Credit Assessment Price (CAP) consultation: 7 September 2020

We have issued a consultation paper on the value of Credit Assessment Price (CAP).  We invite Parties to indicate whether they agree with the proposal to increase the value of CAP to £56/MWh from last notified value of £46/MWh.

Summary

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 increase of the CAP to £46/MWh from the current CAP 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 Thursday 10 September 2020 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 Wednesday 7 October 2020, the CAP value will increase £56/MWh. As a result, Parties may notice a change in their Credit Cover Percentage, and should review the amount of Credit Cover lodged.

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