Document ID: chunk:federal_register_of_legislation:F2021L01155:reg:13
Version: federal_register_of_legislation:F2021L01155
Segment Type: reg
Provision Reference: reg 13
Character Range: 194537–196543

13  Reduction in eligibility points
 (1) If a bidder does not meet its activity target for a clock round (the current clock round), the bidder's eligibility points for the following clock round (the next clock round) are calculated in accordance subclause (2).
Note: The application of subclause (2) always results in a reduction in eligibility points. There is nothing the bidder can do once the primary stage of the auction is under way to recover eligibility points.
 (2) For subclause (1), the bidder's eligibility points for the next clock round are calculated by the following formula:
  rounded up to the nearest integer;
  where:
E is the bidder's eligibility points for the next clock round.
R is the greater 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 result, in eligibility points, of:
 (i) the total value of the lots of each product, in eligibility points, for all the start demands of the bidder; plus
 (ii) the total value of the lots of each product, in eligibility points, for all the increase bids of the bidder; minus
 (iii) the total value of the lots of each product, in eligibility points, for all the decrease bids of the bidder;
  for the current clock round.
P is the eligibility requirement percentage that applied for the current clock round.
Example: A bidder's eligibility points at the start of a clock round is 20,000. The eligibility percentage requirement that applies in 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 all of its posted demands, so eligibility points will be reduced for the next clock round as a result of under-activity.
 The bidder's eligibility points for the next clock round (E) is its current activity (R  = 10,000) divided by the eligibility requirement percentage (P = 60% or 0.6) that applied in the current clock round, which is 16,667 eligibility points.