Frequently Asked Questions

Collaterals

  • What is credit limit and how can I calculate it?

    Our answer

    The Credit Limit is the amount equal to the amount of the collaterals in place minus any outstanding payment obligations.

    For the purpose of the Credit Limit calculation, outstanding payment obligations shall be increased to include the taxes and levies in force. Reduction Periods are taken into consideration for the calculation of the Credit Limit.

    Maximum payment obligations for a Registered Participant resulting from their Bid(s) registered at the closure of the Bidding Period, shall be considered provisionally as the outstanding payment obligations. From the publication of the provisional Auction results until the moment when the Auction Results become final the due amount notified shall be provisionally considered as outstanding payment obligations for Credit Limit calculation for any concurrent Auction. The Credit Limit shall be revised based on the actual allocated Long Term Transmission Rights when the provisional Auction results are published.

    A Registered Participant may request in written form an increase of the collaterals in form of a Bank Guarantee, a decrease of the collaterals in form of a Bank Guarantee and/or cash deposit or change of the form of the collaterals at any time. A decrease of the collaterals of a Registered Participant shall only be allowed if the Credit Limit after applying the requested decrease of the collaterals would be greater than or equal to zero.

  • Which form of collaterals shall we provide?

    Our answer

    The collaterals acceptable according to the EU HAR are the Bank Guarantee and/or a cash deposit in a dedicated Business Account.

    Collaterals may be provided in one of the forms mentioned or a combination of these forms, provided that the JAO is entitled as beneficiary to the full collateral.

    Collaterals that are provided in the form of a Bank Guarantee shall comply with the following specifications:

    • Bank Guarantee shall be provided in the form of the template that is available on JAO’s website
    • the bank issuing the Bank Guarantee shall be permanently established, including via a branch in a EU member state, European Economic Area or Switzerland
    • the bank issuing the Bank Guarantee or the financial group it belongs to shall have a long term credit rating of not less than BBB+ by Standard and Poor’s Corporation, BBB+ by Fitch or Baa1 by Moody’s Investors Service Inc.
    • the bank issuing the Bank Guarantee shall not be an Affiliate of the Registered Participant for which the Bank Guarantee is issued
  • Verification of the signature of the Bank Guarantee

    Our answer

    In the event the Bank requires the verification of JAO signatures in order for JAO to trigger the Bank Guarantee, this can be obtained in two alternative ways: i) JAO provides its Trade Register Extract in French or German (please note that it is not possible to provide an English version); ii) JAO Bank confirms the signatures via the SWIFT Code (please note that the cost of this service will be charged on the Bank Account of the Market Participant who made the request).

  • From when the Bank Guarantee/amendment of a Bank Guarantee is valid?

    Our answer

    The Bank Guarantee/amendment of a Bank Guarantee shall become valid and effective from the moment the requested modification of the collaterals  within the Auction tool has been made, meaning from the moment that JAO has received the original of the Bank Guarantee/amendment of the Bank Guarantee.

  • How long is the Bank Guarantee valid?

    Our answer

    Collaterals in the form of a Bank Guarantee shall be valid for the minimum periods as follows:

    For long-term products:

    • for products with a duration of more than one month, until at least 30 calendar days after the end of each next calendar month within the Product Period
    • for products with a duration of one month, until at least 30 calendar days after the end of the Product Period
    • for products with a duration of less than one month, until at least 60 calendar days after the end of the Product Period

    For day-ahead and intraday products:

    • until at least thirty (30) calendar days after the end of calendar month of the Product Period.

    Market Participants should replace or renew the collaterals in form of a Bank Guarantee at least 4 working days before the expiry of the validity of the collaterals.

  • Is the Bank Guarantee included in credit limit for every auction?

    Our answer

    Each auction has "period to be secured" information, which indicates the minimum period the Bank Guarantee has to be valid to be taken into account while calculation the credit limit for the particular auction. This information can be found in eCAT Auction Tool in the "Auction" tab / Auctioning parameters.

    If the Bank Guarantee expires before or on the mentioned date, unfortunately our system will not include it in the credit limit calculation for that particular auction, as it would not cover the whole required "period to be secured". Therefore, we always recommend to check this information in our Auction Tool, so that you could control you collaterals.