- Energinet.dk's new initiative yields economic benefits as it is cheaper to take out a joint credit insurance policy than let each individual player provide a bank guarantee. The new credit insurance scheme provides economic savings of around DKK 5m, says Mr Claus Hattesen Hangaard, Head of Financing, Procurement and Facility, Energinet.dk.
Until now, all players (such as electricity producers and electricity traders), have had to provide a bank guarantee in order to trade in the market. Providing this bank guarantee has been a market entry barrier for small players that for financial reasons have found it impossible to enter the market. In future, Energinet.dk will take out a joint credit insurance policy for the players, who will then be approved by a credit insurance company.
- We are introducing the exact same principle for both electricity and gas customers. The change is most pronounced on the electricity side as we have until now demanded that the players provide bank guarantees. As the gas side has been using its own player credit assessments, the change is not quite as far-reaching for the gas players. The credit insurance scheme will be available to electricity players from 8 February 2011, but gas players will have to wait until 1 May 2011, says Mr Hangaard.
The expenses for the insurance scheme will be paid by the players via the tariffs for the electricity, gas and storage activities.