How does period price shaping work?

Last updated: April 2, 2026

Price weighted shaping weights multiple prices over a period into a single price. For example, four quarterly prices can be consolidated in to a single price for a calendar year (CY) or financial year (FY).

How are prices consolidated?

The process is applied to each rate (e.g. Peak or Off Peak) defined for a period.

In this example we'll consolidate Peak prices only. When price shaping occurs, all part rates (Peak, Off Peak or Peak, Shoulder, Off Peak) are weighted into a respective CY or FY price.

Step 1: Calculate contract periods

A contract term must be divided into its corresponding contract periods, defined by calendar years or financial years. Each contract period includes a specific start date and end date.

The following steps are then executed per contract period.

Step 2: Calculate the number of Peak intervals

  • The contract period is further broken down into 5m intervals.

  • Each interval is determined (in this example) as a Peak or Off Peak interval.

  • The total number of intervals is then counted.

Step 3: Determine the correct prices for every Peak interval

The contract period will have a number of prices defined, for example quarterly prices. Each Peak interval is mapped to its correct price.

Step 4: Sum all Peak prices for every Peak interval

Sum the all the Peak prices mapped to every Peak interval.

Step 5: Calculate the final period price

At this point we have:

  • Total number of Peak intervals

  • The total Peak prices

The final step is to divide the total price sum by the total interval count.