Glossary
P152 – Reduction of Credit Cover for a Trading Party in Default which has ceased trading and which has paid all accrued Trading Charges
Formal title: Reduction of Credit Cover for a Trading Party in Default which has ceased trading and which has paid all accrued Trading Charges
Current Status
Submission
Initial Written Assessment
Assessment Procedure
Report Phase
With Authority
Awaiting Implementation
Implemented
Summary
There is a lacuna in the BSC relating to the provisions for reduction in Credit Cover in Section M. Credit Cover is provided in respect of a Trading Party’s Energy Indebtedness (Section M 1.1). As currently drafted, a Trading Party may apply pursuant to Section M 2.3.1 to reduce its Credit Cover, but that reduction may not reduce the Credit Cover below the minimum eligible amount.
Progression
The Authority approved the Alternative Modification on 30 April 2004.