The Analysis of Credit Management in Guangdong Electricity Market

This paper starts with an overview to the credit risk management in electricity markets abroad, which usually includes two parts that quantification of credit risk exposure and determination of credit limit for covering the risk exposure. In the main idea that keeping credit risk less to credit limit, the credit risk management method is introduced into Guangdong electricity market and adjusted with actual operating environment. The calculation of risk exposure fits to the settlement procedure, as well as the credit rating methods are changed and totally differs with other provinces on the other hand. The problems coming into being are the single form of collateral, lack of data and adjustment and the coupling between the credit rules in GPEC and GGCO, the credit rules and settlement rules, the credit rules and market operating rules. Relevant solutions are raised up with its merits and short. Finally, the open and flexible attitude to risk management is proposed.