Energy
Dictionary

 


market-based price, market-based rate

A price for a commodity which is usually mutually determined by the buyer and seller based on prevailing conditions in a competitive marketplace. Occasionally used interchangeably with free-market price. In the energy industry, the market on which this type of price is based is usually the energy spot market.

See also:

market price, market clearing price, spot market, cost-based price, marginal cost, value of service