93071.

ICISusesthestandardgas-firedplantefficiencyfactorof49.13%foritssparkspreads–anindustrystandardtoallowforefficientsparkspreadtrading–onthebasisthat100,000thermsofgascouldgenerate60MWofpower.Thesparkspread value is therefore the power price minus the gas price dividedby0.4913.

Sparkspread=powerprice-(gasprice/0.4913).

ICISalsocalculatesadditionalgas-firedplantefficiencyof52.11%toreflecttheincreasedefficiencyofnewergas-firedpowerplants,onthebasisthat55,000thermsofgascouldgenerate35MWofpower.

Dark spreads are calculated as the cost of power per MWh minus the cost of coal.

ICISusesBaseloadpowerpriceassessmentsforalldarkspreadcontracts,andCIFARAcoalswapspriceassessmentsfrom sister publication CSD (please see CSD methodology for an explanation of how those values are reached).

ThecostofcoalinUSdollarspertonneisconvertedtothelocal currency using forward rates constructed by ICIS using currencydatafromBloomberg.ThecostpertonnefigureisconvertedtoMWhbydividingby6.978–basedontheenergycontentofcoalCIFARAcoalswapsrepresent,whichis6,000kCal/kgNAR(netasreceived)–andconvertedtoMWh using conversion factors from the International Energy Agency.

ICIS calculates its dark spreads using the industry standard of35%plantefficiency.

Dark spread = power price – (((coal price converted to local currency)/6.978)/0.35)

ICIScalculatesadditionalcoal-firedplantefficienciesof38%and40%insomemarkets,toreflectincreasedefficiencyofnewercoal-firedpowerplants.

ThetransactionsonwhichtheIndexisbasedarethosewhich took place in the month preceding the Index Month. Thus,fortheJulyIndex,onlyentireJulyBaseloaddealswhich took place in the June period are eligible.

trades ICIS publishes trades it collects from market sources on adailybasis.Althoughweaimtopublishasmanytradesas possible, we can not guarantee to have all trades done during the day.

Tradesformarketscoveredweeklywillbepublishedonaweekly basis and display all deals done since the previous publication date.

spark and dark spreads ICIS calculates its spark and dark spreads as the cost of power per MWh minus the cost of the fuel needed to generatethatpower.Thecostoffueliscalculatedusingindustrystandardplantefficienciestotakeaccountofenergynot converted into electrical energy and therefore lost.

Apositivespreadmeansthatitistheoreticallyprofitableto generate electricity for the period in question, while a negativespreadmeansthatgenerationwouldbealoss-makingactivity.However,itisimportanttonotethatthespreads do not take into account additional generating charges beyond fuel and carbon, such as operational costs.

spark spreads are calculated as the cost of power per MWh minusthecostofgas.ICISusestheDay-aheadindexforDay-aheadelectricityandgasvaluesintheUKandGermany,and the midpoint of baseload power price assessments for all other calculations, except for peak spark and clean peak spark spreads, which use the midpoint of peak power price assessments.GasindicesandpriceassessmentvaluesusedatafromsisterpublicationESGM,usingtheNBPforUK


Theemissionsintensityfactoriscalculatedbydividingthecarbon dioxide equivalent emitted per MWh by the standard plantefficiency.Foracleandarkspreadfora35%efficientcoal-firedplant,theemissionsintensityfactorusedistherefore(0.34056dividedbyaplantefficiencyof0.35).

Cleandarkspread=darkspread-(emissionspricex(0.34056/0.35)).

Acleandarkspreadfora38%efficientcoal-firedplantusesanemissionsintensityfactorof(0.34056dividedbyaplantefficiencyof0.38),andacleandarkspreadfora40%efficientcoal-firedplantusesanemissionsintensityfactorof(0.34056dividedbyaplantefficiencyof0.40).

FortheUKmarket,ICIScalculatesadditionalcleansparkand dark spread values to take the carbon price support (CPS)taxonfuelsforelectricitygeneratorsintoaccount,toreflectmorerealisticgenerationcosts.Thesupportlevelisannounced two years in advance. Details can be found here: http://www.hmrc.gov.uk/climate-change-levy/carbon-pf.htm

ICIScalculatestheCPSimpactbyconvertingtheemissionspricetosterlingandaddingtheUKgovernment-designatedcarbon price support, then factoring in the relevant emissions intensity factor.

CPScleansparkspread=UKsparkspread-((emissionspriceconvertedto£)+(UKCPSlevel))x(emissionsintensityfactorof0.18404/0.4913)).

Thecleansparktocleandarkspreadsubtractsthecleandarkspreadat35%efficiencyfromthecleansparkspreadat49.13%efficiencytoshowwhichtypeofgenerationistheoreticallymoreprofitableforagivencontractperiod.Apositivespreadimpliesgas-firedgenerationwouldbemoreprofitable,whileanegativespreadimpliescoal-firedplantwouldbemoreprofitable.However,thisnumberisindicativeand does not take into account additional generating charges beyond fuel and emissions, such as operational costs.

Thecostofemissionsforclean spark spreads is calculated by multiplying the cost of carbon emissions allowances from sister publication EDCM (please see EDCM methodology for an explanation of how those values are reached), converted to local currency where necessary, and multiplied by the emissions intensity factor.

ICISusestheUKgovernmentnaturalgasconversionfactor(dating from June 2013) of 0.18404 tonnes of carbon dioxide equivalentemittedperMWhonthebasisofgrosscalorificvalue, in line with how gas is traded (http://www.transco.co.uk/services/cvalue/cvinfo.htm).

TheUKgovernmentfigurehasbeenchosenonthebasisthattheUKhasthemostliquidtradedsparkspreadmarket.UKgovernmentcarbondioxideemissionsconversion factors are issued by the Department for Environment,FoodandRuralAffairs(DEFRA):http://www.ukconversionfactorscarbonsmart.co.uk/

Theemissionsintensityfactoriscalculatedbydividingthecarbon dioxide equivalent emitted per MWh by the standard plantefficiency.Foracleansparkspreadfora49.13%efficientgasplant,theemissionsintensityfactorusedistherefore(0.18404dividedbyaplantefficiencyof0.4913).

Cleansparkspread=sparkspread-(emissionspricex(0.18404/0.4913)).

Foracleansparkspreadfora52.11%efficientgasplant,theemissions intensity factor used is (0.18404 divided by a plant efficiencyof0.5211).

Tocalculateclean dark spreads, ICIS uses the IntergovernmentalPanelonClimateChange(IPPC)emissionsconversionfactor(datingfrom2006)of0.34056tonnes of carbon dioxide equivalent emitted per MWh of powergeneratedfromcoalonthebasisofnetcalorificvalue,inlinewithhowcoalistraded.TheIPCCemissionsconversionfactorhasbeenchosenasaninternationalfiguretoreflectthecoalmarket,andtheresultingemissionsfactorisinwidespreadusewithinthepowerindustry.TheIPCCtaskforce on national greenhouse gas inventories on energy emissionsdatingfrom2006canbefoundhere:http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html

http://www.hmrc.gov.uk/climate-change-levy/carbon-pf.htm

http://www.ukconversionfactorscarbonsmart.co.uk/

http://www.ukconversionfactorscarbonsmart.co.uk/

http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html

http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol2.html


italian ipEX results:GME,theItalianelectricitymarketoperator,publishestheBaseloadandPeakresultsofits Day-aheadelectricityexchange,thePUNindex,onitswebsite.Seethemarketoperator’swebsite– www.mercatoelettrico.org – for further details.

nordic prices:PricesfortheNordicelectricitymarket(coveringNorway,Sweden,DenmarkandFinland)arereproducedfromtheNordPoolexchange’sclosingBestBuyer/BestSellerpricesforkeyBaseloadcontracts.

TheSystemPriceisanaverageDay-aheadpricebasedon bids for purchase and sale of hourly contracts and block contractsthatcoverall24hoursofthenextday.Pricesaredetermined through auction trade for each delivery hour.

NordPoolvolumeisthetotalvolumeofelectricitytradedontheNordPoolfuturesexchangeforthedayinquestion.

ApX nl hub results:TheAmsterdamPowerExchange(APX)offersDay-aheadhourlyspottradingcontracts.Theprices published are the average of these hourly prices expressedinDay(Baseload),PeakHours(8-20)andOff-Peaks(20-8)termsin€/MWh.Seetheexchange’swebsite– www.apx.nl – for further details.

Belpex Belgian hub results:TheBelgianBelpexoffersDay-aheadhourlyspottradingcontracts.Thepricespublished are the average of these hourly prices expressed inDay(Baseload),PeakHours(9-20)andOff-Peaks(1-8,21-24)termsin€/MWh.Seetheexchange’swebsite– www.belpex.be – for further details.

Austrian EXAA: TheAustrianEXAA(EnergyExchangeAustria)operatesaDay-aheadmarketoffering24hourlypowercontractsfordeliverythefollowingday.TheEXAAprices published in EDEM represent the weighted average ofthe24prices,representedastheBaseloadprice,aswellasthePeakspriceandamaximumandminimumprice.Thevolumeisthetotalvolumetradedforthefollowingday.Seethemarketoperator’swebsite– www.exaa.at – for further details.

spanish pool price:OMEL,theSpanishelectricitymarketoperator,publishesthehourlyresultsofitsDay-aheadelectricitypoolonitswebsite.TheSpanishPoolPricepublishedinEDEMrepresentstheBaseloadandPeakpriceaveragesofthehourlyprices.Seethemarketoperator’swebsite – www.omel.es – for further details.

Baseload spreads ICIS publishes the geographical spreads between markets for key contracts in map form, for western European markets covered daily and also for Central and Eastern European marketscovereddaily.ThesespreadsarebasedonICISdailypriceassessments,andreflectthepremiumofthefirst-namedmarkettothesecond-namedmarket.Ifthefirst-namedmarketisassessedbelowthesecond-named,thespread will be negative.

Themonth-ahead,frontquarterandfrontseasonspreadsbetweentheUKandFranceandtheUKandGermanyareindicativeonly,astheUKpowermarketfollowsEFAmonthpatterns rather than calendar months, so delivery periods may differ.

poWEr plAnt outAgEs

ICIS publishes a list of power plant outages across a number of key markets with, where known, the date of the outage, the reason for the outage and the estimated plant/unit restart date.

othEr DAtA

ThefollowinginformationispublishedinEDEMbutisbasedon secondary data not generated by ICIS.

Across the Market:TheAcrossTheMarkettablecomparestheDay-aheadpricesofEurope’sleadingelectricitymarkets(eitherOTC,exchangeorindex-based,varyingbycountry),publishedelsewhereinthereport.Pricesarequotedin€/MWhandarecomparedwiththepreviousday’sprices.

german Day Ahead settlement prices:TheGermanplatformoftheEPEXSpotexchangeoffersDay-aheadhourlyspottradingcontracts.ThepricespublishedarethehourlypriceofpowertradedattheexchangesforDay-aheadpowerin€/MWh.Seetheexchange’swebsite–www.epexspot.com– for further details.

powernext French Day Ahead Market:TheFrenchplatformoftheEPEXSpotexchangeoffersDay-aheadhourlyspottradingcontracts.ThepricespublishedarethehourlypriceofpowertradedattheexchangesforDay-aheadpowerin€/MWh.Seetheexchange’swebsite–www.epexspot.com– for further details.

www.mercatoelettrico.org

www.apx.nl

www.belpex.be

www.exaa.at

www.omel.es

www.epexspot.com


n2EX uk spot Market: ThistablerepresentsthesettlementpricesfortheN2EXexchange’sDay-AheadPromptindexandDayAheadMarket(DAM)Index(auction).Formoreinformationonthedatapleasevisittheexchange’swebsiteatwww.n2ex.com.

turkish pMuM data:Thistablerepresentsthetime-weightedaverageforBaseloadandPeakloadhoursusingthehourlysettlementsfromtheTurkishbalancingmarketPMUM,operatedbyTurkishelectricitytransmissionsystemoperatorTEIAS.Formoreinformationonthedata,pleasevisit www.teias.gov.tr

Weather:Pan-Europeanweatherforecastsona1-5day and6-10daybasisareprovidedtoEDEMbyWeatherServicesInternational.Formoreinformation,[email protected]’swebsite–www.wsieurope.com.

RenewableweatherforecastdataforuptosixdaysaheadareprovidedtoEDEMbySpotRenewables.com,aproductfromEuroWindGmbH.Formoreinformation,pleasevisitwww.spotrenewables.com

Methodology last updated 19 August 2013

ppX:ThePolishPowerExchange(PPX)operatesaDay-aheadmarketoffering24hourlypowercontractsfordeliverythefollowingday.ThePPXpricepublishedinEDEM represents the weighted average of the 24 prices. Thevolumeisthetotalvolumetradedforthefollowingday.Seethemarketoperator’swebsite–www.polpx.pl–forfurther details.

romanian opcoM:Romania’sOPCOMoperatesa Day-aheadmarketoffering24hourlypowercontractsfordeliverythefollowingday.TheOPCOMpricepublishedinEDEM represents the weighted average of the 24 prices. Seethemarketoperator’swebsite–www.opcom.ro– for further details.

czech otE Day-ahead:TheCzechRepublic’sOTEoperatesaDay-aheadmarketoffering24hourlypowercontractsfordeliverythefollowingday.TheOTEpricepublished in EDEM represents the weighted average ofthe24prices.Seethemarketoperator’swebsite– www.ote-cr.cz–forfurtherdetails.

uk Electricity Balancing Market system sell And Buy prices:TheUKelectricityBalancingMechanismisusedbytheNationalGridasameansofbalancingpowerflowsontoandofftheelectricitytransmissionsystem.Forfurtherinformation on the function of the balancing market and a definitionofthetermsusedinthetable,pleaserefertothewebsite www.bmreports.com.

ApX power uk spot contracts:Thesecharts,providedbyAPXUK,giveabreakdownofthepricesandvolumesforspotelectricitytradedontheexchangeonadaily,two-hourly,four-hourlyandhalf-hourlybasis.FormoreinformationonthedatapleasevisittheExchange’swebsiteatwww.apx.nl.

icE Baseload uk Electricity Futures:ThistablerepresentstheclosingpricesfortheInterContinentalExchange’s(ICE)keyUKelectricityBaseloadfuturescontracts.Formoreinformationonthedatapleasevisittheexchange’swebsiteatwww.theice.com.

Endex Dutch Electricity Futures Exchange:ThistablerepresentstheclosingpricesfortheEndexexchange’skeyDutchelectricityBaseloadandPeaksfuturescontracts.FormoreinformationonthedatapleasevisitEndex’swebsiteatwww.endex.nl.

www.n2ex.com

www.teias.gov.tr

www.wsieurope.com

www.spotrenewables.com

www.polpx.pl

www.opcom.ro

www.ote-cr.cz

www.bmreports.com

www.apx.nl

www.theice.com

www.endex.nl

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