New engagement - 2016 Prudential Review
July 7, 2016
As part of a regular review conducted on a three year cycle, the IESO is launching an engagement to review the current real-time market prudential framework.
The prudential framework affects all market participants including those who pay the costs of providing prudential support and also those who are subject to a default levy(ies) in the event of any insufficient prudential support. The IESO reviews the prudential framework periodically to determine if the current framework is adhering to the framework's pillars which strives to balance the following: a) fairness to all market participants; b) costs to participants for posting collateral; and c) costs/risks of default levies issued to all market participants.
In order to begin the 2016 Prudential Review, the IESO is asking stakeholders to provide their views and feedback on the current framework. In particular, the IESO is interested in hearing stakeholder perspectives which include:
- is the current framework adhering to the framework's pillars;
- suggestions to evolve the framework; and
- any other aspects that should be considered
Please note that for the 2016 Review, the scope excludes the prudential framework for Transmission Rights.
Stakeholders are asked to provide their comments and feedback on the prudential framework by Monday, August 8. Feedback can be sent to engagement@ieso.ca. IESO will post and respond to all feedback received either directly and/or via the final Prudential Review report.
In the fall of 2016, the IESO will prepare a preliminary Prudential Review report which will review the current framework and the feedback received along with recommended changes (if any). The IESO may schedule a meeting in late 2016 to review and discuss the preliminary report and may invite further feedback.
The IESO is aiming to develop a final Prudential Report by year's end.