Consultation on decreasing CAP to £56/MWh
We are keen to obtain your responses to the recent CAP consultation published on our website on 4 February. The deadline for any responses is 12 February.
How it relates to you
The consultation on the CAP was triggered by a decrease in forward market prices.
We are proposing to reduce the value of CAP to £56/MWh from its current value of £68/MWh.
This potentially affects the amount of Credit Cover that Parties are required to lodge, and so we encourage Parties to respond to the consultation.
Please email responses using the pro-forma on the consultation page.
The deadline for any responses is 12 February.
If all respondents and Credit Committee members agree with the proposed value, there will be no Credit Committee meeting.
The new CAP value will then be implemented on the proposed date of Wednesday 6 March 2019.
However, if one or more respondents or a Credit Committee member requests it, ELEXON will arrange a Credit Committee meeting after the consultation closes to determine the new CAP.
Background to the CAP
The purpose of Credit Cover is to ensure that, should a Trading Party default, sufficient collateral is available to pay any debts. If a Party does not have sufficient funds it will enter into Credit Default.
We have also published a webpage with two interactive graphs displaying the CAP and the Reference Price. The new graphs are versions of those contained within our consultation and will be updated weekly.