Glossary

CAP increase consultation announced 17 May 2021

Following an increase in forward market prices, a Credit Assessment Price (CAP) review was triggered. There is now a consultation paper on the value of the CAP which asks whether you agree with the proposal to increase the value of CAP.

The proposal is to increase the value of CAP to £77/MWh from last notified value of £70/MWh

How does this affect me?

The CAP potentially affects the amount of Credit Cover that Parties are required to lodge, and so we encourage Parties to respond to the consultation.

Proposed implementation date

Thursday 16 June 2021

If there needs to be a committee meeting

However, if one or more respondents or a Credit Committee member requests it, Elexon will arrange a Credit Committee meeting after the consultation closes to determine whether a new CAP should be set. If a new CAP value is to be set, the Credit Committee will also determine its value.

 

How do I respond?

BSC Parties can comment on this consultation using the consultation proforma available on the Consultations page of our website.

Background to the CAP

You can find more information on the CAP, the Credit Committee and the review process on the Credit Committee page of our website.

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