We calculate these rates using day-ahead wholesale energy rates, combined with region-specific charges for using the grid to transport power.
The formula is: APX * M + B + C
Where:
APX is the wholesale price of energy during that half-hour window. It refers to the APX day-ahead 30-minute wholesale price, converted to p/kWh.
M is a multiplier to account for things like power lost during transmissions, imbalances in the grid, and trading charges.
B covers grid charges that aren't specific to the time of day. This includes Balancing Services Use of System (BSUoS) and Generator Distribution Use of System (GDUoS).
C is for grid charges that are specific to the time of day, like Transmission Network Use Of System (TNUoS). C only applies during the 4-7pm peak.
There are no limits to how high or low the prices can go.