Prudential Margin Offsets

Participants can use Prudential Margin Offsets to offset their trading amounts against their reallocation amounts for the determination of the Prudential Margin (PM) for Maximum Credit Limit See Relevant Rules or Procedures (MCL Maximum Credit Limit) reviews. For more details, see Maximum Credit Limit.

By default, AEMO Australian Energy Market Operator considers all participants opt out for PM offset. From Thursday 3 August 2017, participants can opt in for dates effective from 30 November 2017 onwards.

The Ex Ante Reallocations Timetable for MCL reviews is extended from the current seven business days to 14 business days for participants opting in to PM offset.

If a participant cannot maintain 14-day-ahead reallocations, AEMO can override an opt in for PM offset. The participant cannot opt in again until AEMO allows.