CAP increases to £62/MWh from 27 January 2021
The CAP will increase to £62/MWh – not the proposed £60/MWh – on Wednesday 27 January 2021.
Decision on a new CAP
This decision was made to increase the CAP at a Credit Committee meeting on Wednesday 6 January 2021. The Committee considered the latest February, March and April 2021 forward prices and the factors leading to their increase since the consultation paper was issued.
A Credit Committee meeting was held as all consultation responses and Credit Committee members were not in agreement with the proposed value. Therefore, in accordance with the CAP Review Guidance, a meeting was arranged.
Initial consultation
A consultation paper on the value of CAP was issued on Monday 21 December 2020 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 £60/MWh, from its current approved level of £56/MWh.
Change in Credit Cover Percentage
Parties may notice a change in their Credit Cover Percentage as a result of the new CAP, and should review the amount of Credit Cover lodged.