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?

Under the BSC arrangements, Trading Charges for a given Settlement Day are, on average, due to be paid 29 days later. This means that Parties will always have approximately 29 days of accrued Trading Charges which are yet to be paid. Parties lodge collateral with ELEXON to cover these charges should the Party become unable […]

When does a Credit Default occur?

The Credit Default processes are triggered when a Party’s Credit Cover Percentage (CCP) exceeds a given threshold. CCP represents a Party’s yet-to-be-paid Trading Charges as a percentage of the collateral it has lodged as Credit Cover. The Level 1 Credit Default process is triggered when the CCP exceeds 80% and the Level 2 Credit Default […]