formula used in the standard evaluation of credit requirements as shown above in this Appendix When the credit requirements exceed the current posted collateral there may be a need to call for more collateral; however, it may actually decrease credit requirements as well. Under either scenario the credit CRR holding requirement for each CRR holder is then defined as: (3) is the most recent re-evaluation of credit requirements due to extraordinary circumstances as defined in Expression 3. Depending on the duration of the event, the reevaluation of credit requirements may be run more than once (potentially up to having a daily reevaluation) in order to account for the changing profile of CRR holdings. the inherent uncertainty on the data to compute credit requirements under extraordinary circumstances, the monitoring of congestion revenues for each CRR holder will be a companion measurement to any reevaluation as it is one indicator of the evolution over time of the financial position of CRR holders.
formula used in the standard evaluation of credit requirements as shown above in this Appendix When the credit requirements exceed the current posted collateral there may be a need to call for more collateral; however, it may actually decrease credit requirements as well. Under either scenario the credit CRR holding requirement for each CRR holder is then defined as: (3) is the most recent re-evaluation of credit requirements due to extraordinary circumstances as defined in Expression 3. Depending on the duration of the event, the reevaluation of credit requirements may be run more than once (potentially up to having a daily reevaluation) in order to account for the changing profile of CRR holdings. the inherent uncertainty on the data to compute credit requirements under extraordinary circumstances, the monitoring of congestion revenues for each CRR holder will be a companion measurement to any reevaluation as it is one indicator of the evolution over time of the financial position of CRR holders.
Congestion%20Revenue%20Rights%20BPM%20Version%2019_clean.docx