Credit Assessment Price (CAP) consultation: 25 March 2020

The Credit Assessment Price (CAP) is used in the Energy Indebtedness calculations to convert Credit Cover into an energy value.

We are consulting on a decrease of the CAP to £32/MWh from the last notified value of £36/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 Wednesday 15 April 2020, 10 Business Days after the consultation closes. The trigger level will also decrease to
+/- £3/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. However today, Monday 30 March, the Reference Price is £29.68/MWh, and therefore the Credit Committee decided to confirm a new CAP value of £30/MWh.

On Thursday 16 April 2020, the CAP value will decrease from £36/MWh to £30/MWh. As a result, Parties may notice a change in their Credit Cover Percentage, and should review the amount of Credit Cover lodged.
The CAP review trigger level value will also reduce at +/- £3/MWh.

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