SECMP0016 Consideration of Maximum Credit Value in Credit Cover Calculation
Proposer
Jeremy Guard
Lead Analyst
SEC Change
Date raised
03/06/2016
Stage
Implemented
Implementation date
01/04/2017
Latest update
This Modification Proposal was implemented 1 April 2017
What is the issue?
This Modification Proposal seeks to make changes to the SEC Credit Cover Requirement calculation so that it takes into account the credit value specified by an independent credit assessor.
What is the solution?
The solution requires a Party’s Maximum Credit Value offered in a Credit Assessment report is considered when calculating a Party’s Unsecured Credit Limit. The proposed calculation introduces an Unsecured Credit Factor, in place of the current CCF, that is a proportion of a Party’s Maximum Credit Value. The Unsecured Credit Factor is determined by the Party’s Recognised Credit Rating or Credit Assessment Score.
This proposed calculation reduces the current Credit Support held by the DCC to approximately 30% of the total Value at Risk for SEC Parties.
Who is impacted?
Supplier Parties
Network Parties
Other SEC Parties
DCC
What SEC documents are affected?
Section A 'Definitions and Interpretation'
Section J 'Charges'
Section K 'Charging Methodology'
Modification documents
SECMP0016 - Working Group Meeting 1 - Final Minutes
This is the February 2024 SEC Modifications Working Group meeting, where we will be discussing: MP247 'Future Dating of Service Requests for SMETS1 Devices' MP263 'Improving transparency of DCC indicative
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