How should bilaterally traded contracts (with a floating price) and an option to fix the price be reported, once the fixing has been executed by the buyer?
Should the price fixing event be reported as lifecycle event update to the existing contract, or instead reporting the fixing as a separate ‘new’ contract?
Company X sells 20MW/h +/-10% Q116 gas to counterparty ‘XYZ’ @ TTF + 2 and counterparty ‘XYZ’ decides to fix 10MW/h Q116 at 24. We then invoice each month 10MW/h at 24 and leftover consumed gas at arithmetic average of daily TTF quotations +2.
Please see Annex II to the TRUM. In Section 2 of the annex there are several examples on how to report bilaterally traded contracts (with a floating price) and an option to fix the price that is being reported, once the fixing has been executed by the buyer.
For any of above types of optionality, such as the daily flexibility, there is no expectations of reporting on a daily or individual basis, but on an aggregated basis according to the guidance provided in Annex II to The TRUM.
Last update: 16/02/2016
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