Credit Assessment Price (CAP) – possible increase to £46/MWh

We are consulting on an increase of the CAP to £46/MWh from the current CAP value of £36/MWh. A change to CAP can impact the amount of Credit Cover required by a Trading Party.

The Credit Assessment Price (CAP) is used in the Energy Indebtedness calculations to convert Credit Cover into an energy value. A change to CAP can impact the amount of Credit Cover required by a Trading Party.

If all respondents and Credit Committee members are in agreement, the proposed value will be implemented on Thursday 10 September 2020 and the trigger level will increase to +/- £5/MWh.

If at least one respondent or Credit Committee member requests it or disagrees with the proposed value, Elexon will arrange a Credit Committee meeting. The Credit Committee will determine if a change needs to be made to the value of the CAP, the trigger level and when any new value should be implemented.

Responses

Trading Parties are invited to respond to this consultation using the proforma on the Credit Assessment Price consultation for August. Please return responses to [email protected] by 17:00 on Tuesday 18 August 2020.

How does this affect me?

This potentially affects the amount of Credit Cover that Parties are required to lodge. For more information, please see our FAQs.

Previous CAP consultations

The CAP has risen and fallen since the start of the year. A Cap consultation in February saw the value drop from £41/MWh to £36/MWh.

The value dropped again in March to £32/MWh, and there was a further reduction to £30/MWh.

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