Credit Committee: News
Are you interested in becoming a member of the Credit Committee?
The Credit Committee (CC) is one of several Balancing and Settlement Code (BSC) committees which play a role in managing and governing the code. The CC, which is responsible for all BSC matters relating to the Credit Assessment Price (CAP), is looking for new members.
Alternative Credit Assessment Price Review Process Consultation document
This page provides supporting information for the consultation on the Alternative Credit Assessment Price (CAP) Review process.
BSC Insight: What is driving the latest increases in Credit Assessment Price?
In this BSC Insight article, Mehdi Jafari outlines the recent trends in forward market prices and how we measure the Credit Assessment Price (CAP) process effectiveness against the System Buy Price. The article also provides an update on our Insight Article in May 2021, where the sixth CAP change of 2021 was in process.
BSC Insight: What is Credit Cover and how does the Credit Assessment Price affect it?
The Credit Assessment Price has changed nine times in 2021 and we recently consulted on increasing the Credit Assessment Price again to a record high of £184/MWh. The Credit Assessment Price is used as a proxy for future Energy Imbalance Prices in the calculation of Credit Cover requirements. Emma Tribe, our Senior Product Analyst from the Analysis and Insights team, explains how the Credit Assessment Price is related to a Parties Credit Cover requirements.
BSC insight: Forward Market Prices drive six CAP value reviews this year
We issued a consultation on changing the Credit Assessment Price (CAP) value on 17 May 2021. This is the sixth time in 2021 that the CAP value is going to change. This is the most CAP change events to occur in the first five months of the year since the CAP weekly monitoring process was introduced in 2007.
CAP increase consultation announced 17 May 2021
Following an increase in forward market prices, a Credit Assessment Price (CAP) review was triggered. There is now a consultation paper on the value of the CAP which asks whether you agree with the proposal to increase the value of CAP.
The proposal is to increase the value of CAP to £77/MWh from last notified value of £70/MWh
CAP increase announced for 12 May 2021
A Consultation paper on the value of Credit Assessment Price (CAP) was issued on Monday 12 April 2021 following a breach of the CAP trigger level. No responses disagreed with the proposed value and its was agreed that CAP value will increase to £60/MWh.
CAP increase consultation announced 04 May 2021
Following an increase in forward market prices, a Credit Assessment Price (CAP) review was triggered. There is now a consultation paper on the value of the CAP which asks whether you agree with the proposal to increase the value of CAP.
The proposal is to increase the value of CAP to £68/MWh from last notified value of £60/MWh.
CAP increase consultation announced 12 April 2021
Following an increase in forward market prices, a Credit Assessment Price (CAP) review was triggered. There is now a consultation paper on the value of the CAP which asks whether you agree with the proposal to increase the value of CAP.
The proposal is to increase the CAP to £60/MWh from the last notified CAP value of £54/MWh.
CAP increases to £64/MWh from 23 February 2021
The Credit Assessment Price (CAP) will increase to £64/MWh, effective from Tuesday 23 February 2021.
CAP increases to £62/MWh from 27 January 2021
The CAP will increase to £62/MWh – not the proposed £60/MWh – on Wednesday 27 January 2021.
Credit Assessment Price (CAP) – price stays at £30/MWh
The Credit Committee deemed it appropriate to keep the Credit Assessment Price (CAP) at the current price of £30/MWh. Discussions were held by the Committee regarding whether to revise the current price of £30/MWh following recent changes in forward market prices.
CAP decreases to £30/MWh from 16 April 2020
On Thursday 16 April 2020, the CAP value will decrease from £36/MWh to £30/MWh.