Insurance on bank guarantees or sureties - Consumidores Electrointensivos

This policy is conceived for the Electro-Intensive Consumer who must provide a guarantee or surety to guarantee his payment obligations, derived from the signing of a contract for the purchase and sale of electricity with a seller of renewable energy.

The insurance covers the Financial Institutions (banks or insurance companies) that issue the guarantee or surety.

When the issuing Financial Institution has a guarantee or surety provided on behalf of the Consumer Electro-Intensive, a Credit of the Consumer Electro-Intensive in favour of the Financial Institution is created. 

This policy covers the Financial Institution against the risk of non-payment of this Credit.

Who is the insured? 

The Policyholder and Insured will always be the Financial Institution, who can apply directly to Cesce for cover.

Who can apply for cover?

Coverage must be requested by the Financial Institution that will subsequently be Insured under the Policy.

Credit risk

The insurance covers the risk of non-payment of the credit that arises between the guarantor of the guarantee (usually the electricity-intensive consumer) and the issuing institution at the time the guarantee or surety is executed. The risk of non-payment of this credit is insured, both as a consequence of the insolvency in fact (prolonged default) and in law (bankruptcy) of the debtor (the electricity-intensive consumer) and, if applicable, of the guarantor.

There are no limits (maximum or minimum) on the amount per transaction.

The maximum amount of coverage will be limited by the amount of the guarantee or surety to be insured, as well as by the percentage of coverage requested.

The guarantee to be covered must respond to the obligations of the Electricity Intensive Consumer derived from a long-term contract (minimum 5 years) for the purchase and sale of electricity (PPA) from renewable sources.

Cesce sets the price according to the Risk Commission charged by the Financial Institution.

Coverage to a Financial Institution shall entail a premium at least equivalent to the Risk Commission charged by the Financial Institution, which shall be obliged to declare all commissions and expenses charged to the Debtor for the issuance of the guarantee or surety.

You must send a request which will be studied and analysed. 

• After receiving an application and verifying that the transaction is eligible for coverage on behalf of the State in accordance with the regulations in force, Cesce analyses the risk for which coverage is requested on the basis of the information provided by the Insured.

• The risk analysis focuses on the solvency of the Consumer Electrointensive (guarantor of the guarantee or surety and debtor of the credit in the event of enforcement) and, if there is one, of its Guarantor. The power purchase agreement (PPA) may also be requested.
• Once the risk has been analysed, the Company submits a proposal to the Electricity and Energy Market Risk Commission (CRME). In the event of approval, Cesce will issue an Offer of Conditions. If the Insured accepts the Offer, the parties formalise the coverage by signing the Insurance Policy and the payment of the premium by the Insured.

If you are interested, you can fill in the application form and send it to us by email to cuentadelestado@cesce.es.

If you have any doubts, call us on 900 115 000 or send us your details and we will contact you.