This article guides you through creating a pricing template, and what each component of the template means.

You can create a template here https://app.usefactor.io/createPricingTemplate

Prerequisites

1. A price index exists

2. Market forwards have been configured and uploaded

Pricing Template Components

Template Name

The name of the template, this will appear in drop down menus elsewhere in Factor, and on the final quote.

Shaping configuration

This data is used in the consumption shaping stage of creating quoted prices.

1. Market forwards: The forward prices which will be combined with the customer's calculated load weightings to produce shaped customer prices.

2. Price index: The price index to historically rate the customer's consumption with.

Additional RateSets

These RateSets will be added to the customer's final quoted prices.

Pricing Configuration

1. Time zone: the final timezone the output prices should be configured for.

2. Supported region: Factor will attempt to detect the region the connection is in. If the connection is not in the region specified by the template, the quote process will be halted.

3. Default Margin: Energy rates will be calculated with margin, if one is specified. Margin is not applied to additional RateSets.

4. Quote validity: How long the quote is valid for.

5. Max loading: a load weighting threshold which if exceeded will trigger a warning on the final quote output.

6. Min loading: a load weighting minimum threshold which not exceeded will trigger a warning on the final quote output.

7. Minimum average daily load: Factor will calculate the average daily load for every connection identified. If any connection's consumption falls below the defined threshold, a warning will be triggered on the final quote output.

How are pricing validations applied?

Supported Region Validation

When a pricing configuration is created, consumption data must be provided. Factor will attempt to determine the region of each connection based on your market rules. If a connection region is identified that does not match the region specified in the template, a warning will be shown.

This warning must be resolved before the workflow can proceed.

Minimum and Maximum Load Weightings

These are validated after the shaping has taken place, and will be presented as warnings on the final quote output. If any of the calculated load weightings are not within the template specifications a warning will be presented.

This warning will not prevent quotes from being generated.

Minimum consumption

This is validated after the shaping has taken place. The shaping process determines an average daily load for each connection, and will be presented as warnings on the final quote output. If any of the connections included in shaping have an average daily load below the template specification, a warning will be presented.

This warning will not prevent quotes from being generated.