✨ Electricity Transaction Provisions
22 DECEMBER 2010 NEW ZEALAND GAZETTE, No. 177 4369
(4) Additional provisions relating to options: If the relevant Form of Confirmation is for an electricity option, then the Cash Settlement Amount ("CSA") shall be determined in respect of each Calculation Period in each Month in respect of which the option is exercised or deemed exercised in accordance with the following formula:
CSA = Notional Quantity X Strike Price
Differential
where the Strike Price Differential is a price, expressed as a price per Unit, equal to:
(a) If the option is a Put Option, the excess, if a positive number, of the Strike Price over the Floating Price; and
(b) if the option is a Call Option, the excess, if a positive number, of the Floating Price over the Strike Price.
The aggregate of such CSAs shall be paid by the Seller to the Buyer on the Settlement Date for the relevant Calculation Period. For the avoidance of doubt, Sections 8.7 and 8.8 of the 2005 Definitions shall not apply to any electricity option Transaction.
(5) Corrections to Floating Price: Unless otherwise specified in the relevant Confirmation, if any Floating Price used by the Calculation Agent to determine any payment in respect of any Calculation Period for any Transaction is subsequently amended under the Code then:
(a) either party may notify the other party of that amendment;
(b) as soon as practicable after that notification, the Calculation Agent shall recalculate the payments payable in respect of each relevant Calculation Period on the basis of the amended Floating Price, and advise the parties of the amount payable as a result of the amendment and recalculation, together with the identity of the party required to make the payment; and
(c) within 5 Business Days of such notification, the party obliged to make the payment shall pay the relevant amount to the other party, together with interest at the Non-default Rate from (and including) the relevant Settlement Date for the relevant Transaction until (but excluding) the date of actual payment.
For the avoidance of doubt, Section 7.3 of the 2005 Definitions shall not apply to any Transaction.
(6) Temporary unavailability of Floating Price: If, on any Settlement Date, the Floating Price for any Calculation Period is not available, then:
(a) the Calculation Agent shall calculate the amount payable by the relevant party on the basis of a provisional price for electricity:
(i) determined under Part 13 of the Code (or its successor) for the relevant Grid Reference Point for that Calculation Period; or
(ii) if there is no such provisional price, determined by the Calculation Agent acting in good faith,(the amount payable by one party to the other being the "Provisional Amount"), and the parties shall settle the Transaction on the basis of the Provisional Amount; and
Next Page →
NZ Gazette 2010, No 177
✨ LLM interpretation of page content
🏭
Agreement Clauses and Definitions
(continued from previous page)
🏭 Trade, Customs & IndustryElectricity, Transactions, Definitions, Confirmation, Averaging Period, Calculation Period, Code, Commodity, Exchange, Fixed Price, Floating Price, Grid Reference Point, Month, Notional Quantity, Price Source, Pricing Date, Settlement Date