Credit Assessment Price increase to £184/MWh on 21 October
Following consultation, the Credit Assessment Price (CAP) will increase on Thursday 21 October 2021 from £137/MWh to £184/MWh. Please note the last notified CAP of £137/MWh will still be implemented on 5 October 2021.
How it impacts you
As a result of the increase, Parties may notice a change in their Credit Cover Percentage and should review the amount of Credit Cover lodged.
About the consultation
A consultation paper on the value of CAP was issued on Monday 20 September 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 £184/MWh, from its last notified level of £137/MWh.
The consultation closed on Tuesday 28 September 2021. All responses and Credit Committee members were not in agreement with the proposed value and therefore, in accordance with the CAP Review Guidance, a Credit Committee meeting was held.
The Credit Committee met on Thursday 30 September 2021, to decide whether a new CAP should be set. It considered and discussed the consultation responses received, the latest forward looking electricity prices, the factors driving the trend since the consultation paper was issued, and the impact of changing the CAP on the Credit Cover process.
The Credit Committee decided that on Thursday 21 October 2021, the CAP will increase to £184/MWh, from the last notified value of £137/MWh.
The last notified CAP of £137/MWh will still be implemented on 5 October 2021, following an earlier consultation.