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The latest dispatch price (ActRRP) is also included in the definition of PT for the first three dispatch intervals. The actual RRP is included to allow for the scenario where the actual prices are low but forecast prices were not low. Without this logic it is possible for actual prices to be very low (e.g. -$500) but volume will remain in PB1 because forecast prices are high (e.g. $0)). Hence the following definition applies for the next three dispatch intervals in a bid:

iff for dispatch interval at time t where

t <= current_datetime + 15 (minutes) then

if min(ActRRP, FRRP_t) > max(TP_max , SRMC⁺) then PT_t = 10

if min(ActRRP, FRRP_t) > min(TP_max , SRMC⁺) and min(ActRRP, FRRP_t) <= max(TP_max , SRMC⁺) then PT_t= 1

if min(ActRRP, FRRP_t) > min(TP_min , SRMC⁺) and min(ActRRP, FRRP_t) <= min(TP_max , SRMC⁺) then PT_t = -1

if min(ActRRP, FRRP_t) <= min(TP_min , SRMC⁺) then PT_t = -10

The reason to include ActRRP for the first three dispatch intervals is that we have found earnings outcomes can be consistently improved when the dispatch price is below SRMC but the forecastRRP is greater than TP_max. Effectively the price forecast is not reflecting actual price outcomes and hence without considering dispatch price the bid allocation can maintain volume allocation to priceband 1 which ensures a positive target even though prices are below SRMC.