Indicative prices are prices that are forecast ahead of time and give participants valuable information on when and how best to use electricity. These prices are forecast by the System Operator using the scheduling, pricing and dispatch model and take into account the expected state of the electricity system, generator offers and purchaser bids (or in some cases a forecast of demand). Forecast prices are calculated every two hours for every node for each half hour trading period up to 36 hours ahead of time. Five-minute indicative prices, often called “real-time prices”, are calculated at the end of each five-minute period for every node. They take into account the conditions of the power system at the beginning of the relevant five-minute period.
Final prices are used for the settlement of trades between suppliers and wholesale purchasers (retailers and major industrial consumers). Final prices affect the price consumers pay for their electricity. Final prices can fluctuate a lot depending on competitor behaviour and market conditions.
This page is related to: Retail and Wholesale Market.