Glossary
P158 – Introducing the ability to lodge a consolidated Letter of Credit (LoC)
Formal title: Introducing the ability to lodge a consolidated Letter of Credit (LoC)
Current Status
Submission
Initial Written Assessment
Assessment Procedure
Report Phase
With Authority
Awaiting Implementation
Implemented
Summary
Credit can be lodged in the form of a LoC or cash or as a combination of the two. This Modification is seeking to allow a Party which owns multiple BSC Party Ids to be able to lodge a single consolidated LoC, rather than having to post an individual LoC for each Party Id. The consolidated LoC would need to be sub-divided and an amount of credit allocated against each Party Id. The proposer believes this Modification proposal could be introduced on a voluntary basis. This proposal is not intended to alter the method of calculating a Party’s energy indebtedness i.e. energy indebtedness would still be calculated at a Party Id level rather than against an affiliate group.
Progression
The Authority rejected the Proposed Modification on 4 August 2004.