Credit Assessment Price (CAP) consultation: 22 February 2021
We invite Parties to indicate whether they agree with the proposal to decrease the value of CAP to £54/MWh from last notified value of £64/MWh.
Status
Who will this impact?
As the trigger levels are set at 10% of the CAP value, rounded to the nearest whole pound, this will also increase at +/-£6/MWh.
The Credit Assessment Price (CAP) is used in the Energy Indebtedness calculations to convert Credit Cover into an energy value. We are consulting on an decrease of the CAP to £54/MWh from the current CAP value of £64/MWh. A change to CAP can impact the amount of Credit Cover required by a Trading Party.
If all respondents and Credit Committee members are in agreement, the proposed value will be implemented on Tuesday 23 March 2021 and the trigger level will increase to +/- £5/MWh.
If at least one respondent or Credit Committee member requests it or disagrees with the proposed value, Elexon will arrange a Credit Committee meeting. The Credit Committee will determine if a change needs to be made to the value of the CAP, the trigger level and when any new value should be implemented.
Outcome
No responses were in disagreement with the new suggested CAP value.
On Tuesday 23 March 2021, the CAP value will decrease to £54/MWh. As a result, Parties may notice a change in their Credit Cover Percentage, and should review the amount of Credit Cover lodged.