One gas trade, from booking to payment
A supplier agrees to buy 1,000 MWh of natural gas at £32/MWh, delivered at the UK National Balancing Point (NBP) over a specified delivery period. The deal is physical and fixed price. This fictional example assumes full delivery and excludes taxes, fees and adjustments.
- Volume
- 1,000 MWh
- Fixed price
- £32/MWh
- Expected invoice
- £32,000
What happens after the deal?
Capture and validate
Record the buy direction, counterparty, book, delivery point and period, quantity, unit, currency and price. Check that the trade record matches what the trader agreed.
Confirm the terms
Compare the counterparty’s confirmation with the booking. A confirmation for 1,100 MWh needs investigation before it can be matched. Check the agreed terms and follow the amendment process if the booking is wrong.
Check position and valuation
The buy adds 1,000 MWh to the relevant delivery period, before offsets from other trades. If the comparable market price rises to £34/MWh, the simplified change in value is £2,000 in the buyer’s favour, before discounting and other adjustments.
Schedule and reconcile delivery
Operations reconciles scheduled and actual quantities using the applicable nomination and delivery process. If actual delivery is 980 MWh, investigate the difference and check the contract before deciding which quantity to invoice.
Settle and reconcile payment
With full delivery, the expected invoice is 1,000 × £32 = £32,000. Match the invoice to the trade and settlement records, resolve any discrepancy, and reconcile payment.
Try the analyst check
The invoice is £35,200. Which field would you check first, and what evidence would you use to resolve the difference?
Show the worked answer
At £32/MWh, £35,200 implies 1,100 MWh. Compare the booked, confirmed and delivered quantities, then check the contract’s settlement terms and any approved adjustments. Record the cause before correcting the trade or disputing the invoice.
Practise in the simulator
Explore ETRMPractice’s synthetic workflows and apply the same checks to your practice workspace.