P306 – Expanding the definition of a ‘Letter of Credit’ to include regulated insurance companies
Formal title: Expanding the definition of a ‘Letter of Credit’ to include regulated insurance companies
Current Status
Summary
P306 proposes to allow individual Parties to obtain a Letter of Credit from a regulated insurance company that is capable of providing security of a similar level and form as that provided by a bank.
Progression
E.ON UK raised P306 on 4 June 2014. The Panel agreed to submit P306 to a three month Assessment Procedure.
The Workgroup has issued its Assessment Consultation for P306 and considered the responses. The P306 Assessment Report was presented to the Panel on 11 September 2014 where the Panel initially unanimously agreed that P306 should be approved as a Self-Governance Modification.
The Panel issued its Report Phase Consultation and considered the responses, along with the Draft Modification Report, at its October meeting. The Panel unanimously agreed that P306 should be approved as a Self-Governance Modification.
BSC Parties have 15 Working Days to appeal the Panel’s approval of P306. This 15 Working Day period expires on 31 October 2014. If no appeal is received, P306 will be implemented in accordance with the Panel’s determination on 14 November 2014 (10 Working Days after the Appeal Window closes). You can find full rules and processes regarding appeals in BSC Section F6.4.