Cash as Credit Support
Background
The Australian Energy Market Commission (AEMC) has made a draft rule proposing to amend the credit support arrangements to increase flexibility for participants to provide credit support in the National Electricity Market (NEM).
Under the draft rule, participants would be allowed to provide:
- cash as credit support up to a limit of $5 million for each participant
- surety bonds as credit support
- credit support from a broader pool of credit support providers.
High-Level Implementation Assessment (HLIA)
A High-Level Implementation Assessment is expected to be published in early May 2025.
Industry engagement
This initiative forms part of NEM Reform Program and market participants can get involved by visiting: