Copyright © Gaffney Systems Pty Ltd - ABN 67 134 159 167
A software tool for pricing electricity contracts.
Calculating the tariff to charge a customer for electricity is not always easy:
- The quote must be competitive, but high enough to cover the retailer's costs.
- The wholesale cost that a retailer pays depends on volatile half-hourly pool prices.
- Retailers can hedge the risk of high pool prices with forward contracts, but these
are usually based on quarterly averages, while customer load varies half-hourly.
- Many customers use more electricity when demand and pool prices are high (e.g.
by running air-conditioners harder during hot weather).
Gaffprice has been designed to generate contract quotes that reflect a customer's cost to the retailer as accurately as possible.
Tariffs are fitted to the latest forward curve prices, and include a premium or discount reflecting
the customer's usage pattern and weather sensitivity.
- Features include time-of-use pricing, demand-side-management (DSM) valuation,
and pricing for caps and exotic contracts.
- The methodology has been
designed specifically for Australia's National Electricity Market (NEM), and works by:
- Breaking down historical data by time, day type, and month
- Analysing the relationship between customer load and regional demand/pool prices
- Generating each future pool price with a unique
- Creating a cost of energy which fits all relevant forward prices.
- Accuracy tests on Net System Load Profile (NSLP) data from 2003
to 2008 produce an average error of less than 0.8%.
- The user interface for Gaffprice works via a Microsoft Excel COM add-in.
This lets users work in a familiar spreadsheet format which is easy to automate.
Quote prices are generated within seconds.
For more information, or to see a demonstration, contact Sam Gaffney: