The Value of Lost Load, the Market Price Cap and Market Price Floor
On the 2nd July, the Regulatory Authorities (RAs) published a consultation paper on the Value of Lost Load, the Market Price Cap and Market Price Floor. The Trading and Settlement Code requires the RAs to determine various administered prices, namely the value of lost load (VOLL); the market price cap (PCAP); and the market price floor(PFLOOR).
This consultation paper discussed the roles that these administered prices play in the SEM, the various factors that might affect the RAs decision on what value to set these prices at; and makes proposals.
Comments on this paper should be sent to James Curtin (jcurtin@cer.ie) and to Tony Doherty (tony.doherty@niaur.gov.uk) to arrive no later than noon on Friday 27th July 2007.