Special Price Arrangements
There are two mechanisms that may result in the establishment of Special Price Arrangements.
The first mechanism results from a successful bid in respect of Certified Reserve Capacity through the Reserve Capacity Auction process. A successful bidder may take the option of a 10-year Long-term Special Price Arrangement.
A Short-term Special Price Arrangement can be established in the case where an offer is cleared in the auction but the offer price is higher than the clearing price. This could arise because a small expensive facility is accepted as providing a lower cost auction solution than accepting a low cost, but large facility. A one-year Short-term Special Price Arrangement can be granted in this case if the facility is not already covered by a Long-term Special Price Arrangement.
Under Market Rule 10.5.1(f)(vi) the IMO is required to publish the following information for each Special Price Arrangement in place:
- the amount of Reserve Capacity covered;
- the term of the Special Price Arrangement; and
- the Special Reserve Capacity Price applicable to the Special Price Arrangement,
where this information is to be current as at, and published on, January 7th of each year.
There are currently no Special Price Arrangements in place.