Best Practices for Energy Price Indices © Copyright 2003, CCRO. All rights reserved. 5 • Consistent – There should be a single well-defined data submission process, including timelines, applicable for all data providers submitting data for a given index. The methodology an index developer uses for a given type of index should be logically similar for all indices of that type. Both the methodology and the index specifications for each index should be changed only to reflect significant changes in the underlying markets and only after notification of data providers and index users. Such notification should include a comment period for the index users to provide input into the process. • Transparent – Processes and controls for gathering and submitting data and constructing the indices should be clear and concise and be communicated to data providers, index users, and other interested parties in order to increase the support from market participants and users of the published index. • Clear – The index developer should concisely and unambiguously define trading locations, products, and tenor to ensure that data providers provide uniform data and that index users clearly understand the characteristics represented by the published index values. • Accurate – The data provider should make reasonable efforts to ensure that the data is correct and accurate. Only data from actual transaction activity should be collected and provided to the index developers. The methodology of the index developers should be economically and statistically logical and sound. The index needs to be an unbiased and efficient estimator of the market price. • Documented and Accepted – The methodology an index developer uses for a given index should be well documented and available to data providers, index users, and other interested parties to ensure comparability and transparency throughout the industry. Index developers may require confidentiality agreements before releasing a proprietary methodology. • Timely and Regular – For a given index, the input data should be provided on a well- defined time schedule to give the index developer time to perform the necessary calculations as well as ensure that the maximum number of transactions is included on a regular basis. An index should appear on a pre-specified frequency, without delays, gaps, or interruptions. Table 1 identifies the joint and individual responsibilities of an index developer and a data provider for achieving each of the recommended attributes.