Credit support

Financial Guarantees

Participants in the National Electricity Market (NEM), Short Term Trading Market (STTM), Victorian Wholesale Gas Market, and Gas Supply Hub may be obliged under the Market Rules to provide credit support to AEMO. AEMO has a single financial guarantee pro forma (below) to be used for these markets, and all guarantees must be in the prescribed format. AEMO recommends you get guarantees checked by AEMO before execution, by emailing a draft copy to [email protected].

This is the required format for Bank Guarantees in the STTM to cover Trading Participant security requirements. In accordance with Rule 478, each Trading Participant must provide security unless they are exempt. The security amount is determined by the individual participant, and should cover a high value month of trading as well as the twenty (20) business days additional exposure accumulated until payment is due.

Bank Guarantee Guide

AEMO has prepared a Bank Guarantee Guide to assist Participants with the provision, exchange, return, and expiry of financial guarantees for the NEM, STTM, Victorian Wholesale Gas Market, Gas Supply Hub and Capacity Auction. This guide contains information on AEMO’s bank guarantee processes and Participant obligations, and there are useful references to market rules.

For further information on credit support, please contact [email protected]