It would be sold at the 1 MW of electricity contract at 12 PM at the bid price of 95 pounds/MWh, and lock in a loss of 5 pounds/MWh.
<h3>What is electricity contract?</h3>
Electricity Contracts are contracts that Just Energy enters into with clients from time to time for the delivery of electricity and perhaps Just Green energy.
The rise in solar power projected from 4 GW to 4.5 GW suggests that there will be greater supply of energy than expected at 12 PM, presumably lowering market prices.
The bid-offer spread is relatively large at 10 pounds/MWh, indicating that the market is illiquid and volatile, and the price may move more against the person if he waited.
The person must have no further knowledge or predictions regarding power demand or supply at 12 p.m., and I don't want to bet on market fluctuations. I'd rather close my position and avoid the danger.
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