Independent Bulgarian Energy Exchange (IBEX), on a recommendation by the Ministry of Energy, has filed at the Energy and Water Regulatory Commission (EWRC) a proposal for amendments to the Power Exchange Operational Rules which envisage that an insurance guarantee will no longer be possible as a type of collateral on Bilateral contracts market segment.
Thus, cash deposit and bank guarantee or a combination thereof will continue being required as a form of collateral on all market segments. This is also one of the measures that the government proposed at the end of September to handle the electricity prices crisis and the aim is for the power exchange operator to implement it within the shortest terms possible.
“The amendment of the Power Exchange Operational Rules will contribute to increasing transparency and improving its operation,” said the Minister of Energy Andrey Zhivkov. “This is part of the set of measures we propose to protect the business from the increasing electricity prices.”
“We are doing everything within the powers and capabilities of the power exchange operator in order to assist market participants, to have more efficient and secure trading on the power exchange and most importantly, to provide real benefit to electricity consumers in the country as a result of this,” added Konstantin Konstantinov, CEO of IBEX.
The reasons behind the proposal filed at EWRC are to increase the protection of those market participants that act with due care and comply with the rules and in the event of counterpart default, they will be able to settle their financial claims more easily and securely via the collateral they have requested.