CAP increases to £64/MWh from 23 February 2021
The Credit Assessment Price (CAP) will increase to £64/MWh, effective from Tuesday 23 February 2021.
The CAP only recently increased to £62/MWh on Wednesday 27 January 2021, but this will increase again at the end of February.
Decision on a new CAP
The decision was made to increase the CAP at a Credit Committee meeting on Monday 1 February 2021. The Committee considered the latest March and April 2021 forward and cash-out prices and the factors leading to their trend 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.
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.
A consultation paper on the value of CAP was issued on Monday 18 January 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 £64/MWh, from its last notified level of £62/MWh.
Previous CAP consultations
- 21 December 2020 – CAP increased to £62/MWh from £56/MWh
- 15 October 2020 – CAP increased to £56/MWh from £46/MWh
- 10 September 2020 – CAP increased to £46/MWh from £36/MWh
- 23 July 2020 – CAP increased to £36/MWh from £30/MWh
- 16 April 2020 – CAP decreased to £30/MWh from £36/MWh
- 11 March 2020 – CAP decreased to £36/MWh from £41/MWh