Give your feedback on BSC Credit Cover Arrangements
Ahead of the first meeting of BSC Issue 106 ‘Review of BSC Credit Cover Arrangements’, we are seeking feedback from stakeholders via a short (5-10 min) survey. Survey responses will be used to inform the meeting materials and focus areas for the first meeting, and must be submitted by 17:00 on Wednesday 15 February.
Why do we need your feedback?
Following the Credit Committee’s request that Elexon reviews the Credit Cover arrangements with industry experts through an Issue Group, Issue 106 was raised by Elexon on 13 January, with the first meeting due to take place on 21 February.
Existing Credit Cover arrangements have not been sufficient to cover outstanding Trading Charges in most market failures in the past. There is a direct link between market prices for electricity and Credit Cover requirements, and as market prices fluctuate, the amount of credit to be lodged with the BSC also fluctuates. As the market goes through a period of change to meet future consumer needs, now is a good time to review whether wider credit calculations remain fit for purpose.
What is the survey about?
The survey seeks to gather stakeholder views on:
- Purpose of Credit Cover
- Processes involved, like the default and credit cover calculations or arranging and lodging credit
- Timescales involved, both in terms of lodging collateral and the Credit Default timeline
- Impacts of lodging credit on business operations
How do I give my feedback?
Complete the short online survey by 17:00 on Wednesday 15 February.
If you would prefer to discuss your views by phone or by email please contact Cecilia Portabales, Senior Change Analyst at 020 7380 4171 or [email protected].