Newsletter - 23 January 2008
Amendment of Bank Guarantee for Bid and Option Security – Schedule D & E
DONG Energy Generation has decided to amend the Bank Guarantee for Bid and Option Security which is the Schedule D and E to the Auction and Credit Rules. The amendment involves an extension of choices regarding Bank Guarantee formats which in addition to the current Bank Guarantee formats now also comprise formats that is not time or product limited.
Key benefits of this amendment is:
it is now possible for VPP participants to submit only one ongoing guarantee as option security covering all products. The guarantee needs not to be amended or renewed as long as all VPP credit requirements for option securities are met.
it becomes easier to use the credit reduction opportunities. E.g. you have purchase a 12 months product and submitted Option Security based on the Option Price for 6 months. When the product has been delivered for e.g. 9 months there exits 3 months excess security which may be used to cover the Option Security requirement for the purchase of a 3 months product.
it is possible to submit one bank guarantee for Bid Security covering all products and participation in future auctions.
This amendment has been approved by the DCA and the Trustee.
For detailed information see the confidential section of the VPP website: www.dongenergyvpp.com.
Next auction
The next VPP auction is scheduled to take place on 26 February 2008.
The auction will include one product:
- Quarterly product: 200 MW delivered in Q2-08.
DONG Energy Generation looks forward to see both new and existing bidders at the next auction.
Application deadline
The application deadline for the upcoming auction is 5 February 2008. A complete overview of the application procedures "Guide for February Auction 2008" is available from the Contracts section in the confidential section of the www.dongenergyvpp.com.
Mock Auction on the 19 February
The mock auction is scheduled for 19 February. We recommend that all participants in the Q1 auction participate in the mock auction.
Indicative energy price
On www.dongenergyvpp.com indicative energy prices for VPPQ2-08, will be published every Wednesday until a week prior to the auctions.
Questions
Questions concerning VPP and the upcoming auction, please contact:
Head of Planning, General Manager Lars Blaaberg, phone +45 76 22 25 60 or
Portfolio Management, Jacob V. Ottow, phone +45 76 22 22 39.