Shipper (Energy) indebtedness and cash calls
Guidance for shippers on how indebtedness is monitored and when cash calls are issued.
What is indebtedness?
Indebtedness describes unpaid energy balancing charges – that have either been invoiced or are accrued charges yet to be invoiced.
How it works
Xoserve’s Credit & Risk Management team monitors indebtedness daily.
The indebtedness utilisation % is calculated by dividing the net energy balancing indebtedness by the cash call limit. The cash call limit is 85% of the secured credit limit.
Where utilisation exceed 100%, a cash call notice is issued by 3pm. A cash call requests payment of a prescribed amount of cash in order to reduce shipper indebtedness to 90% of its cash call limit.
A shipper can appeal a cash call by 12 noon the following business day. Otherwise payment is required.
If two cash calls are raised within a 28 day time period, a further security request is issued and additional security must be lodged for minimum of 90 days.
The customer has until 12 noon the day after the cash call has been issued to appeal. Otherwise, the cash must be paid by the end of that business day.
If payment is not made by this time, a further notice is issued the following day requesting payment by the end of that business day.
If payment has still not been made after this time, the matter is referred to the Energy Balancing Credit Committee (EBCC), who will agree on further action to be taken.
Further information and resources
The Credit Rules can be found under the following link and set out the operation of The Credit Risk Framework, the credit assessment process, credit monitoring and the cash call process.
Who to contact for further support
Email us with your query at one of the following addresses, and a member of the team will get back to you as soon as possible.
Energy Credit Risk: firstname.lastname@example.org
Energy Security: email@example.com
Credit Risk e-learning
Learn more about Credit Risk and Neutrality using our online e-learning course.
Need more help?
For more help with invoicing, please raise a support request.