Prudential requirements
43 Prudential requirements
A user other than the Electricity Generation and Retail Corporation must provide and maintain a bank guarantee in a form and with a bank acceptable to a corporation under which the corporation may draw in aggregate an amount equal to or more than the amount last nominated by the corporation for the purposes of this regulation under subregulation (2).
Subject to subregulation (3), a corporation may from time to time nominate an amount for the purposes of subregulation (1) by written notice given to the user based on a good faith assessment of the credit risk of the user to the corporation.
If —
a user fails to pay to a corporation any amount when due under these regulations or an access agreement; or
a user pays an amount under these regulations or an access agreement which a corporation is subsequently required to disgorge or repay under laws relating to insolvency, the protection of creditors or similar matters,
then the corporation may exercise its rights under the bank guarantee in respect of that amount.
[Regulation 43 amended: Gazette 31 Mar 2006 p. 1336 and 1338‑40; 27 Dec 2013 p. 6477.]
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.