CAP increase consultation announced 04 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 £68/MWh from last notified value of £60/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.
If all respondents and Credit Committee members agree with the proposed value, there will be no Credit Committee meeting and the new CAP value will be implemented on the proposed date.
Proposed implementation date
Thursday 3 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.
Please submit your responses by 17.00 on Wednesday 12 May 2021.
Please note that the CAP value of £60/MWh which we consulted on in April 2021 will be implemented on 12 May as planned.
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.