Common use of Difference Payment due to Seller Clause in Contracts

Difference Payment due to Seller. For each Transaction, the Difference Payment due to Seller (“DPS”) for a Trading Period is calculated as follows: DPStp = 0.50 * Max (0, (SPtp – SMPtp) * Qtp) where: SMPtp is the SMP in [€/MWh]/[£/MWh] for the Trading Period; SPtp is the Strike Price in [€/MWh]/[£/MWh] for that Transaction applicable to the Trading Period; and Qtp is the Contract Quantity (in MW) for that Transaction applicable to the Trading Period. By way of non-binding illustrative example for the above calculation, say: SMPtp = 46 (€/MWh or £/MWh) SPtp = 50 (€/MWh or £/MWh) Qtp = 5MW, then the Difference Payment due to the Seller will be: 0.5* Max (0, (50-46) *5) = 10 (€/MWh or £/MWh).