Electricity Spot Market Rules and Settlement Guide

This document provides a comprehensive overview of electricity spot market rules and settlement mechanisms, focusing on China's evolving electricity market system. It covers key policies including the 'Basic Rules for Medium and Long-term Electricity Trading' (NDRC Energy Regulation [2020] No. 889) and the 'Management Measures for Electricity Sales Companies' (NDRC System Reform Regulation [2021] No. 1595). The content details the development history of China's electricity market from 1987 to 2022, emphasizing milestones such as the separation of power plants from grids and the introduction of competition. Key aspects include trading varieties (multi-year, year, quarter, month, week), physical electricity attributes to prevent speculation, and deviation handling mechanisms that penalize over/under consumption and generation. The document also outlines registration conditions, procedures, and obligations for electricity sales companies, aiming to standardize operations and optimize resource allocation. Overall, it serves as a guide for market participants to understand regulatory frameworks and settlement processes in the spot market environment.