Bonds and surety insurance for electricity producers and marketers
It guarantees legal and operational compliance in the electrical market.
At SABSEG, we offer guarantees and surety insurance that are essential legal requirements for electrical producers and marketers, ensuring their operation in the market.
The guarantees and surety bonds for electric producers and marketers are an essential legal requirement to operate in the electricity market. In case of default to the Spanish Electricity Grid (REE), the company cannot continue operating in the market. The insured capital is set by the Mercado Español de Futuros Financieros (MEFF) based on the maximum historical deviations of the last 12 months.
Highlights
The guarantee covers the payment to REE for possible deviations due to production deficit or excess demand in marketers. In the event of a production deviation, at the time of the actual reading of each meter, any deviation below the estimated production must be paid to REE, which has had to acquire that deficit in the market to balance the system.
Bonds and surety insurance for electricity producers and marketers
How can we help you?
Contact your specialists for Bonds and surety insurance for electricity producers and marketers
Frequently asked questions
Who takes it out?
All electricity producers and marketers must present a guarantee to REE for the payment of deviations, as a legal obligation to operate in the market. This requirement is regulated by the Resolution of May 9, 2011, which allows the provision of guarantees through surety insurance.
Plants larger than 15 kW must present a daily production forecast that will be sold in the market the following day, and they will be compensated regardless of the subsequent meter reading. Furthermore, marketers may incur deviations if a customer consumes more than what was purchased in the market, incurring a debt with REE.
To whom is it submitted?
The guarantees are submitted to the Ministry of Industry, Tourism and Commerce, and the Mercado Español de Futuros Financieros, on behalf of REE. The validity of the guarantee is 1 year.
Advantages of Guarantees and Surety Bonds for Electric Producers and Marketers
The surety insurance offers several advantages over other options such as bank guarantees:
Increased credit capacity: Does not count in CIRBE.
Decrease in balance liabilities.
Lower costs: There are no study, opening, or line maintenance fees, and exact days are charged.
Does not immobilize financial resources that can be allocated to other needs.
How to Request a Guarantee and Surety Insurance for Electric Producers and Marketers?
To contract our guarantees, it is essential to present the following documentation:
Fully completed questionnaire.
Deeds of incorporation of the company.
Official annual accounts of the last fiscal year.
Experience of the company.
Documentation to be Provided
The necessary documentation to apply for surety bonds for electric producers and marketers includes:
Filled questionnaire.
Financial statements from the last fiscal year and financial progress from the current year.
Deed of incorporation or adaptation of statutes.
Information about experience.
Applicable Legislation
Resolution of May 9, 2011, which regulates payment guarantees before REE