District Cooling Services Supply Code

PAYMENT SECURITY AND DEFAULT 8-1 Power to Require Security 8-1-1 The Licensee may mitigate the risk of non-payment by the Consumer by requiring the Consumer to provide reasonable security for the payment to it of all money which may become due, which may include: (a) Cash deposits; (b) Bankers’ guarantee; or (c) A combination of the above. 8-1-2 The maximum amount of security that the Licensee may require from the Consumer shall be based on the Licensee’s estimate of the financial exposure faced by it. 8-2 Default Process 8-2-1 In the event of a default in the payment by the Consumer, the Licensee shall not realise on any security held until 8 days have elapsed from the date of notification given pursuant to section 8.2.2. 8-2-2 The Licensee shall, on the business day following a default of payment by the Consumer, notify the Consumer that payment was not received and to remedy the situation. If the amount owing remains unpaid 16 days after the date of the giving such notice, the Licensee may notify the Consumer that it shall discontinue the supply of District Cooling Service and subsequently disconnect the supply connection from the System. 8-2-3 The Licensee may charge interest on any overdue payment at such rate stipulated in the Supply Agreement or, in the absence of such stipulation at a rate as may be approved by the Authority from time to time.