Trading Arrangements

 

Bilateral Trading

  • 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
  • Billing
  • 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

 Financial Rules

  • 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