- Trading arrangements mutually agreed between bilateral parties
- Volumes and Prices are the key parameters
- Transmission path to be secured in advance
- Can be firm or non firm
- Firm contracts
- Have penalties for non delivery and
- Generally not interruptible – reliability premium
- Non Firm contracts
- Are interruptible with notice
- If notice given, no penalties
- Generally less than 75% reliable.
Billing and Settlement of Bilateral trades in SAPP
- Pricing of Bilateral contracts
- The parties agree to both capacity and energy charges.
- The prices are negotiated by both parties.
- Wheelers are notified and confirm path
- Direct billing from seller to buyer.
- Billing is on schedules and not on actuals.
- Metering and settlement
- Actual meter readings done on monthly basis.
- Inadvertent energy management is done using SAPP agreed methodology
- Currency of Bids: Bids and the published settlement amounts shall be in either South African Rands or the United States Dollars
The Dollar/Rand exchange rate used shall be the mid rate of exchange as quoted by the SAPP appointed clearing bank in Gaborone, Botswana at 8:30am everyday.
- Prices: Prices in USD or ZAR will be given up to two decimal points by the Market Operator.
- Security Requirements : The Market Operator shall open security accounts for all participants in its name at Stanbic Bank, Botswana