Guarantee for energy vendors – Consumidores Electrointensivos

This guarantee allows the seller who signs a power purchase agreement (PPA) of renewable energy origin with an electricity intensive consumer to cover the risk of non-payment by the latter.

The guarantee covers the seller of the electricity, at the agreed coverage percentage, either from non-payment of the termination value set out in the PPA or from losses arising from selling the electricity at a price lower than that agreed in the PPA (either on the electricity market or to another buyer).

Who is the beneficiary of the guarantee?

The guarantee shall be issued directly to the energy seller who bears the credit risk of the Consumidor Electrointensivo.

Credit risk

The risk of non-payment covered by the Guarantee may relate to two concepts:

• Loss due to non-payment of the electrical energy already supplied to the Consumidor Electrointensivo (this loss will be limited to a few months of billing).
• Loss either due to non-payment of the termination value established in the PPA or derived from selling the electrical energy to a third party (either on the electricity market or to another buyer) at a lower price than that agreed in the PPA.

The risk of non-payment that may arise as a result of both the de facto insolvency (prolonged default) and de jure insolvency (bankruptcy) of the Consumidor Electrointensivo and, where appropriate, of the Guarantor, is guaranteed.

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

The maximum amount covered shall be set out in the guarantee. 

In addition to this maximum amount covered for the whole of the guaranteed period, maximum annual amounts (maximum annual amount covered) shall also be defined. 

Cesce will calculate the price of the guarantee according to a pricing system that takes into account, inter alia, the following elements:

• The financial solvency of the debtor (Electricity Intensive Consumer) and, if any, of its Guarantor. 
• The expected price evolution of the electricity market.
• The duration of the guarantee.

Consult Cesce about the conditions and price of the guarantee when you identify a possible operation that meets the eligibility requirements. 

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

• After receiving an application and verifying that the transaction is eligible for cover on behalf of the State in accordance with the regulations in force, Cesce analyses the risk for which cover is requested on the basis of the information provided. 
• The risk analysis focuses on the solvency of the electricity-intensive consumer (the debtor) and, if there is one, its guarantor. The power purchase agreement (PPA) and a detailed schedule of the monthly invoices (or the corresponding periodicity) agreed under the PPA for the life of the PPA will also be requested.
• Once the risk has been analysed, the Company submits a proposal to the Electricity Market Risk Commission (Comisión de Riesgos del Mercado Electrointensivo, CRME). In case of approval, Cesce will provide the beneficiary with a draft of the Guarantee Contract. If the Beneficiary of the Guarantee accepts this draft, the parties formalise the coverage by signing the Guarantee Contract and the payment of the premium by the Beneficiary. 

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.