Singapore Electricity Market Rules
Appendix 7C
1 January 2017
APPENDIX C – ADDITIONAL EXIT FEE
AFFECTED FORWARD SALES CONTRACTS
Energy
Market
Authority
FOR
C.1
PURPOSE AND DEFINITIONS
C.1.1
This Appendix sets out the calculation methodology for the additional exit
fee for affected forward sales contracts as contemplated in section 3.6B
of Chapter 7, as well as the procedures and timeline for the making of
payments in respect of the affected forward sales contracts and the
making of payments to the MSSL counterparty.
C.1.2
In this Appendix:
C.1.2.1
“applicable settlement account” means a settlement account
referred to in section 2.7.7.3.a or 2.7.9 of Chapter 7, in respect
of a given affected forward sales contract holder;
C.1.2.2
“base FSQhb” means the applicable base forward sales contract
quantity (in MWh) allocated for each settlement interval h for
applicable settlement account b, submitted to the EMC by the
MSSL counterparty under section 2.7.7.3.b or 2.7.9 of Chapter
7;
C.1.2.3
“calendar quarter” means a three calendar month period
commencing on (and including) the first day of either January,
April, July or October;
C.1.2.4
“CCQ(end)”, in respect of a given affected forward sales
contract, means the end of the last day of the current calendar
quarter in respect of that affected forward sales contract;
C.1.2.5
“CCQ(end)+Y”, in respect of a given affected forward sales
contract, refers to the Yth business day after CCQ(end) of that
affected forward sales contract;
C.1.2.6
“current calendar quarter” or “CCQ”, in respect of a given
affected forward sales contract, means the calendar quarter in
which the ED for that affected forward sales contract falls;
C.1.2.7
“ED”, in respect of a given affected forward sales contract,
refers to the effective date notified to the EMC by the MSSL
counterparty in accordance with section 2.7.7 of Chapter 7;
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Singapore Electricity Market Rules
Appendix 7C
1 January 2017
Energy
Market
Authority
C.1.2.8
“final additional exit fee statement” or “FEFS”, in respect of an
affected forward sales contract holder, means the EMC’s final
statement of the additional exit fee to be paid by the affected
forward sales contract holder in respect of its affected forward
sales contract;
C.1.2.9
“FSPhb” means the forward sales price provided by the MSSL
counterparty to the EMC under section 2.7.2 or 2.7.4 of
Chapter 7 in respect of a given settlement interval h for
applicable settlement account b;
C.1.2.10 “FSQhb” means the forward sales quantity (in MWh) provided
by the MSSL counterparty to the EMC under section 2.7.2 or
2.7.4 of Chapter 7 in respect of a given settlement interval h for
applicable settlement account b;
C.1.2.11 “FSRPhb” means the forward sales contract reference price as
determined in accordance with the formula set out in section
3.6A.1 of Chapter 7 in respect of a given settlement interval h
for applicable settlement account b. In the event that the FSRP
for applicable settlement account b for a given settlement
interval h cannot be determined in accordance with such
formula, the FSRPhb shall be the market support services
licensee’s VCRPhk for settlement interval h. VCRPhk shall be
determined in accordance with section 3.6A.1 of Chapter 7;
C.1.2.12 “preliminary additional exit fee statement” or “PEFS”, in
respect of a given affected forward sales contract holder,
means the EMC’s preliminary statement of the additional exit
fee to be paid by that affected forward sales contract holder in
respect of its affected forward sales contract;
C.1.2.13 “Proportionhb” means the applicable proportion referred to in
section 2.7.7.3.c or 2.7.9 of Chapter 7 for a given affected
forward sales contract holder to be applied to the forward sales
quantity and the base forward sales contract quantity of
applicable settlement account b for settlement interval h; and
C.1.2.14 the use of notation “b” in respect of any value or item is a
reference to the value or item for a given applicable settlement
account b.
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Singapore Electricity Market Rules
Appendix 7C
1 January 2017
Energy
Market
Authority
C.2
CALCULATION OF ADDITIONAL EXIT FEE PAYABLE
AFFECTED FORWARD SALES CONTRACT HOLDER
C.2.1
For an affected forward sales contract holder, the additional exit fee
(AEF) referred to in section 3.6B.1 of Chapter 7 is the additional forward
sales contract payment received or receivable (APR) multiplied by a
factor of 1.1, and shall be calculated as follows:
BY AN
AEF = 1.1 × APR
where:
APR = MAX{0, ∑b∑h [(FSPhb – FSRPhb) × Proportionhb × (FSQhb –
base FSQhb)]}
where:
∑h = sum over all settlement intervals h from the start of 1
July 2015 to CCQ(end)
∑b = sum over all applicable settlement accounts b
C.2.2 The EMC shall calculate, in accordance with the formula in section C.2.1
and the timeline set out in section C.3.1, the additional exit fee referred to
in section 3.6B.1 to be paid by an affected forward sales contract holder to
the EMC.
C.3
ADDITIONAL EXIT FEE TIMELINE
C.3.1
The timeline for the calculation, verification, collection and disbursement
of the additional exit fee referred to in section 3.6B of Chapter 7 and this
Appendix 7C is set out in the following table:
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Appendix 7C
1 January 2017
Day
Energy
Market
Authority
Event
By CCQ(end)+6
Time of
Day
By 20:00
By CCQ(end)+7
Provided By
Provided To
Frequency
The EMC to calculate, in accordance with section C.2, EMC
the additional exit fee due from an affected forward
sales contract holder to the EMC. The EMC to issue the
PEFS for this amount to the affected forward sales
contract holder.
Affected forward
sales contract
holder
Once
By 17:00
An affected forward sales contract holder, to whom a
PEFS is issued, to notify the EMC of any disagreement
with the additional exit fee stated in its PEFS (whether
due to errors therein or otherwise) and request for the
EMC to recalculate this amount.
EMC
As required
By CCQ(end)+9
By 20:00
The EMC to notify the affected forward sales contract EMC
holder, which duly submitted a notice of disagreement,
of its determination in respect of the affected forward
sales contract holder’s notice of disagreement.
Affected forward
sales contract
holder which duly
submitted a notice
of disagreement
As required
By CCQ(end)+10
By 20:00
The EMC to issue the FEFS to the affected forward EMC
sales contract holder.
Affected forward
sales contract
holder
Once
Affected forward
sales contract
holder to whom
the PEFS is issued
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Singapore Electricity Market Rules
Appendix 7C
1 January 2017
Day
By 20th day after
CCQ(end)
(subject to
business day
convention)
Energy
Market
Authority
Time of
Day
By 17:00
Event
By 17:00
Provided By
Provided To
Frequency
The affected forward sales contract holder to pay the Affected forward
additional exit fee specified in its FEFS.
sales contract
holder
EMC
Once
The EMC to pay the MSSL counterparty the amount of EMC
the additional exit fee that the EMC received from the
affected forward sales contract holder (less the service
fee referred to in section 3.6B.3 of Chapter 7).
MSSL counterparty
Once
Such day shall be
referred to as “the
affected forward
sales contract
holder payment
date”.
By one day after
the affected
forward sales
contract holder
payment date
(subject to
business day
convention)
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Singapore Electricity Market Rules
Appendix 7C
1 January 2017
Energy
Market
Authority
C.3.2
The EMC shall issue to each affected forward sales contract holder, the
preliminary additional exit fee statement in respect of the additional exit
fee to be paid by the affected forward sales contract holder to the EMC in
accordance with the timeline set forth in section C.3.1.
C.3.3
An affected forward sales contract holder who is issued with a
preliminary additional exit fee statement pursuant to section C.3.2, shall
notify the EMC of any disagreement with the additional exit fee stated in
its preliminary additional exit fee statement (whether due to errors therein
or otherwise) and request for the EMC to recalculate the additional exit
fee in accordance with the timeline set forth in section C.3.1.
C.3.4
The EMC shall notify the affected forward sales contract holder of its
determination in respect of any affected forward sales contract holder’s
notice of disagreement submitted pursuant to section C.3.3, in accordance
with the timeline set forth in section C.3.1.
C.3.5
The EMC shall issue to each affected forward sales contract holder, the
final additional exit fee statement in respect of the additional exit fee to be
paid by the affected forward sales contract holder to the EMC,
incorporating all appropriate corrections (if any), in accordance with the
timeline set forth in section C.3.1.
C.3.6
Each affected forward sales contract holder that receives a final
additional exit fee statement pursuant to section C.3.5 shall pay the
additional exit fee stated therein, in accordance with the timeline set forth
in section C.3.1.
C.3.7
The EMC shall pay the MSSL counterparty the amount of the additional
exit fee that the EMC received from the affected forward sales contract
holder pursuant to section C.3.6 (less the service fee referred to in section
3.6B.3 of Chapter 7), in accordance with the timeline set forth in section
C.3.1.
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