eSett is the financial counterpart for all Balance Responsible Parties (BRPs) in the imbalance settlement. This gives rise to a significant counterparty risk for eSett, so each BRP must provide collateral to eSett as a security against the risk of the BRP not being able to fulfil its obligations towards eSett. The collateral helps to ensure that eSett can always complete the imbalance settlement in an orderly manner.

The BRPs active in Denmark are not required to provide collateral; Energinet carries the counterparty risk of activities in the Danish market area.

Here you can find an example of collateral calculation.

Collateral can be provided in the form of cash or on-demand guarantee, or a combination of these. On-Demand Guarantee templates for Balance Responsible Parties are available below.