13Loss of eligibility points

13 Loss of eligibility points

(1) A bidder’s eligibility points for a clock round (the next clock round) will be adjusted to an amount calculated in accordance with subclause (2) if the bidder does not meet its activity target in a clock round (the current clock round).

(2) The amount of a bidder’s eligibility points under subclause (1) for the next clock round is to be calculated as follows:

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(rounded up to the nearest integer);

where:

E is the bidder’s eligibility points for the next clock round.

R is the higher of:

(a)      the total value of the lots, in eligibility points, on which the bidder was active in the current clock round; or

(b)      the sum, in eligibility points, of:

(i)            the total value of the lots of each product, in eligibility points, for the start demands of the bidder; and

(ii)         the total value of the lots of each product, in eligibility points, for all the increase bids of the bidder;

(iii)       the total value of the lots of each product, in eligibility points, for all the decrease bids of the bidder;

in the current clock round.

P is the eligibility requirement percentage that applied in the current clock round.

Example

A bidder’s eligibility points at the start of a clock round is 20,000. The eligibility requirement percentage for the clock round is 60% (i.e. 12,000 eligibility points). After the clock round, the bidder is active for only 10,000 eligibility points (based on its posted demands), so eligibility points will be reduced as a result of under‑activity.

The bidder’s new eligibility points (E) will be current activity (R — 10,000) divided by the activity requirement that applied in the clock round (P — 0.6), which is 16,667 eligibility points.

(3) A bidder who loses eligibility points in a clock round is only entitled to bid in future clock rounds in such a way that the sum, in eligibility points, of:

(a)      the total value of the lots of each product, in eligibility points, for the start demands of the bidder; and

(b)      the total value of the lots of each product, in eligibility points, for all the increase bids of the bidder;

(c) the total value of the lots of each product, in eligibility points, for all the decrease bids of the bidder;

  is not greater than the bidder’s eligibility points as adjusted in accordance with this clause.

Note: There is nothing the bidder can do once the primary stage of the auction is under way to recover eligibility points.