Update - Invoice Payments due out
Affected Period
20/01/2019 - 26/01/2019
Status
Closed
Category
Settlements
Run type
N/A
Created
18/02/2019 16:16
Last Updated
22/02/2019 15:32
Updated on 19/02/2019 12:28
Further to
the below market message re: Shortpay process implemented on the 18th
February, and subsequent queries on this mornings 9.30am PT call;
In
accordance with clause G.2.7.3, Reduced Participants will receive a debit
note (timelines to be confirmed on this evenings PT call) to reflect the
amounts reduced on their Settlement Document payments due to the shortfall
process. The debit note will be in PDF format, and will contain cross border
proportion splits for Local/EU/NonEU.
A further
market participant call has been arranged for 4pm today to answer any follow up
queries. Details of this call have been issued in a separate market message.
Should you have any questions in the
meantime on this communication, please contact info@sem-o.com
Original message issued on 18/02/2019:
A Participant failed in their obligations as per the
Trading & Settlement Code in accordance with
clause G.2.6.1 to pay an amount due in accordance with a Settlement Document
issued by the Market Operator and due for payment by Friday 15/02/2019.
As per clause G.2.6.1 the Market Operator made a Credit Call
on the Participants Posted Credit Cover for partial payment of the Shortfall.
The Participant in question has failed to pay the remaining Shortfall by
the deadline of 12:00 today 18/02/2019 (clause G.2.7.1), circa 60k EUR.
The Shortfall amount has become an Unsecured Bad Debt under
clause G.2.7.1 (a). Under clause G.2.6.3 Default Interest shall accrue from
today 18/02/2019.
The Market Operator is obliged to implement the Shortpay
process in full, in accordance with clause G.2.7.3 and G.2.7.4. The
Unsecured Bad Debt shall be adjusted by way of a reduction in the amount payable to
each affected SEM Creditor determined in accordance with G.2.7.4 to G.2.7.6.
These payments will go out to each affected SEM Creditor tomorrow 19/02/2019.
Until the Market Operator recovers the Unsecured Bad Debt,
the Reduced Participants cannot be paid their pro-rated portion of the Unsecured Bad Debt amount plus any
applicable Default Interest.
In accordance with G.2.7.10, where the Market Operator
recovers any Unsecured Bad Debt, the Market Operator shall pay to each
Reduced Participant the amount pro-rated, plus any applicable Default Interest.
The Market Operator will not make any payment to the Defaulting Participant
until Unsecured Bad Debt and any applicable Default Interest has been fully
recovered.
In the event that the Market Operator does not recover the
defaulting amount, in accordance with G.2.7.10 the Market Operator shall consult
the Modifications Committee in relation to any plans for the pursuit of any
Unsecured Bad Debt. The Market Operator shall take into account the views of
the Modifications Committee as to the most appropriate action to take against a
Party in respect of the Unsecured Bad Debt of any of its Participants.
Should you have any question on this communication please
contact info@sem-o.com
Alternatively, the Market Operator will cover this topic on
the Participant phone call at 09:30 am tomorrow 19/02/2019.