Currency and accounts
The settlement of trades is done in the same currency as trading has been carried out in. The currencies that are available are EUR, NOK, SEK and DKK. In order to trade in a specific currency a pledged/non-pledged account in that currency is required. The account has to be in a settlement bank approved by Nord Pool Spot AS.
Banking
The settlement of physical power contracts is dependant on electronic banking information. All charges or credits to a participants account are carried out automatically. The information is transmitted from Nord Pool Spot AS to Nordea Norge, who in turn sends the approprite information to all approved settlement banks. Nord Pool Spot AS also receives daily account balances on the accounts of all participants. This information is also transmitted to Nord Pool Spot AS electronically.
Daily settlement
All trades are settled daily. The settlement schedule gives a schematic overview of a normal weeks settlement cycles. The statements are sent out as pdf attachments to emails. The statements are encrypted and a password is required in order to open the statements. Trades conducted on non banking days are invoiced on the following banking day.
All invoices and credit notes state the net amount that is due for all trading days included in the statement.
Invoices are due with value date on the first banking day following the relevant trading day. Funds to cover the invoices must be available in the participants bank account before 11:00 on that day.
Credit notes are paid out with value date three banking days after the relevant trading day. Credit notes are paid out to the participants pledged/non-pledged account.
Cash flow
Invoice due dates are identical to the Elspot market’s power contract delivery date (for all banking days); payment of credit notes takes place two days later. Elbas market settlement will feature settlement of invoices 2 days after contract delivery date; credit notes are paid four days later. The following table shows Elspot and Elbas settlement for a week without public or bank holidays.
Elspot
| T/day |
Mon |
Tues |
Wednes |
Thurs |
Fri |
Sat |
Sun |
Mon |
Tues |
Wednes |
Thurs |
| 1 |
Trade |
Trade |
Trade |
Trade |
Trade |
Trade |
Trade |
Trade |
|
|
|
| 2 |
|
Debit |
Debit |
Debit |
Debit |
|
|
Debit |
Debit |
|
|
| 3 |
|
|
|
|
|
|
|
|
|
|
|
| 4 |
|
|
|
Credit |
Credit |
|
|
Credit |
Credit |
Credit |
Credit |
Elbas
| T/day |
Mon |
Tues |
Wednes |
Thurs |
Fri |
Sat |
Sun |
Mon |
Tues |
Wednes |
Thurs |
| 1 |
Trade |
Trade |
Trade |
Trade |
Trade |
Trade |
Trade |
Trade |
|
|
|
| 2 |
|
|
Debit |
Debit |
Debit |
|
|
Debit |
Debit |
Debit |
|
| 3 |
|
|
|
|
|
|
|
|
|
|
|
| 4 |
|
|
|
|
Credit |
|
|
Credit |
Credit |
Credit |
Credit |
Same colours are in the same settlement cycle.
Same colours are invoiced on the same day.
Daily routines
This is a description of routines for settlement of trades conducted via Nord Pool Spot on a typical trading day follows; the events are listed by day, and time of day.
Day 0 — trading day
12:00 CET:
Nord Pool Spot AS determines the day’s trading results at the Elspot dayahead power market. Physical delivery of the Elspot contracts takes place the following day.
14:00 CET:
Deadline expires for filing complaints about the day’s Elspot trades; contracts become legally binding.
14:00 – 16:00 CET:
Nord Pool Spot AS conducts settlement of physical- market trade and dispatches invoices/credit to participants.
Day 1 — delivery day and invoice due date
07:30 – 08:00 CET:
Participants and Trading and Clearing Representatives receive Security reports that include account balances and excessive/required on their accounts, and the accounts of clearing customers.
08:00 CET:
Nord Pool Spot AS submits electronic payment files for execution by settlement banks for the following transactions:
(i) Debiting of participants’/clearing customers’ cash accounts at the various settlement banks.
(ii) Crediting of participants’/clearing customers’ cash accounts.
No later than 11:00 CET:
Any cash account reported to Nord Pool Spot as holding insufficient funds must have at least the minimum required balance available for disposal by 11:00; confirmation must be sent by the settlement bank to Nord Pool Spot AS that the cash account balance is at least equal to the participant’s Total Cash Requirement (the required settlement amount plus any collateral amount).
Day 2 — currency translation
Currency transactions entered into on the trading day (Day 0) are settled. Physical-delivery power contracts traded via Nord Pool Spot can be bid and settled in NOK, SEK, DKK, or EUR. Participants pay and receive settlement for power contracts in the same currency used in their bidding. Exchange rate risk in settlement is eliminated daily through foreign exchange transactions in the appropriate currencies. The exchange rates of Nord Pool Spot currency 5 transactions are applied as the physical market’s official delivery day currency rates.
Day 3 — payment of credit notes
Payment in settlement of trades conducted on Day 0.