Lodging Credit Cover
We don’t specify an amount of Credit Cover; it’s up to you to decide. You will need to make this decision based on your trading characteristics.
On this page
How it relates to you
Some things you may want to consider are:
- How much indebtedness could you accrue over 29 days
- How would your indebtedness be affected if you experienced a plant trip/system outage
- Other operational scenarios e.g. contract rounds
- An additional mark-up (25%) as you must only use up to 80% of the Credit Cover to avoid Credit Default processes
- Potential price changes during a period of price volatility
You can lodge Credit Cover during Working Hours as cash via bank transfer, Letter of Credit or an Approved Insurance Product.
If you want to lodge Credit Cover, contact the Elexon Support.
To make a deposit as credit cover for your BSC party, funds can be transferred to the following account:
Reserve Bank Account
ELEXON Clear Limited Reserve Account
Barclays Bank Plc,
1 Churchill Place,
Sort Code: 20-00-00
Account Number: 00256269
IBAN: IBAN GB96 BARC 2000 0000 2562 69
SWIFT Code: BARCGB22
Please ensure the BSC Party ID is used as the payment reference so this can be identified and please send an email to the Elexon Support confirming the value of funds deposited and date.
Withdrawing your Credit Cover
You can withdraw Credit Cover using the ‘minimum eligible amount’ (MEA) process. This process calculates the minimum level of Credit Cover that would be required to prevent Credit Default.
If you wish to reduce your collateral, there is a 10 day waiting period, during which a minimum eligible amount is established.
We calculate the MEA by finding your highest level of indebtedness over the 10 day waiting period. We then calculate how much you could have reduced your Credit Cover by and still had a CCP of 75%; this is the maximum amount you can withdraw.
Please note that this is not a recommendation on how much you should withdraw; you should assess the withdrawal carefully to ensure you leave a suitable level of Credit Cover in place to cover future Energy Indebtedness.
To raise an MEA request, you will be required to submit the BSCP301/06 form to the following email addresses:
On the Elexon website, download the BSCP301 forms document and scroll down to section 5.1.7 ‘BSCP301/06 Minimum Eligible Amount Request Form’
Once submitted, a result will be provided at the end of the 10 (calendar) day waiting period. When a MEA result is provided, it is up to the Party to decide whether to proceed with funds withdrawal or not.
It is when filing out the MEA result that the party can specify exactly how much collateral they would like to withdraw.
On receipt of the calculated MEA result, you have to 2 business days to advise us of your parties next step, in completing the credit cover reduction.
Please send this advice to the Elexon Support.
Filling in the BSCP301/06 form
When completing the BSCP301/06 form you should fill in the following information:
Left hand column
- Party ID – your party ID
- Party role – Will be one of the following dependent on the role ID assigned during registration of the party (Trading Party – Supplier, Trading Party – Generator, Trading Party – Interconnector User, Trading Party – Non Physical)
- Name of sender – Name of Authorised Signatory for the party
Please sign and enter the password of the Authorised Signatory as entered on signatories form BSCP 38 5.3
Right hand column
- Party ID – “UKDC”
- Party Role – “EC”
- Date Sent – today’s date
The authorised signatories for your Party can be seen on ELEXON Portal: www.elexonportal.co.uk/authsig.
In order to be able to sign a MEA you should be an authorised person N (or A).