Category: 📘 Glossary & Acronyms
Residual
A remaining cost or financial amount that must be allocated to market participants after other electricity market settlement components have been calculated.
In electricity market settlements, a residual represents costs or revenues that cannot be directly assigned to specific transactions or market participants.
After settlement calculations are completed, any remaining imbalance in the market is distributed among participants through residual allocation mechanisms.
Residual costs may arise from:
Residual settlement adjustments are typically calculated during the electricity market settlement process administered by the Independent Electricity System Operator (IESO).
Residual allocation ensures that total market payments remain balanced.
If total payments to electricity generators exceed the revenue collected through electricity market prices, the remaining amount may be recovered through residual settlement charges.
Last Updated: YYYY-MM-DD