Participants in the National Electricity Market (NEM), Short Term Trading Market (STTM), Victorian Wholesale Gas Market, and Gas Supply Hub may be obliged under the Market Rules to provide credit support to AEMO. AEMO has a single financial guarantee pro forma (below) to be used for these markets, and all guarantees must be in the prescribed format. AEMO recommends you get guarantees checked by AEMO before execution, by emailing a draft copy to email@example.com.
This is the required format for Bank Guarantees in the STTM to cover Trading Participant security requirements. In accordance with Rule 478, each Trading Participant must provide security unless they are exempt. The security amount is determined by the individual participant, and should cover a high value month of trading as well as the twenty (20) business days additional exposure accumulated until payment is due.
Credit Support Management Guide
AEMO has prepared a Credit Support Management Guide to assist Participants with the procurement, exchange, return, and expiry of financial guarantees for the NEM, STTM, and Victorian Wholesale Gas Market. This guide contains information on AEMO’s credit support processes and Participant obligations, and there are useful references to market rules.
For further information on credit support, please contact firstname.lastname@example.org