**Update** Calculation of Strike Price
Affected Period
Status
Closed
Category
Balancing
Run type
Created
08/03/2022 17:34
Last Updated
11/03/2022 15:26
Thank you for submitting feedback please find the latest update from the SEM Committee in relation to this matter here.
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Market Participants are invited to provide comments with supporting data and documentation where available before 10th March 2022 13:00 to info@sem-o.com
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Dear Market Participant
In accordance with the Market Operator obligation under the T&SC Section
F.16.2 'Calculation of Strike Price' and approved methodology communicated at
the PT Call on 07/10/2021, SEMO calculated the Strike Price(PSTRm) for March
2022 as 755.47 Euros based on inputs available
as of 25/02/22.
A number of Participants have
requested the Regulatory Authorities that an exception is made for SEMO to
urgently re-calculate the March Strike Price to reflect the sudden rise in gas
prices driven by the international situation. This will be subject to SEMC
approval.
The standard calculation process would apply, with refreshed inputs for ICE
UK Natural Gas Futures Price (PFUELNGm), ICE EUA Futures (PCARBONm) and Platt's
daily assessment price for 1% FOB NWE Cargoes Fuel Oil (PFUELOm).
Due to system restrictions, the updated Strike Price would be effective for
all settlement dates from the 1st March inclusive. March 2022 Initial Settlement publications already issued
would reference the agreed Strike Price at M4 Resettlement.
As an example, based on today's input values below, this would result in an indicative recalculated Strike Price of EUR 1432.90*.
PSTR PARAMETER |
INDEX VALUE |
INDEX EUR VALUE |
PCARBONm |
64.99 EUR/tCO2e |
64.99 EUR/tCO2e |
PFUELNGm |
489.89 £p/therm |
586.25 EURc/therm |
PFUELOm |
714.00 $/t |
635.16 EUR/t |
Market Participants are invited to provide
comments with supporting data and documentation where available before 10th
March 2022 12:00 to info@sem-o.com
If confidentiality is required,
this should be made explicitly clear in the response.
Please note that all responses will be collated and provided to the
Regulatory Authorities (RAs) to inform their approval or rejection of these
potential changes to the March Strike Price.
*This does not represent a
forecast of actual electricity price but rather a parameter used as a reference
price for a number of calculations within the balancing and capacity markets.