Tag: Credit Default (4 items)

What are the consequences of Credit Default?

If a Party enters Credit Default a notice will be published by the Energy Contract Volume Aggregation Agent (ECVAA) on the Balancing Mechanism Reporting Service (BMRS).

What are the Credit rules under the BSC?

Under the BSC arrangements, payments to and from Trading Parties in respect of Trading Charges arising on any particular Settlement Day are made, on average, twenty-nine calendar days later…

What is Credit Default?

Each BSC Party is required to lodge collateral with ELEXON to ensure that there are sufficient funds available to cover that Party’s Trading Charges should the Party become unable to pay. If a Party does not have sufficient funds it will enter into Credit Default.

When does a Credit Default occur?

The Credit Default processes are triggered when a Party’s Credit Cover Percentage (CCP) exceeds a number of thresholds. The Level 1 Credit Default process is triggered when the CCP exceeds 80% and the Level 2 Credit Default process is triggered when the CCP exceeds 90%.