Prices and Costs
Displayed are the frequently asked questions regarding "Prices and Costs".
How will the price be determined?
A price will be formed when more capacity than available is asked for. The price will be the price of the lowest accepted bid. An example is displayed below:
1 Example Price determination
The following bids (table 1) have reached TSO Auction BV. Available capacity is 800 MW.
| MW | Price |
| Bidder A | 150 | € 5,00 |
| Bidder B | 300 | € 2,50 |
| Bidder C | 50 | € 6,00 |
| Bidder D | 275 | € 4,00 |
| Bidder E | 400 | € 9,00 |
Table 1 all incoming bids
The bids are ranked (table 2) looking at the prices offered.
| Bidder | MW | Price |
| Bidder A | 400 | € 9,00 |
| Bidder B | 50 | € 6,00 |
| Bidder C | 150 | € 5,00 |
| Bidder D | 275 | € 4,00 |
| Bidder E | 300 | € 2,50 |
Table 2 ranked bids
800 MW - 400(Bidder E)= 400 MW (400 MW is still to be divided)
400 MW - 50(Bidder C)= 350 MW
350 MW - 150(Bidder A)= 200 MW
200 MW - 275(Bidder D)= -75
The price will be the price offered by bidder D . That bidder made the last (partial) accepted offer. So the price for all participants will be € 4,00 (figure 1).
What if 2 participants asked capacity for the same price and there is not enough capacity left for both of them?
Example Division capacity pro rata
The Following bids (table 3) have reached TSO Auction BV and are ranked based on price.
Available capacity is 800 MW.
| Bidder | MW | Price |
| Bidder E | 400 | € 9,00 |
| Bidder C | 50 | € 6,00 |
| Bidder A | 150 | € 4,00 |
| Bidder D | 275 | € 4,00 |
| Bidder B | 300 | € 2,50 |
table 3 ranked bids
figure 2 Price determination Pro Rata
800 MW - 400(Bidder E)= 400 MW (400 MW is still to be divided)
400 MW - 50(Bidder C)= 350 MW
Bidder A wants 150 MW (150/(150+275)*350MW=123.53 We truncate the amount so Bidder A will obtain 123 MW for a price of € 4,-)
Bidder D wants 275 MW (275/(150+275)*350MW=226.47 We truncate the amount so Bidder B will obtain 226 MW for a price of € 4,-)
How is it possible that all capacity is divided but no price has been formed?
In this case the participants have bid to obtain capacity for a price of € 0.-.
How is it possible that not all capacity is divided but a price has been formed?
This is possible when 2 participants or more offer the same price and this price is the price of the lowest accepted bid. In that case the remaining capacity will be divided pro rata, but only whole MW will be obtained.
How is it possible that I have bid the same price as mentioned on the website but I have not obtained capacity?
In this case more bids at that price were entered so because of the pro rata division less than one unit MW came free for each bid. The Auction Office only allocates unit of one MW.
Will there be extra fees on imports or export?
TSO Auction only charges the price for the right to transport electricity formed by the market itself. Check with the TSOs to make sure if they do or do not charge extra fees.
When do we need to pay additional fees?
In case of reselling or transfer the seller has to inform TSO Auction BV and will be invoiced the € 100 handling fee. For resell every day and every connection will be charged, for transfer every period on end. The buying party is free of this charge and won't get invoiced, but a new contract will be made for this party. When using the emergency procedure for the day auction when the participants CPS is not running a fee must be paid of € 250.00 and 10% of the bidding for the first time, € 500.00 and 10% of the bidding for the second use of the emergency procedure and so on. The maximum fee charged will total up to € 5,000.00.
See Auction Regulations article VI.1(4), VII.2(4) and VII.4(2) and schedule G.
Will the obtained capacity be subjected to Value Added Tax (VAT)?
Companies having residence in the Netherlands and having obtained capacity at an auction will be invoiced for VAT. Other European companies having proven on having a VAT obligation in the country of residence will not be invoiced for VAT in The Netherlands. They have to settle their VAT obligation in the country of residence themselves. not European companies will equally not be charged with Dutch VAT.
See the Dutch Law of the VAT regulations 1968 article 6a,sub 1 and 4. ( This is also in accordance with article 28, sub E.1 of the Sixth European Directive)