Metering, settlement and prudentials

Suppose two intervals have exports of 1 and 3 MWh at A$20 and A$100/MWh. Receipts are A$20 + A$300 = A$320. The output-weighted price is A$320/4 = A$80/MWh. The simple price average is A$60/MWh and would underestimate receipts if multiplied by total generation in this example.

Align quantities and prices by interval, location and the appropriate market record. Do not join only by date or displayed clock hour. Price series, meter data and settlement calculations can have different statuses or revisions; apparent precision does not compensate for incorrect keys or boundaries.

A missing meter value is not evidence of zero energy. Preserve data-quality and substitution flags and follow the documented estimation or correction process for the relevant application. If a revised interval changes from 3 to 3.5 MWh at A$200/MWh, the energy-only movement is A$100; retain both versions and explain the difference.

Apply loss or allocation adjustments only with a verified definition and direction. A teaching formula that multiplies 10 MWh by 0.95 and A$100/MWh yields A$950, but actual arrangements cannot be inferred from that arithmetic alone. Distinguish measured physical losses, defined settlement factors and contractual allocation. Avoid double-adjustment when a provided quantity already includes a factor.

Build a bridge from raw intervals to energy subtotals, then to each remaining component of the statement. Preserve billing period, run identifier, version, units, price source and component definitions. Investigate a discrepancy rather than forcing a total to match by inserting an unexplained balancing entry.

Before aggregating, test record uniqueness and join cardinality. A duplicated join can double both volumes and money while leaving a smooth-looking chart. Reconcile row counts, interval coverage and independent totals. Separate a corrected settlement result from a forecast or prudential estimate and retain the dates when information became available.

A participant can have positive expected profit and still lack cash or eligible credit support at a required time. In a toy account, A$1.2m of support against A$0.9m of assessed exposure leaves A$0.3m simple headroom. This arithmetic is not the actual NEM prudential formula or a regulatory action threshold; consult current AEMO materials for those requirements.

Map the dates of market invoices, hedge receipts and payments, collateral changes and available funding. A hedge that pays after an invoice falls due may reduce economic price risk but leave a funding gap. Stress price and volume shocks together with payment timing. Do not extrapolate a smooth daily exposure increase into a guarantee that trading can continue until a simple headroom ratio reaches zero.

Your pack should include an immutable copy or traceable reference for each source, a data dictionary, transformation steps, reconciliation checks, an exceptions register and a component-by-component explanation. Record the person responsible for resolving material differences and the evidence needed before sign-off.

Keep NEM and WEM methods separate and verify the current instrument, participant category and statement definition before asserting an obligation. Online learning examples cannot establish an actual participant's legal liability or prudential compliance. Connect this topic to energy units, dispatch, contract cash flows and market-data quality, then use official guidance for the specific operational task.