Day‐ahead and within‐day trades occur anonymously, with market participants able to post bids or offers for volumes of gas. The aggregate price traded for a specific delivery day is used to formulate a system average price (SAP).
This SAP is then used to calculate charges for shippers who do not balance their portfolio (see the section titled ‘Imbalance charges’). The OCM is open until 2:35am for any gas day, leaving just over two hours of any given day in which no trade can occur.
There are three types of trades that market participants can make on the OCM:
Title trade – this is the transfer of title of gas between market participants and takes place at the NBP. This may result in a change to the physical flow rate of gas.
Physical trade – the bid originator will identify the location(s) at which gas will be delivered, or taken, after the trade has taken place. This is the physical transfer of gas between market participants. It is designed to change the physical flow rate of gas.
Locational trade – a single entry point or exit point at which gas is bid for/offered. It is designed to change the physical flow rate of gas.
The following document forms part of a suite of documents created to provide operationally focused guidance material; the aim of which is to support Shippers in increasing their understanding of non-routine commercial tools utilised by National Grid so that Shippers can be suitably prepared and ready to participant ahead of an event.
Operational Guidance Material – Locational Trades at IP’s
If the WebICE platform (On-the-day Commodity Market) hosted by ICE Endex is unavailable to registered users, or National Grid NTS withdraws its participation, National Grid NTS may invoke contingency procedures for NBP title and locational trades.
Once requested to do so, registered OCM NTS shippers and traders should submit bids to National Grid NTS using the contingency fax proforma.
CON1 Shipper Buy-Sell Proforma
If an OCM contingency event is declared, all market offers received from valid shippers will be collated and published on this page.