Update of Appendix 2 Collaterals of the Imbalance Settlement Agreement

eSett has decided to update the formula for collateral calculation to better reflect on market behavior where BRP trades in intraday market. The current collateral model does not take into account intraday trades at all, leading to an increased risk position against eSett since BRP having only intraday trades is obliged to have no more than minimum collaterals.

Compared to current formula, only the component V₂ in the formula will change so that after the change it contains:

“Bilateral Trades, PX Market day-ahead and PX Market intraday sales volumes during the last seven days for which such volumes are available (current day minus 8 days to current day minus 2 days)”

With this addition eSett will avoid the situation where BRP has placed only minimum collaterals but is trading significant volumes in intraday market generating uncovered risk position. The TSOs support the proposed change and it was also supported within eSett’s Customer Committee meeting held earlier this week. More information about the collateral management and the applied formula can be found from the Appendix 2 – Collaterals available on www.eSett.com.

The adjusted formula will be applied for the first time on Monday the 3^rd of December calculation.