CAP increase announced for 3 June 2021
On Thursday 3 June 2021, the CAP value will increase from £60/MWh to £70/MWh. This follows a consultation paper issued on Tuesday 4 May 2021 following a breach of the CAP trigger level.
About the consultation
We issued a Consultation paper on the value of CAP on Tuesday 4 May 2021 following a breach of the CAP trigger level. BSC Parties were invited to indicate whether they agreed with the proposal to increase the value of CAP to £68/MWh, from its current value of £60/MWh.
The consultation closed on Wednesday 12 May 2021. No responses from industry disagreed with the proposed value of £68/MWh. However, following consideration of the recent upward trends in forward market prices since the consultation, the Credit Committee members have agreed to set the new CAP value at £70/MWh.
Outcome of the consultation
On Thursday 3 June 2021, the CAP value will increase to £70/MWh. As a result, Parties may notice a change in their Credit Cover Percentage, and should review the amount of Credit Cover lodged.
The CAP review trigger level value will also increase to +/- £7/MWh.