Independent Bulgarian Energy Exchange (IBEX), on a recommendation by the Ministry of Energy, has filed today at the Commission for Energy and Water Regulation (KEVR) 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 earlier to handle the electricity prices crisis and the aim is for the energy exchange operator to implement it within the shortest terms possible.
Energy Minister Andrey Zhivkov said that the amendment of the Power Exchange Operational Rules will contribute to increasing transparency and improving its operation. This is part of the set of measures the Government proposes to protect the business from the increasing electricity prices.
IBEX CEO Konstantin Konstantinov said that the operator is doing everything within its powers and capabilities 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.
The reasons behind the proposal filed at KEVR are to increase the protection of those market participants that act with due care and comply with the rules and in the event of counterparty default they will be able to settle their financial claims more easily and securely via the collateral they have requested.
The proposal is pending discussion by KEVR.
