Trader default process initiated
|
|
On 9 June 2022 the Authority triggered its trader default process after being alerted to an event of default.
The trader, Platinum Power Retail Limited, defaulted by not making the required prudential payments to the clearing manager.
Prudential security requirements are a foundation of the wholesale electricity market and all participants are required to post prudential security with the clearing manager.
We have detailed plans in place for a situation like this and the Authority has started the required process. The Authority will contact all Platinum Power Retail Limited customers to inform them of the situation and let them know they need to switch retailers.
The default process is designed to ensure customers are looked after, while maximising the opportunity for the trader to resolve the default. This in turn minimises the risk of reduced payments to generators. The industry is aware of and should be prepared for the possibility of such reduced payments.
It is normal in a competitive market for companies to start up in the sector and to leave the sector. Businesses will enter and exit the market, as for any sector.
Information about the trader default process is available on our website.
|
|
|
|
|
|
|
|
|
