Includes Forward Curves Pricing for Base load, Spark and Clean Spark Spreads
Central, Hong Kong -- (SBWIRE) -- 08/23/2013 -- Schott OFT, a premium Hong Kong Commodities broker and Advisory, today announces the launch of 12 new price assessments aimed at bringing greater transparency to pricing in Hong Kong’s electric power sector, where over-the-counter (OTC) electricity markets have become more liquid.
“Trading activity has increased significantly in these markets. With forward-dated transactions practically doubling in the last year, the industry has been clamoring for more and faster information,” said Schott OFT Chief Editor Carol Lawers. “Our new Hong Kong base load power assessments will not only provide Hong Kong with an independent source of daily market values, but they’ll give Southeast Asia at large another baseline for price comparison.”
The price references include the following:
Schott OFT Hong Kong Base load Power Assessments – Expressed in USD per megawatt hour (MWh), these forward curve assessments reflect the value of base load electricity supplied to Hong Kong’s power grid for forward-dated delivery: month-ahead, quarter-ahead, second quarter-ahead and year-ahead.
Schott OFT Hong Kong Spark Spread Assessments – The spark spread assessments indicate the profitability of operating gas-fired power plants versus coal-fired plants. They reflect the average price difference between the cost of gas and the equivalent price of electricity on any given day. The spreads are based on month-ahead and quarter-ahead Hong Kong base load power and gas price assessments, with plant efficiency ratings of 50% and 60%.
Schott OFT Hong Kong Clean Spark Spread Assessments – The clean spark spreads represent the profit margins available to power generators after the costs of natural gas and associated carbon allowances under the Asian Emissions Trading System are taken into account. The Asian Emissions Trading System is a cap-and-trade program aimed at reducing pollution from carbon dioxide (CO2)-emitting installations.
In its electric power assessments, Schott OFT employs a market-on-close time stamping methodology, which allows for cross commodity comparisons and facilitates the commonly used mark-to-market accounting practices.
Schott OFT is a commodity broker for futures and commodity trading, which specialize in Broker Assisted trading at discounted commission rates. Schott OFT offers Discount Online futures trading account plans and Broker Assisted commodity account plans to meet the needs of serious commodity futures traders and commodity option traders.
Our mission is to provide state of the art order entry capabilities; extremely competitive commission rates and the professional service that today's futures trader’s demand. We strive to maintain our solid reputation by providing our clients with competitive rates and quality service second to none.
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