Strike Price Adjustment (SPA) Guidance - March 2024
Posted 27.03.2024
This guidance is intended to help generators understand the series of calculations that result in a Generators annual adjusted Strike Price.
- Purpose and Scope: The document provides guidance on Strike Price Adjustments (SPA) for generators with Contracts for Difference (CfD) and Investment Contracts (IC), detailing the annual calculation process of SPA.
- Calculation Process: It includes the Indexation Adjustment, Balancing System Charge Strike Price Adjustment (BSCSPA), and Transmission Loss Multiplier for Delivered Volume (TLM(D)) Strike Price Adjustments, using publicly available data sources.
- Illustrative Examples: Definitions and illustrative examples are provided to aid understanding, ensuring that generators can accurately apply the guidance to their specific circumstances.
- Non-binding Advice: The guidance is non-binding and subject to change, with disclaimers advising generators to consult professional advisors for financial, tax, legal, or other advice, and regarding the accuracy and completeness of the information provided.
As for the updates from the previous version, the document now includes more detailed illustrative examples and emphasises the use of publicly available data sources for the calculation of SPAs. It also reinforces the advisory nature of the guidance and the importance of consulting professional advisors, reflecting a more user-friendly approach to assist generators in understanding and applying the SPA process.
SPA Guidance