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Market Operation
Market Operation
KPX operates the power market where sellers, power generating companies (74 members as of 2006), and the single buyer(KEPCO) participate. The power market is dubbed the pool, suggesting that the electricity generated from all power plants converges in one place for trading. KPX conducts fair and transparent market operations from bidding, settlement, metering, market surveillance, and information dissemination to dispute resolution in accordance with the Pool Rule. In general, the power trading volume and price are determined by the supply-demand curve.
Power trading procedure
When the wholesale market is introduced, market prices and trading volume shall be determined based on the price bidding without having to classify costs into fixed and variable costs. Currently, however, both fixed (capacity payment) and variable costs for each generating unit are examined monthly by the Generation Cost Assessment Committee (GCAC) based on the documents submitted by the generators.
Current Cost-Based Pool
