A client has sold gas and they want to capture it in their ETRM system. The...

 

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A client has sold gas and they want to capture it in their ETRM system. The gas deal is priced against a formula based on oil prices of the form: PGas = 0.062* PGasoil + 0396*PFuel Oil: The deal is for 6 months with deliveries starting October 2018. Payments are done on monthly basis- with a due date of 20 days after delivery for the month is done. There is a minimum delivery quantity per month of 1000 MWh. If the client takes less than this amount, they pay 85% of the final price for the month (the so called Take or Pay clause). a. What functionalities do you need in the system in order to be able to capture the trade correctly? In other words what an ETRM system should be able to do in order for this contract to be sensibly captured in it? b. Assume the deal is captured and the calculated payment for Nov 2018 is wrong. Give two examples of things that could have gone wrong? A client has sold gas and they want to capture it in their ETRM system. The gas deal is priced against a formula based on oil prices of the form: PGas = 0.062* PGasoil + 0396*PFuel Oil: The deal is for 6 months with deliveries starting October 2018. Payments are done on monthly basis- with a due date of 20 days after delivery for the month is done. There is a minimum delivery quantity per month of 1000 MWh. If the client takes less than this amount, they pay 85% of the final price for the month (the so called Take or Pay clause). a. What functionalities do you need in the system in order to be able to capture the trade correctly? In other words what an ETRM system should be able to do in order for this contract to be sensibly captured in it? b. Assume the deal is captured and the calculated payment for Nov 2018 is wrong. Give two examples of things that could have gone wrong?

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