The Value of Lost Load, The Market Price Cap and Floor - Decision Paper

The Regulatory Authorities are required under the Trading and Settlement Code to determine various administered prices, namely the value of lost load (VOLL); the market price cap (PCAP); and the market price floor (PFLOOR).

The RAs published a consultation paper (AIP-SEM-07-381) on 2nd July inviting comments on their proposal to set VOLL and PCAP at €10,000/MWh and PFLOOR at minus €500/MWh.

A number of responses to the consulation were received. On the 18th September the RAs published these responses and a Response and Decision Paper.