Power – Forecast Period Lock (FPL) Process – March 2023
Every six months, under the current TEC Power Framework we run a process to complete the purchase of all of your shaped energy.
In the absence of a shape market, prior to the start of delivery TEC buys your baseload (flat energy requirement) power requirements for each season to 100% of forecast consumption. Since January the TEC team have been working on updating the site lists and volumes with your supplier EDF to make the forecast as accurate as possible – this process was completed in March.
Through March TEC locks in the remaining residual volume (the shaped energy requirement) in order to provide budget certainty for the next six-month period. This residual volume is based on the “shape” of each of the TEC baskets and is calculated by the supplier.
The residual volume is then priced by the supplier – this is known as the “Residual Quote”. This price is calculated on the purchase of power for the periods where we may need to buy extra volume above the baseload or the reverse and sell volume for periods where consumption is below the baseload.
Once the quotes have been received, checked and accepted by the TEC team, the supplier is able to lock the residual price for the season. This process was completed in early March.
The new season rates are being calculated by EDF and will be available to Members on the View platform in early April.