Australian Power Indices
The methodology of selecting the component futures contracts for inclusion in both the NPI and the EPI index has been determined on the basis of contract liquidity and open interest.
1. National Power Index (NPI)
The NPI is calculated as the Australian National average price of d-cyphaTrade ASX Electricity Futures contracts covering a calendar year and will be quoted for all available calendar years listed including the prompt with a cascading expiry. It represents a single national basket of electricity futures listed across the National Electricity Market (NEM) regions of NSW, VIC, SA and QLD.
The NPI is the average base load price of electricity across NSW, VIC, SA and QLD. It includes the 4 consecutive futures quarters which make up a calendar year, in each calendar year listed on the SFE including the prompt. Each calendar year NPI therefore represents the average MWh-weighted price of 16 component quarterly futures contracts with a combined minimum energy coverage of 35,040 MWh for each year. The prompt calendar year NPI may incorporate official cash settlement prices of expired quarters and non-expired futures quarters across the year.
2. Eastern Power Index (EPI)
The EPI is calculated as the Australian Eastern Seaboard average price of d-cyphaTrade ASX Electricity Futures contracts covering a calendar year and will be quoted for all available calendars listed including the prompt, with a cascading expiry. It represents a single basket of the most liquid electricity futures listed across the National Electricity Market (NEM) Eastern Seaboard regions of NSW, VIC and QLD.
The EPI represents the average base load price of electricity across the 3 most liquid regions of the NEM (NSW, VIC and QLD). It includes the 4 consecutive futures quarters which make up a calendar year, in each calendar year listed on the SFE including the prompt. The EPI therefore represents the average MWh-weighted price of 12 component quarterly futures contracts with a combined minimum energy coverage of 26,280 MWh for each year. The prompt calendar year EPI may incorporate official cash settlement prices of expired quarters and non-expired futures quarters across the year.
METHODOLOGY
The Index prices are calculated by taking the MWh-weighted average price of the component base load futures contract prices, rounded to 2 decimal places. 16 quarterly futures prices will be used to calculate a NPI and 12 quarterly futures prices will be used to calculate an EPI. An EPI and NPI is published by d-cyphaTrade daily, for each consecutive calendar year out to 4 years ahead
Worked example: Australian Power Index daily price calculation for the 28th January 2009 using official daily SFE settlement prices of underlying futures contracts as at 28th January 2009:-
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