Consultation on CAP change to £515/MWh from 21 September 2022

This page gives details of a consultation on revising the Credit Assessment Price (CAP) to £515/MWh from 21 September 2022. This two-day consultation will close at 17:00 on 6 September 2022.



Due to the announcement of an additional Bank Holiday on 19 September 2022, the implementation date of the last notified CAP of £515/MWh will be postponed until 22 September 2022.

Original consultation

Who will this impact?

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 BSC Party.

When the CAP changes it may affect the amount of credit cover that suppliers and generators are required to lodge with us. For some Parties this may mean additional collateral needs to be lodged.

We recommend monitoring your Indebtedness and Credit Cover Percentage calculations on the Elexon Portal to understand how this change may affect your Party.

If, after consultation, the Credit Committee members are in agreement to proceed with the proposed CAP, today’s proposed CAP of £515/MWh will be implemented on Wednesday 21 September 2022.

The current live CAP value of £415/MWh was implemented on 31 August 2022 and will be replaced by the previously notified CAP of £510/MWh from 7 September 2022.

Following a significant drop in the forward market prices, today the Credit Committee notified a CAP value of £475/MWh from implementation on 16 August even though it had consulted on £565/MWh on 26 August.

Timeline of the current and the upcoming CAPs


CAP value (£/MWh)

Effective From Date

Provisional Effective To Date*

Live CAP


31 August

6 September

Previously notified CAP


7 September

15 September

Last notified CAP


16 September

20 September

Today’s consultation


21 September

27 September

* The Credit Committee might withdraw a CAP if market developments closer to the implementation date support such a decision. Withdrawing a CAP would mean retaining the live CAP, as such the Effective To Dates above are provisional.

Please note if market numbers remain at the same level on Monday 5 September as they are today, 2 September 2022, the £510/MWh CAP is likely to be withdrawn by the Credit Committee i.e. retaining the £415/MWh CAP up to 15 September. In such case, it will be communicated on Monday 5 September.

Alternative CAP Review Process

Credit Committee members have decided to continue using the alternative Credit Assessment Price (CAP) Review process due to fast market conditions. This alternative process allows the Credit Committee to set a new CAP faster, review the CAP every two weeks and base their assessment on a wider range of data sources.

Please note this alternative process is outlined in the CAP Review Process Guidance Note.

To allow the faster implementation of CAP values during the alternative CAP review process, the Credit Committee will initially consider your consultation response ex committee. However, your response will be considered in more depth at the next Credit Committee meeting.

The next Credit Committee will be held on 9 September 2022.

Consultation questions

The questions in the consultation are:

  • Do you agree with the proposal to revise the Credit Assessment Price (CAP) to £515/MWh from 21 September? Note the last notified CAP of £475 will be effective from 16 September 2022.
  • If your answer to Question 1 is ‘No’, please give the value of CAP that you consider to be more appropriate and your rationale for that value.
  • Do you have any further comments relating to the appropriate value of CAP or the other points made in the consultation document?

How to respond

You can respond to this consultation online. All responses must be submitted by 17:00 on Tuesday 6 September 2022.

If you wish to save and return to your response, or share your response with a colleague before submitting then use the save and return button at the bottom of the form. You will then be given a link with your draft response that you can return to or share before submission.

If you would like a follow up from Elexon about your consultation response, please provide your contact details in the form. For any enquiries about responding to this consultation, please contact [email protected]

Background to the CAP

The Credit Assessment Price (CAP) is a parameter defined in Section M1.4 of the BSC as ‘the price it would be appropriate to use to determine the equivalent financial amount of BSC Parties’ Energy Indebtedness.’

Since 1 November 2021 the Credit Committee have been following the alternative CAP review process due to fast market conditions. While the alternative Credit Assessment Price (CAP) Review process is being operated, the Credit Committee will review the Credit Assessment Price at least once every two weeks.

However the Credit Committee might also meet in between if they feel it is necessary.

The consultation period is reduced to two working days and the notification period is reduced to 10 working days. This enables the CAP to change faster so that it remains representative of market conditions.

Rationale behind the new proposed CAP value

The Credit Committee met on 2 September 2022 and proposed a new CAP of £515/MWh for implementation on 21 September 2022.

The Credit Committee have been using ICIS Heren peak and baseload, power price assessments as the primary information to inform their decisions. The data that the committee were provided with is shown in the graphs below.

The Credit Committee considered the latest forward market prices for September 2022 but acknowledged that the prices for October and beyond are significantly higher.

The latest date with available forward market data was 1 September 2022. For this date, average forward market prices were at £413/MWh for w/c 12 September 2022 with a peak price of £438/MWh and a baseload price of £387/MWh. October prices average at £545/MWh.

Based on the most recent updates in the market data, the Credit Committee members unanimously agreed to propose a new CAP value of £515/MWh, to be implemented from 21 September 2022.

The Credit Committee is aware of the concerning numbers seen for the next weeks and months. This along with the high level of uncertainties in the market is the main reason the Credit Committee is meeting on a weekly basis to make sure it reacts to the market developments as quick as practicably possible to mitigate the risks on the market participants.

The graphs below contain the data that was presented to the Credit Committee to help inform their decision. There are five graphs, you can move between the graphs by using the arrows at the bottom. There are also options to filter the data by using the buttons on the right-hand side of the graphs.

Next Steps

Following the end of the consultation period, if required, the Credit Committee will consider any consultation responses, and decide whether to proceed with the proposed CAP. Consultation responses will be considered in more detail at the next Credit Committee meeting on 9 September 2022.

Any changes will be notified to all BSC Parties, and the new CAP will come into effect at least 10 Working Days later.

The next review of the CAP under the alternative CAP review process will be on 9 September 2022 until which the Credit Committee will continuously monitor the market conditions.

If the Credit Committee feels it is needed, it will meet before the scheduled meeting to make the best decision that is the most reflective of market data.

Further guidance

If any Parties have questions or concerns about the CAP, please reach out to our team at [email protected].

If you have questions or concerns about how the change to CAP may impact your Credit Cover please get in contact with [email protected].


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