In general, the parties ensure that they have the power to carry out transactions and execute the terms of the agreements. Each party also maintains that it is solvent and that this presentation is maintained until the opposite is communicated. If one party has an appropriate basis to challenge the solvency or effectiveness of the other party, that party may require the other party to provide a credit, cash deposit, guarantee or guarantee, a guarantee agreement or any other mutually acceptable method of providing the service. The second part has three working days to give such assurances; If such assurances are not provided, this will be a case of delay resulting in the termination and liquidation of all WSPP transactions between the parties. The obligation on the second party to present an accused of credit, deposits, etc., is limited to the amount of damage that the party would be liable for non-performance; That is, the cover. The agreement also lists certain events that would allow reasonable assurance, including (1) the knowledge that a party is not acting under other contracts; (2) a party that exceeds a credit or trading limit; (3) debt downgrade below the level of investment; and (4) substantial changes in market prices that have a significant impact on a party`s performance. The WSPP agreement is a standardized contract for the sale of electricity and physical options. In other words, if the parties to a WSPP transaction do not mutually agree on changes to the WSPP agreement, the terms of the WSPP agreement will be monitored. However, the WSPP agreement provides the parties with the flexibility on the most important terms to amend the agreement through their mutual agreement, which applies to each WSPP transaction, as explained below. In accordance with its terms, the WSPP agreement applies only to transactions between WSPP members. Delay events are defined in the agreement to include (1) insolvency (if the payment date has been omitted) within two business days of the payment period; (2) not to make clear and quality securities or to have given specific assurances and guarantees; (3) the initiation of proceedings involving bankruptcy or bankruptcy; (4) not to provide adequate solvency guarantees within three working days of requesting such commitments. In the event of default, the non-failing party may terminate all WSPP transactions between the parties as long as they exercise that right within 30 days (or more if the parties agree to an extension).
Once completed, The Schedule B and C Service transactions will be liquidated. In essence, the value of the terminated transactions is estimated until the termination date, in order to determine the liquidated amounts, plus the costs associated with that termination. Revenues based on expected market prices, which are currently being assessed, are used to calculate liquidation payments. Parties to a transaction may, by mutual agreement, amend many of the key terms of the WSPP agreement for that transaction. Such a change must be defined in a confirmation agreement. The only provisions that can be amended are those that can be explicitly described as amended in the WSPP agreement. Confirmation agreements include transaction-specific terms, including changes to the basic agreement that the parties mutually approve. Oral confirmation agreements are allowed for transactions of less than one week. For transactions of a week or more, written confirmations are required. At the buyer`s request or at the seller`s choice, the seller must provide written confirmation within five days of the request or agreement. The buyer has five days to respond. If the buyer does not react, the seller`s written confirmation is considered final.