Curtailment of bids in Elspot will take place in situations where the aggregated supply and bid curves within a price area do not intersect. This may be the case in an area where there is significant over supply or under supply (this kind of situation is rather rare).
In order to settle the price at balance between demand and supply in an area with over supply it is necessary to curtail the sales bids so that the supply curve intersects with the demand curve at minimum price – currently € -200.
In order to settle the price at balance between demand and supply in an area with under supply it is necessary to curtail the purchase bids so that the demand curve intersects with the supply curve at maximum price – currently € 2000.
The total curtailment in a price area is divided among the affected members pro rata based on their wish for sale or purchase at minimum or maximum price (respectively).