Term – Ahead marketing is also include a process just like day-ahead marketing. In this it includes following step:

  • Bid Entry
  • Bid Validation
  • Bid Matching
  • SLDC Clearance
  • Margin Collection
  • SLDC Clearance received by IEX
  • IEX submits of Nodal RLDC
  • RLDC Acceptance
  • Final settlement

These are the steps that are involved in term-ahead marketing that we will discuss in brief here:

  • Bid Entry : The members will place bids on behalf of the client.
  • Bid Validation : After the bid entry process the bids will received to exchange placed by the member will be validated on basis of volume and piece.In volume it will be checked as if the client is equating the volume he can buy (This will be checked from the clearance from SLDC) and in Piece whether the client has sufficient funds in his settlement account against the volume requested to purchase.
  • Bid Matching : After bid validation next step come bid matching an equilibrium piece will be calculated for each time slot . This will be depend upon the demand & supply.
  • SLDC clearance : After matching bids the member will be responsible for submitting the clearance from the SLDC (Buyer/seller). The bid will only be accepted only if the client has SLDC otherwise the bid will be rejected.
  • Margin Clearance :The PX will use the funds in the settle account of the client against the value of bid received.
  • SLDC clearance received by IEX : Once the piece are calculated the IEX will request clearance from the SLDC provided by the member in respect to the product request by the client.
  • IEX submit of Nodal RLDC :The injection schedule will be submitted by IEX to the respective RLDC
  • RLDC Acceptance : RLDC will accept the schedule sent by IEX and implement the same.
  • Final Settlement : The IEX will deduct the amount from the account of the client against the power purchase on MCP.