Earlier this month we confirmed the Authority had initiated its trader default process. The default process was triggered by a retailer failing to provide sufficient prudential cover to the clearing manager.
The Authority is continuing to work through the trader default process and can now confirm the defaulting trader has also defaulted on its settlement payment that was due at 1:00pm today (20 November 2018).
As the settlement default will result in a reduction of payments, in accordance with clause 14.53(2) of the Code the Authority confirms the defaulting trader is Payless Energy Limited. Payless Energy Limited has, by commercial arrangement, allocated all of its customers to another trader from 1 November.
Payless Energy Limited’s prudential security is insufficient to cover its settlement payment. This will result in a shortfall for the October 2018 period of $39,323.68, which is 0.00363% of the general energy payments. The shortfall means generators will receive scaled payments from the clearing manager.
The clearing manager will be issuing revised statements to affected participants as required under Part 14 of the Code.
