Glossary
P188 – Revision of Credit Default Provisions
Formal title: Revision of Credit Default Provisions
Current Status
Submission
Initial Written Assessment
Assessment Procedure
Report Phase
With Authority
Awaiting Implementation
Implemented
Summary
Section M of the BSC contains the rules for the calculation of a Trading Party’s Energy Indebtedness, which is represented by the Credit Cover Percentages (CCP). The BSC does not obligate a Trading Party to lodge a minimum amount of Credit Cover, however, this is achieved by the use of 2 levels of Credit Default Status. It is suggested that there is a disparity between the treatment of Generators and Suppliers. This was initially raised as Issue 16 to the SSMG. The group discussed the issue and agreed there was a defect.
Progression
The Authority approved the Proposed Modification on the 7 September 2005