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### Energy Price Calculator

Whether you want to sell electricity (SELL CONTRACT) or buy electricity (BUY CONTRACT)

EnergyCalc calculates the value of your Contract against the Forecasted WESM Spot  Price, on a Base Case Scenario, for the entire contract duration.

EnergyCalc helps you:

• Quantify the risk and reward of entering into a contract

• Determine the optimal contract price

• Leverage in negotiating energy price

• Make quantitative decision in buying and selling energy

• Compare the profits of trading in the WESM from that of bilateral contracts

## STEPS:

#### 1 ## SELL CONTRACT

If SELL, EnergyCalc evaluates the REVENUE of SELLING the Hourly Demand at Contract Price for the entire contract duration.

Definition:

1. Revenue:

• At Selling Price – Revenue gained from selling the Hourly Demand at the Contract Price

• At Spot Price (Average) – Revenue from selling the Hourly Demand to the WESM at the most probable spot price

• At Spot Price (95th) – High-side Revenue from selling the Hourly Demand to the WESM. It means revenue from selling to WESM has a 5% probability to be equal or higher this amount

• At Spot Price (5th) – Downside Revenue from selling the Hourly Demand to the WESM. It means revenue from selling to WESM has a 5% probability to be equal or lower this amount

• Versus Spot Price (Average) – positive value means selling the Hourly Demand at Contract Price is more profitable than selling to WESM.

• Versus Spot Price (95th) - positive value means selling the Hourly Demand at Contract price has a 95% probability of profitability

• Versus Spot Price (5th) - negative value means selling the Hourly Demand to the WESM is more profitable than selling at the Contract Price

If BUY, the EnergyCalc Evaluates the COST of BUYING the Hourly Demand at Contract Price  for the entire contract duration:

Definition:

1. Cost:

• At Buying Price – Cost of Buying the Hourly Demand at the Contract Price

• At Spot Price (Average) – Cost of Buying the Hourly Demand from the WESM at average spot price

• At Spot Price (95th) – High-side Cost of buying the Hourly Demand from the WESM. There is a 95% probability the Cost may get lower than this amount

• At Spot Price (5th) – Downside Cost of buying the Hourly Demand from the WESM.  There is a 95% probability the Cost may get higher than this amount