Credit Assessment Price (CAP) consultation: 21 December 2020
We invite Parties to indicate whether they agree with the proposal to increase the value of CAP to £60/MWh from last notified value of £56/MWh.
As the trigger level is set at 10% of the CAP value, rounded to the nearest whole pound, this would remain at +/-£6/MWh.
Status
Who will this impact?
This change can affect the level of Credit Cover that you are required to lodge, so we encourage you to respond to the consultation. If at least one respondent or Credit Committee member requests it, Elexon will arrange a Credit Committee meeting after the consultation closes to determine the new CAP value.
If all respondents and Credit Committee members agree with the proposed value included in the consultation document, there will be no Credit Committee meeting and the new CAP value of £60/MWh would be implemented on a proposed date of Wednesday 27 January 2021.
This page will be updated following the conclusion of the consultation to confirm the proposed CAP value and implementation date, or state a Credit Committee meeting will be held.
Outcome
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.
Decision on a new CAP
The Credit Committee decided the CAP will increase to £62/MWh – not the proposed £60/MWh – from the current value of £56/MWh. This will be effective from Wednesday 27 January 2021.
This decision was made at a Credit Committee meeting on Wednesday 6 January 2021. The Committee considered the latest February, March and April 2021 forward prices and the factors leading to their increase since the consultation paper was issued.