PART 2Supplier obligation
CHAPTER 7Collateral
Calling of collateral21
1
Collateral provided by an electricity supplier is called by the revenue collection counterparty where the revenue collection counterparty issues a notice to that supplier which sets out the amount of collateral which is to be called.
2
The revenue collection counterparty may issue a notice under paragraph (1) to an electricity supplier if that supplier has failed to make a relevant payment and—
a
2 working days have passed since the day on which that supplier should have made that payment; or
b
the revenue collection counterparty is of the opinion that there is no prospect of that supplier making that payment by 2 working days after the day on which that supplier should have made that payment.
3
The amount of collateral which may be called by the revenue collection counterparty where a supplier has failed to make a relevant payment is the lesser of—
a
the amount of collateral provided by that supplier; or
4
Where the whole or part of a supplier’s collateral which was provided in the form of cash has been called by the revenue collection counterparty, that amount is to be treated as a payment made by that supplier to the revenue collection counterparty at the time that collateral was called.
5
Where the whole or part of a supplier’s collateral which was provided in the form of a letter of credit has been called by the revenue collection counterparty—
a
the revenue collection counterparty must take steps to demand payment from the person who provided the letter in the amount of the lesser of—
i
the amount which can be demanded under that letter, or
ii
the amount of collateral which has been called; and
b
the amount which has been paid to the revenue collection counterparty under that letter is to be treated as a payment by that supplier to the revenue collection counterparty made at the time that amount is received by the revenue collection counterparty.