Home » Industry » Market operation service providers » Pricing market operation service provider

Pricing market operation service provider

The Pricing Manager is the market operation service provider responsible for calculating and publishing the spot prices at which electricity market transactions are settled. Prices are derived using sophisticated models which calculate nodal prices for each trading period based on generator offer prices and quantities, demand, and system conditions. NZX is contracted as Pricing Manager.

In the wholesale electricity market, changes in demand and supply over the course of a day result in different prices for electricity during each half-hour trading period. Prices also vary by location, reflecting the costs (electrical losses and transmission constraints) of getting electricity from source (generator) to destination (consumers).

The Pricing Manager is the market operation service provider responsible for calculating and publishing the spot prices at which electricity market transactions are settled. Prices are derived using sophisticated models which calculate nodal prices for each trading period based on generator offer prices and quantities, demand, and system conditions. This information is provided to the Clearing Manager to use in the clearing and settlement processes. The Pricing Manager calculates approximately 14,000 prices every day which are published to market participants through the wholesale information and trading system (WITS).

The processes followed by the Pricing Manager in establishing prices are set out in 13 of the Code.

This page is related to: Retail and Wholesale Market.

Back to top Last updated on 14 January 2013