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). The Party’s trades may also be rejected by the ECVAA system.
If a Party fails to resolve a Credit Default situation the Party will potentially be in default of the Balancing and Settlement Code. If this occurs, a meeting of the BSC Panel will be convened for decision on the next steps regarding the Party’s status under the BSC, and could ultimately lead to the Party being expelled from the BSC.