P445 ‘Improving efficiency of Default Funding Share process and Energy Supply Company Administration’
Formal title: Improving efficiency of Default Funding Share process and Energy Supply Company Administration
This Modification seeks to allow the Funds Administration Agent (FAA) to process a Default Funding Share for unpaid Trading Charges earlier to reduce the cost of the borrowing facility and reduce the risk of shortfall. The Modification will also allow the Panel to instruct the FAA to release Trading Charges where the default relates to an Energy Supply Company Administration (ESCA).
The proposed solution is based on a change to FAA system and BSC Documents to allow Trading Charges for a Defaulting Party (BSC Parties in Section H Default) to be mutualised from the Notification date (ND) onwards without delay, reducing the duration of outstanding payments from 6 Working Days (WD) to 0 WD.