What are securities?
Financial securities are proof that a customer can cover the cost of their connection project if they decide to cancel it or reduce its capacity after work has begun. A security might be a letter of credit, credit assurance, or another type of financial guarantee.
Why do we need securities?
Securities are a guarantee that the cost of any work you need carried out for your connection isn’t born by the consumer if you cancel the project or reduce its capacity.
If the project runs to completion and as planned, we wouldn’t need to use the securities that are in place.
Who needs securities?
Any customer who needs us to complete transmission reinforcement works to connect them needs to have financial securities in place.
Where can I find more information?
You can learn more about financial securities in sections 2 and 15 of the Connection and Use of System Code (CUSC). There’s also a dedicated guidance document available for you to download that provides further information for generation projects.