Credit Assessment Price increase to £259MWh from 4 November
Following consultation and a subsequent meeting of The Credit Committee, the CAP will increase on Thursday 4 November 2021 to £259/MWh, from the last notified value of £184/MWh. Please note the last notified CAP of £184/MWh will still be implemented on 21 October 2021.
How it impacts you
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.
We recommend monitoring your Indebtedness and Credit Cover Percentage calculations on the Elexon Portal
- Elexon Portal > Financial and Credit > Credit / Credit Alerting > Party Energy Indebtedness
About the consultation
A consultation paper on the value of CAP was issued on Monday 4 October 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 £259/MWh, from its last notified level of £184/MWh.
The consultation closed on Tuesday 12 October 2021. Not all consultation responses agreed with the proposed CAP and therefore, in accordance with the CAP Review Guidance, a Credit Committee meeting was held.
The Credit Committee met on Thursday 14 October 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 4 November 2021 the CAP will increase to £259/MWh, from the last notified value of £184/MWh.
The last notified CAP of £184/MWh will still be implemented on 21 October 2021.