Fixing I

On the Towarowa Giełda Energii (TGE), Fixing I primarily refers to the process of setting the price on the Day-Ahead Market (RDN), which is one of the most important segments of the energy market in Poland.

What is the Day-Ahead Market (RDN)?

The Day-Ahead Market (RDN) is a forward market where electricity trading takes place with delivery scheduled for the next day. Market participants submit buy and sell orders for electricity for specific hours of the following day.

Fixing I Process on TGE

• Order Collection: Market participants (electricity producers, consumers, brokers) submit buy and sell offers for specific hours of the next day. Orders can be submitted until the deadline, which on TGE is usually 10:30 AM (local time).
• Fixing I Time: On TGE, Fixing I typically takes place at 12:00 PM (local time). At this moment, the exchange determines the equilibrium price for each hour of the next day. The equilibrium price is the one at which the total buy offers match the total sell offers.
• Price Determination: If full matching of demand and supply cannot be achieved for a given hour, the exchange may apply proportional execution of orders. The price determined during Fixing I serves as the primary settlement price for that period and becomes a reference point for market participants.

Significance of Fixing I on TGE

• Price Transparency: Fixing I ensures a transparent pricing mechanism, allowing market participants to better plan costs and deliveries.
• Basis for Settlements: Prices determined during Fixing I are crucial for the financial settlement of transactions conducted on the Day-Ahead Market (RDN).
• Supply Planning: Fixing I enables market participants to adjust their energy production or consumption plans according to market conditions.